Having a little tucked away in a savings account can give you a great deal of financial flexibility. It may give you a little security when taking business risks or making financial investments. The knowledge that you still have something saved will help give you confidence regarding these types of decisions. Accumulating savings also allows you to build up money that you can use to treat yourself. Whether this treat comes in the form of a holiday, a designer handbag or a new car is up to you. But if you’re new to the concept, how do you start saving?

Assessing your daily expenditures will help you to see clearly where savings could be made. For one week, keep a diary of everything you spend – from TV licence payments to coffees in cafés. Many people are surprised by where their pennies are frittered away on unnecessary expenses. Once you’ve identified your spending weaknesses – that is, the ways in which you spend money from which there is no significant improvement to your quality of life – you can start to make cutbacks, freeing up cash for savings. These savings can then be used for things that will improve your quality of life.

Give yourself a goal. Whether this is a figure you want to reach or the cost of something you want to buy, having a target amount will help you to regulate your spending and be more consistent in your saving habits. Saving is a habit like any other, and it is a good one to learn sooner rather than later.

A good saving account, from Santander or another bank or building society, will give you further incentive to add to your little pot of gold. Knowing that you are earning good interest on your money is almost always effective fuel for the achievement of your savings goal. Shop around and find the bank that can offer you the best deal, bearing in mind the amount of time over which you want to accumulate and be able to spend your stashed cash.