You may be asking yourself, can I afford to save? The bigger question is – can you afford not to? Everyone needs to get their hands on some money at short notice at some point in their lives, maybe for an emergency, like the car breaking down, or a new fridge; alternatively you may want to get away, have a holiday, or just buy something new.

By putting a regular amount away now, however small, you’re buying yourself peace of mind that you will have money available in the future should you need it. And really, what are you giving up? It’s the cost of a night out, a few coffees or a takeaway meal – you won’t really miss it now – but it could be invaluable in the future.

Make sure the timing is right. Ask yourself:

Do I have some rainy-day cash?

• This may sound overcautious but try to have an emergency fund of at least three months’ salary. You never know what’s round the corner.

Have I cracked the debts?

• Don’t start to save if you are up to your eyes in debt.
• Clear the cards. Credit and store cards often charge high rates of interest – more by far than you will earn from your savings.

The only debts you should feel comfortable with not paying off as soon as possible are your mortgage and student loan (if you have one).

Once your debts are dealt with, and you have some emergency cash, you can start to think about investing.