Minimum Wage Increases – More Money to Save?

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The minimum wage for workers in the UK who are 21 or older has risen by 11p an hour, reaching the lofty height of £6.19/hour. Whilst the rate of inflation is still outpacing any additional income by a long way, this extra money for a large section of the UK workforce is sure to be helpful to plenty of people.

There had been fears that the government would freeze the minimum wage, but even though that has not happened, many people were quick to point out that this 1.8% increase is nowhere near the 2.8% increase in RPI inflation, or the jumps that we’ve seen in the cost of living for the last few months.

Of course, whenever people find that their income has gone up, they have to make decisions about what they will do with the extra money. Even though the extra 11p an hour may not be a fortune, it is certainly enough for many people to consider whether it would be best for them to use the money to live better or to set aside what they have earned and begin saving for any future problems.

There are many savings accounts which are perfectly set up for people to put money into them on a weekly or monthly basis, and though they may not give a particularly high return on your savings, you will find that the amount of money in them can quickly add up, depending, of course, on how much and how regularly you are making payments.

As with many forms of savings, it’s best to work out how much you will set aside and put that into your account straight away, rather than simply saving whatever you have left over at the end of the week or month. That way, the temptation to spend the money is not there.