Change your mindset - and embrace savings

Are you a saver or a spender? According to new research, one in five (20%) of us think of ourselves as a spender, while two in five (39%) favour saving over splashing out - leaving the other 41% somewhere in the middle.

While splurging may bring a burst of excitement, spenders could be leaving themselves vulnerable to financial shocks if they face an unexpected bill, as well as storing up other problems for the future.

Hargreaves Lansdown's survey of more than 2,000 people found that just 29% of spenders say they feel confident they'll be able to afford to retire, compared with 39% of savers.

Savers, of course, tend to have more in the bank too, with just one in 20 savers saying they have less than £500 in their account, compared with one in five spenders. Furthermore, only a fifth of spenders feel confident about meeting their savings goals, compared with two-fifths of savers. They also risk running out of money if their circumstances change: Some 40% admit their savings would last less than a month.

"Big spenders might be having all the fun, fun, fun right now, but there's a risk they'll come to regret it," says Sarah Coles, a personal finance analyst at Hargreaves Lansdown. "We can all be tempted to spend too much every now and again: There's a multi-billion pound advertising industry designed to persuade us to do exactly that.

"The risk is that we get into dangerous habits," she adds. "Overspending becomes part of our mindset, and we come to think of ourselves fundamentally as 'spenders'."

So can you change your ways? Coles says yes, there are steps spenders can take to break the cycle. While it may not be easy to change your habits overnight, here are Hargreaves Lansdown's tips to help you start thinking like a saver...

1. Let go of the idea that it's OK to be a spender

Identify your spending weak spots and use techniques to keep them under control. If you enjoy the thrill of buying on impulse, try giving yourself a 48-hour 'cool-off' period to see if you still want the item.

Those with a weakness for splurging could also consider trying to avoid temptation by banning themselves from specific shops, avoiding online shopping when they are feeling particularly vulnerable, or trying not to buy anything in the week after payday - to make their income stretch for longer.

2. With the cash you free up, start regular monthly savings

Set up an automatic payment to put a monthly sum into a savings account, and also boost your monthly pension savings - before the cash has a chance to hit your bank account and be spent.

3. Engage with where your money is going

Don't just dump your emergency savings it into an account with the same bank as your current account, look for a competitive rate on an easy access account. If you know you won't have time for regular searching and switching, consider an online savings marketplace, which lets you compare and switch between banks in a handful of clicks. Also, make sure you understand how your pension is invested.

4. Set specific goals

Prioritise short-term spending you know is coming up - like holidays or Christmas - alongside building up a cash safety net of three to six months' worth of salary for emergencies, and boosting your pension. If you can only dip in for specific items, it'll stop you spending as fast as you save.

5. Finally, enjoy the thrill of being a saver

Spending brings regular small bursts of short-lived pleasure, so don't just try to remove this from your life or you'll end up fixating on it. Make sure at least one of your savings goals is something that brings you real joy - like a debt-free Christmas, or much-needed holiday.

Take the time to check your savings regularly, feel good about what you're achieving, and bask in the pleasure of getting closer to your goals. Once or twice a year, check your pension too. It's a good chance to see how it's growing - and to check you're happy with where it's invested.

HOW TO... SAVE MONEY WHEN TRAVELLING IN YOUR CAR OVER EASTER

Many of us will be getting out and about over the Easter holidays, catching up with family and friends. Here are some tips to drive down the cost of your car fuel from TopCashback.co.uk, which is offering new members £10 cashback on fuel, subject to various terms and conditions, in a deal running from April 15-21:

1. Stay aerodynamic. Wind resistance drives up your fuel consumption, so keeping your windows closed when driving at a high speed and removing roof racks and boxes when they're not needed will result in wasting less fuel.

2. Drive sensibly. The less braking and acceleration you do, the less fuel you'll use.

3. Keep tip top tyres. Ensuring your tyres are properly inflated is not only essential for safe driving but can really improve your fuel consumption.

4. Have a clear-out of your car. Keeping your car light will help with fuel consumption so don't drive around unnecessary things and clear out your boot. Filling up your petrol tank to full will also put weight on the car, so keeping your tank half full will have a positive effect.

5. Get a regular service. Making sure your car is in working order and ensuring you're using the correct engine oil will maintain your engines' efficiency.

6. Shop around. Filling up wherever is the most convenient may cost you the most. But just remember to not drive too far in the search for cheap petrol as if you use too much petrol it could be a false economy.

7. Consider using a cashback credit card to get money back every time you fill up. Just make sure you pay your balance in full each month to avoid paying interest.

8. Stay loyal. Lots of petrol stations and supermarkets offer a loyalty scheme meaning you can get something back in return for being loyal. However, never choose to fill up at a particular petrol station just because of its loyalty scheme as the reward may be small compared to variable petrol prices.

9. Get a freebie. It's worth searching the internet to see if any petrol stations or supermarkets are offering promotions giving you money off fuel.

POUNDNOTES

Financial fact: People living on their own spend an average of 92% of their disposable income, compared with two-adult households who spend only 83% of theirs, Office for National Statistics (ONS) analysis of people aged 25-64 has found. The research compared people living alone with those living together with another adult, and did not include those living with dependent children.

NEW £2 COIN CELEBRATES SAMUEL PEPYS

Samuel Pepys is being celebrated with a new £2 coin from the Royal Mint. A diary kept by Pepys from 1660-1669 gives a first-hand account of historic events such as the Great Fire of London, the Second Dutch War and the Great Plague. The coin, which is available to buy on the Royal Mint's website, commemorates the 350th anniversary of Pepys' final diary entry. Prices range from £10 for a brilliant uncirculated version of the coin, to £845 for a gold proof coin.

PENSIONS DASHBOARDS WILL GIVE PEOPLE OVERVIEW OF SAVINGS

Pensions dashboards enabling people to see details of their retirement savings in one place have been given the green light, with initial industry models expected this year.

The UK Government said savers will be in the driving seat, with all the facts and figures about their pensions and potential retirement income at their fingertips in one place for the first time - on smartphones, tablets and computers.

At the moment, when people build up savings with different employers for when they retire, they can only look at these pension pots separately.

HOME OWNERS 'REGRET COMPROMISING ON LOCATION AND PRICE'

A quarter of home owners who compromised on location when buying their current property say they now regret it, a survey by Which? Mortgage Advisers has found. One in five (20%) people surveyed said they compromised on the preferred area of their current home, 25% of whom said they later regretted it.

The price paid (26%), the decor (23%), the size of the rooms (20%) and the garden (17%) were also factors people had made compromises on when buying.