At Lozatina, we believe successful financial security is built on two solid pillars:
Short-term savings and long-term savings.
Many people focus only on one—but real financial strength comes from balancing both.
Here’s why you need each type, and how to structure them properly:
Long-term savings are funds you set aside for goals 5+ years away.
✅ Examples:
Retirement
Buying a home
Starting a business
Your children’s education
Long-term care needs
Main Goal:
👉 Grow your wealth, beat inflation, and build future freedom.
Best Places to Grow Long-Term Savings:
Pensions (e.g., UK Workplace Pension, SIPP)
Stocks and shares ISAs
Investment accounts (index funds, diversified portfolios)
Property investments (carefully selected)
🔔 Lozatina Tip: Focus on higher returns, accepting some risk because you have time to recover from market ups and downs.
Short-term savings are funds you will need to access within the next 1–3 years.
✅ Examples:
Emergency funds
Holiday trips
Car repairs
Minor home improvements
School supplies or tuition fees
Main Goal:
👉 Stability, security, readiness for expected (and unexpected) expenses.
Best Places to Keep Short-Term Savings:
High-yield savings accounts
Money market accounts
Premium Bonds (small amounts, UK)
Cash ISAs (UK tax-free savings)
🔔 Lozatina Tip: Keep these savings 100% liquid (easy to withdraw with no penalties).
Step 1: Emergency Fund First
Save at least £1,000 minimum, ideally 3–6 months of living expenses.
Step 2: Start Growing Your Long-Term Future
Once basic short-term security is achieved, open or boost a pension, invest in a Stocks & Shares ISA, or start a diversified portfolio.
Step 3: Keep Short-Term Savings Fresh
Keep replenishing your short-term fund whenever you use it.
Save for annual goals like vacations, tuition, car services separately.
Step 4: Automate Everything
Set up auto-transfers into both accounts monthly—making saving as effortless as paying your bills.
🔔 Small money habits beat big plans that never happen.
"I never thought I could save and invest at the same time. Lozatina’s system helped me build £4,500 short-term savings AND a £16,000 pension pot in three years."
— Layla M., Bristol
"The two-savings method meant I never needed to cash out my stocks, even when my boiler broke. I stayed invested—and my retirement fund has doubled since then!"
— Tom S., Edinburgh
It depends on the type of debt:
High-Interest Debt (credit cards >10% APR): Pay this off first, while building a small emergency fund (£500–£1,000 minimum).
Low-Interest Debt (student loans, mortgages): You can save and invest simultaneously while making regular payments.
Usually no. Short-term money must be safe because market investments can be volatile in the short term.
Only in very specific cases (e.g., saving for a planned expense 3–5 years out, like a home purchase) might you use low-risk investment products, such as:
Short-term bond funds
Cash-equivalent ETFs
Even then, Lozatina advises keeping at least 50–70% in cash for true short-term needs.
🔔 Investment is for long-term dreams, not next year's emergencies.
No, not drastically. Recessions are natural parts of the economic cycle and are already built into long-term investing models.
Key principles during a recession:
Stay invested.
Avoid emotional selling.
If possible, invest even more (stocks are "on sale").
🔔 The worst investment decision is panic. The best is patience.