Tips on Saving Money
Saving money can be difficult, with the hardest part in many cases being just getting started. These few tips could help get you off the start line and on the way to reaching your financial goals!
A Clear Vision
One of the first things you can do is to establish exactly what it is you are saving for, how much it will cost and when you hope to reach this goal by. This way you will always have something to work towards whilst also keeping you on track to eventually reach that goal.
Record your Expenses
A good place to start is working out how much you spend. Keeping track of everything you spend for one month could highlight certain items you could go without. For example, a subscription magazine you get but don’t ever find the time to read, the daily coffee you could go without or even food that always ends up in the bin!
Even if it is a small amount, this will add up and help you build your savings account.
Achievable Goals
It is important not to set goals that you aren’t likely to reach which might dampen all motivation to save. Work out exactly what you will have after all the bills and other expenses are accounted for and aim to save a proportion of what is left. This way, you aren’t pressuring yourself to save every penny you have while setting yourself achievable goals.
Separate Accounts
Once you have decided the amount of money you can afford to save each month, send this amount to a separate bank account and forget about it. This could be something you set up automatically on or around payday so you don’t even need to think about it!
It is worth making sure the account you are saving your money in is accessible in the event of emergencies such as a new tyre or a burst pipe!
‘No Spend’ Weekend
The saying ‘if you’re not earning, you're burning’ is certainly relevant when to comes to enjoying some time off work with family or friends. Set yourself one or two ‘no spend’ weekends per month and see how much money you could save. Perhaps replace things such as going to the cinema with a movie night or a games night. If you work on the weekends, pick one or two days in which you are not working to have these days.
Branded Products
Take a closer look at certain items you purchase on a regular basis and consider switching them for a cheaper alternative. This tip is more relevant when doing the food shop. If you are able to switch just a few products, this could shave a few pounds off your weekly shop while adding them straight to your savings account!