Saving means different things to different people. So people see saving as putting money away for a rainy day. Others may interpret it as buying things which are on offer in supermarkets, or cutting down on energy bills. Whichever way you look at saving, by finding ways to lower your everyday costs, you’ll build habits that can change the way you look at your life, your household and the future.
1.Even a Small Amount a Month makes a difference
Put some money away into a savings account. It doesn’t matter how much. Anything you can afford to put away makes a difference. Think about it – just £5 a month would equate to £60 a year – in 10 years you will have saved £600 and it’s doubtful you would have ever noticed it was gone. Regular saver accounts are great for people who are starting to save for the first time, but if you’re not great with money, choose an account which has a penalty for withdrawing more than once a year – this will discourage you from dipping into your savings when you don’t really need to.
2.Kill your Debt First
Getting rid of debt is the fastest way to free up money. Seeing your hard earned cash go to lenders is difficult, but the faster you pay off your debts, the faster you will be debt free – that means no more interest to pay, less stress, and no awful bills through the door.
3.Stop using Credit Cards
Pay for everything with cash. Don’t even use cheques. It’s easier to overspend when you’re pulling from a bank or credit account because you don’t know exactly how much is in there. If you have cash, you can see your supply running low. You can also see how much you have spent, which makes it much easier to put a limit on things. If you earn £800 a month, putting £100 in your wallet for a night out is 1/8th of your monthly salary. Once you can see that cash in there, you may think twice about spending it all.
4.Set a Realistic Savings Percentage Per Month
Start by saving 2 percent per month. Almost ANYONE can save 2 percent. The biggest bonus of this is that you won’t even notice it’s gone – but you’ll certainly notice it building up in your savings account.
5.Buy Experiences, not things
Is buying that dress for £100 REALLY going to make you that much happier for all the money you spend on it? Sure, you’ll look gorgeous on the few occasions you wear it. But are you going to look back in 3 years and say ‘I am so glad I spent that money on that dress. I remember how many great experiences I had with that dress’? Activities you do with people you like – day trips, going out to eat with your friends, concerts – will make you happy for many years to come. And having good relationships is the best investment you can make.