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6th September 2019
Trying to save money can be quite difficult at times. But don’t worry, the hardest thing about saving is normally trying to get started. To help you achieve your financials goals we have provided 8 of our money saving tips below.
1) Note down your expenses
This is a very important tip that most people forget to do. The best way to save money is to know what you are currently spending. The ongoing bill expenditure will be easy enough to note down if it is the same every week/month. However, you also need to record all the small expenses the buildup over the week. For example, a coffee every day, household items, food and so on. Use your bank statement to help with this. From here you need to categorize your expenses into groups like bills, mortgage, petrol, shopping and so on.
2) Create a budget
Once you know roughly how much you spend each month you then need to organize your expenses into a budget. You will be able to see how your expenses compare to your monthly income. You should start to make a plan for how much you’d like to spend each month and commit to it.
Just be sure you keep some leeway with your budget in case you need to pay for irregular expenses such as car maintenance, or plumbing issues etc.
3) Plan how much to save
Generally speaking, a good amount to save is 10-15% of your income. If you are unable to commit to this because your expenses are too high you may want to see where you can cut or reduce your expenditure. Small savings will add up quickly. For example, maybe reduce the amount of coffees you buy in a week or make lunch at home rather than eating out. Are there any memberships you no longer use?
4) Set a goal for your savings
To avoid yourself from impulse buying a good idea is to set a financial goal. Think of this as a long-term strategy to make your life better in the long run. Start by thinking of the sorts of things you want to save for – maybe you’re getting married, want to go on holiday, buy a new car, buy a larger home or simply retire early. Once you know this you can then work out how much money you will need to save and how long it will take.
5) What are your priorities?
Make sure that you don’t put off long term savings like your retirement pot for short term needs. Learn to start prioritizing what is the most important to you so that you can save for this. For example, if you know you will need a new car shortly then start to put money away for that initially. Just be clear what that money is for and resist the temptation of using it.
6) Open the right saving accounts
If you’re saving for the short-term then opening a simple savings account or instant access ISA will be the right option. But still check to see which providers are offering the best interest rates. For longer term goals it may be worth seeing a financial adviser to discuss retirement or investment plans.
With so many saving options out there, you might consider having an easy access account, so you can get at your money if you need it. You could also consider opening a fixed rate account where you can’t access the money for a certain amount of time, but you receive a higher interest rate.
7) Automate your savings
The majority of banks allow you to set direct debits between your current account and saving accounts. You can choose when these are made, how much and where the transferred money goes. If you have separate saving accounts for different goals, you may split this transferrable money between these separate accounts. As these come out automatically you don’t need to worry about spending it.
8) Watch your savings grow
Now that everything is set up you will be able to see your savings grow over time. Be sure to constantly review your budget and expenses to see if there is anything else you can do to make additional savings.
If you are looking for more help and guidance, get in touch with us on 01609 760960. Or arrange a call back and one of our financial advisers will be happy to help.
Reference – BL079 – Sep – 2019
