It seems laughable to think about saving money during a cost of living crisis, but you can do it with determination and planning. If one of your goals is to start saving money, whether to reduce your spending, save up for a rainy day, or a special event like a wedding, here are some top tips that can make a difference to your financial situation.
1. Don’t pay interest on your credit cards
If you’re paying off a credit card and you’re starting to be charged interest, begin a financial plan for paying it off. A top tip for saving money while paying off credit is making a money transfer to a new 0% credit card. This way, you can avoid paying interest which will set you back by more each month, and begin to chip away at the debt with monthly direct debits.
2. Budget for your necessities
It might feel terrible and even scary, but sitting down and getting an accurate picture of your finances is crucial to saving money. Go through your statements and work out how much your outgoing bills add up to. Once you know your outgoings versus your income, you can begin to set up a plan.
Good advice is following the 50/30/20 rule – 50% of your income goes on necessities such as rent, bills and food, 30% goes on things that make life enjoyable like meals out, seeing friends, and going to gigs, and the final 20% goes on credit card payments, savings, and investments.
If you’re a smoker or a vaper, then you’ll be paying a chunk of money each month for your cigarettes or vape juices. One of the ways you can save money is by trying to cut down if you’re a smoker or buy your Red Juice e-liquids in the sales and clearances. These happen regularly throughout the year and are an excellent opportunity to bulk buy.
3. Try to resist the payday splurge
Nothing feels as good as a payday. However, for many, it’s also their savings downfall.
According to a survey from Nationwide, one in five people spends over half of their monthly wages in the first 48 hours of being paid. So before you buy those trainers, take a step back and think about if you need them. Is it worth putting that money into your savings or paying off more of your credit card? Can it wait?
Emotional spending is a big bank breaker, so considering your moods when you shop is a great way to cut back on spending. If you notice you shop when you’re stressed or sad, it might be time to find a new way to self-soothe – retail therapy is very short-lived.
4. Shop own-brand at the supermarket
Marketing makes a sucker out of everyone. Sometimes the price does reflect the quality of a product, but most of the time, it’s all the same. Choosing own-brand products instead of popular branded ones is a great way to cut down your monthly outgoings – everything from washing up liquid, toilet roll, bread, and pasta. There is barely any difference between the taste and quality of these items, and your bank balance will thank you.
5. Go incognito
Potentially the biggest secret of all time that you should all know about. Use an incognito browser when shopping online. Why? Because your search history is withheld and automatically deleted, meaning the companies whose products you’re looking at can’t see and therefore put their prices up. Unfortunately, this does happen, so get savvy.
