Collaborative Post
These days a lot more people are looking to save money but are unsure on the best ways to do this. Some people think that they need to make major changes in life but sometimes just making some small changes can be enough for you to start saving money. Whether you are saving for something big or just putting away some money for a rainy day there is lots you can do to help you reach your savings goals.
If you are looking to save money for anything you may want and need but you are struggling to get started or looking for some ideas to help you while you save, then this guide should help you to understand how to save better and get started on making a few changes to your life so saving comes more easy to you.
Make sure to save before you spend
The best place to start is by gaining a bit more financial freedom, and you can do this by budgeting properly. It is said the best way to do this is to take fifty percent of your pay for bills and payments, thirty percent on yourself like going out and then twenty percent should be saved. If you can do this and stick to it then you are going to be able to save money each time you are paid. Make sure you save the money though before you start spending it on yourself, otherwise it can be easy to keep spending and not save.
Try to get rid of your credit card interest
What people do not realise when using a credit card, is that you are being charged interest each month, so the higher the balance or the more cards you have then the higher the amount you pay. You can reduce this by paying off your cards, which probably isn’t possible or by getting a zero percent balance transfer card where you can transfer the balance of your cards to a new one that has no interest so you can pay them off over a period of time without accruing the interest.
Do not spend as soon as you are paid
It is very common for people to burn through the money they have for the month after getting paid, but you need to try and refrain from doing this otherwise this is where you end up eating into savings because you have spent the disposable income you had for the month. Try to think about what you are buying and whether it is necessary at that time, make sure you prioritise things that you are going to need and not things you think you need.
Check your suppliers
A great way for you to save some money is to look at your bills and see where you are spending the most and whether or not you can get a better deal. There are so many comparison sites, whether you are looking for gas and electric suppliers to the best mobile networks there are sites that can help you with all of them. By checking your suppliers you are going to be able to cut a few pounds a month which can really add up over the year. If you are able to save on only three bills you are really going to free up some more income for you to save each month.
Photo by Andre Taissin on Unsplash
Try remortgaging your home
If you have a mortgage that is coming to the end of its interest free or fixed term rate then you should think about a remortgage. With the interest rate going up you could see as much as a thousand pound increase a year. With that much you should seriously speak to a mortgage broker and have them go through the options so you can get a mortgage with a better deal and rate. It is up to you how you go about it but speaking to your mortgage provider or getting an independent broker you should definitely consider checking your mortgage options.
Shop for different brands
It can be easy to start just using one brand especially if you think it is your favourite, but if you are really struggling financially then you should think about switching to own brand products or to a cheaper brand. Obviously if you have to have a specific brand then that is fair enough but try to switch where you can to save yourself some money on your food shops and clothes when you next go shopping.
Try to cut down on food waste
Too many people throw away perfectly good food and go out and buy more, this is going to cost you more money in the long run. What you need to do is try and use leftovers to make other meals and where you can freeze items that may be close to the use by date as eating food after the use by date can be unsafe but if it is at the best before date this is fine to eat, it just will not be as nutritious as eating it fresh.
Keep an eye on your car insurance renewals
It can be easy for your car insurance to just keep renewing and usually if unwatched they can go up each year. By actually checking your insurance you can save yourself a lot of money each year by either switching insurers or checking if they can offer you a better price. Also if you have had a change in driving circumstances you should reflect this on your renewal so you can potentially bring your costs down, especially if you are using your car less.
Try and reduce your grocery spending
It is hard to cut your spending when you need to especially when it comes to buying your food shop but you need to find ways to. When doing your food shop you should try and do it online as this stops you picking up things you do not need and leaves you to buy the essentials you actually need. You should also try and plan all your meals for the week so you can get everything in and make sure you are buying what you need as opposed to paying extra out for food that will go to waste. Also try not to go to the shop hungry, this can actually impair your judgement of what you want and lead you to actually buy more food, it can also mean you are unsure what to get and end up buying multiple meals instead of the ones you went for.
Try to have days where you do not spend
It can be hard to go a whole day without spending but if you have a few days where you choose not to go out and spend and manage to avoid spending this can make it easier for the future. Try eating what you have in the house and try making your hot beverages at home so you are not going out and spending money at a coffee shop. By doing this you can train yourself to spend less and also encourage yourself to do it more if it comes too easily, this can see you saving a lot of money.
Make sure to track your spending
When it comes to saving money, if you do not know how to track your money and keep an eye on your spending then you are going to find it hard to manage. You should use budgeting apps or just write it down, by writing down your outgoings you can see where you spend most of your money and where you could save. It also will give you an idea of what you will have available each month to save and spend on yourself after expenses.
Look at an account you can save money in
It can be hard to save money especially if you have access to it, so if you are struggling to keep the money saved once you put it away, then you should look at different options. The best option for you when it comes to a savings account is going to be a fixed savings account, this is when you have to put a timeframe on the account in which you cannot access it. You can put money in it but not take it out until the timeframe has passed, so if you want to save for a year you can set it for that and have money put in, but you cannot take it out till that year passes. This is a great way to save up large amounts of money and make sure you can have more control over your spending when trying to save.
If you are looking to save more money but you are unsure how to save or what changes you could make to your lifestyle to make sure you can save for when you need it, then this guide should give you some tips that can help you get started with your savings and help you reach your goals.