Be Savings Savvy: Savings Tips for Everyone
Setting some money aside for savings may be a lot easier than many people think. Topping up a savings account seems easy if you have cash to spare each month but don’t despair if you can’t see where extra cash can be freed up as there are savings-savvy tips that can be used by everyone to make their money work harder.
The first stop on the road to savings success is simple: work out a budget. Spending more than you earn often leads to major financial problems if left unchecked, so in order to start saving it’s important to work out what your monthly earnings are spent on. When working out your monthly expenditure remember to include everything you spend money on, such as food shopping, dental or health costs, gas and electricity bills and travel. It’s equally important to factor in those items you may buy almost without thinking; a morning cappuccino on the way to work or your favourite weekly magazine.
By examining how much you actually spend each week or month you can then identify areas where money can be saved. Cutting out that morning cappuccino, for example, could potentially save hundreds of pounds each year. Instead, why not make yourself a coffee at work or at home, instead of picking one up from a coffee house? A clear picture of monthly spending enables you to identify how much money you have ‘left over’ every month after essential expenditure as well as areas where money can be saved. The end result allows you to set a monthly savings target.
When it comes to cutting costs, one method of doing so is by shopping online. Online stores don’t have the overheads associated with ‘traditional’ shops so prices are generally cheaper. It’s also worth exploring what seasonal sales the internet has to offer and stocking up on staple items during these periods.
Whilst online make use of price comparison websites where you can search and compare the prices of almost everything from groceries to car insurance. A few minutes spent researching online could protect purses and pockets in the long run.
So, once you’ve worked out your budget and ways to save cash it’s time to think about how to save it. A savings account makes it easy to keep your savings totally separate from all other money meaning you’re less likely to spend it. If you fear you may be tempted to splash your savings consider an account without instant access where interest rates may also be higher.
A clever way boost your day to day savings and make sure you save the amount you’re supposed to is by setting up a standing order from your current account to a savings account. Simply arrange to transfer the same amount each month on payday – if it’s not there you can’t spend it — and discover that managing your money is easy after all.
This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.
