It may seem as though your finances are just too tight to even consider putting money away each month, and nobody is saying it would be easy. However, there are ways to save money even when it’s tight – it will require some thoughtful planning and commitment from you, but if you put in the work, you’ll get it right.
How To Save Money
Whether you’re wanting to save up for a holiday or a special occasion, or trying to pay off your debts faster, build up an emergency fund, or just have some money set aside for a rainy day, you’ll never get it done without the ability to manage your money well. Here are a few important steps you will need to take if you are serious about saving money.
Give Your Goal a Name
Start by giving your savings goal a name: What are you trying to save up for? Is this your emergency fund, your wedding budget, or your holiday fund? Give it an appropriate name, as it will help you to keep from spending the money on other things.
Work Out How Much You Need
Whatever you are saving up for, you should have a pretty good idea of how much money you will need for it. If you’re planning a holiday abroad, do some research to find out what the average daily spend will be, what specific activities cost, and what you will need to take with you. If you’re trying to create an emergency fund, consider aiming towards saving enough money to cover 3 months’ worth of household expenses.
Whatever the amount is that you need to save, work out how long you have to gather it, and divide that by the number of wage payments you will receive between now and then. Is this a realistic amount for you to save each month? If not, you will find it very difficult to stick to your savings plan, so be sure to choose a realistic amount, and implement some of the suggestions below to increase it.
Start Saving
Start putting away the money you have pledged to save, but be sure it’s not to the detriment of your other responsibilities. You can start saving small amounts by putting your loose change in a jar each week, but eventually there will be enough that you will want some security for it.
It would be best to open a savings account that will protect your money and possibly even earn you some interest on the amount saved. Be sure to shop around for a savings account that suits your needs.
How to Find the Money to Save
All of this is well and good, but if you’re struggling and money is tight, you may not see a way to have any extra money to save. Don’t worry, there are many ways to cut your costs and squeeze a little extra out of your monthly earnings.
- Start by learning to budget. There are many budgeting apps available that can help you to make the best spending plan for your circumstances.
- Go over all your monthly and yearly household bills, and see if there are ways you can save – try switching gas and power suppliers to find the best deals.
- Check that you are getting all the benefits you are eligible for.
- Go over your income and expenditure, and reduce spending where possible. Check for old subscriptions that you aren’t using anymore, or see if you can lower the costs of some of your accounts.
- Plan your meals in advance and only buy what you need for your menu. Make a grocery list and stick to it when shopping.
- Try to switch over to in-house food brands. Many grocery stores’ own brands are much cheaper than name brands, and just as good.
- Find out if your favourite supermarket has a loyalty card or app – you may find some significant discounts this way.
- Look around for cheaper vehicle or household insurance.
- Save on fuel by using public transport or carpooling wherever possible.
- Lower your household temperature in winter – lowering the thermostat by just one degree Celsius could save you as much as £80 per year.
- Try to find a cheaper mobile phone plan – some suppliers offer special deals if you agree to switch over to them.
- Declutter your home, especially clothing, and sell what you don’t want. Put the resulting money straight into your savings.
- Eat out as little as possible, and try to have your coffee at home, rather than buying it on your way to work.
- Exercise at home, rather than at the gym. You can cancel your membership and rather use an app to guide you through some at-home workouts. Walking and cycling are also great options.
- Buy energy-saving light bulbs – they are said to last up to 25 times longer than regular light bulbs, and they use less power.
- Over pay on your debts wherever your creditors will allow – the faster you pay, the less interest you will pay in the long run.
- Start a savings challenge with your friends and family. This is an especially effective idea if you are all saving for the same thing, such as a shared holiday. This creates accountability, so you will all do better at putting money away.
Try to implement as many of these ideas as you can, and see how much extra money you can scrounge as a result. Be sure to put the spare cash straight into a savings account and don’t spend it unless there is an emergency.
Even when times are tough, there are ways to find a few extra quid to put towards something you really want. Just be sure to make a realistic plan and stick to it as best you can.
If you are unable to save money, no matter how hard you try, and you are struggling to keep up with debt payments, too, please contact our non-judgmental team at Debt Movement for caring and understanding debt guidance and solutions.
