Is this the year you finally want to stash away a significant chunk of money? Saving money is difficult, especially when the cost of living always seems to be creeping higher and higher.
There are two sides to saving money.
First, you have to find ways to spend less money so that there is more left over at the end of the month.
Next, you have to have the willpower to stop yourself from touching this money. Let’s explore 5 ways you can start saving money this year.
Save at the start of the month
It’s a well known fact that saving what you have left over at the end of the month just doesn’t work. Instead, set yourself a monthly saving target and then put this away at the start of the month.
This protects your savings and then forces you to think about how you’re going to survive for the rest of the month on less money. If you wait until the end of the month, you might find that you don’t set aside as much money.
Track your spending for a week
You can’t spot the black holes in your finances if you don’t know what you’re looking for. Track every single thing that you spend for one week (or a month) to see where your hard earned cash is going.
You might discover that you’re giving the local takeaway more money than you might like to. Or you might be surprised to see that your daily coffee habit is adding up to over £100 a month. Once you know where your money is going, you can think about what you can do to cut back without impacting your lifestyle.
Cancel unused subscriptions
Look at your bank statements and see what direct debits you have going out every month. Do you really need a subscription to Netflix AND Now TV? Could you and your partner share a Spotify family account? These all might seem like small expenses, but six people sharing a Spotify family account would each save almost £90 a year on their subscription.
Another common culprit is your gym membership. Ask yourself, are you really going to use it? Could you run outside or work out at home instead? Stop that £40 a month unused gym membership too and you could soon see some serious savings.
You might even have digital subscriptions that you aren’t even aware of leaving your account every month. Keep an eye on your bank statements and look for repeat charges.
Change energy suppliers
If you haven’t reviewed your energy accounts recently, the new year could be a good time to do this. When you first sign up, energy suppliers will put you on an introductory tariff. After this has expired, you’ll often be placed on a standard tariff which doesn’t give you the best deal.
Check which tariff you are on and then check if you could be better off with a different company. Switching might give you a short term headache, but you could soon be spending much less on your energy every month.
Fix your monthly spending
If you’re a homeowner, managing your monthly expenses is essential. Home and boiler cover is one way you can achieve this. Protecting yourself from unexpected expenses can help you to protect your savings.
If you don’t have boiler cover you could end up dipping into your savings to help out if your boiler ever gives up. You could also expand your cover to include things like the central heating, roof and even vermin infestations.
As a homeowner, tackling issues like these can quickly eat into your savings and set you back to square one.