You might think that building up savings is only for people who have a decent amount of spare money and that if you’re on a low income you simply can’t get a stash together. Well, you’d be wrong, because you can make savings, even if they’re only small to start with. Here’s how.
Make a budget and stick to it
If you’re not getting to the end of each month with a few quid to spare then you need to look at where that last bit of money is going. No matter how much or little money you have to work with, you have to work smart. Knowing where your money will go and where it’s gone is key to controlling it and reducing unnecessary spending, so visit this site for its handy budget calculator. It’s your first step to savings.
Reduce your food expenses
This doesn’t mean subsisting on bread, cheap margarine and water for months on end (mainly because scurvy isn’t a good look…), it means looking for ways to eat as well, or even better, while spending less.
If you have a bad takeaway habit, you should cut it out or reduce it. This means everything from ordering your favourite curry on Thursdays to grabbing a quick pastry after work.
Then look at your grocery shopping habits. There are loads of ways to bring your food spending down. You can start shopping in the reduced aisle in the evening, or buy own-brand goods instead of premium. Look out for the things you end up binning each week, because you’re wasting food – and money. You often end up bunging the same items in your trolley out of habit, so watch out for them.
Reduce your commuting expenses
It may be the case that you can’t reduce these further, but if you can, then you should. If you use public transport to get to work, is there a monthly ticket? An annual one? Could you shorten the journey by walking part of the way or walk all the way in the summer months?
Get cutting those coupons
Spend some time looking for coupons and vouchers online, in newsletters and newspapers, as well as any that are on offer in stores. Even if it’s £2 off your next pack of nappies, 50p off your favourite four-pack of Italian tomatoes… That’s £2.50 that you’ve just saved and it can go into your savings pot.
Eliminate all your unnecessary expenses
If you signed up for Amazon’s free delivery just before Christmas and now you don’t need it anymore, but you’re still paying £7.99 for it each month, then stop it! That’s almost £100 a year right there!
There’s always something that you can cut down or cut out – TV packages that you don’t watch anymore because the kids have grown out of them, or smartphone storage that you don’t need since you upgraded.
Automate some of your savings
If you know for certain that you can commit £5 each month to your savings account, then set up a direct debit for that amount so that it’s out of your hands before you start eyeing up that pastry.
Call your utility providers
It’s always worth doing this once or twice a year because most providers will knock off a couple of pounds a month to retain your custom. Alternatively, you can switch providers entirely. Do the same with insurance, mobile phone providers, internet – every monthly bill can have something knocked off it if you’re persuasive and persistent enough.
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