Money-Saving Tips

At some point, we've all identified the need to have a little extra stash of money just for those rainy days. The most difficult part of savings is often just to start and then, of course, resisting the temptation to dip into our savings once we have the ball rolling. Although you don't need a reason to start saving, having an actual goal in mind helps to keep you on track and to avoid the inclination to dip into it. In a world ravaged by job losses and ever-increasing debt, there is still hope, and small tweaks can be made to get you off on the right foot.

Generic Savings tips

Your goals

The first step would be to identify your savings goal, draw up a plan to keep it on track, and regularly update it in order to see your progress. There are simple things to assist along the way such as savings accounts that can be linked to your normal bank account. With these, you can dictate amounts that you would like to be deposited into your savings on a monthly basis, and certain institutions offer rewards, discounts and other benefits with this initiative.

Keep track of your spending

It is imperative to keep track of your spending, and this doesn't need to be daunting. Going the extra mile and reconciling your monthly expenditure can go a long way in identifying wasteful spending. Learning to separate wants and needs is another area that requires conscious decision making.

Utilities and food

Simple changes to your everyday life can have a huge impact on your savings. Paying special attention to things like water consumption or regulating your thermostat can reduce your monthly utility bill by between 3% and 5%. Take advantage of rebates on your bills by scrutinising and requesting these from the relevant providers.

Saving for holidays

The best advice is to work out a close approximate amount for your travel, and budget for this throughout the year. Unplanned holidays can cost an arm and a leg, but working towards your holiday on a monthly basis gives you peace of mind in knowing that your budget can accommodate your plans. Numerous lockdowns during the Coronavirus pandemic have resulted in a travelling surge, but don't fall into this trap. Be very wary of current price hikes due to the higher demand.

Saving for your first home

Buying a home is a huge decision, and with trends showing a constant increase in the retail market, it can be overwhelming. Having enough for a deposit on a home strengthens the possibilities of a home loan or mortgage approval, and a few financial adjustments are definitely in order. Again, a budget is your best bet, and accommodating this budget may involve difficult decisions such as cutting down on takeaways, entertainment and eliminating credit cards and other debt. In addition, you may consider an ISA account that pays you tax-free interest on your investments.

Saving can be difficult, but it is possible. Budgets do not need to be over-complicated, but in order to make this first step, careful consideration into a lifestyle change is necessary. You have to be willing to sacrifice for the things you really need.