‘How could I save more money?’ If you’ve asked yourself this, you’re not alone. Plenty of us want to protect our finances — but it can usually seem tricky.
As many savers would attest, however, it doesn’t have to be. Very often, it comes down to how you shop – not just what you buy. Change your spending habits, and you could reduce your regular outgoings.
Here are three steps that all good savers should carry out.
- Careful budgeting
By following a pre-arranged budget, savers can plan exactly where their money is going for the upcoming week, month or year. This can dramatically help them to keep track of finances and plan for the future.
Some people don’t know where to begin with this project, but the good news is that it may be easier than it seems. To begin, gather the receipts from all the essential purchases that you’ve made over the past year; this can include bills, food and other vital costs.
After this, apply these prices to your predicted regular income. You’ll then have all the information you need to build your budget.
- Goal setting
Designing a budget is one thing — but how, exactly, do people stick to it? It tends to be through simple tricks like setting achievable goals. Give yourself an incentive to save money, and you may be more likely to do it.
Is there a particular place you’ve been longing to visit, for example? Or could your property do with an update? Whatever the project, why not transform it into a long-term spending aim?
You’ll then be able to use the money that you’ve saved through budgeting on it. If your spending plan omits any kind of frivolous spending, you’ll have more left over at the end of each month. And this, of course will help you to reach your goal faster.
- Carry cash only
Cards can be useful — especially those that are contactless. With just a tap, we can buy pretty much anything when visiting a store.
But beware, as you may already know, they make overspending all too easy. To avoid this temptation altogether, why don’t you carry just cash with you?
So long as you bring enough money to cover each shopping trip, you’ll be able to cover crucial costs and protect your wallet.
Place cash in an envelope or sandwich bag, and you needn’t worry about mislaying it. You can then slip it into your wallet after you’re done shopping.
Managing your finances doesn’t have to be hard — in fact, it’s very straightforward. A lot of the time, all it takes is a simple change in spending habits.