Everyone wants to save some money – in an ideal world, we would all put a large of our salary away each month into a savings account. However, it can be pretty tricky to do that, especially if you are living from paycheck to paycheck, and when something unexpected crops up, it can feel like an impossible task to find the money. You may choose to look for loans, although you may need to consider using a guarantor if you have bad credit, or you might look at other ways of getting your hands on some cash quickly.
Although saving is a challenge when all of your money goes on day to day living, it is not impossible. It takes some tight budgeting and keeping an eye on all of the money coming in and out of your accounts every month. Here are some more tips to help you:
One of the first rules of saving is to keep that money separate from the rest of your money. It is also best placed somewhere where you cannot access it too quickly. If you keep it in an ordinary bank account where you can quickly withdraw it or use it, you are much more likely to give in and spend it.
When you are trying to save money, it really does not matter how much you put away, whether it is hundreds of pounds every month or a few pennies each day. The most important thing is that you are saving something, even if it is a tiny amount. No matter how small the amount you save, it will help you when something unexpected rears its head.
It is much easier to save the odd few pennies here and there when you are dealing with cash, as you can drop those odd coins here and there into a jar or a tin and forget about them but what about when the majority of your finances are dealt with digitally or using debit cards? It is quite simple: skimming. Don’t worry – it isn’t anything dodgy! Skimming your bank account means spending a couple of minutes every evening, or once a week, whichever you prefer, and rounding the amount down to the nearest pound/five pounds/ten pounds- whatever your budget allows. Sometimes it might literally only be a few pennies, but over time, it adds up and leaves you with a decent rainy-day emergency fund.
Even though you might be on a strict budget, there usually are some small things you can cut back on to save even more money. Think about your food shopping; could you get more deals to save money? Perhaps you can search for more money off coupons on the things you usually buy. It would help if you also looked at the things you might do without realizing, for example, getting that cup of coffee on the way to work. If you take a travel cup of coffee with you instead, you will save a load of money, especially if you do it every day. Make your lunches instead of buying them, and cut down on those takeaways. Perhaps you can walk to work instead of getting the bus or train, or maybe cycle there? Look through your subscriptions – do you need that super expensive Sky package as well as your Netflix and Amazon Prime subscription? If you have a gym membership and never use it – cancel it and go for a run in the street or an at-home workout instead that won’t cost you anything. Any money you save from doing this, you can save for emergencies.
Once a year, get into the habit of sitting down with all of your insurance policies and do some research into whether you can save money on them. You may find that another car insurance provider or broker can offer you the same cover for less money each month or year, and you can then use that money to put towards your savings. You may well need to phone up and haggle to get the very best price, but if you don’t ask, you don’t get!
Even the thriftiest of households will have things that they can do to save a little money here and there. If you can, then it will make those unexpected bills more manageable.