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It is said that people should have at least 6-month living expenses saved in case of bad times. It is already difficult to save, so when the money is tight due to the wages not keeping up with inflation it doesn’t help when people say, “Just save more.” Perhaps it is not surprising Britain is still a long way from becoming a nation of savers. If you’re wondering how to save money, here are a few of our money saving tips.
Step 1. Budgeting
Budgeting is key and you don’t have to have complicated software to do it. Take your last 3 statements from your bank. If you have online banking just download them and print them off.
On your statement highlight the following in red: house bills, essential, and all other bills. In green all non-essential by adding all the non-essential together this will give you an idea on where you could save money. The point of this is to find where your money goes and look for ways of reaching your savings goals.
Step 2. Cut your biggest expenses
Sounds easy, right? It is not, but you could set your self targets on where you would like to cut your spending. Food is essential but you could cut your food budget, there are many ways that could be done: Just by planning your meals, going out less to takeaways and restaurants, or shopping at a different supermarket to get the best deals and buying in bulk. Not so long ago the story of Jack Monroe went on the news. She was on the news because at the heart of the financial crisis this mother that became unemployed had no money saved up and had to feed herself and her child. She is now a food blogger for The Guardian. The reason she is famous is that she invents a fantastic recipe for people on a budget.
Step 3. Mobile phone bill
Cut your mobile phone bill by buying your phone on PayAsYouGo. Go on comparison site to find the best PayAsYouGo tariff that fits your needs.
Step 4. Electric bill
To read on how to cut costs on your electric bill click here to see our previous article on the subject.
Step 5. Increase your income
It is about time that some people say, “You don’t understand! I have bills to pay and no luxuries at all!” Yes, that’s the reality for many. However, the best way to get extra money might be getting a part-time job for the weekends.
Step 6. Paying off debt
Look at your debt and credit card carefully and with the money, you saved to make a plan of how long it will take you to pay off the debt.
Step 7. Refinance your debt
Step 8. Downgrading house
If your house payments are an issue downgrading to a smaller house could be the solution.
If you already thought of that and your house is not selling, and it is affecting you there is an alternative. You could sell your house to a quick sale company. Some homeowners turn to quick house buyers like WeBuyAnyHome for many reasons as long as you understand how they function this could be a solution. There is no doubt that reputable companies like us have been able to give people back control over their finances, but we do understand that this service is not for everyone. If you own additional properties but are looking at options to help your debt situation, selling a house with tenants may be an option. In many cases, tenants will be able to remain in situ and you raise vital funds to put towards your debt.
Step 9. Set up automatic saving
Get the best saving account by going on comparison site the government is keen for you to save money so a lot of ISAs – Tax-free saving account have popped-up.
Step 10. Learn to be happy with what you have
This is the hardest step but truly the key to ending financial stress. Once you accept that saving is more important than a newer car or a fancy vacation.