The key to saving money? It can be done!
Who wouldn’t want a constant supply of spare money in the bank? Sounds great, but for many of us, merely a pipe dream. The easy way would be to get a nice job paying a six-figure sum each year, but back in reality, it is an achievable goal however sparse your funds may appear. In this blog, we investigate the key to saving money.
The Pros Of Having Savings
So what does having savings give you? Well, many things, apart from money of course! Peace of mind is one of the main considerations, knowing that if life throws you a curve-ball or if you suddenly face a one-off financial emergency, then you can relax safe in the knowledge that you have some funds to fall back on.
Secondly, there is a certain pride in being capable of saving. Also, it allows a measure of independence for the saver and also allows to plan for the future – be it a holiday, new car or home improvements. It also makes you happier.
The Key To Saving money
The key to saving money? Like any financial plan, the key is discipline, budgeting and organisation. It’s not much fun when phrased like that, but it’s worth the sacrifices for the rewards it will bring. Personally, it was a very long path indeed, and I had to seriously re-evaluate how I was living my life, but the release from the stress that my debts used to cause me is priceless.
Budgeting
First of all, you need to create a budget. A spreadsheet would be a good way of doing this, and you need to list what you receive in income each month, and list all your outgoings to see what disposable income you are left with.
Look at the list, at the outgoings. Are all the costs sensible, or necessary? Are you paying fair amounts for your accommodation, vehicle, for food or various memberships? It not, it could be time to trim the fat. There are many other ways that you can save money, some of which I have outlined elsewhere. You can switch your energy supplier, and your broadband/TV supplier. alternatively, you can earn a few extra pennies with a second job or through selling surplus items. Perhaps try doing market research, online surveys or through a hundred other options.
If you don’t use something regularly, you probably don’t need it, so why not sell it? The key to saving is to not over commit and to be realistic with possessions.
Debt Management
Move debts around to minimise interest payments and use the internet to utilise the raft of offers and free stuff that is available every day. I recently needed to purchase a specific video game for a present. I used a Groupon voucher to get a £50 spend at a well-known online store, for just £25. I then used their collect option and picked up the items at my local Asda petrol station, avoiding the £5 delivery charge.
Next comes discipline. Having devised a plan, and worked out what you can spend each month, you must then stick to it. Obvious, but this is where most people fall down. No one should live like a monk, and treats are an essential part of life and happiness! However, there must be a limit if you want to not only pay off debts but also put aside a bit of money each month.
Other Options
What else can you do? Well, I have always veered away from using cards to purchase items and use cash instead, as seeing what you are spending in front of you should help prevent you making needless purchases and wasting money. The problem with paying for items online or with cards is that the money you are spending doesn’t seem as real, and it easy to lose discipline and be too care-free with your expenditure.
In addition, I write a lot of shopping lists. Lists are good. When I go into a supermarket, I thus buy what I need then pay and leave. I may pick up the odd offer if it is something I would have bought anyway in the future (thus it makes sense to buy it discounted there and then), but on the whole, I stick to my list. It might sound boring, but it is nothing of the sort. I eat well without breaking the bank by planning ahead.
Set Goals
With planning comes the issue of “goals”. It will help you save if you have goals about what you want/intend to save so that you have something specific to work towards. If you meet the goals, it gives you extra confidence and motivation to reach further goals, and perhaps raise the bar in what your ambitions are.
Life is tough. It’s also expensive. Everyday money seems to come out of my account for one thing or another, and it’s hard to keep your head above water sometimes. With perseverance, willpower and determination though, anything is possible.
Are you saving for Christmas? Perhaps our Christmas saving blog might help you?
