This is something of a misleading title perhaps. This article is not about cutting down your costs, but about literally being in a position to save money. We took a look at those that are in a position to put some cash aside, and examined ways to save money.
It may help you save to have a piggy bank or similar receptacle in which to place some change periodically. You should not miss the odd pound or so, and over time this will build up into a nice little fund. After all, three months ago I cashed in my cooper collection, and there was over a £100 in there! It did take a few years to amass that though. It may help you to set goals, to give you focus on putting some money aside for a rainy day or emergency.
Just imagine if everything you bought, or at least some of the things, were 1-2% more expensive. Would that cause you financial difficulties? The reason I ask is that another tactic is to shave off money from purchases to add to your savings. Some banks have a function that allows you to round up purchases and payments and adds the extra amount straight into a savings account. Very painless! Alternatively you could skim little amounts off your bank balance and add to savings instead. Thus you always have a round number balance.
Let’s assume that you spend £1000 a month on bills, food and social life. But one month you only spend £800. now you can afford to spend that £1000 each month, so perhaps you could take advantage of these cheaper months, and skim off the difference and put in a savings account. After all, you are no worse off than in any average month. There are many ways you can do this. If you buy something for cheaper than expected, then skim off the difference. Likewise should you ever win money! There are plenty of apps out there that can help you organise such a tactic.
In 2018 the government introduced a new savings scheme specifically aimed at people who were working but on a low income, so they also get either Universal Credit or Working Tax Credit. If you qualify, you can save from £1 to £50 a month for 4 years, up to a maximum of £2,400. Instead of interest, a very generous bonus is added after two years. This amount is 50% of the maximum amount you have saved during the period. After two years you can close the account or let it run for a further two years, with another bonus to follow!
If you can afford to put money aside and save money, then ensure you get the best return on that money. Having a few coppers in a jar is fine, but if you regularly put away hundreds of pounds of money, then you want to be earning some interest on that, rather than just using an account as somewhere to store funds. So do your research, check money sites and decide where to put your savings. That might be a basic savings account, ISA or a host of other options.