Most people spend more than they would like to each month and though you may think you’ve budgeted, you’d be surprised how quickly a couple of pounds here and there can add up. Most money saving tips only save you small amounts at a time, but if you adopt 4 or 5 of them then you will notice a significant increase in your savings account. Here’s a few to get you started;
1. Firstly, are you getting the most out of your current account? With so many different banks and building societies offering current accounts it can be difficult to decide on one that is beneficial to you. It’s worth finding out whether you’re getting anything back from your account. If you’re not, don’t be scared to switch! Current accounts are particularly competitive and many offer insurances and even cashback. Do some research and start saving just by having your wages in an account which gives you a return.
2. If you don’t want to open a new current account, look into a cash ISA, earning interest on your savings. Preferably opt for one which will only allow for one or 2 withdrawals per year and gives penalties for anything more. That way you will not see that money as disposable, more non-existent and the interest will keep adding until you’ve got a stack to be proud of!
3. Pay off your outstanding debt. Theirs is little point trying to save long-term if you have multiple debts. Most will have high interest rates meaning if you’re only meeting minimum payments, a very small percentage of the debt will actually be being cleared each month. Get rid of outstanding credit and then start saving once you’re in the black.
4. Try the age-old technique of a change jar. At the end of each day empty your wallet of change and watch it tot up. It’s a better way to see the pennies you’re saving than just viewing numbers on a screen. At the end of the month, take it to the bank and deposit it into your savings account and then start the process again. Even if it’s only £30, it would’ve only been frittered away if left in your purse. Over a year, that’s £360!
5. Keep on top of your tax. It’s worth working out whether you’re owed tax at the end of the tax year. If you are it could mean a healthy cheque straight into your savings account. It’s unlikely to land in your lap and may be up to you to chase by contacting HM revenue and customs but if you’re entitled to it then they have to give it to you. See it as money that you’d budgeted without and put it straight into your savings.
6. Finally, deal in cash. Studies show that we find it far more difficult to part with physical money when compared to just handing over the plastic. We are much less likely to buy whatever it is in question if we have to break a note so take out an amount at the beginning of the week and leave your debit card at home. Tell yourself once it’s gone you cannot withdraw any more money and that way you know you won’t exceed your budget.
Saving doesn’t have to be stressful. By making a few changes to your financial routine, you’ll notice your savings account will look healthier than ever.