4 ways you can save money

Saving money is a habit that every individual should be doing – although sometimes that is easier said than done! Whether you are saving for a deposit on your dream home or planning a trip away with some friends, having a savings pot for these moments is key.

There are ways to increase your savings without making major lifestyle changes. Here are some tips to help you do just that. 

1. Create and stick to a budget

Creating a budget is not the most fun way to spend an evening, but it will set you up for success. Start by taking a good look at your income versus your outgoings. This will give you a good idea of any spare cash as well as help identify areas of overspending. 

There are multiple different apps and spreadsheets available to make your life easier. Just practice filling them out weekly to build a habit. 

2. Automate savings and investments

Many people find that creating a monthly direct debit from your main account to your savings account makes saving a lot easier. Not only does it take the responsibility away from yourself, but you will learn to live without that sum as it wasn’t in your account for long. 

The key to long-term savings is consistency so monthly additions are an easy way to grow your pot quickly without it having much of an impact on your quality of life. Saving £20 per month means you will have £240 in the first year already! 

3. Cut back on non-essentials

Society is very focused on the little extras we can add to enhance our lives. With a multitude of streaming services for TV and music, as well as gym memberships and lifestyle subscriptions, it can all add up. 

When you created your budget spreadsheet, you should have made a note of any monthly subscriptions. Take a look at them and see if you can cancel any you don’t use any more, or downgrade ones you do. For example, Netflix has different pricing strategies depending on your usage. If you don’t mind watching adverts, you can halve your payment to £4.99 per month instead of £7.99. 

4. Adopt a more frugal lifestyle

A frugal lifestyle doesn’t have to mean going without, but rather making smarter choices with your long-term goals in mind.

This can be from small changes such as limiting the amount you dine out and opting for cooking at home instead. Changes like this won’t have an immediate impact but you will be able to identify savings across a month or year. 

New larger purchases should also be considered carefully. Opting for a brand-new car, for example, can be costly and unnecessary. Instead, look for used cars which can be just as reliable and more budget-friendly. Don’t forget to look further afield for a good deal – some drivers would enjoy the trip to Norwich for the right car.