This week our Savings Product Manager Jon Sweeting will be providing some insightful blogs on practical ways to save money and the importance of savings… Take a read below…
Practical Ways to Save Money- Part 1
We all understand the importance of saving! It is a healthy habit to both learn and maintain- however we also understand the importance of treating ourselves to the occasional indulgence, whether that be some new clothes, a new piece of tech or my own savings nemesis- going out for a curry.. the spicier the better.
In a cost of living crisis and in a world that often seems like it is going mad, no one should begrudge anyone for having a little treat every now and then, however with anything in life, balance is key and everything should be done in moderation.
With that in mind, I have showcased below some top-tips for practical was to save money, so we can all exercise some fiscal responsibility but be able to treat ourselves guilt free!
Say goodbye to debt
Monthly debt payments can be a burden on anyone’s finances. So if you are becoming concerned about debt commitments, it might be time to reduce, or even get rid of that debt. An efficient way to pay off debt is with the debt snowball method. This is where you pay off your debts in order from smallest to largest. This can sound a bit odd, right? Don’t worry—it’s more about behavior change than numbers. Once your income is freed up, you can finally use it to make progress towards your savings goals.
Cut down on your grocery budget
Even after I budget, I’m often shocked to find out how much I’m actually spending at the supermarket each month. It’s so easy to lose track when you’re walking through the aisle’s (especially if you shop when hungry) but those little extra purchases add up and often end up blowing the budget every single month.
Save money on groceries by planning out your meals each week and taking a good look at what you already have in the house before you head to the supermarket- It’s shocking how many times I have stocked up on things I already have! If you genuinely can’t resist temptation whilst food shopping then consider home delivery or pick-up! That way the whiff of those freshly bakes donuts will have little to no impact! .
Cancel automatic subscriptions and memberships you don’t use
I bet that you haven’t checked your standing orders or direct debits recently that you’re paying for multiple subscriptions like Netflix, gym memberships, or Amazon Prime. It’s time to cancel any subscriptions you don’t use regularly. And make sure you turn off auto-renew when you make a purchase. If you cancel it and decide you can’t go without it, subscribe again—but only if it fits into your new and improved budget.
Spend extra or unexpected income wisely
If you get a work bonus, inheritance or tax refund, put it to good use. If you’ve still got debt in your life, you’ll be better off using those funds to pay off those loans or the make a dent in the balance on your credit card instead of stashing that money away. If you’re debt-free, you those funds to build up your emergency fund and keep this separate from your main bank account.
Reduce energy costs
Did you know that you can save money on your electric bill just by making a few tweaks at home? Start with some simple things like taking shorter showers, fixing leaky pipes, and only boiling the kettle with the amount of water you need for that cup of tea!
While new, energy-efficient appliances are a great way to save money on your electric bill, they’re expensive! But if you work it into your monthly budget, you can save up and pay cash for those improvements over time.
Pack lunch (and eat at home)
I’m incredibly guilty of this! If you think about it, take an average ‘meal deal’ cost of £3.50 and multiply that by an average ‘full time’ 21 working days a month, that’s just over £70. Multiply that by 12 months and it’s nearly £900 a year. You can save quite a bit of money just by packing a lunch… just remember not to eat it by 10.30am!
A lot of times you can buy a solid week’s worth of groceries for the same price as two dinner meals out. Instead, prepare your food at home and watch your savings pile up month after month… and trust me, your kids will enjoy a picnic in the park or in the back of the Cortina Estate (giving my age away a bit!) just as much as a pub lunch!