Saving money can feel overwhelming, and many people feel like this. To some people, it comes naturally, but to other it isn’t always that straightforward.
It is important to save money when you start a family, this can help you in any emergencies and give you the comforting feeling of financial stability.
For an effective strategy to save money, you should consider both long term and short term tactics.
Create A Budget
The first step to any progression to save money, is to assess how much money you have after essentials and personal expenses. A good rule to use is the 50/20/30. This means that fifty percent of your income should be spent on essentials, this includes bills, food, rent, mortgages, petrol, etc the things you can’t live without. Twenty percent should go into your savings and thirty percent can be spent on personal expenses, this can be entertainment, days out, clothes, etc.
Record Your Spending
It can be surprising where and how your money can be spent, keeping track of what you spend makes you realise more where you can start to save. A £3 meal deal 5 days a week may seem like a cheap and easy lunch solution, but knowing that it would cost you £780 a year doesn’t seem as good as an offer.
Maintain Your Home & Car
Keeping expensive possessions like your home and car in good shape can help you save money in the long term, maintenance of these items will help to save you money on big jobs to fix the neglected issues. Taking care of these things will also give them more value when you come to sell them.
Invest In Quality Pieces
Spend more and buy less, this can be a valuable way of thinking for items that will last you longer. It can be applied to items like clothes, furniture and equipment. Even though it may cost more when you are buying these items, you will less regularly have the cost of buying new pieces, saving you money in the long term.
Look out for companies that are selling fast fashion and furniture, it may seem like a good idea at the time, but it will be a lot more valuable to pay slightly more for something that will last you longer. Timeless Egg chair that won’t go out of fashion will also help you to stop replacing items often.
Being in debt can become a vicious cycle of owing money each month, make sure to pay off credit cards each month or stick within spending limits. This will save you owing any money and having to take money from your new pay slips to pay off the old ones.
How To Find Extra Money
You can save money by creating an extra income, this can be done by selling stuff you don’t use, monetising your passion, pet sitting, becoming a mystery shopper, etc.
You can save money by spending less, you can eat in, buy from charity and thrift shops, clothes swap, buy less bottled water, having designated no spend days where you find free activities to enjoy.
You won’t become rich overnight, but these insightful tips may help your future self for any emergencies. Anyone can become more financially responsible with these easy to follow steps.