This is a collaborative post
Saving money is always a good idea. It allows you to keep a rainy-day fund for emergencies, gather cash for life’s little luxuries such as family holidays, or helps you plan for yours or your child’s financial future. A lot of the time, however, it can be difficult scraping enough money together to meet the costly demands of everyday life, never mind putting cash away into your savings. If you’re planning on getting to grips with your personal finances and want to know how to manage your money more effectively, here are some simple and helpful tips that you should consider.
Budgeting is one of the most effective strategies for saving money. By setting yourself a budget on what you can and can’t spend, you’ll avoid being left with little to no money at the end of each month and will get a better idea of your spending habits overall. A good method to try when budgeting is the 50/30/20 rule. This rule requires you to split your income into three categories, with 50% of your income going on ‘needs’ like housing and bills, 30% on ‘wants’ like days out or takeaways, and 20% can then go towards your savings. If done properly, you may find that you’re actually able to save a significant amount of money each month, while also being left with some extra cash that you can use on whatever you like.
This one is on the more creative side, but have you ever thought about how much money you would save if you paid yourself? By that, we mean putting some money aside each time you grab a glass of wine from your kitchen or tuck into a digestive from the biscuit jar. Try charging yourself a small amount every time you pour yourself a drink, and you could see your savings accounts grow. You could even start paying yourself each time you complete a task like cleaning the house, especially if you need an extra incentive to do so!
Investing may seem like a scary idea, but the reality is that investing your money is one of the best ways to boost your income and start saving more significant amounts. If you’re just starting out with investing, you can start small with investment apps such as MoneyBox, and then move on to different strategies once you’ve built your confidence. One of the best assets to consider investing into is buy to let property, as you can benefit from both rental returns and capital growth. There are a number of companies out there that specialise in helping people invest in property, such as Liverpool-based RWinvest who offer helpful guides for beginner investors to help you get started.
Find Affordable Alternatives
One of the easiest ways to cut costs and leave money for your savings accounts or investments is to be more mindful with your shopping choices. Look for more affordable alternatives to everyday items, and you could find that you’re spending a lot less than usual each week. This might also mean shopping in a more cost-friendly supermarket than usual, or hunting through sale items to find those much-wanted bargains.
Disclosure: This is a collaborative post