Money saving is often tricky to keep up as a long term endeavour, as people often think it involves significant life changes. However, there are small ways in which households can cut back on their spending and make savings in a variety of areas of life. As the financial effects of the COVID-19 crisis begin to set in, many will be looking to tighten their belts and live more efficiently.
“These two items are easily the biggest monthly bills most people have. The -15 percent numbers represent what you can actually afford – look at options for those numbers and forget you could ‘afford’ to spend 15 percent more.
“If you give yourself a cushion between the absolute most you could possibly afford, and what you are actually paying out each month, you will find saving money is much easier.”
Another savvy saver suggested Britons should reevaluate their direct debits periodically.
By calling companies that deal with bigger bills such as car insurance, television subscriptions and credit cards, households may be able to negotiate better deals, or knock off higher interest rates.
Another person made a simple observation which is likely to help Britons reach their savings goal.
They said: “The simplest thing to do: overestimate how much you spend, underestimate how much you make.
“If you don’t look too deeply into the numbers, this works well. You can then give yourself an allowance as to what you can spend.”
And finally, one person revealed how they were able to change their spending habits and save more.
They wrote: “If there is something ‘frivolous’ you really want to buy, such as an unnecessary item you can live without, write it down. and write what it costs.
“Then list the day you wrote it down. Now wait three months. If you still need it then, it is probably worth buying. If not, get rid.
“This method has allowed me to cut down on 95 percent of my nonsense expenditures.”
When embarking upon a savings journey, the Money Advice Service says there are key steps to bear in mind.
Firstly, Britons should draw up a budget that carefully outlines their income and expenditure.
As mentioned by some of the savvy savers, automatically adding money to an account each month is the perfect first step on a savings journey.
The website states: “If you save regularly, you’ll quickly find that your savings add up and keep growing. Get into the habit and watch your money turn into more money.”