If you’ve read my lifestyle goals for the year (click here) then you might remember one of mine was to save at least 5k and have half of my car loan paid off. Here’s are my top 10 tips I like to use to achieve these!
- Know your monthly expenses and when they all come out of your bank account. This is something that really helps me keep on top of how much is in my account and when I need to make sure there is a certain amount. I know my car loan, phone bill, credit card and the all important Netflix all come out in the same week – the heartbreaking week of the month 💔💔.
- Online banking. This is something that most people already have or will use. This is such an underrated part of saving in my opinion. I probably check my online account way too often – normally at least once a day. This may seem excessive but it helps to stop any unusual activity happening in your account, the correct amount of money is coming out when you expect it to and all other transactions can easily be tracked and monitored. This is also very useful when going out shopping or for dinner as you will instantly be able to see your actual bank balance as soon as you have paid for something.
- Plan for birthdays, holidays and events. Without planning all of these into your budget it is so easy to lose track of how much you are spending and if you have enough money to pay for everything. I know when most birthdays are that could cost me quite a lot and plan for any big trips or events. This helps me to budget this spending into each month and make sure I can pay off everything straight away.
- Have more than one bank account. This may sound a little odd but I currently have 3 accounts (4 if you include my credit card), this may seem quite a lot and but it really helps me to keep track of my spending. I have my main account where all of my money goes in and out of. As soon as I get paid, knowing exactly how much my monthly expenses are and if there are any extra costa I need to budget for, I will put the majority of what is left into a savings account. As well as a savings account I can access I have another savings account I cannot access. This type cannot be accessed for 1 year. You can put up to £250.00 a month into this account and at the end of the year I will receive 2% interest on everything then it will automatically be put back into my main account. That’s £3000.00 into an account you can’t access for a whole year plus interest just for budgeting it as your general monthly expenses.
- Set a realistic amount you want to save up within a year. By setting a realistic goal you can split this down into 12 to know how much you need to be putting away into savings each month. This tip will still work part time, full time, paid weekly, monthly, hourly or salary. I have just moved from paid weekly and hourly to a salary paid monthly. I still follow the exact same tips.
- Plan your shopping trips. Now, I know how easy it is to go out to the shops just for a browse and come back with a massive Primark bag, some cute new make up and a whole new wardrobe for workout wear 🤷🏼♀️. Set yourself a budget when you go out or go out looking for specific items you want to purchase. When it comes to impulse buying I COMPLETELY UNDERSTAND! Unlike most people I don’t really impulse buy many items however, those items I do are always the much bigger and more expensive Items. Each car, motorbike and my IPad have all been impulsive buys yet spending £30.00 on a bag I have been drooling over for weeks will take a lot of convincing!
- Make your own lunch and coffee. If you were to add up how much money you spent each week on buying your lunch and a Costa each day you would probably be very surprised with how much you are actually spending! Try and make your own lunch at home and invest in a travel mug to take your coffee on the go. This doesn’t take long in the mornings or the night before and can end up saving you loads! There are also so many health benefits to making your own food – you know what goes into it and can control your portion sizes.
- Try to avoid using cash. This may be very contradictory to what you will see a lot of similar posts saying. While yes there is the argument that it’s harder to part with hard cash, this can also be harder to keep track of where it is going. Using your card will allow you to know exactly what you are spending, how much and where from without the hassle and annoyance receipts bring! I never seen to know what I am spending cash on when I have any. The only time I like having cash on me is to pay for my PT sessions. This is a set amount each week that I budget into my monthly outgoings.
- Allocate a certain amount each month for your social life. There is nothing worse than being so strict with your savings that you don’t allow yourself to live. Each month I like to leave myself £50-£100 depending on what events are happening for going out to dinner, taking Lee out for the day, a catch up over a few drinks or anything else you might want to do. This will stop you feeling restrictive while knowing you are still saving enough each month.
- Use a credit card wisely. As most of us know (I hope) a credit card is not free money. This needs to all be paid off. I have my credit card set up as a direct debit and therefore will automatically be cleared each month. I also plan that payment into my monthly outgoings. Use your credit card for certain purchases, I only really use mine for fuel and if I forget my card or the pin to it (this has happened far too many times). This is good to use to build up your credit rating which you will always need when you are wanting to buy a house or get a loan out with the bank. Try to keep this as low as possible to prevent building up too much extra payments for the next month.
There are so many more tips I could give you on topics like this however that could be saved for another blog post if you like this kind? Let me know in the comments down below 👇🏻
Until next time,
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