Since buying our house I have had several friends comment on the fact that they could never afford to buy a house because they are rubbish at saving money. We are currently going through another phase of doing more work on the house/garden again and so spending is currently down and saving is high on the agenda to stop us feeling too financially wounded.
I have listed my top tips to help you start saving.
I am an all or nothing type of person. I’m either dieting or bingeing. I’m either spending or saving, etc. fortunately once I find it hard to break habits so once I am in the flow of saving money I find it difficult to spend any, and vice versa!
1. Every little helps.
Even if you just have a spare £2.50 In your account that you don’t need to spend pop it in your savings account. It soon adds up
2. Plan to save.
Write down your monthly essential outgoings. Write down your monthly income. Work out the difference and decide what to save from it. If you have a figure in mind that you know you’ll save then you can move it into your savings the minute you get paid to stop accidently spending any of it.
3. Plan Realistically.
I know that from the money I have left after essential outgoings I will spend some of it. Maybe there’s a birthday that month, or I know I am going to be eating out or my little one needs something. I always plan to save the minimum figure that I would be happy with. Then if I have anything left over at the end of the month that’s just a little bonus to the savings account. If you do it this way it is easier to forecast how much you will have in the future which allows you to plan for whatever the reason you are saving for.
4. Dont Regress.
Life doesn’t always go to plan and more than likely along the way things will happen out of the blue that you need to pay for; car, plumbing, heating, etc. There are lots of things that can go wrong, just use whatever money you need to sort it and keep going. Dont start splurging just because you have had to shell out for something.
5. Spend Money Well (…hear me out)
Since I have been on a saving hype over the last couple of years I have actually been spending more on individual items when I buy them, whether its household, clothes, whatever really. Its painful at the time but the aim is to spend money on quality things that don’t need replacing so that over time (if you look after your stuff) it wont need replacing.