Four Simple Ways to Start Saving Money *

AD | According to a recent BBC news report, the cost of living is higher now than ever before.  Saving money is something we all know we should be doing but it’s getting harder and harder, isn’t it?  Rail fares are due to rise next year (with no discernible benefit to the customers), extra tariffs are likely to be imposed on holidays after we’ve finally left the EU, and don’t even get me started on the weekly food shop.

So what to do if you want to start saving money?  And what is it you plan to save up for? To get your foot on the property ladder?  Are you dreaming of a holiday of a lifetime?  Or maybe you want to finally put your old banger on the scrap heap and invest in a brand-new car?  Whatever it is you’re saving for, I think it always feels like your end goal is a long way off.

Four simple ways to start saving money

Luckily, there are 100’s of ways to save money, and here are four simple ways to get you started on some savings.  Before you do start though, make sure that you’re free of any outstanding debts.  You can get helpful advice from companies like Creditfix, who can help you to pay off your debts via manageable and regular payments. And then you can choose an online savings account that doesn’t charge the earth for your custom – check out these Aspiration bank reviews, for example.

Start by focussing on your end goal

By choosing what it is that you’re saving for, rather than just aimlessly trying to put money aside, you’re much more likely to save successfully.  Make yourself simple little aids, like renaming your savings account “House Fund” on your banking app.  Or pop a picture of your holiday destination in your purse to encourage you not to make unnecessary purchases.

Picture your end goal regularly and make sure you talk about it too – the more real it is to you and to others, the more determined you’ll be to make it a reality.

Make a strict budget and stick to it

The word “budget” can strike fear into many, oh yes, but the truth is that you’re unlikely to make big strides with your savings without drawing one up.

Cut your groceries back to basics – ditch the big brands and opt for the supermarket staples.  Switching to ALDI and LIDL has saved me nearly £50 on our weekly shop.  And try to plan your weekly meals too, so you avoid buying ingredients which just go to waste.  Something else I’ve found helpful (albeit a bit nerdy) is noting the use by/best before dates of food on the calendar, so we do actually use it rather than forget about it and end up throwing it out.

Are you spending money on memberships or subscriptions that you aren’t using?  Such as a gym membership (not something I’ve ever been guilty of!).  Then spend an afternoon cancelling anything you’re not using – it’s just taking your money for the sake of it.

Don’t complete cut out all your luxuries and treats though, you still need to have a little bit of “fun money” to play with, otherwise you’ll feel extremely restricted by your saving regime.  And don’t forget to treat yourself from time to time as part of practising your self-care too.

Get into the habit of paying with cash, not card

Contactless payments have made it easier than ever to pay on the go, but do you really appreciate just how much you’re actually spending?

A trick I used when I was at college was to take out a certain amount of cash from my bank account each week and stick to it.  The psychological benefits of paying with cold hard cash, rather than just tapping your card onto the reader, shouldn’t be underestimated.  You’re suddenly a lot more aware of what you’re spending when you see a real amount of money deteriorate week-on-week.

And noting down what you spend at the back of your diary is something I still do now – although it’s a little more hit and miss these days but it does help me keep better track of what I’m spending.

Run a price comparison on all your bills

Price comparison sites make it super easy to not only find the best price for your bills, but also do the switch on your behalf.  Gas, electricity, water, phone, internet, car insurance, home insurance, the lot.

Many of us may feel that loyalty brings benefits, but this certainly isn’t true when it comes to your bills.  The best rates are usually reserved for bringing in new customers, so it’s wise to look at switching your providers either annually or bi-annually.

I’ve just switched our gas and electricity supplier to a cheaper, greener company and I always check around when our car insurances come up for renewal.  And don’t be afraid to ask your current providers if they can match your new deal – that’s worked well for me in the past on many an occasion 🙂

I hope these tips have been helpful for you.  Have you used any of them before?  What steps do you take for saving money?  What advice would you give to someone who’s struggling to start saving?

* This is a sponsored post.