Often we have good intentions to start saving or increase our savings, but it’s sometimes difficult to get the process started. Here are some tips to help you save.
Create a Budget
Collect receipts at the end of the month and sort these into categories such as food and personal care. Also check your bank statement for all the debit orders that come off your account such as medical aid and car insurance. This will enable you to see clearly where your money is going, what expenses can be cut out and how much money is left over than can be saved each month.
Set up an automatic bank transfer to go from your account into a savings or investment account every month, once you have established how much money per month you are able to set aside for saving, once you have reviewed your budget.
Set Short-Term Savings Goals
Create small goals, such as setting aside £20 every month or week, rather than a large long term goal. This makes the process of saving easier and reduces the stress of having to achieve a savings of a large sum by a set timeframe.
Save Tax Refunds and Bonuses
Although it’s tempting to spend a bonus or refund on all the things we have seen that we want, rather put a certain amount aside into your savings account, or even better, into an investment account.
Wait 24 Hours
Waiting a day helps prevent impulse buying. Think about the item carefully, how much use will you get from it, is it really necessary and where will it be stored. This waiting period is especially important with shopping online, because items are so easily added to the cart.
Treats as an Incentive
Save the same amount of money that you spend on any treats. For example, if you go out for a cappuccino and croissant while getting your car washed, the same amount must be added to your savings account. By doing this, you will keep account of money spent on treats during the course of the month and it’s an extra incentive to help you save.
Purchases in terms of Hours Worked rather than Cost
This can be done by taking the cost of the item and dividing it be how much you earn per hour. This will help you to clearly determine the value of the item and if it’s worth what you’re paying for it.
Unsubscribe from Online Stores
Unsubscribe from emails to online stores where you spend larger amounts of money. By ending communications from the online stores, you are ending the temptation you receive to spend.
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The facts and opinions presented in this blog article do not necessarily reflect those of the CybiWealth team or FIM Capital Limited. FIM Capital is licensed by the Isle of Man Financial Services Authority and authorised and regulated by the Financial Conduct Authority.