We’re all looking to get that little bit more out of the money we earn, but knowing where to save is harder than it seems. When we have so many financial needs – insurance, bills, medical care, rent – it can be hard to make a cut without it directly impacting your life.
However, that’s not to say you can’t still save money without increasing your income or making huge compromises. Here are 5 simple money saving tips to help you put aside some extra cash every month:
Adopt a 50:30:20 budgeting plan
If you’ve never budgeted before, the simplest way to approach the task is by adopting a 50:30:20 plan. This means spending 50% of your monthly income on needs, dedicating 30% to your wants, and putting 20% straight into your savings. Once you’ve paid off your monthly needs, add 20% of your full income into your savings to avoid temptation of spending it on your wants.
Get new insurance
It’s easy to become set in your ways, especially when it comes to things like insurance. You might want to stick to the same insurance provider because you prefer the familiar, but this may mean you’re paying far more for the same product that’s been offered elsewhere. Shop around for the current deals on car, home and even pet insurance, and switch providers if you come across a better arrangement.
Save bonuses and tax returns
Been paid a little unexpected bonus at work? Stash the majority of it away in your savings. Of course, it’s important to treat yourself from time to time, but when a cash surprise comes along, you were never planning to spend it in the first place. Save it for a rainy day and you’ll appreciate it all the more when the time comes to spend it.
Buy a piggy bank
It’s a shame that piggy banks are mostly a thing of the past nowadays, as they still have their uses. If you ever make cash payments, rather than tossing your spare change on the floor, let it accumulate inside your piggy bank. Even if it doesn’t bring about a life-changing sum of money, you could save it to use on a monthly treat.
Automate your savings
The physical act of moving money into your savings account might be too difficult to bear – or you might legitimately just forget to do it. Many banking apps now let you automate transactions, meaning you can arrange for a specific sum of money to move directly into your savings on a weekly or monthly basis. You won’t even know the transaction is taking place, and if you’re saving the advised 20% a month, there’ll still be plenty of cash left to spare.