Having a substantial savings pot can help us achieve many of our financial goals. Whether you want to have enough funds for a house deposit, buy a new car, or just have enough savings to cover anything unexpected. Starting your savings habit and maintaining it is worthwhile in the long-term, so here are 6 key tips to saving that you can begin during downtime or on a rainy day.
- Restructure your finances
For some of us, looking at our finances and bank statements can make us feel anxious. If you are someone with large amounts of debt, you may prefer to look away, but it is much better to tackle your finances with a plan. Restructuring your finances will help you to understand how much money you have each month, and how much you can save. If you have a low credit rating, borrowing money again in future may be difficult, and if you don’t have much saved you could struggle. There are bad credit payday loans to help when you need to cover an emergency or unexpected bill, so ensuring you can afford this is crucial. Spend some time reviewing your finances and see where changes can be made.
- Compare and reduce bills
Once you have determined your financial state of play, you can highlight where you could be paying too much for certain bills. When was the last time you changed utility providers? You may be loyal to a particular service, but there may be a better deal to find. Use comparison websites and see if you can switch common bills such as gas, electricity, water and your internet or phone package. You may find considerable savings can be made, freeing up more money to save each month.
- Look for second income opportunities
Sometimes the only way to boost your savings is by improving your income. If you aren’t looking to change jobs and a pay rise is not on the cards in your current role, a second income could be the answer. You could freelance something that is currently a hobby, such as writing or crafting. Maybe you can monetise a blog or online video channel, provide a service in repairs, financial advice or even sell homemade items. There are various ways to do so but ensure it’s something that you are happy to do outside of your regular job.
- Start an emergency savings fund
Maybe you have a savings account you put into regularly, but what about covering those unexpected bills and expenses? Ideally you should keep your savings separated so that it is clear what each are for. An emergency savings fund can be somewhere to put money that will only be used to cover emergencies such as a repair bill, or cover times of sickness or ill health where you cannot work. Start small if you can’t afford much, and begin to gradually grow this fund, aiming to cover at least 3 months of your essential bills.
- Create meal plans
If you want to save more, you’ll need to cut costs on everyday items. As your grocery shopping could be one of the largest expenses you have each month, it makes sense to look for cheaper options. Creating meal plans can help you achieve this, as you will be able to work out exactly what ingredients you need and how much it will cost in advance. Cooking from scratch is generally cheaper than takeaways and ready meals, so you will save money and be healthier.
- Look into growing your savings or pension
A rainy day is a good chance to review the savings you have so far. If you want to boost your pot, both for your general savings and your pension, you can look into investment opportunities. Rather than put all your money into this, decide on an amount you are comfortable with and speak to a financial advisor. They can assist in products to consider and investment trends to follow.
