Are you currently in a position where you could do with saving some more money every month? Do you have something you want to save up for? Would you like to boost your savings for the future? Let’s take a look at how to save money so you can start holding onto your cash.
Change Your Mindset
One of the first things you need to do is change your mindset towards money. You do not need to spend what you earn. Our money mindset is what can so often define the balance of our bank account. If you see the money you earn as the amount you can spend, you’ll likely spend it. You will always have outgoings, your mortgage and utility bills for example, but the money you have after paying to live, doesn’t need to be spent. To save money you need to earn more than you spend, so look at how much you earn, how much you need to spend each month on the cost of living and see what is left over.
Check Your Bills
We mentioned the cost of living. Are you paying more than you need to be every month for your utilities and the food you eat? Think about the last time you switched energy companies. If you haven’t in the last year or 18 months, you’re likely paying more than you need to for your gas and electricity. Switch companies for your utilities, along with your phone, broadband and TV. Do you even need to be paying for a TV package? Maybe you have streaming services you use more? Do you have subscriptions that you don’t use? Check your standing orders and direct debits. You might find you’ve still been paying for your old gym after moving house! Giving your outgoings a spring clean is an essential answer to the answer of how to save money.
Question Yourself Before You Buy
Before you spend, think about what else you could use that money towards. You need to be accountable to yourself. If you’re not good with money and find it too easy to spend, maybe be accountable to someone else. Before you buy something new, you have to ask your partner or double check with a friend? This will help you to hold onto your money and also give you time to decide if it’s something you actually want or just an impulse buy. So many of us spend money because we are bored or have other things going on that we’re trying to forget. Spending cash will never fill that hole. Do you need it? Ask yourself before you buy. One trick, if you’re shopping online, is to add it to your basket and then close the tab. Give yourself 48 hours before going back to it to buy it. You might have changed your mind by then. The company might even send you a voucher or discount code to make the product cheaper! If you struggle with over spending your money online, close accounts or change passwords.
Some people find transferring money from one account to another a bit of a hassle. This is where automatic payments come into play. Simply set them up and every month (or whatever time period you decide) you desired amount of money will move from your current account to your savings account. If you can make it simpler, the process of how to save money becomes easier.
Make your bills cheaper, think before you buy, even freeze your contactless card in a block of ice if you find yourself beeping it too much. Whatever you want to save money for, make that your priority and you’ll be surprised at how much you can actually save. You’ll soon have all the answers you need for the question of how to save money. You’ll even be able to pass the knowledge onto others who want to save more cash.