Sometimes when it comes to cash we need to give ourselves a stern talking to. Those spending habits we’ve become oblivious to are costing us that deposit on a house and getting in the way of paying off that university overdraft that's still kicking about. So, here are 8 simple ways to save dosh and curb those naughty spending habits. We're starting today!
Leftovers from last night or freshly made salads - whatever you can muster is better than the £7 a day you are spending on Pret. Put down the gourmet wrap and you can save yourself about £1,820 a year!
Cold hard cash in your hand feels more real than the casual tapping of your debit card. Budget how much you can spend per week and get it out at the cash point. It’ll help you see how much you’re really spending (and it's way harder to part with).
We’re not talking about going coupon crazy- but by all means if coupon collecting is your thang go forth, we aren’t here to judge. What you should definitely do is research the web for deals and voucher codes before every purchase; from an online food shop to a holiday you can save £££s in the five minutes it takes to do a quick Google search.
Don’t hide from your cash:
Aside from being insanely stressful, hiding from the reality of your money is never a good idea. Use Internet banking, download your banks mobile app and make a trusty spreadsheet for your outgoings, incomings and what you spend each month. Faced with the reality you can work out what you can sacrifice and if you REALLY need that daily Frappuccino? (get one FREE in this week’s magazine instead!)
Work out what you want in the future:
Even if it’s just an idea, what do you want your life to look like in five years time? If it’s buying a house, travelling, living in a more expensive city or just being debt free it’s motivating to have a long term goal you can remind yourself of when your contemplating blowing your savings at the next Zara sale.
Get talking money:
Forget about cash being a taboo subject. You need financial advice. You don’t have to know everyone’s annual salary but getting advice from everyone from your parents and friends to your bank’s financial advisor and the finance guy at work will give you a broader understanding of money and will lead to you making better financial decisions in the future.
Remember the 50-30-20 rule:
It’s recommended that you should split your monthly income into this ratio: 50% should go on ‘essentials’ – like rent, 30% should be spent on ‘lifestyle’ aka- fun! And the final 20% should be squirreled away for the ‘future’ whether that’s saving for a deposit on a house or a potential business venture you’ll always need some spends to fall back on. Obviously, sometimes we need to tweak and prioritise different things but keeping to this formula can prevent future money woes.
Live within your means:
If you want something you cant afford, save. If you can’t stretch your weekly budget on your fave food treats swap some brand essentials for supermarket basics. Whatever you do, if you stay conscious of the little, everyday money decisions you make the pennies, as they say, will look after the pounds.
And we aren’t just stopping at a few tips! From cutting the cost of everyday life to taking charge of your finances, leading author Mrs Moneypenny is joining us for our new masterclass, Mind Your Money. Sign up here and you’ll never be a financial ostrich again.