For many people, saving money is an important financial priority. Whether you’re saving up for a big purchase such as a house deposit, want some disposable cash to use to treat yourself to vacations, a new car, new clothes, or spend on hobbies in the future, or simply like having some money put away for a rainy day, there’s no denying that having some savings in the bank can make you feel more secure.
But, with living costs on the rise and many wages not following suit, putting money aside has become more and more difficult. But, even saving a little bit is better than not saving anything at all. We’ve put together some top tips to help you increase the amount of money that you save.
Tip #1. Open a Savings Account
The first thing that you should do when saving money is to make sure that you have a separate bank account for your savings. Not only will this make it more difficult for you to access your savings and prevent you from accidentally spending it, it’s also a good way to save regularly as you can set up an automatic bank transfer from your main account to this one.
Many regular savers will set it up so that when their wages are paid in, a certain affordable amount is automatically transferred into their savings account, leaving them with the remaining funds to budget with for their regular monthly expenses. Check out these savings account reviews to help you choose the best one.
Tip #2. Go Through Your Spending Habits
When it comes to saving more money, it’s important to be aware of your saving habits, as this will allow you to better determine where you could be spending less. Go through your bank account statement and keep hold of your receipts so that at the end of the month, you can get a clearer picture of where your hard-earned money is going.
You can even download apps for this purpose that allow you to enter your expenses and then work out where you can save. Of course, some expenses, such as rent and your utility bills, will be a necessity, but others such as dining out or buying new clothes can often be cut.
Tip #3. Rethink Your Bills
Many people think that they have to work their savings around their monthly bills and expenses, but you may find that they are costs that you are actually able to save on. For example, taking the time to browse comparison sites to see if there are any better deals that you can get for gas, electric, and water rates can leave you with more disposable income at the end of the month to pay into your savings account.
If you drive, then look around for cheaper deals on auto insurance or perhaps even consider trading your car in for a cheaper model that will cost you less to run. You can also save money on your cell phone by forgoing an upgrade, keeping your handset and switching to a cheaper, SIM-only deal.
If these tips were useful for you, we’d love to hear back from you in the comments.