Everyone wants to save some money – in a perfect world, we would all put a big chunk of our salary away every month into a savings account for the future. However, it can be a lot harder than it seems, especially if we feel like we are living from payday to payday, and when something unexpected crops up, like having to have major repairs done on a car or buy a new fridge freezer or boiler, it can seem impossible to find the money, and it is little wonder that so many people turn to expensive payday loans to try to cover the costs.
Although saving is a challenge when your salary goes on day to day living, it certainly is not impossible. It takes some very strict budgeting and keeping a very close eye on all of the money coming in and out of your accounts every single month, which will then allow you to calculate how much money you can save from each paycheck. There are a variety of excellent financial and budgeting apps that can assist you with this. If you need a little more help, read on for some more useful tips on saving money for those rainy days or significant unexpected expenses.
Keep Your Savings Separate from the Rest of Your Money
One of the first rules of saving is to keep that pot of money separate from the rest of your money, no matter how large or small the amount. It is also best placed somewhere where you cannot access it on a whim. If you keep it in an ordinary bank account where you can quickly withdraw it or use it, you are much more likely to give in and spend it, telling yourself you will replace it, and let’s face it, that rarely happens!
Open a dedicated account for your savings, or if you have coins, keep them in a jar somewhere. You could even find one of those tins that require a tin opener to bust it open! After a short time, and you should be able to save some money.
Save the Cents
When you are trying to save money, it really does not matter how much you put away, whether it is hundreds of dollars every month or a few cents each day. The most important thing is that you are saving something, even if it is a tiny amount. You should also try not to be worried about how slowly the saving is going, but to think of it as an investment instead. No matter how little the amount you save, it will help you when something unexpected crops up.
Skim Your Bank Account
It is much easier to save the odd few cents here and there when you are dealing with cash, as you can drop those odd cents here and there into a jar or a tin and forget about them but what about when most of your finances are dealt with digitally or using debit cards, as most of us do these days? It is quite straightforward, really – skimming. Basically, skimming your bank account means spending a few moments every evening, or once a week, or whatever interval you prefer, and rounding the amount down to the nearest dollar, five dollars, ten dollars or whatever your budget allows. For example, if at the end of the day or week you have $37.28 in your account, you would round it down to $37/$35/$30 and transfer that difference to your savings account. It might literally only be a few dollars or even cents sometimes, but over time, it adds up and leaves you with a tidy rainy-day emergency fund.
Take a look around your house and garage. You can probably see or think of five things straight away that you no longer use or need – that TV stand gathering dust in the back of the garage, or those expensive shoes that hurt your feet and are never worn. Let’s not get started on that drawer full of old mobile phones that work perfectly fine, but you decided to upgrade anyway. Instead of letting them fester away somewhere, sell them! Depending on what it is, there are a huge amount of options open to you, from eBay to Craiglist to specialist shops and antique shops. As they say, one man’s trash is another’s treasure!
Try More DIY
Not everyone is good at DIY, but having a go can save you a tremendous amount of money. For example, if the car needs to be repaired, then see if this is something that you can do yourself. By having a go at simple repairs yourself, even if you have to invest in a few tools or parts, it is usually less expensive than taking it to a mechanic and teaches you a few handy skills at the same time. The same applies to your house; you can save money by fitting carpet or laminate flooring yourself or cleaning your own windows – or cleaning your own home if you hire a cleaner! You can then take a portion of the money you have saved and put it aside.
Check Your Outgoings
Even though you might be on a tight budget, there is almost always something that you can cut back on to save money. Think about your grocery shopping; could you see if you can find some more deals to save money? Maybe you can search for more money off coupons and vouchers on the things you usually buy. It would help if you also looked at the things you might do without really noticing, for example, getting that cup of coffee on the way to work or bagel. If you take a travel cup of coffee or flask with you instead and eat before you leave the house, you will save a considerable amount of money over time. Make your lunches instead of buying expensive sandwhiches, and cut down on those take-outs. Perhaps you can walk to work instead of getting the bus or train, or maybe even cycle there, depending on the distance? Look through your subscriptions – do you need that expensive cable package as well as your Netflix and Amazon Prime subscription? If you have a gym membership and never use it – cancel it and go for a (free!) run in the street or an at-home workout instead. Any money you save from this process you can put aside for emergencies
Take a Closer Look at Your Insurance Policies
When it comes to that time of year when you need to renew your various insurance policies, get into the habit of sitting down with them and doing some research into whether you can save money on them. If you leave them to renew automatically, you will rarely get the very best deal. You may find that another car insurance provider can offer you the same cover for less money each month/year, or your existing provider may be prepared to drop the price rather than risk losing you as a customer, and you can then use that money to put towards your savings. You may well need to phone up and haggle to get the very best price, but remember: if you do not ask, you do not get!
Even the most frugal of households will have things that they can do to save a little money here and there. If you can, then it will make those unexpected bills a little bit more manageable.