New year is all about big motivations and determinations. Many of us have started the year with big goals to help us save or invest money. However, the ongoing cost of living crisis is making it harder to save money and studies show that 60% of Brits expect their bills to rise by £100 or more over the coming months, which is likely to put a further squeeze on your finances.
But there are still clever ways to save your hard-earned cash. We’ve come up with 5 simple tips that can help you stretch your budget that little bit further.
1. Set aside savings
The first step to saving money is to set aside a percentage of your income that you will simply save or invest. You can do this by making it a habit to set aside cash that you transfer from your current account to a savings account, or by setting up a direct debit that automatically transfers a set amount each month immediately as your salary comes in. When you do this, it’s easier to stay on track with your savings goals.
2. Move your credit card balance to a 0% interest card
If you’re carrying a balance on your credit card, it might be time to consider transferring that balance over to a 0% interest card. You can use this type of card in two ways: either transfer your current balance over and pay it down gradually (which will save you money in the long run) or make larger purchases with the new card while paying off as much as possible each month (and then switching back once the promotional period is over).
Having a 0% interest card is no excuse to overspend, always be mindful of only spending what you can afford and remember your goal is to save money!
3. Get rid of unused memberships and subscriptions you’re paying for but don’t use
Cancel unused memberships and subscriptions you’re paying for but don’t use.
If you’ve been paying a monthly fee to a gym but rarely use it, consider if you can exercise at home or take up a free sport like jogging or running.
Also consider cancelling subscriptions like music, video and other entertainment content services that you have too many of and are not necessarily utilising. Go through a checklist of all the subscriptions you have and cut down any you’ve used less than once in last 3 months.
Also check if any of your services offer Family or Household plans so you can share cost with some other members of your family/ household to save on them!
You’ll be surprised how much these little things add up over time.
4. Switch to a cheaper, contract free mobile plan
Long Mobile contracts with annual price increases built into your terms can really increase costs over time. If you are close to coming to the end of your current mobile contract, we suggest switching to a cheaper flexible option of a SIM Only plan. Lebara offers 30 day rolling deals starting from just £5 for 5GB data. If you need more data or minutes, choose from a selection of 10GB – Unlimited plan – all with fixed prices and ability to change/ cancel anytime without any penalty or free.
5. Switch to homemade coffee and stop buying bottled water
If you are one of the thousands of Brits spending a fortune on buying coffees outside, consider switching to making a cuppa at home/ office or even investing in a nice coffee machine that can possibly help you save money in the longer term. Keep the fancy lattes and cappuccinos for an occasional treat!
Also stop buying bottled water. Not only do you help the planet by cutting down on unnecessary plastic, but you also save some good load of cash in your pocket. Get a reusable water bottle and carry it with you so you don’t have to make an unnecessary stop at the store for a drink on a day out.
We hope these tips help you save some money! If you’re looking for ways to earn extra cash, while also making some savings – check out some tips to do that from the comfort of your own home here.
Disclaimer: This article is general in nature for common ways to make savings, and not to be taken as professional financial advice. You must speak to a recognized financial advisor before taking out any financial products like credit cards/ opening bank accounts.