There are various steps you need to complete before you can go full force ahead with your savings. You should be able to understand your income as well as your essential outgoings so you can make the saving as suited to you as possible.
Follow our top savings tips to see which ones will work best for you to get the best results.
Understanding your financial position-
Understanding your income and outgoings is essential when wanting to create a budget. You can’t just guess when it comes down to knowing how much to put away as you could end up in a difficult position which puts you off saving up.
You need to consider everything, the easiest way to do this is to look at your online banking or a bank statement and separate the essentials from the non-essentials. After you have done this you will be able to visually see what goes in and out of your account. You should take your income and minus the amount of the essentials to find out how much you have left.
Find a budgeting rule
Finding the perfect rule to suit you and your finances can be made easy if you take the time to look into all of them out there. But, we understand not everyone has the time to do that. So, here are a few of our favourites:
- 50/30/20 Rule – This rule is easy to get the hang of as it is to match each person individually. 50% of your monthly income goes on essentials like food and bills. 30% goes on the things you want and then the remaining 20% should be saved. For that 20%, a good idea would be to set up a savings account. With a savings account, you can store your money in one place. Something like this could even motivate you to spend more money as you are able to see the money building up and up. P.S. You can even earn interest with savings accounts.
- An all-cash diet – This rule is an easy way to start saving as it stops you making them small unnecessary purchases which you pay for on your card, or even through contactless payment. With advances in technology, it is so easy to spend using a card/contactless, but is this a good thing or a bad thing? Using the all-cash diet will help you stop overspending.
- Save your change – This fits hand in hand with the all-cash diet. After you have come home from a long day, you probably have some loose change. If you put this in a tub or a jar, it will help you easily build up some savings. It will be even better if you can get your hands on a jar which is only opened by smashing. This will stop you from being tempted to take money out of it.
- Trial and Error
Sometimes, finding the perfect way of saving can be difficult and can take time. So, you should try multiple ways to see which is the best for you. Along with this, you need to patiently wait for your savings to build-up as we all know that they don’t just grow overnight.
More Savings Advice
For more about loans, visit PM Loans. They have plenty of blogs filled with tactics which may be perfect for you.
Along with this, if you ever find yourself in financial difficulty, a personal loan might be the right option for you, read more here.