With energy bills rising, grocery prices out of control, and wages almost standing still, it’s harder and harder to save money and get ahead financially. No matter the economic climate, there’s always a way to get ahead. Here are some tried and true savings tips to help you get on top of your finances.
Keep on top of your spending
Get control of your spending habits first. Analyse your categories of spending to determine which are most crucial. You could discover that monthly membership fees or other charges are deducting from your account that you were unaware of. In these uncertain times, cutting back on some of these unnecessary spending is a smart approach to save money. Also, you may want to review your utilities and internet providers to check if you’re on a competitive plan. Once you have a picture of your spending, you can re-allocate some of that money to pay off debts, save, or invest.
Set up an emergency fund
Always make regular contributions to long-term savings accounts for unexpected situations. This may include unplanned costs, invoices, or the unforeseen (who saw the pandemic coming?) The greatest method to gradually accumulate your emergency fund by setting realistic goals so you can increase your sense of overall financial security. This way, you won’t use your credit card and pile on more debt.
Plan your purchases ahead of time
You may cut down on impulsive purchases of fast food and prepared meals by planning your purchases, especially around mealtimes. Planning your meals in advance helps you stay on top of your weekly expenditures and curbs the impulse to spend "$20 here and there," which may add up. Spending $5 a weekday on coffee is $25 per week and $100 per month or $1,200 per year! Imagine what you could do with that extra $1,200 at the end of a calendar year?
Look for high interest savings accounts
If you are saving for a long-term goal such as a house deposit, holiday, school fees, or any other major expenditure, you should compare high interest savings accounts. These aren’t like usual transaction accounts; they will reward you with bonus interest if you make regular deposits without withdrawals. Saving money should also be an example to your kids when they’re old enough for pocket money or part-time work.
Consolidate your debts
Do you have more than a couple of credit cards or charge cards? Do they have large amounts owing? Credit card debt, for example, may seriously erode your savings. A debt consolidation loan combines all of your outstanding bills from two or three credit cards into a single loan that you may repay over time. You will save thousands of dollars in interest and rest assured that every repayment you make gets you closer to zero.
See a financial adviser
Everyone who wants to prepare for the future and take control of their finances should seek guidance from a financial adviser; it is not just for the already well-to-do. Some financial advisers provide students discounted or even free advice to help them climb the financial ladder sooner rather than later.