Saving money is much easier than you might think. All it takes is a little practice, willpower and a few tips.
1. Creating a Budget
The first thing you need to do when trying to save money is to find out exactly WHERE it all money goes.
Many people have no idea where most their money disappears to - a few pounds here, a direct debit there, the odd takeaway and a forgotten subscription - it all soon mounts up.
Writing down all your current outgoings and everything you pay out for regularly will usually shock most people and actually seeing where every penny is going will make it a lot easier to start making cut backs and changes.
2. Planning
Whether its the weekly food shopping, a family day out or your annual holiday - before you do anything – MAKE A PLAN and stick to it!
Planning in advance will help you to avoid impulse purchases or wasting money on the unexpected. If your going shopping ensure you take a list and be strict to follow it, only buying what you need. If you are going on a day out, make a plan of where you will go, how much it will cost, take only the money you will need and plenty of snacks and drinks so you dont have to pay high prices at places like coffee shops, theme parks etc.
3. Credit Cards
Leave your credit card in a safe place at home and only ever use it for emergencies. Always try to repay the balance in full each month to avoid interest charges and NEVER withdraw cash from a credit card as the interest rates and fees are extortionate.
If you have a credit card that has a £1,000 balance and you only pay the minimum payment each month, it would take you over 20 years to pay off that £1,000. The minimum payment would pay mainly interest and only a tiny portion would be paying off the principal amount.
4. Saving Petrol
Organise your day so you get as much done in an organised manner as possible. Stay in the same area and do as many of your errands in that area as possible to avoid excessive driving.
Make use of supermarket petrol stations and their loyalty points and vouchers.
Remove any unneeded items from your car. More weight uses more fuel.
Air conditioning too uses up a lot of fuel so put it on only when absolutely necessary.
Better still – if you really dont need the car, leave it at home and WALK!
5. Own Brand Foods
When buying food, try some of the 'shop owns' (or white label) items. Once you add some salt and pepper, no one will know the difference.
Many people do not realise that many shops 'own brands' are actually produced by leading brand companies. Some manufacturers actually have production belts that run side by side – one for the name brand and one for the shops 'own brand'. This is quite common and the only difference is the packaging and of course the price.
6. Freeze Foods
When you go food shopping, look out for bargains on items that can be frozen. Most people do not even think about freezing cheese, peppers, fruit or bread. You can even freeze eggs!
If you find apples on sale, make your own apple pies or apple sauce and freeze them. Divide bread and put 2 slices each into sandwich bags, freeze it and next time you want toast or a sandwich just take 2 slices out of the freezer.
Peppers can be sliced and frozen in portions that are easy to throw into a stir fry (no need to defrost first either). Cheese can be grated and frozen, so you only need to take out the amount you need. (Dairy products other than cheese do not generally freeze well).
7. Pound Shops
Many people have a negative view of pounds shops and expect them to be full of cheap, poorly made products - not anymore!
In pounds shops you can now buy branded foods, laundry detergents, cleaning products, stationary supplies and much more at a fraction of the price you would pay elsewhere.
Often these kind of shops get end of lines stock so when its gone - its gone, but you will always find good top branded products for a pound - such as nappies, cosmetics, packet and tinned foods, toiletries, cleaning products, soap powder - the list is endless.
Its well worth taking a trip to your local pound shop to see what you can pick up before you do your usual weekly shopping.
8. Energy Saving
Make sure that radiators in rooms not being used are turned off. Radiators placed next to outside doors are a waste of heat. Many people tend to try to heat their entire home. Instead close off areas that are not being used.
Also make sure your home is properly insulated, stopping drafts from your windows, doors, fireplaces and even your letterbox will make a huge difference in your utility costs.
9. Charity Shops
Its not all old ladies secondhand moth eaten dresses any more. You can pick up some great bargains in charity shops.
I have bought designer clothes and brand new items with the tags still attached. Charity shops are more expensive than they once were but all items are 'vetted' before being put out for customers to buy.
(And dont worry - no one will know where you bought it — unless you tell them.)
10. Sell it on
It’s easy to sell items you no longer want or need, thanks to the internet. Dont clutter up your wardrobe or loft with unwanted and unused clothes, bags, books and CDs. Sell it at online auctions. It takes little time and effort and you will end up with extra space and better still - extra money in your pocket.
Put these ten tips into practice and in no time at all you will notice a difference in your finances.
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