Share this article

Facebook Icon Twitter Icon Instagram Icon LinkedIn Icon

Jul 20, 2021 / Finance

Want to Save Money? It’s as Easy as A-B-£

Want to Save Money? It’s as Easy as A-B-£ image

Are you craving financial security or saving towards a big goal? Do you spend all day reading finance articles and dreaming of not having to worry about money? In this article, we will break down the basic steps of managing your finances. If you want to know how to save money, read on.

Know What You’re Working With 

If you want to save money, the first step is to work out the numbers. Record your income and look back through the last few months of expenses to work out how much you have leftover every month. Write down how much you spend on certain categories. This will help you to identify where you may be overspending.

Doing an analysis will help you to make a realistic budget based on your spending habits. If you have an online shopping problem, you are unlikely to be able to become a minimalist overnight.

Look For Subscription Services You Don’t Use Anymore 

Subscription services often offer free trials, banking on the fact that we will forget to cancel them. We can also forget to cancel subscription services long after we have finished using them. Now we have subscription services for most aspects of our lives:

  • Dating apps
  • Food and beverages
  • TV and entertainment
  • Pet supplies
  • Hygiene supplies
  • Skincare
  • Business services
  • News or finance articles

One of the easiest ways to save money is to cancel subscriptions you no longer need. These might be ones you forgot to cancel or services you can do without until you achieve financial security. Could you perhaps make do without dating apps or cancelling one of your entertainment services? Do you really need to pay for VIP subscriptions to clothing stores or food delivery services?

Make Small Changes 

Just like with anything else, going cold turkey will mean you may struggle to maintain the changes you make to your finances. We recommend making small changes and then reviewing your finances after 3 months to make more changes if you wish. By doing this, you build up the habit little by little. Even an extra £200 a month will make a difference when you are trying to save money. Increase it little by little once you can easily maintain it.

The small changes could be as easy as making your lunch 4 days a week instead of buying it every day. It could be limiting the number of drinks you have on a night out. You do not have to cut things you enjoy out completely. Make most of the cuts from places that do not serve your needs and interests.

Set Milestone Goals 

Your overall goal may be financial security, but that is a vague concept. There is no way to measure it and no way to know when you’ve achieved it. Instead, break your goal into small milestones that you can work towards. For example, financial security might be broken down milestones like:

  • Have an emergency fund of £3,000
  • Pay off credit card debt
  • Pay off student loan
  • Contribute £1,000 per year into a private retirement fund
  • Save money for a house deposit

Your financial goals should not just focus on ways to save money; they should also focus on paying down debt, building credit, purchasing assets, and saving for retirement.

Educate Yourself 

If you are not already reading books and articles on finance, then you need to start. Take all financial advice with a grain of salt as it may not be applicable to your situation. Also, be aware that the purpose of some of these finance articles may be to sell a product. Do some research and consult a number of sources to find the best finance articles about:

  • How to budget
  • How to become debt-free
  • How to save for retirement
  • How to get the most out of employee benefits
  • What is net worth, and why is it important
  • How to save money
  • How to invest
  • How to build multiple streams of income

Look at personal finance basics and for people who are documenting their journey to financial security. Be wary of information sources from other countries as the advice may not apply to your area.

Do Small Challenges 

Set small finance challenges for yourself every three months or so to keep it interesting. These are more intense than your usual savings goals but will be for a short period of time, perhaps a week or a month at most. You might decide to take out £50 or £100 in cash at the start of the week and only let yourself spend that cash all week. Of course, fixed expenses like bills and rent are not taken out of this budget. But everything else is groceries, lunches, after-work drinks. Having a visual representation of how much you have left for the week will make you prioritise your spending and help you become more aware of how quickly things add up.

You might do a more intense challenge where you do a “no spend” week or month. These challenges show you how much you already have at your disposal and helps you to come up with creative ways of stretching your resources. You use up the food in your pantry and freezer and dig through your wardrobe to find forgotten pieces. There are a number of financial challenges out there that you can try. Put the money you saved in this week or month straight into your savings.

Get Friends and Family On Board 

We often have the best intentions when it comes to our finances, but all it takes is an invite out from friends and family to tempt us. The best way to prevent your goals to save money from coming unravelled is to tell your friends and family that you are trying to cut back on spending. Let them know that you are not going to always say yes like you used to. Ask them to help hold you accountable and to not tell you that your favourite store is having a sale.

That being said, you do not have to become a social pariah to achieve financial security. There are plenty of ways you can spend time with your loved ones without spending too much money.

  • Walks
  • Picnics or potlucks
  • Coffee
  • Street food
  • Visit parks
  • Visit free museums and galleries
  • Movie night at home
  • Stargazing
  • Beach trip
  • Go for a drive
  • Explore a neighbouring town

Saving money does not mean that you stay home all day sulking. You can still lead an interesting life while doing things that you enjoy. You also do not need to stop spending money; just set yourself a fun money budget and allocate it wisely. If you want to go to a concert, do so, just know that tickets will eat up a large chunk of your fun money for that month.

Finance icon

Published Jul 20, 2021 |

Tagged:

Article Archive

Month: Sep

Archive icon What is a Side Hustle and How Do I Start a Side Hustle

Archive icon How to Organise Your Life

Archive icon Books to Kick-Start Your Career: Our Recommendations

Archive icon Why Everyone Should Plan Their Own Funeral

Archive icon What is Next of Kin? Who is Legally my Next of Kin?

Archive icon The Complete Guide to Inheritance Tax (IHT)

Archive icon Should I Include Property in my Will?

Archive icon Practical Advice for Dealing With Grief

Archive icon My Will: How to Name Beneficiaries and Inheritors

Month: Oct

Archive icon Working from Home: When Will it End?

Archive icon What Is a Utility Bill?

Archive icon Self-Love: What Is It and How Do I Practice It?

Archive icon How to Comfort Someone Who Has Lost a Loved One

Archive icon How to Choose Music for a Funeral

Archive icon How To Be a Better Friend, Family Member or Colleague: Our Top Tips

Archive icon How Do Credit Cards Work?

Month: Jun

Archive icon Why Millennials and Gen-Z Should Start Planning for the Future Now

Archive icon Using Marginal Gains to Save Time

Archive icon Top 5 Tips For Saving Money on Household Bills

Archive icon The Ultimate Bucket List: 20 Things to Do Before You Die

Archive icon How to Plan for the Future

Archive icon How to Close a Twitter Account When Someone Dies

Archive icon How to Close a Facebook Account When Someone Dies

Archive icon Digital Vaults: What is a Digital Information Vault and Should I Use One?

Archive icon 10 Things to Do Right Now to Save Time

Month: Mar

Archive icon Why Is Writing a Will Important?

Archive icon Planning For Death: The Checklist

Archive icon How to Eliminate My Digital Secrets After Death

Archive icon How to Close Accounts and Cancel Subscriptions After a Death

Archive icon How to Choose the Right Care Home

Archive icon Estate Planning Cheat Sheet: How to Look After My Family After Death

Archive icon Creating a Digital Estate Plan

Month: Aug

Archive icon Why are Bodies Exhumed?

Archive icon What is End of Life Planning?

Archive icon What Is a Lasting Power of Attorney for Health and Welfare?

Archive icon What is a Direct Cremation? Things You Need to Know

Archive icon Open-Casket Funeral: What Can I Expect?

Archive icon Co-Executors: Can One Executor Act Without the Other?

Archive icon A Guide to Digital Security and Cybersecurity: Staying Secure Online

Month: Apr

Archive icon What Do I Need to Do When A Loved One Dies? A Step-by-Step Process

Archive icon Should I Get Life Insurance? When You Need Life Insurance and When You Don’t

Archive icon Planning for Your Golden Years: What Do I Need to Think About?

Archive icon Keeping My Finances In Order: A Checklist

Month: Jul

Archive icon Ways of Saving Time You May Not Have Thought Of

Archive icon Want to Save Money? It’s as Easy as A-B-£

Archive icon Saving for a House: Our Top Tips

Archive icon Our Ideas for Retirement Gifts

Archive icon Our Guide to Funeral Flowers and Their Meanings

Archive icon Our Guide to Financial Security: Things to Do Now For Your Future Self

Archive icon How to Save £10,000 in a Year

Month: May

Archive icon Should I Donate My Organs?

Archive icon How to Get On & Climb the Property Ladder

Archive icon How to Calculate My Net Worth

Archive icon How to Be More Productive and Stop Wasting Time

Archive icon Everything You Need to Know About Trusts

Archive icon A Guide to Household Bills: Everything You Need to Pay as a Homeowner

Month: Nov

Archive icon Why is Sustainability Important?

Archive icon Sustainable Investing: What Do I Need to Know?

Archive icon New Year’s Resolutions: How to Stay On-Track

Archive icon Money Worries at Christmas: Having Fun Whilst Being Frugal

Archive icon What is a Personal Loan? Everything You Need to Know

Archive icon What is a Mortgage? Can I Get a Mortgage?

From our researchers straight to your inbox

Regular articles to help you, your family and your friends.

Our promise - We will never spam or give this address away.