Do you spend more than you should? You’re not alone. Most of us buy things we don’t really need while wondering why we never have enough money when we do need it. However, there are a few simple tricks that you can use to spend less and save more.
Tips To Save More Money and Spend Less
So, how can I save more money each month? Before we dive into how to save more money, you need to find ways to reduce your spending.
1. Stop Buying Things You Don’t Need
One of the most obvious ways to spend less is to cut out any unnecessary purchases. It isn’t always easy, but you don’t have to give up every little luxury.
Start by cutting out anything you don’t really use, like a gym membership or magazine subscription you’ve almost forgotten about. Check out our handy guide on simple ways to keep fit on a budget (gym membership not required!)
Next, try to identify any bad money habits you’d like to give up or do less of, such as smoking, snacking in between meals, or drinking too much. Finally, look for anything that you could do without in order to spend less.
Remember that you don’t have to give things up entirely in order to save. You could also try buying things less often, looking for someone to share or swap with, or finding free alternatives:
- Go for a run instead of paying for the gym
- Cycle to work instead of driving or using public transport
- Take out a library book instead of buying your own copy
- Visit a free park, museum or gallery instead of paying for a day out
- Spend the evening at a free concert or event rather than buying a ticket
Related: 8 Biggest Ways Women Waste Money
2. Be Energy Efficient
A good way to cut back without missing much is to reduce your energy use. Turn your thermostat down a few degrees, choose a lower temperature for your wash, and make sure the tires on your car are kept inflated to improve your mileage.
It’s better for the environment too, so you can feel particularly good while you’re spending less.
3. Change Your Brand or Switch Suppliers
Even if you can’t stop spending on something, you should still be able to spend less by changing the way you shop.
Most of us have our favourite brands and stick to them, but shopping around can result in big savings.
You might be surprised to find that cheaper or own brand products are often just as good as the leading brands, so give them a go.
It’s also a good idea to compare prices at different shops and online to see if you can get the products you want at a better price.
Don’t forget that you can use the same tactics to save on your other bills too. Switching energy, broadband or insurance suppliers can help you to get the best deal with uSwitch.
Some companies will also give you a discount for paying online or yearly rather than monthly. You might be able to save on your debts too, by transferring them to a new credit card or loan with a lower interest rate.
4. Look for the Best Deals
Finding a more affordable brand or cheaper supplier is just one way to reduce your spending. You should also:
- Wait for the sales when you can
- Look out for offers and discounts
- Buy in bulk when it’s cheaper
- Use coupons when you can
- Sign up for discount sites and loyalty schemes
However, don’t be tricked into false savings by buying things that you don’t really need just because they’re on offer.
You’re only saving when you’re spending less than you would have on something you wanted to buy anyway.
5. Pay More to Spend Less
Although it seems counterintuitive, you should also remember that sometimes you need to pay more for a good quality item in order to end up spending less overall.
Buying one good coat that you’ll keep wearing for years could cost a lot less than buying a cheap new one every year.
How to Save More Money
Now that you’re spending less money, what are you going to do with it all? It might be tempting to splurge on something, but it’s much better to save first. Here are our top tips on how to save more money and achieve your financial goals.
1. Set a Goal
It can help to know what you are saving for, so try to set yourself a goal.
This could be:
- An emergency fund
- Monthly pension contributions
- A deposit for a house
- An investment
- A holiday, new car, or any other big purchase
As well as deciding what you’re saving for, you should work out how much you want to save.
You’ll then be able to see how close you are to achieving your goal, which should help you to stay motivated. Keep checking your savings regularly to see how well you are doing.
Related: Financial Goals in Order of Priority
2. Make Your Money Work for You
Don’t just leave the money you’re saving in your bank account. It will be too easy to spend and it won’t be earning you any interest.
Open up a separate savings account and make sure that your money is working for you.
You may need to switch accounts to get the best rates. Alternatively, you might want to put your savings into a pension or use a scheme like the Help to Buy ISA to get a better return.
Related: Make Your Money Do the Hard Work
3. Make Saving Easy
Making saving easy is one of the best ways to actually save more money.
Set up a standing order from your bank account to your savings account or use an app that tells you when you should transfer some money.
4. Don’t Forget the Pennies
Saving up your change in a jar might seem like a waste of time, but it can add up quickly.
Bagging up your change and taking it to the bank can also feel more satisfying than transferring money out of your savings account.
It can make you feel like you’re really making progress, which can help you to keep going.
Staying motivated is the key to saving, so focus on your goal, keep track of your progress, and reward yourself when you do well.
Over to You
Do you have any other tips for saving more money, spending less and sticking to your savings goals?
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