This can be quite a big problem nowadays, especially for younger people as it can be quite difficult.
There are numerous methods to help save more and if used, it can be very easy and you might not even notice it.
The first method: use a standing order each month it will take out a certain amount of money from your current account and transfer it to your savings. I’d recommend transferring 10 – 20% of your monthly pay check to your savings via standing order.
The amount will be taken out automatically so you won’t even notice it.
Using ISA’s: Another way of saving efficiently is to effectively use your ISA’s. Put in as much as you can to maximise the £20,000 tax free. You can use any of your ISA’s, Whether it’s a help to buy, lifetime or stocks and shares ISA.
Direct debit: this tip will relate to credit cards if you have one, this is because if you use a direct debit it will clear the monthly balance. This is beneficial because it will prevent you from spiralling into credit card debt, which in turn will help you with your savings.
Another method is to use a budget, this will reveal how much money you can spend on your need, wants and aspirations. This will help you cut back on discretionary expenditure. Which will inevitably lead to saving more money.
You can also use apps such as ‘Plum’ to help save money. Plum uses a smart algorithm to analyse your spending pattern and intelligently moves money over to your savings when it is sensible to do so. This is a low effort but very effective approach to saving money.
Setting yourself challenges is another way to increase savings. For example, trying to save £1 a day. At the end of the year you’ll have £365.
Leave a Reply