One of the most popular New Year’s resolutions is to save money. Almost everybody makes that promise to themselves, that they will be better with their finances and squirrel away the money for a holiday or the following Christmas. Nearly all of these resolutions to save up fail, which is why it is such a popular one to make!
Trying to find the spare income to save up is difficult in itself, and when you do have the spare cash in your pocket there are often more fun things to put it toward than leaving it sit in a savings account. You can save money in the conventional ways, like finding the best balance transfer credit cards and saving how much you pay in interest. There’s also the ability to swap utilities providers and save money that way. But when you have no motivation to save up, it can be hard to want to live a little more frugally. There are ways, though, that you can help yourself to save some cash and not be a resolution failure at the end of the year. We’ve got some of the best money management tips below to help you make the savings you want!
Split Your Windfalls
When you win money, or get gifted cash, play the rule of thirds. A third for the past: to make a payment on an existing debt from before. A third for the future: a savings account needs an entry, even if the money was unexpected! A third for the present: use the last third to treat yourself to whatever you want! Debts will shrink down, savings will plump up and you don’t have to go without.
Keep An Emergency Fund
Work out how much you pay out each month for your usual basics, then times that amount by three. This should be what you have in your emergency fund. It’s a little daunting, we know, but this means that if things fall apart, you can relax and know you are covered.
Deal In Cash
When you go to the shops, it can be very easy to spend, spend, spend, when you cannot see the money you are handing over. Little slices of plastic have a lot to answer for there! Take out what you want to spend in cash and use only that. You see a physical decrease in your spending money, and you can curb what you spend easily.
Stick To A Budget
Perhaps one of the biggest ways to save money is to stick to your budget. Is your shopping budget £100? Well, if you only spend £75, put the remainder in your savings account. This will allow you to steadily add to your savings account without trying to ‘find the extra’.
Take the resolution to save money seriously, and you can get through the year knowing that you are making positive life changes. The person that benefits here in the end is you, and you are only sabotaging yourself if you don’t stick to it!