Top tips for saving money

Saving money can be one of the most challenging things to do. It often feels like you just can’t get yourself past a certain point in your bank account, and the task of saving feels impossible. 

Fortunately, saving money doesn’t have to be that hard. It’s not all about just how much you can put away at the end of the month and eating different meals, it also includes changing lifestyle habits, and being proactive to help yourself. 

Here are some top tips to help you get started. 

Focus on getting rid of your debt 

If you are trying to save money, but have some outstanding debt in your name, the best thing to do is focus on clearing the debt first. It can be disheartening at first, seeing your hard-earned savings go into debt, but if you don’t, you will end up spending more money on your debt and paying interest, and waste a large chunk of money that can later be put in savings.

Society is very much used to instant gratification, which is why this seems so difficult, but if you can clear your debt first with your disposable money, you will reap long-term rewards. Interest rates are often turbulent, and you could be putting that money into your savings. It also means one less thing to worry about and once it is paid, you will see your savings increase at a much quicker rate. 

Set yourself a budget

Take some time to review your current spending and categorize what is essential, and non-essential. You should write down how much everything costs, including your living costs and things like food and gas.

If it is possible, see if you can set yourself a budget to spend each week or month. This is a great way to make you regularly review your account, question your spending habits to help reduce impulse and unnecessary purchases, ensure a set amount goes into your savings each month, and help you reach your goals much quicker. 

Review your money spending habits 

Do you have some habits that you could start cutting down on, or cut out completely?

Some of the most pocket-burning lifestyle habits are smoking, eating dinner out, buying a morning coffee, and buying lunch at work every day. The average price of a coffee is $2.70, typically purchased 7 days a week, lunch on average is $5-10 which you purchase 5 days per week, and cigarettes which cost around $6.65 every day or other day, could be a good chunk of money that can go into your savings account.

Instead, are you able to make your coffee at home and take it in a flask with you to work? It can be the smallest changes, like replacing your morning coffee, that can help you boost your savings much quicker. Take some time to review your spending habits, and see what small changes you can make over time. 

Buying vs. leasing: what saves you the most money?

There are many things that we want or need in life and usually rush to purchase it. But did you know many items are available to lease as well? There are many pros and cons to both, and there is never one right answer.

When trying to save money, it is always important to review whether you can buy or lease the item, for example, your car, learn more about the pros and cons, and decide which one will pay off better for you long term. 

Review all your direct debits

If you don’t mind spending a little time reviewing your current direct debits, including phone contracts and utility bills, you might find you can save a significant amount of money on them and instead, put that money into your savings accounts.

Review the website of the companies that have new offers and their competitor’s offers. You could also hop into a comparison site that will do all the work for you. You should also check your direct debits to ensure you are not paying you anything you don’t use, for example, a gym membership or a magazine subscription.

If you can do this every year, you will save yourself hundreds. It only takes time to do this, which you can look at as a worthwhile investment if you want to boost your savings quicker. 

Invest or switch to a savings account with interest 

If you don’t need your savings within the calendar year, then a good option would be to move your money into an account that will earn you more money. This could be a savings account with interest or an investment product.

If you are thinking of choosing this option, you should speak to a professional financial advisor who will be able to help you choose the best options for your current savings, and help you meet your goals quicker.