Cutting back on your spending

In a recent survey of members, almost everyone we spoke to said that they wanted to save more.

But that can be hard on a low income. Where does the money come from? Cutting back on spending is hard. To help you, here are four tips to help you cut back on spending.

Pause big purchases

When you’ve got the urge to spend on something relativey big, walk away from the shop. Write down what you wanted and how much it costs. Stick this somewhere obvious; like the fridge or notice board. Wait 30 days. If the urge remains, then go and splash out but avoid using credit if you can.

Grocery shop with cash

In times of plastic it’s easy to forget the benefits of notes and coins. For this tip you’ll need your best maths skills, so you don’t overspend. On the otherhand if you’re watching every penny you’re budgeting on the go.

More often than not you’ll be worrying about overspending and end up under-spending. Pop the change in a jar. Build it up. Pay it into your credit union savings account.

Set a spending goal

Start small. Spend £10 less over the next four weeks compared to last month. At the beginning of the month put a tenner in an envelope in a safe place. Leave it alone. Don’t be tempted to spend.

At the end of the month put that £10 in your savings account. Next  time aim for £15.

Cancel unecessary direct debits

Subscription services often rely on people not getting around to cancelling payments for things they no longer use. Have a good look through your bank statements. See if there’s anything you’re spending on that you no longer need and cancel it.

More tips

If you want more tips of cutting back on your spending, the consumer site Which? has another 50 ideas.

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