Whether you want to replace a washing machine, afford a holiday, or even save up for a house deposit, the first place to start is by saving. However, most people find saving quite challenging, especially if there are bills and other financial commitments to pay each month.
Fortunately, there are some techniques you can try that can help you to manage your money better and start to build up some savings:
Set up a budget
Setting up a budget can help you to take more control over your spending. This is a great way to start saving for beginners. To do this you will need to list all of your outgoings such as bills, living costs, travel and leisure spending. You need to be realistic with these and set a limit for the ones that can vary each month.
If you want to save £50 per month, for example, you can then set a limit on your spending that will ensure you have £50 going into savings each month. Try the Money Advice Service’s Budget Planner to get you started.
Move your savings into a separate account
If you keep your savings in your current account, the temptation will be there to spend it, so set up a savings account instead to move your money over so that you remove the temptation to dip into it. If you can find a savings account with a bit of interest, this will give you a little added incentive to save up too. You can open up a separate share account at the Credit Union. Get in touch to find out more.
Remove unnecessary costs
Review your bank statement and see whether there are any direct debits that you are paying but not getting value from. For example, a gym membership if you go once or twice a month is probably a waste of money. You could find alternative options.
Be stricter with your spending
If you smoke, like to have a few drinks or takeaways regularly, work out how much you could save by reducing the amount of these that you buy. As well as being healthier, you could save some significant money. That’s not an easy way to start saving for beginners. But it’s worth a shot.
If your main vice is buying take-away coffee from coffee shops, limit the number of these you have each month, as they all add up. A daily coffee each morning costs around £10 or more per week, so you could reduce your outgoings this way.
Review your utility providers and other bills such as insurance to see if you can find a cheaper option. You can use comparison sites to find the best deals and switch over to decrease the amount you are paying each month. If you have a mortgage, it is always worth looking at new deals when you come out of a fixed rate, to avoid overpaying.
You might also be able to make savings by choosing a different grocery shop or using a few different shops to find the same products at cheaper prices.
Reduce travel costs
Running a car can be very expensive and fuel costs may account for a lot of your monthly spending. Try using your car less, either by walking or cycling to places and you can get some extra exercise in too. Another great way to start saving for beginners.
Pay off high-interest loans
If you have any loans or credit cards with high interest rates, see if you can switch to a product that has a lower interest rate, or try to pay the debt off as quickly as you can to reduce the amount of interest you pay overall. You may find it cheaper to consolidate expensive credit card debts with a Credit Union loan.
Become a credit union member
One way you could get help with savings is to join Central Liverpool Credit Union. Every member gets a savings account. They will be able to offer you support to help you save more and improve your financial health.
Through Central Liverpool Credit Union, you could save better than ever before with our different range of saver options. Whether you opt for the Prizesaver account or you opt for payroll deduction, there’s something to help everyone.