Do you Want To Spend Less and Save More? Here Are Some Tips!
Let’s face it – living in London is expensive. Whether it’s your monthly rent, your weekly commuting cost, or your daily groceries – everything costs money. In today’s day and age, with over-consumption in overdrive and inflation going up, it’s no surprise that people can’t afford to splurge a little bit.
According to BravoVoucher’s 2021 Smart Shopper Index, out of 25 countries researched, the UK came out 20th with regards to smart shopping habits. So if you’re looking to change that – look no further.
Here are 5 tips to spending a little less and growing your savings every month!
The 50-30-20 rule is a great benchmark for your spending habits. It basically outlines how you should split your expenses every month in order to benefit the most from how much you make.
Essentially, 50% of your income should be spent on necessary expenses such as rent, transport, groceries, amongst other things. 30% should be spent on your wants – this includes eating out or any social events you might want to go to. And 20% of your income should be put into savings.
It’s understandable that you may need to overspend one month or maybe you will have more savings another month, but if you keep this in mind as a rule of thumb for your budgeting habits, it could help in the long run!
It’s not frugal to use discount codes if you have them! Make sure to have a look for any easy ways to obtain discount codes – many retailers will give you 10-15% if you sign up for their monthly newsletter. Being part of their database will probably allow you to get other benefits down the line too!
If you’re a student, make sure to sign up for voucher programs like Student Beans and UNiDays with your academic email address. This will automatically give you access to discounted rates with a number of retailers and restaurants.
As mentioned above, loyalty programs are great for long-term gains. Whether booking a holiday and collecting air miles or collecting points are your local grocery shop, at the end of the day, you will be able to withdraw these points for your own personal gain if you shop there enough!
If you are buying something that you are going to buy and keep over a long period of time, it could be worth spending a little bit more in order to make sure that it lasts over time. At the end of the day, certain electronics, items for your home, or pieces of clothing such as winter wear are a long-term investment that is meant to serve you over a longer period of time – not just in the short term.
Take the time to do some research into average price points and how durable the items are before purchasing them. Therefore you are able to make an informed decision about the product and can justify spending a little extra money on it.
Something that a lot of people don’t do is set financial goals for themselves. By having a goal that you are aiming to reach, you will have more drive to save money rather than spend unnecessarily.
There are a number of mobile apps that can help you set and track your financial goals. Otherwise, call your bank and talk to a financial adviser – they will be able to help you set goals that are in line with your income and your monthly expenses.
Although it may be difficult to save money at the start, once you get into the habit of putting money aside or pulling back on spending money where it isn’t needed, you will notice that it is actually not that hard! All it takes is a little bit of diligence and you are good to go.