If you would like to save more money each month ready for retirement, there are many different approaches that you can take, but the easiest and most effective ones to implement are:
1. Reducing Your Bills
The vast majority of people don’t like to deal with bills. It is why so many people end up actually paying more than is necessary. Fortunately, price comparison websites have made the process of swapping insurance, energy, or Wi-Fi suppliers a lot easier than it was in the past. You will likely come across introductory offers for new customers to help you save some extra money each month.
2. Using Tax Credits and Allowances
You could be entitled to tax benefits or reliefs that you aren’t using. There are numerous obscure tax reliefs out there, including tax-free childcare, marriage allowance, rent-a-room relief among many others. You can lower your annual income tax bill and save yourself a lot of money.
When it comes to savings, your personal savings allowance can help lower your interest payments. For the basic-rate taxpayers it is currently £1,000 ($1,200) and £500 ($500) for persons at the higher rate.
3. Consolidating Your Debts
If you have several different pools of debt, you can make your life a bit easier by combining them all and you will end up actually paying less in interest. There are 2 main ways to do this. Firstly, you can take out a new loan and use it for paying off the existing debts, which means that you will have just 1 payment and interest to worry about.
The other option is 0% transfer credit deals. This means that you will not be charged any interest on transferred debts for a predetermined period. It can be an excellent way to start working on any debts that you are looking to get rid of.
4. Changing Your Shopping Habits
You can make lots of small changes to save a bit more cash at the till, which include:
– Utilizing rewards earned while you spend
– Not overlooking the supermarket’s own brands
– Exploring buying staples such as rice in bulk
5. Cooking More
Starting to make more of your meals from scratch will not only have a positive impact on your health but can also help you reduce your monthly food spend significantly. The mark-up on ready meals and pre-made sauces is relatively high. You can make a large amount of amazing, fresh tomato sauce for the equivalent of a couple of cents per serving.
6. Getting Smart About Eating Out
Just because you have a budget and savings goals, it does not mean that you should not treat yourself to a nice meal occasionally. Still, there are some ways that you can be savvier about it:
– It is generally cheaper to order directly from the restaurant as opposed to using a delivery service or app.
– Numerous websites currently offer vouchers from some of the most popular restaurants.
– Asking for tap water rather than bottled water.
– Bringing your own alcohol, if allowed, can help you reduce your final bill.
– Chain restaurants sometimes offer clubs where you can access deals.
7. Reducing Your Usage of Cars
Cars are expensive to run and maintain, which is why it makes perfect sense to try limiting your car use. Cycling is a great way to get around, or if you are less mobile there are a range of vehicles that you can use, click here to find out more.
8. Becoming a Bit More Efficient
Electricity and heating are essential expenses, but it does not mean that you need to deal with massive bills. There are multiple ways to boost your energy efficiency and possibly lower your costs:
– Invest in some insulation – Up to 1/3 of your home’s heat could be seeping through the roof otherwise.
– Turn down the heating and consider wearing a jumper indoors during the cold season.
– Use foam rollers or draught excluder strips to deal with any gaps around doors, windows, or pipework.
– Install a smart meter and start monitoring your usage of energy.
9. Automate Your Monthly Saving
Once you know the exact amount of money you plan to save each month, it is now time to lock it in and take it off your hands. The best way to do this is by setting up an automatic transfer from your current account to your savings account each month so that it happens without your intervention. You can then get on with your life knowing that your savings are growing with each passing month/
Saving your money does not mean that you have to give up everything that you enjoy doing. The monthly money saving tips discussed here can and will help you make big changes to your financial situation. If you would like to go a step further, we can match you to an advisor that will help you make your financial dreams a reality.