No matter how much money you earn, chances are you’ll wish your money went further! It’s no secret that our day-to-day lives aren’t cheap. We have the home, food, utilities, kids and necessities to think about – and that’s without even considering the cost of the things we want to treat ourselves and our families with! So how can you make your money go further? These top tips will teach you to be more money savvy, and to therefore make sure your money goes further in helping you to live life to the full.
Become Aware of How You Spend Your Money
The first step to becoming more money-savvy, is by becoming aware of how it is that you spend your money in the first place. If you’re finding yourself a little short towards the end of the month, the key question to ask is where can I save? One of the best ways of doing this is by compiling a list or spreadsheet of the following things:
It might sound daft, but by writing it all down you’ll have more of an idea where it is that you’re actually spending, and you’ll be able to make a decision as to what things are necessary, and which ones perhaps aren’t.
Make a Budget
After assessing all of your finances, you’ll want to make an easy to stick to budget. A lot of people hear the word “budget” and alarm bells start to sound. They picture themselves going back to the Victorian age of sharing weekly baths, living out of a ration book and having no treats whatsoever. However, this absolutely isn’t the case. Budgeting is just about being more organised about the way you spend your money.
Once you figure out how much money you have coming into the household each month, assign a sum of it to bills, food, and day-to-day living necessities that you can’t skip over. This way, you’ll know how much you still have left at the end of the month for anything else. An easy example of a way to make a budget and stick to it, is by planning your weekly meals. This way you’ll know exactly what you’re cooking so you won’t be tempted to waste money on unnecessary takeaways, and therefore you’ll only buy what you need to when shopping because your shopping list will be entirely tailored to what it is you’ve planned to make. It’s amazing just how much money you can save on the food shop, if you do it carefully.
Figure Out Ways You Can Save on What You’re Already Spending
Then, you’ll want to look at how much you’re actually paying for each essential and figure out whether you can get it for any cheaper. For example, your utility bills are where so many households are overpaying. You need gas, electric, and water to live – but that doesn’t mean you should be paying a bomb for it. Simply by doing your research online and comparing the different utility companies and how much each of them charge, you could save yourself up to hundreds of pounds every year on monthly bills – and that wouldn’t look so bad in the holiday fund would it?
However, did you know that it’s not only the day to day things that you can save on if you do your research effectively? That’s right, even the bigger scale stuff is up for debate on how much it should cost. Whether you’re looking at cheaper methods of how to sell your home fast, or you’re wanting to pay less for your car insurance, it’s all accessible if you just look.
Cut Out Wasteful Spending
One of the biggest pitfalls that we’re all guilty of getting into, is spending wastefully. It can be so easy to do – and you might not even realize that you do it!
For example, do you buy a coffee on the way to work every morning? Chances are if you are buying one, and from a chain store particularly, you could be spending as much as up to $125 per month on these coffees alone. It might sound ridiculous, but if you’re paying up to the $5.00 mark for a coffee every time you go to work, five times a week, over a yearlong period, it really adds up. Opt for getting up earlier and preparing a flask to take too work – it’s an extra five minutes on a morning that will save you huge amounts in the long run.