Look after the pennies and the pounds will take care of themselves – know that saying? Possibly not but whether you do or don’t there is definitely a ring of truth about it.
Employ smart, money saving tactics day-to-day and watch the savings and your nest egg start piling up. This doesn’t mean you shouldn’t heat your home or eat cold beans from a can but it does mean taking a look at some of the little things that are mounting up into big things year-on-year. They are often the savings that we know we should address but never seem to get around to doing, such as swapping our car insurance over, cashing in or trading in some coupons.
We take a look at some of the small savings that add up to big savings over time.
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The first thing to do is take a long, hard look at your bank account. Get hold of a paper copy of your last three months’ finances and start going through them with a fine tooth comb. If you share your account with anyone, you’ll need to have them on board too.
Divide your spending into three columns: utilities, including rent or mortgage, essentials such as food and luxuries such as gym membership. From there you’ll be able to see how much you’re spending in each column and start making some savings. Even your utilities can be looked at using a price comparison site for energy suppliers.
Next take a look at your essentials. Are you making the most of store loyalty cards and shopping around for the real bargains. You don’t necessarily need to compromise on quality but you can see which supermarkets have your preferred brand at the lowest price.
The greatest savings you’ll make will probably be in the luxury list. Do you really need to buy that latte every day, £3 or £4 every day; every week soon becomes hundreds of pounds. Shop around for cheaper gym membership or consider investing in some home equipment and ditch the membership completely. Think long term and you’ll see how you can really start saving money.
Talk to the experts
Sign up to group discount sites such as Groupon or Topcashback to get the deals and help you afford some of the luxuries that make life that little bit more pleasant.
Whether you’re a super saver or an extravagant spender, making a little saving here or there can soon make a huge difference in the long run. Think about that holiday you’ll be able to afford or the savings that are adding up to go towards a house deposit. Set yourself a goal that makes saving and cutting back feel like a worthwhile thing to do.
Think smart, shop around and find the best deals online. Look after the pennies and see those pounds starting to take care of themselves.