Budgeting Is The Secret To Saving
Saving on a regular basis may seem like a mammoth undertaking and one that you could only achieve after a hefty pay rise. In fact, this is one of the common excuses that we all use to avoid building a nest-egg, but putting a little money aside each month should not be seen as a pursuit only for those with money to burn.
In fact, saving can be a straight-forward process that is achievable by anybody, regardless of their monthly income and financial outgoings. All that is needed is careful planning.
It can be easy to become accustomed to a certain way of life and assume that to spend any less money would mean having to make major sacrifices, hence making life less enjoyable. But through carefully monitoring exactly how much is spent each month – from the little things such as your lunch and travel budget, to the bigger things such as the mortgage and bills – it is then possible to start making some fundamental changes that can free-up a regular contribution to your savings balance, without having a significant impact on your daily life.
In the first instance, make a note of everything you spend – big and small - each day for a whole month. The first thing you’ll notice is how all the little things actually add up to quite a lot over the course of a month.
For example, it’s estimated that the average worker will spend around £5 a day buying their lunch. And even taking into account weekends and holidays, that’s an excessive amount of money every year on unnecessary lunchtime treats. By bringing in homemade lunches everyday it’s possible to make considerable savings for a modest effort.
Transport is another issue to consider. Whilst many people simply wouldn’t consider losing their car completely, it’s certainly worth thinking about using it a whole lot less. The car may be useful for the monthly shop, but for shorter trips it could be better to walk or take the bus instead.
But of course, it can be difficult to imagine all these potential savings every month without seeing an actual final figure. If you don’t have the time to tot up your savings yourself, you can also take a look at a simple budget calculator tool which is available to anyone with internet access. This breaks down all your potential monthly outgoings into categories, and makes all the necessary calculations to show you how much you stand to gain from taking control of your daily finances.
Remember, saving doesn’t require drastic lifestyle changes. By carefully monitoring how much is being spent on what, you can identify savings that can be made without a massive impact on your personal life. And by watching the pennies, the pounds will eventually take care of themselves.
In fact, saving can be a straight-forward process that is achievable by anybody, regardless of their monthly income and financial outgoings. All that is needed is careful planning.
It can be easy to become accustomed to a certain way of life and assume that to spend any less money would mean having to make major sacrifices, hence making life less enjoyable. But through carefully monitoring exactly how much is spent each month – from the little things such as your lunch and travel budget, to the bigger things such as the mortgage and bills – it is then possible to start making some fundamental changes that can free-up a regular contribution to your savings balance, without having a significant impact on your daily life.
In the first instance, make a note of everything you spend – big and small - each day for a whole month. The first thing you’ll notice is how all the little things actually add up to quite a lot over the course of a month.
For example, it’s estimated that the average worker will spend around £5 a day buying their lunch. And even taking into account weekends and holidays, that’s an excessive amount of money every year on unnecessary lunchtime treats. By bringing in homemade lunches everyday it’s possible to make considerable savings for a modest effort.
Transport is another issue to consider. Whilst many people simply wouldn’t consider losing their car completely, it’s certainly worth thinking about using it a whole lot less. The car may be useful for the monthly shop, but for shorter trips it could be better to walk or take the bus instead.
But of course, it can be difficult to imagine all these potential savings every month without seeing an actual final figure. If you don’t have the time to tot up your savings yourself, you can also take a look at a simple budget calculator tool which is available to anyone with internet access. This breaks down all your potential monthly outgoings into categories, and makes all the necessary calculations to show you how much you stand to gain from taking control of your daily finances.
Remember, saving doesn’t require drastic lifestyle changes. By carefully monitoring how much is being spent on what, you can identify savings that can be made without a massive impact on your personal life. And by watching the pennies, the pounds will eventually take care of themselves.
Victoria Cochrane
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