Saving For A Rainy Day

With the effects of the recent credit crunch, it makes sense to take simple steps now to hold onto your hard-earned cash. By using common sense and economising where possible you can ensure that you keep your head above water.

Set aside some time to look at your monthly spending; therefore, start with the major outgoings. If you have a mortgage are you getting the best deal or could you do better by switching? If you have a spare room could you think about letting it out to bring in extra income? Or what about giving a home to foreign students on a seasonal basis?

For utility bills such as gas, telephone and electricity you can look into current offers on tariffs as you may be able to save a significant amount by switching to a deal that is more suitable for your requirements. Although it can take time to organize such changes, the money you could save should make it time well spent.

Another area to consider is your monthly shop. Do you make a list and buy in bulk or are you prone to impulse buys? People tend to spend more when they food shop without planning first; therefore, take some time to plan possible meals before you go shopping and try to stick to buying the essentials.

In addition, do take account of special offers and don’t be afraid to try different brands - most supermarket own brand goods are of a similar quality to those with more expensive packaging. More and more people are also trying different supermarkets to find the best deals, so don’t be afraid to branch out from your usual shop. Supermarkets can even be a great source of fashion and everyday clothing, as well as home furnishings and household goods and equipment. If you are prepared to forego a fancy label then you can make some fantastic savings.

There are plenty of other areas where savings can be made. Even something as simple as a daily cappuccino on the way to work can add up over the weeks. Why not skip it and enjoy a morning coffee at home? Similar small savings which add up can be made from considering a car-share with colleagues, or alternatively leave the car in the garage and use public transport instead. Better still, walk or cycle to work - this way you can exercise for free and this can even encourage cancelling your gym membership, should you have one.

Once you start thinking in a financially canny way you are bound to find even more ways to reduce your monthly bills; and as the savings start to add up, it makes perfect sense to squirrel them away in your savings account. If you don’t yet have an account then you might want to consider opening one to accommodate such savings. From doing so means you should be prepared for even the rainiest of days.

Andrew Regan

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.

Victoria Cochrane