We all want to save money but sometimes it can seem like an impossible task. There are so many things that we have to spend money on as part of our everyday lives, from food and bills to entertainment and clothes. However there is a way to save money without feeling like you are missing out on anything.
You should start by tracking your expenses for about a month. Use this time to get used to spending less than you earn and pick up some tricks for how to cut corners without feeling deprived. At the end of that month, take a look at your total spending for the month. Now divide that number by 30 (there are about 30 days in a month). This is what your average daily spending looks like. If you are like most people, it is probably higher than you think. Now take that number and multiply it by 365 (there are 365 days in a year). This is what your annual spending looks like. It might be higher than you expect too which means there are probably areas where you can cut back and save some extra cash each year.
Save £1,000 by December
Saving £1,000 per year is roughly £2.71 per day, therefore making a few small tweaks to your spending habits will easily get you to your goal. Here are six ways to start saving £1000 per year without noticing a difference:
1) Stop buying bottled water. Buy a Brita filter instead which will also help reduce the amount of plastic you use.
2) Buy your groceries at Aldi instead of Tesco or Sainsbury’s. Alternatively, if your supermarket has a loyalty card then sign up for that. It will give them permission to track your purchases which means they can offer discounts based on what you buy.
3) If you buy a cup of coffee every day, that’s around £22 per week. Instead, make your own coffee at home. Not only will this save you money but it’ll also save time as you will not have to wait in line for your coffee or stand around drinking it.
4) If you eat out for lunch every day at work, consider bringing leftovers from home or packing your own lunch instead. You will save yourself money and also get some additional nutrients from home-cooked meals.
5) Get a bank account with an interest rate of 1% or higher. This will give you £10 in interest per month if you have a balance of £1k in your account.
6) Get a credit card that earns at least 2% back on every purchase (if not more). This means that every time you buy something with your credit card, you’ll get another 2% back in cash rewards or points towards travel or gift cards. If you spend £1000 per month, you’ll get £20 per month in cash back.
Francis Fabrizi
Accountant
Keirstone Limited
