This year, I am trying to be more careful with my outgoings. Compared to when I first started working to now, I am trying to be more wise when it comes to deciding what and when to spend money.
1. It becomes all too easy when you get paid to spend it so easily. One thing I have started to do is make a wish list of the things that I am interested in buying. I will leave an item on the list (unless I really need it) for a few months. If I still decide I am still interested in it, I will leave it on the list and make plans to buy it. If I have decided I don't really want it in the end, I will delete it off my list. Taking the time to ponder over whether you actually want or need something will help you spend money on worthwhile purchases.
2. I also find making a budget to be useful in planning how you spend your money. Whilst point 1 relates to disposable spending, your budget should include costs for things like travel, social events, education, health expenses, bills, etc. This ensures that you are leaving enough of your pay to cover these more essential outgoings. I have made a list on my computer of budgeted expenses for each month, and edit as the year progresses.
3. With regards to grocery shopping - make a shopping list! It helps you to buy what you really need and focuses you on getting the task done, and not being tempted by special offers or the treat aisle! I have found in the past that shopping on an empty stomach led me to buy more food that I usually would, so eat something before you shop!
4. I try to keep track of my spending so I can see where my money is going to. I use an app on my phone called Money Manager, which allows you to record expenses (information and date) into different categories. It totals the amount of outgoings and incoming payments within the week/month/year as well as giving you information about which category has the most spend (in the form of a pretty pie chart). Before this, I used a spreadsheet and before that, I just used to jot it down in a notebook. This can help you see which categories need their spending reduced, if possible.
5. Make your money work for you! Shop around for the best current and savings accounts - look for the best interest rates or offers. A lot of bank accounts now offer cash back when you use your card in a specific shop, as well as interest on some current accounts. They also offer access to regular saver accounts which offer decent interest rates. I would recommend Santander's 123 account: you need two active direct debits, pay £5 a month and pay in £500. You will get 1-3% cash back on your utilities if you pay them through your current account, as well as 1.5% interest up to £20000. If you have a Santander current account, you can apply for a Regular Saver for which you pay in £250 a month and has a 3% interest rate. TSB also offer a current account with 3% up to £1500, for which you need to pay in £500 a month and agree to paperless communications.
6. If you are online shopping, check whether the store participates in cash back or loyalty points schemes, i.e. Top Cashback, Quidco or Nectar. Whilst the cash back rates aren't huge, it is better than nothing. You can build them up to withdraw as a voucher to use later on, or in the case of Top Cashback and Quidco, simply withdraw to your bank account or Paypal. Keep an eye on special promotions throughout the year that allow you to boost your points/cashback!
7. Check for a voucher code for the store you are shopping at. I normally use Voucher Codes to see if there is anything available. If you sign up to a website's newsletter, they will usually email you promotions or special codes to help you save.
8. Shop around for the things that you need to buy. For groceries and household items, I use MySupermarket to compare the prices between different supermarkets.
9. Limit the amount of takeaways and restaurant meals and try to eat at home more. A few years ago, I did rely on eating out more, but this often works out more expensive. Getting ingredients at the supermarket and making your own meals is cheaper (and sometimes healthier). Things like takeaway coffee and shop-bought sandwiches can be done at home too. Make your own lunch at home and make your own coffee at home (you can use a travel cup or flask and fill with instant coffee or use an Nespresso or Dolce Gusto machine to make your own drinks).
10. For things like mobile phones, consider what you really need. There is no need to buy the top of the range smartphone if you only use your phone for light browsing and messaging. Also, buying the phone outright and finding a SIM only contract that suits your needs works out cheaper than going into a 2 year contract with a phone provider. I was happy with the SIM deal I have, so when my phone broke I replaced the phone and continued using my SIM with this. I don't think I would consider getting another phone on contract in the future.
So there are 10 things - is there anything you would add to the list?
1. It becomes all too easy when you get paid to spend it so easily. One thing I have started to do is make a wish list of the things that I am interested in buying. I will leave an item on the list (unless I really need it) for a few months. If I still decide I am still interested in it, I will leave it on the list and make plans to buy it. If I have decided I don't really want it in the end, I will delete it off my list. Taking the time to ponder over whether you actually want or need something will help you spend money on worthwhile purchases.
2. I also find making a budget to be useful in planning how you spend your money. Whilst point 1 relates to disposable spending, your budget should include costs for things like travel, social events, education, health expenses, bills, etc. This ensures that you are leaving enough of your pay to cover these more essential outgoings. I have made a list on my computer of budgeted expenses for each month, and edit as the year progresses.
3. With regards to grocery shopping - make a shopping list! It helps you to buy what you really need and focuses you on getting the task done, and not being tempted by special offers or the treat aisle! I have found in the past that shopping on an empty stomach led me to buy more food that I usually would, so eat something before you shop!
4. I try to keep track of my spending so I can see where my money is going to. I use an app on my phone called Money Manager, which allows you to record expenses (information and date) into different categories. It totals the amount of outgoings and incoming payments within the week/month/year as well as giving you information about which category has the most spend (in the form of a pretty pie chart). Before this, I used a spreadsheet and before that, I just used to jot it down in a notebook. This can help you see which categories need their spending reduced, if possible.
5. Make your money work for you! Shop around for the best current and savings accounts - look for the best interest rates or offers. A lot of bank accounts now offer cash back when you use your card in a specific shop, as well as interest on some current accounts. They also offer access to regular saver accounts which offer decent interest rates. I would recommend Santander's 123 account: you need two active direct debits, pay £5 a month and pay in £500. You will get 1-3% cash back on your utilities if you pay them through your current account, as well as 1.5% interest up to £20000. If you have a Santander current account, you can apply for a Regular Saver for which you pay in £250 a month and has a 3% interest rate. TSB also offer a current account with 3% up to £1500, for which you need to pay in £500 a month and agree to paperless communications.
6. If you are online shopping, check whether the store participates in cash back or loyalty points schemes, i.e. Top Cashback, Quidco or Nectar. Whilst the cash back rates aren't huge, it is better than nothing. You can build them up to withdraw as a voucher to use later on, or in the case of Top Cashback and Quidco, simply withdraw to your bank account or Paypal. Keep an eye on special promotions throughout the year that allow you to boost your points/cashback!
7. Check for a voucher code for the store you are shopping at. I normally use Voucher Codes to see if there is anything available. If you sign up to a website's newsletter, they will usually email you promotions or special codes to help you save.
8. Shop around for the things that you need to buy. For groceries and household items, I use MySupermarket to compare the prices between different supermarkets.
9. Limit the amount of takeaways and restaurant meals and try to eat at home more. A few years ago, I did rely on eating out more, but this often works out more expensive. Getting ingredients at the supermarket and making your own meals is cheaper (and sometimes healthier). Things like takeaway coffee and shop-bought sandwiches can be done at home too. Make your own lunch at home and make your own coffee at home (you can use a travel cup or flask and fill with instant coffee or use an Nespresso or Dolce Gusto machine to make your own drinks).
10. For things like mobile phones, consider what you really need. There is no need to buy the top of the range smartphone if you only use your phone for light browsing and messaging. Also, buying the phone outright and finding a SIM only contract that suits your needs works out cheaper than going into a 2 year contract with a phone provider. I was happy with the SIM deal I have, so when my phone broke I replaced the phone and continued using my SIM with this. I don't think I would consider getting another phone on contract in the future.
So there are 10 things - is there anything you would add to the list?
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