There are major financial issues happening across the globe right now, due to various events that have taken place in the past few years. The pandemic forced many businesses to close for long periods, and in order to survive, the government stepped in with financial assistance. Now, that financial assistance is having to be repaid through higher tax costs, and the cost of living and inflation has gone through the roof.
Other political changes from Brexit to the Ukrane/ Russia situation have added to this, and have had an effect on everything from the cost of imports to food, bills and much more. For these reasons, being savvy with money is more important than ever. Even those who were living reasonably comfortably before are now at a very real risk of being plunged into poverty. Food bank use is up astronomically, and charities that were already struggling to help those that were worst affected before are now at their limits. So it’s crucial that we all take a good look at our finances, and see what we can do in regards to saving and making the most of our money.
“Saving money is a skill we should all be taught in school” says Rob Colville, Founder of The Lazy Trader. “Many people have heard of the 30% rule, where people say roughly 1/3rd of your income should go on your rent. How about reducing that to 25%, and putting the extra 5% into a savings account?”. Approaching your finances with this mindset, you’ll notice a very quick build-up of savings within several years.
Here are some more ideas for saving money.
Go through your budget
First things first, it’s useful to go through your budget with a fine tooth comb and work out exactly what you’re currently spending. Do you have any subscription services that you’re not getting enough use out of that you can cancel? Is your grocery bill through the roof and something you can cut back on? Are there utility bills you can save money on by going through a price comparison website and making the most of new customer offers?
Set up a saving system
Once you know what you’re spending and make cutbacks, you can hopefully free up a little money to save instead. Decide on the system that works best for you, will you transfer any leftover money from the month into a savings account, or will you take savings from your account first and put them away as soon as you’re paid? Will you set up a standing order, or will you work on simply saving your spare pocket change in a jar? Every bit helps, if you’re consistent then it will add up over time.
Earn some extra
Finally, earning some extra income with the intention of saving it will help you to reach your savings goals more quickly. This could be either putting in some overtime at work, or setting up a side hustle and transferring all earnings from it into savings. Sites like Upwork allow freelancers to bid on various gigs so have a think about your skills. Or you could even set up a home based business and do this as a means to save up more money long term.
