Does the idea of a holiday seem out of the question without reaching for the credit card or digging into the overdraft? Or would you simply like to put a little money aside for a rainy day, but find that every month there just isn’t enough left over? By following these simple tips, you can look forward to some guilt free time away or watch your savings add up before you know it. Even making small changes, you will be amazed at how quickly your goals can be achieved.
1. Open an ISA
This is a great savings account as you are not charged tax on the interest you earn so your returns will be greater. Set up a savings goal with your bank and arrange for a small transfer from your current account to your ISA each week, or to coincide with your wages. This is a brilliant way to keep track of how much you are saving and how close you are to your goal.
2. Do your grocery shopping online
Set a weekly food budget and stick to it. If you need to shop in-between deliveries, make a list and don’t stray from it. Look for supermarket own brand goods – usually they taste just as good. You will be amazed at how much money (and time) you will save. The difference can go into your savings and you won’t even notice.
3. Sell unwanted items
Most people have things they don’t use, which are in perfectly good condition. You can sell clothes easily online through specialist pre-owned retailers, who will sell things for you for a small commission.
4. Set yourself a target to walk or bike every journey under a mile
If this sounds an impossible goal due to physical or time limitations, try doing it for just one day a week or get together with friends to car share when possible. Even if you save just £2 a week doing this, it will add up to over a hundred pounds over the course of a year. If you use public transport regularly, think about a prepaid card or ticket which often offers savings.
5. Cut down on luxuries
By all means indulge in a treat now and then, but set a limit. Take a packed lunch to work, make that daily chocolate bar a Friday treat and cut down on takeaways. Not only will you save pounds but you will also appreciate the little pleasures all the more when you have them less often.
6. Collect small change
Coppers and five pence pieces can be an annoyance in your wallet but add them to a piggy bank each evening and you will be surprised to find how much you will save in a month. Putting aside just 25 pence a day will amount to almost a hundred pounds in a year.
7. Stay motivated
Carry a picture of your dream purchase in your wallet or purse. Nothing is more motivating than seeing a picture of a sun kissed beach or your favourite wallpaper sample every time you are tempted to over-indulge. If you want the cash for a holiday, keep an eye out for special offers or discounts for early booking.