If you want to start saving money quickly the first thing you need to do is set yourself a goal; whether it is buying a house, getting the kitchen done or paying for a wedding, having a reason to save money fast will motivate you and keep you focused on reaching that dream. Once you have your goal, use the tips below and see your piggy bank grow, quickly.
1-. Determine your regular and irregular expenses and start cutting back
Take a look at the things that you are currently paying for, and make a list of the essential payments such as your rent/mortgage, household bills, mobile phone, transport, insurance and food. Then, calculate how much money you spend on each on a monthly basis. These are your regular expenses.
When your list is complete, identify the regular expenses which you could potentially save money on by making some adjustments; for example, cooking at home instead of ordering takeaway or switching energy suppliers.
Once you’re done trimming your regular expenses, take a look at your irregular expenses and give yourself a monthly budget for all of them; this will help you assess every month what you can afford doing and what can wait until the next pay check. Irregular expenses include entertainment, leisure activities, grooming and clothing.
2-. Monitor your spending online
Saving money is a little bit like going on a diet; in order to succeed, you need to change your habits and get into a routine. To make this easier, pick a day of the week when you are most likely to have 5 minutes to spare. For example, if you tend to get into work early on Mondays or if you usually have lunch at your desk on Wednesdays, make it a habit to log into your bank account and quickly check your finances.
By monitoring your spending on a weekly basis, you will be able to assess how much money you have left and reduce the risk of going into your overdraft.
Having a list of dates when your direct debits are due is also a good idea; that way you will know how much money is actually yours to spend and how much is part of your regular expenses.
3-. Switch to LED light bulbs
When comparing prices between normal and LED light bulbs, the latter might not seem like the most suitable choice if you’re trying to save money. But, in the long run you’ll be better off.
LED light bulbs might be considerably more expensive than traditional ones, but they are 10 times more efficient at converting electricity into light and they also last longer. Research done by Comparethemarket.com has shown that investing in making the switch can save you up to £240 per year, and pay for themselves within five months of installation. Making the switch is an easy way to save money, and make your home more efficient at the same time.
4-. Do food shopping with a strategy
Before heading to the shop, write down a list of the things that you need to buy; if you are going to a familiar supermarket draw yourself a route based on the shop’s aisles and list each item in order according to your route; this will help you stay focused on the things that you need and avoid temptations.
It is known that supermarkets place items on shelves strategically; you will usually find the most famous brands and items that have a higher price on the mid-shelves or at eye level. Cheaper items of the same kind or reduced items tend to be on the bottom shelves.
If you ever get some coupons/vouchers through the post or find some online, keep them in your purse/wallet so you have them on you whenever you visit a shop.
Last but not least, never visit a supermarket on an empty stomach. Shopping whilst you are hungry will only make you crave food more, and you’ll end up buying half the store.
5-. Cook smartly
Changing your cooking and eating habits can help you save money rather quickly. Start off by using everything you have bought throughout the week, and make an effort to not throw food away. If you have a recipe that requires only half an onion, half a pepper and half a broccoli, why not make double the amount and keep what you don’t need in the freezer, or pack it for lunch the next day?
Making packed lunches is another way to save big money almost instantly. The average amount spent on lunch during the week is £6 per day, that is £30 per week and £120 per month, whereas buying ingredients to make sandwiches or salads for a whole week costs about £10.
It’s the little changes that make a big difference when you need to save money fast. If you want a simple, straightforward way to manage your money, sign up to Arro Early Access now.