If you're like me, you're always looking for a way to put a little more money aside. The idea is great: but where to start to save money quickly? And, even better, how do you build a rescue fund (i.e., save money on difficult days)? Here are 44 tips that will finally help you reduce your expenses and save money.
Here's a little amazing calculation: set aside 50 pence every day. In a single year, it makes up almost 40% of a rescue fund of £500!
It allows you to put money aside, without too many constraints. Keep an eye on your expenses. At least once a month, take the time to sit down and carefully peel your bank statements.
Analyze all your expenses to see if they are REALLY necessary. Then ask yourself: "Were all these expenses really necessary? Or could some have fed a relief fund?"
Wait 2 days before making a major purchase. To avoid buying unnecessary things, wait 48 hours before making the purchase. It's a good tip to not have any regrets.
And instead of making an unnecessary expense, why not feed a relief fund?
Avoid bank card fees. If you use a credit card, limit your purchases to what you can pay back before the end of the month. It saves you from having to pay exorbitant interest rates.
If you use a credit card, your bank surely allows you to have an overdraft. It's convenient for troubleshooting, of course. But lose the bad habit of depending on this overdraft. It's going to keep you from paying back.
These fees are avoidable and would be more useful in a relief fund, right? Set a budget. Looking for an effective way to budget? Here's how to do it: Keep ALL your receipts for a whole month. At the end of the month, analyze the expenses. It's going to give you an overview of your expenses right away!
And you'll be able to save on your budget more easily. Go to the dentist regularly. Personally, I go to the dentist twice a year, for simple scaling and cleaning of teeth. These regular visits are especially good for identifying cavities well in advance and avoiding other, more expensive treatments.
On the mortgage front, a lot can be done to reduce them. Asking your lender What Mortgages are there? and speaking to an independent financial advisor may be able to point you in the right direction to make savings.
Indeed, it is not given, a crown! Keep an eye on your expenses. Most people do not monitor their expenses at all. Result? Well, they spend more than their budget allows. Ouch!
Here's the solution to keep a close eye on your expenses: simple envelopes!
Set a budget for each of your expenses: transport, shopping, entertainment, etc. Then put the money you need, for each expense, in envelopes. It's a safe and convenient way to avoid exceeding your budgets! Plus, it allows you to set aside money you didn't spend at the end of the month.
Take advantage of your corporate committee. Did you know that your employer is required to cover part of your transportation costs? Often you can also take advantage of discounts on gym subscriptions, movie tickets, etc.
Check with your employer's HR manager to find out more about the services that are being taken care of. Consider whether you can afford a purchase. Here's a great way to determine if you can really afford a "little pleasure."
Set aside the amount you usually spend for a little fun. For example, you buy something that makes you happy (1 pack of cigarettes, 1 bottle of wine or 1 pack of beer). Set aside (in a jar for example) exactly the same amount you spent on that purchase. If you can't afford the "up-and-down", it's very likely that you can't afford this good bottle of Bordeaux wine!
It's as simple as that. Assess the price of things in hourly wages. Take the price of an item you're interested in and divide it by your hourly wage.
For example, a pair of shoes cost £60 and you earn £10 an hour. Are these shoes really worth six long hours of work? It puts things in perspective right away, doesn't it? Focus on short-term savings.
You are more likely to be able to put money aside if your goal is short-term. It makes sense: setting aside £10 a week immediately seems easier to reach than setting aside £500 a year, right?
Buy wholesale on the Internet. Many suppliers and online stores offer delivery fees if the order exceeds a certain amount. Take advantage of this offer by ordering promotional and non-perishable items. It saves time AND money!
Take your coffee at home. Over the course of a year, the £2 paid each day for 1 espresso very easily finance a rescue fund of £500. Just have your coffee at home! Bring your bowl to work. A lunch purchased in the canteen or during the lunch break costs £5 (and more…).
Preparing a bowl at home costs only £2.50. In one year, it easily creates a rescue fund of £500. The same goes for meals outside: instead of spending £25 for a restaurant, preparing a small dish at home costs only £5.
At this rate, it's a £500 relief fund, EVERY MONTH! Prepare a shopping list before going to the supermarket. The important thing is to stick to the list. People who prepare a shopping list (and stick to it) spend less than those who decide on the spot that they will buy at the supermarket.
Over one year, the savings achieved are in hundreds of pounds!
Avoid cheques and overdrafts. £20 to £30 fine for cheques and overdrafts! The savings made each month on these fines are considerable. They are used to finance almost entirely a rescue fund of £500. Pay off your credit cards on time. Paying off your credit card fees can save you £30 to £40 a month in fees. Over a year, this represents a large part of a rescue fund of £500. Take money out of your bank's ATMs only. Ask your bank - withdrawing money from another bank's ATMs can cost you up to £3 per withdrawal. That's up to £150 a year!
Make a comparison before renewing your insurance. Before renewing car or home insurance, take the time to make comparisons on the internet.
Also, offer your insurer to increase the insurance premium (the insurance premium is the price the policyholder must pay in order to qualify for insurance coverage in the event of a claim).
For example, if your premium is £100 and you increase it to £500, it should significantly reduce your monthly payments.
If your children are no longer dependent on you or if your spouse is an employee, it is a good idea to reassess your life insurance coverage. Typically, the savings to be realized on a more suitable life insurance can fully finance a rescue fund of £500s.
Consider getting rid of your credit insurance on a loan. Indeed, most borrowers do not need this insurance! Their financial assets are sufficient to protect them in the event of death, disability, or unemployment.
Ending this insurance can reduce financing rates by 3% — a saving of almost £1,000 for a loan of £20,000 over 4 years!
Do the timely revisions of your car. Regularly service your car's engine. Don't forget to control tire pressure. Over a year, these two services can save up to £100 in fuel.
Compare fuel prices. Take the time to compare the fuel prices of your city's gas stations. Check your car's usage guide to find out what type of fuel to use. Over time, you will save hundreds of pounds in fuel and repair costs.
Adopt eco-friendly driving. When driving, avoid frequent acceleration and braking. In the long run, it saves you a lot of fuel and increases the life of the engine. Take the taxi as little as possible. Using public transport instead of taxis saves £5 to 10 per trip.
If you often take a taxi, it's a saving that finances your rescue fund of £500. Compare airfares. When planning a trip, it's important to check out the specialized sites that compare airline prices for you. It is a gesture that can save hundreds of pounds.
Don't pay for space you don't need. Do you really need those extra rooms? Assess your space needs. Also consider reorganizing your home or apartment to use less space. Sort it at home and keep only the essentials.
This will allow you to rent or buy less space - and save! Try to live within a reasonable distance of your workplace. Of course, it is not easy for everyone. But if it is possible, there are significant savings in transportation costs.
It is estimated that reducing your car journeys by 5,000 miles a year saves more than £1,000! Renegotiate your home loan. The renegotiation can either shorten the term of the loan or reduce repayment costs.
The last tip, don't go directly to your banker. It is better to go to a competitor and then ask your establishment to align with the proposed conditions.
Choose providers with caution. Choose plumbers, locksmiths, carpenters, etc. recommended by those around you. Ask for a quote to be written before you sign the contract. Make sure the quote is at a price set in advance and should not be exceeded. And above all: no full settlement until the work is fully completed (and you are satisfied, of course)!
Ask for an energy survey of your home. Check with your supplier. It is very likely that it offers an energy survey of your home, for free!
The balance sheet is a cost-effective way to reduce energy consumption. Savings are in hundreds of pounds per year! Of course, the balance sheet may offer more investment.
Remember that a return on investment in 3-5 years saves you a lot of money in the long run. Protect your home from the elements. Plug all the holes and cracks in your home. These cracks cause warm air to be lost in winter and fresh air in summer. Just go to your local DIY store. Sellers will be happy to advise you on which products to use - which are generally affordable.
Enjoy sales in factory / outlet stores. Do you know the factory shops? They are also known as brand centres.
They sell directly the manufacturer's products (but beware, I'm talking about the big brands!) at unbeatable prices. Take the time to do a search to see if there are any in your area.
The price difference is mind-boggling.
Buy second-hand clothes.
I often go to the thrift store or charity shops in my neighbourhood to take a look at the new arrivals. It's definitely worth it. I have found branded clothing in very good condition and at a more than reasonable price.
Don't neglect quality. When evaluating a piece of clothing, don't forget the quality criteria. A cheap shirt or coat is a bad buy if the item is going to be worn out after a year. To assess the quality of the garment, look carefully at the quality of the fabric, seams, and labeling for the maintenance of materials.
Pay attention to cleaning expenses. Do your own laundry and ironing. If your clothes need dry cleaning, take the time to compare the prices of several dry cleaners. For example, a difference of £0.50 for a shirt is no less than £100 if you do the calculation year-round.
Should you cancel your landline? Telephony has changed enormously in recent years. As a result, many consumers do not realize that they are paying for packages that are no longer adapted to their needs. For example, you're still paying for a landline? What's its usefulness when mobile plans offer unlimited subscriptions for less than £20?
Personally, I chose to receive all my calls on my mobile number. It makes my life easier AND it saves me my fixed phone costs.
Look for cheap or free entertainment. A quick search in a newspaper and on the web can very quickly bear fruit. In my area, I can enjoy amusement parks, museums, openings, cinemas, and sporting events - all at very attractive prices. It allows the family to have a good time, without overspending.
Should you cancel your satellite TV subscription?
Calculate spending on the year of your satellite TV subscription. Compare this amount to the price it would cost you to rent 1 movie once a week. The savings are far from negligible, aren't they?
Borrow books from the library. Instead of buying your books, why not take advantage of your library? Borrowing books and magazines saves you hundreds of pounds a year.
Family and friends
Plan gifts well in advance. This should allow you to choose a gift that will really please the person you are going to give it to.
Not only does it cost you less, but it also makes a unique and thoughtful gift. And if your gift needs to be purchased, you'll have more time to find a good deal if you plan your gifts in advance.
Set a spending limit for gifts in your family. Before you give a gift to your brother or father, agree with him on the maximum price you will spend. That way, you both avoid too much expense. This is an interesting idea for families on a tight budget. Arrange meals at home. It's always nice to be together for a meal with friends or family. But it shouldn't be at the expense of your wallet. Why would you meet at the restaurant? Instead, organize a cheaper alternative for a pleasant and inexpensive atmosphere!