Written by Millionaire’s Digest Team Member: Zohaib Ali
Founder & Owner of: Truth Behind the Image
Millionaire’s Digest Team, Contributor, Books, Entertainment, Family & Life, Religion, Successful Living and Travel Writer
1. Save before you spend
You need to know what money is a fixed outcome each month e.g. rent/bills and what is surplus. The best way to do this is split the different expenditures over two bank accounts and that way you know exactly what you have to spend. It quite easy to open a savings account online and manage this with online banking. Calculate how much your fixed outgoing per month is and move this into another account on payday, what you have left is surplus. Commit to saving a fixed amount each month which will make part of the monthly outgoings moving into another account.
2. Reduce the unnecessary spending
Identify what you are spending your money on. Is it too many shoes or too many take outs a week? Either way, there is somethings that we just can’t help from buying, and we don’t necessarily need it. Find out what this and use the other points to try tackle this issue.
3. Set yourself saving goals
Focusing on the reason why you want to save. It may be something big like a wedding or a mortgage deposit or even something small as paying off a few credit cards or for a rainy day. Having something to work towards actually gives you a sense of achievement when you get there.
4. Be savvier with your spending
Instead of not spending at all, spend more wisely. When out shopping looks for items on offer or in the sale. Do your grocery shop at the cheaper supermarket rather than a leading brand. Instead of buying new clothes swap with friends, or buy them second hand from eBay. Bulk cook food at the start of the week so you can come home from work and have a quick meal instead of a naughty takeaway.
5. Set up an ISA and forget about it
If you can’t trust yourself to do any of the above, then what you can do is open up a cash ISA with a fixed interest rate. This will not allow you to withdraw any money for a certain period of time. Set up an automatic transfer of money into each month on your pay day.
Article Credits: Zohaib Ali
Millionaire’s Digest Team, Contributor