What Can You Save: What the Experts Say?
When it comes to looking after your personal finances, it’s the norm to hear people complain that they are short on cash. However, after a thorough examination of your finances, you’ll see that real savings can be made by adopting a few simple tips.
Making meaningful savings doesn’t necessarily mean making huge, life-altering changes. Whether you’re just trying to get your finances in order, or you’re saving to buy something specific, here’s what the experts recommend.
Know why
The Money Advice Service asserts that this is has to be the starting point for anyone who’s serious about saving money.
If you don’t know why you are saving, your commitment is bound to wane over the long term. It’s best to sit down with a sheet of paper and write down your financial targets. Whether these targets are to clear debts or buy a luxury item doesn’t matter – it’s the principle that counts.
By setting a specific, yet realistic, target for the amount that you intend to save, as well as breaking that target down into monthly savings figures, goals become more attainable – especially as being able to see your progress visually is a great motivator.
Get rid of unnecessary outgoings
Once you know what you’re saving for and you’ve got a clear financial goal fixed in your mind, it’s time get rid of any unnecessary expenses.
These expenses can take a great many forms, from your weekly shopping, to eating out and gym membership. It’s time to analyse the statistics and see where you can really cut out unnecessary expenses. Be honest and be brutal.
The guys over at Global Cool, a website which focuses on green living, say that giving up your gym membership is a great way to not only cut your monthly outgoings, but also start living a healthier life.
Sell your unwanted goods
Mette Poynton, guest blogger for the Huffington Post, and one who knows a little about saving given that she recently started her own business on a budget, thinks the next step in your savings journey should be to de-clutter your house and to get rid of any unnecessary items.
Poynton asserts that you will be able to reach your financial targets quicker by selling all your unwanted items, while clearing extra space in the process and adopting a minimalist approach to living. Websites like Music Magpie offer the perfect starting point, allowing you to get rid of all your unwanted CDs, DVDs and games.
Stoozing
Money Saving Expert’s Martin Lewis advocates ‘stoozing’ for the most committed of savers. Stoozing, however, comes with the caveat that you must proceed with caution and fully understand the terms that you’re signing up for.
Stoozing is the term used to describe the process of making a money transfer from a zero per cent interest credit card, to a high-interest savings account. By taking this interest-free loan and earning interest on it in a savings account, you’re essentially making free money. As long as you pay back the full amount borrowed on the credit card within the interest-free period, no charges will be applied.
Stoozing can be an excellent way of putting an extra few hundred pounds in your savings account, without any discernible risk. Just don’t miss a monthly payment or the final repayment date, as the associated costs can be astronomical.
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Category: Saving Money
