We might be nearly halfway through January of 2020 but that doesn’t mean it is too late to start saving. You might think saving is quite daunting and think that it is impossible for you, but there are plenty of ways that you can easily save money, which might be ways which you haven’t considered or even ever known about. Whether you already have started saving or haven’t, we have put together some of our favourite tips to help you find the easiest ways possible.
Saving with the 50/30/20 Rule
The 50/30/20 rule allows people to understand what they should be doing with their monthly income. According to Elizabeth Warren, we should be spending 50% of our income on the essentials like food and bills, 30% of it on things we want and then saving 20% of it by putting it into a savings account.
In the long run, this basic lifetime money plan will help you financially if you ever get into a difficult financial situation as you will have your savings to fall back on if you need to.
The penny-saving challenge
This challenge allows you to save up around £600 a year. The aim is to put away 1p on the first day, then 2p on the second, 3p on the third and so on. It is designed for those people who struggle managing their money and their savings. It allows you to put a small amount of money away, without the stress of savings £50 a week or so. In 2020, we have an extra day due to it being a leap year, but it allows us to have an extra day of saving.
Let go of all the bad habits
This could be your morning Starbucks coffee on your way to work. Typically take away coffee from the popular national chains cost between £2 to £4. So, if you think about this in the long run, you’re spending over £1400 a year. Your bad habits might be nice, but are they financially right for you? Maybe it is time for you to find an alternative or cut down the amount you spend. Even if you just have your ‘morning coffee’ every two days, you’re reducing the amount you were spending to start with by half.
Perhaps you’re saving for a specific event like a wedding or a holiday and you’re just waiting until you have the full amount for you to be able to afford it. Why not consider a personal loan? Personal loans include holiday loans and wedding loans. They allow you to be able to afford your dream holiday or dream wedding and pay the loan back in smaller monthly instalments.
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