When it comes to saving money there are a multitude of ways to get started; but, all too often good intentions can fall by the wayside after a good month or two. Here are some long-term, effective ways to get your cash flow “back into the black” without it being too painful a process.
Different Types of Credit
There are different types of credit and the type of credit that you have and how you manage it can make a big difference. Not only does it impact your monthly financial plan, but also to your credit score. If you currently have a large balance on a credit card, consider whether this is giving you the best credit. Might a small unsecured loan be a better credit option? This should give you a more structured repayment plan and a lower interest rate meaning you pay back what you owe quicker and pay less in fees.
Many people have credit cards that come prepped with large overdraft limits allowing you quick, easy and unlimited access to credit up to that amount. It is very easy to think you will manage this effectively, only using it for emergencies, holiday spending and for a monthly food shop to keep the card active whilst paying off the full balance at the end of every month. This is a lot easier to do if your credit margin is smaller. So, take the first step now and reduce your limit from the get go.
Traditional savings plans call for a set amount to go into an account each month so that over the period of a year, you save X amount. This is great if you know that passive saving suits you and that you won’t just transfer the money back across when things get tight at the end of the month.
If you need a more active savings plan (so that you feel there is a bit of interest and a time investment from yourself), consider taking the fifty two week money saving challenge which, if adhered to properly, should see savings of close to £1,500 over the course of a year. The basis of the model is that each week you save a different amount and cross off your savings on the provided chart, actively engaging you in the challenge.
There is even a mega challenge for those with high earning jobs or those on a “saving mission” that can see savings grow up to £6,500 in twelve months.
Make sure that you are shopping at one of the value supermarkets that offers the best value quality products. Read up on consumer reviews and you might be surprised to find out that budget supermarkets such as Aldi and Lidl do exceptionally well with regards to customer feedback. So don’t let prejudices stand in the way, try a new supermarket a try this month, you’ve got nothing to lose and potentially huge savings to be made.