Money-Saving Tips; a first step towards making your plans a reality
Lots of Bucket Lists contain travel tasks or activities that are going to cost you some money. Maybe you need some money to pay for that dream bathroom or even to retire early. If you want to start getting some of these challenges ticked off you will have to do a bit of money-saving. So today let’s look at a few money-saving tips to get you started.
One of the earliest challenges on the original 40×40 list was to save £3,000 for a trip to Japan. Obviously, I managed to achieve this; I visited Japan in April 2017 and haven’t stopped obsessing about going back to the place since!
We are currently saving up for my younger daughter’s 18th Birthday trip to L.A. Many of these tips have come into play as I try to put as much money away as I can. Hannah is planning on seeing the Hollywood sign and walking along Santa Monica Beach. She is also planning on eating her entire body weight in various naughty foodstuffs.
(2019 Edit: We saw the sign, walked along the beach and ate soooooo much food! I need to start writing that trip up)
(2022 Edit: I am now saving up for my final 18th Birthday trip – we’re going back to a Mad-Max-style dystopian post-apocalyptic camp!)
5 money-saving tips
While the ‘love of money is considered the root of all evil, there is no denying that you are going to need a bit to get your future plans on the road.
I will no doubt revisit this topic in the future; Having a healthy financial standing is an important part of any middle-aged woman’s life. For now, here are five things you can do to kickstart your savings.
1) Pay yourself
This tip is one you will undoubtedly come across if you search for money tips online. And for good reason.
It has been the single most important tip that has boosted my savings.
When I get paid at the end of the month, the first thing I do is move a percentage of my wages into my various short-term and long-term savings pots.
The money that is left is my budget for the rest of the month. If you try and save what is left at the end of the month you will find yourself left with a smaller sum to save. Once the money is in the savings consider it ‘gone’; you’re not allowed to access it unless it is to use it for the purpose you are saving it for.
In fact, while you’re here SHAMELESS PLUG/ LINK:
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I pay £3 per month, but I have made that back in interest, and long term you will get more money via investing than in a savings account, on average. If you do want to open such an account and you use my link not only will you get a free random share, but so do I.
This is not financial advice, and you should look into your options, but if you were looking for a free share, well , there’s a link.
2) Think before you buy
One tip that some minimalists use is to look at the space in your house and then decide what it is you need, if anything, to go in that space, rather than buy something, and then wonder, once you get home where you can put it.
If you look on Martin Lewis’ MSE website you can print yourself out a mantra card, which goes something like this:
Do I need it or just want it?
Will I use it? (I’m looking at you candy floss maker!)
Can I afford it?
Is it worth it?
Have I checked the prices – is this the best deal?
If the answer is no – walk away. If you still really want it in a few days, go back to it. But try not to buy on impulse. This just leads to buyer’s remorse and guilt.
3) Look after the pennies
When I started my Japan savings, I created a Terramundi in which I threw all of my change. However, on opening it, I noticed a distinct lack of pound coins… hmmm.
This time I have invested in one of those metal versions from the Pound shop. This one requires a tin opener to open, making it harder for the rest of the family to “borrow” from it.
When we opened the ‘LA’ tin we had over £85, so they are well worth investing a pound in. The best aspect is that you can’t see inside them, and we made a point of only putting silver/ gold change in there rather than coppers. It was a pleasant surprise to open it up and actually find cash this time!
Consider getting yourself a little pot and throwing all your small change in there. This one is often touted to those giving up smoking, or on a diet. They are encouraged to put the money away instead so they can see how much they would save while also improving their health.
The problem with this is that after a while you realise you couldn’t actually afford to smoke or buy chips every night. You just somehow did and once you aren’t spending you get used to your new budget.
Chucking change in a pot when you empty your pockets is a good idea though.
There is a modern twist to this tip if you use an online banking app. Mine is set up with a savings account. I ping over money to myself instead of buying ‘naughty things’.
So whenever you resist buying cigarettes, a new dress, or another cushion, save that money by transferring it from your current account into your savings.
Many accounts also offer the ability to ‘save the pennies’ by rounding up your purchases to the nearest pound and sending the difference to your savings account. It can really add up over the month.
4) Do not deprive yourself
In complete contrast to everything I have just said, now and then, you have to treat yourself. I know this post is supposed to be about money-saving, but sometimes you have a spend a little too. It’s the same concept you would use to make a diet work.
If you go without for too long you have a massive blowout and end up feeling guilty. However, a little -AFFORDABLE- treat now and then will make you feel like you are not totally missing out.
The best way of doing this is to account for it in your monthly budget…you have a monthly budget right!
5) Focus your funds
If you know what you are saving for, then you are going to feel less inclined to ‘borrow’ from your pot. If your plan is a nice holiday, or a new car, or even a deposit for a flat, keep that in mind when you are putting your money away. Perhaps a visual image to focus your mind? For example – I want to return to Japan – so my focus is this picture here. This is somewhere I intend to visit when I get back there.
The important thing to remember is to have a plan and follow it through.
“A dream written down with a date becomes a goal. A goal broken down into steps becomes a plan. A plan backed by action makes your dreams come true.”
Make it hard to get at
If you have to keep it in your home get a pot that cannot be opened. In terms of banking, the best place would be a savings account. Preferably, one with a book, so that you have to actually go to the bank to get to your money.
Just put into place any steps that make it that little bit harder for you to get at your money. Then, when you are feeling weak and want to buy things, the effort you have to go through to get to the money may put you off.
Imagine that once it is saved it is gone; you don’t have access to it at all – until you need it to buy the thing you have saved for. Money-saving can be hard, but if you are determined there are ways to build your funds.
Over to you – what are your money-saving tips?
What do you do when trying to save up for something special? Do you have any money-saving tips or tricks that help you? Let me know in the comments what you are saving up for, and what your plan is.
money-saving tips, but in white, so the SEO thinks have used the term enough to give me a green light!:)