How to save your money

Being financially stable in today’s society is a hard task to master and millennials are no exception to this. Whether you have a student loan to pay off, credit card bills to settle or are trying to save a deposit to move out, managing money can sometimes feel impossible no matter what your budget. Here are some simple but effective ways to save money. 

We all want to save a little money for a rainy day, or build a nest-eggs for something special, but how can you do it and what are the best methods of doing so. Here are 5 top tips on how to reach your financial goals, in the best way for you and your income, without leaving you with pennies each month.

Know Your Incentive

Whether you are looking to buy a new car, book a summer holiday or you’re planning your wedding, if you know what your saving for you can cater your plan to suit you. Knowing what you are going to spend the money on also allows you to work out how much you need and with a savings calculator from Compare the Market, you can determine how long it will take you to reach your aim based on smart monthly savings based on your salary.

Prioritize

Having an end goal to look to as an incentive to save is a handy way to keep you on the right track, but saving does generally mean that you have to give up on some of the little things you spend on each month.

Your long-term goals need to come first, above a new pair of shoes or getting your hair done every week. Cutting out the little things will help you reach those goals even sooner.

If you have lots of expensive expenses you will find yourself less inclined to save, as you want to keep all the money you have available. Cutting your costs on entertainment, eating out or clothes can free up some of your money, making saving painless.

Make it Happen

Don’t leave it up to choice, set up a direct debit on payday so that the money comes out of your account as soon as it goes in, not giving you a chance to spend it or give it a second thought. This means you don’t even have to think about it and will prevent temptation.

Watching it Grow

Getting started is generally the hardest task of all, but, once you get going and you see your savings rise, it will be much easier to see the benefits. Checking your progress can motivate you to stick to it as you creep closer and closer to your goals and inspire you to speed up the process by finding new ways to save money.

Get Clear of Debt

One of the most important things to do before attempting to save is to clear yourself of all your debt. Monthly repayments will hinder your savings, leaving you with a limited monthly income and wanting to keep hold of your money instead of saving.

It may seem easier to get a loan to reach your goals as opposed to the lengthy saving process but having the money for yourself prevents you having to repay, the money will be taken out of your account on way or another, so why not be stress-free, avoid interest and make the risk of losing personal assets absolute.