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.
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