Saving money is something that everybody wants to do, but very few people can actually achieve it. You might say it’s easier said than done; what with important things cropping up all the time. Car repairs, your best friends birthday, vet bills…they can all hinder our efforts to save money at the most inconvenient times. Unfortunately, situations like that are just a part of life. However, there are things you can do to set realistic saving goals, cut back on spending, and get the most out of your money. Here are the most effective ways to save money in 2014:
Clear Your Debts
Getting rid of any debt you have hanging over your head is one of the quickest ways to save your money. Because you’ve lived without the money you’ve been spending on your debts for a while, it should make no difference to you to put them in savings.
Set Realistic Savings Goals
Your savings goals will totally depend on what you want to save money for. Perhaps you just want to buy the new PlayStation, or maybe you want to put a down payment on a house. Whatever it is, work out what it will cost you and set your goal.
Give Yourself a Timeframe
By giving yourself a time frame, you create a sort of matter of urgency and are less likely to dip into your savings. Make sure you make the timeframe reasonable so you don’t have to struggle.
Work Out The Amount You’ll Need to Save Per Week/Month
This will totally depend on the amount you earn, and again, it’s important to be realistic. Of course you’ll get to your goal faster if you save more money every week/month, but you might have to struggle in the process. If you earn £1000 per month, it isn’t realistic to try to save £500, especially once you take away your living costs and tax.
Keep Records of Things You Buy
It’s very important that you take a careful look at your expenses. You have control over the amount of money you spend, so it’s up to you to keep records and work out what you could cut down on. Have categories for the different things you buy, and try not to miss out any purchases, no matter how small.
Open a Savings Account
It’s much simpler to keep an eye on your savings if you keep them separate from your spending money. You can even get higher interest rates on savings accounts, so have a chat with your bank or a company like Debenhams Personal Finance about the best one for you.
Don’t Give Up
If you stick to your saving’s plan, it’s definitely possible to reach your goal. Try your hardest to forget about the little things you could buy with your short term savings, and concentrate on the great things you could buy with your long term savings. Be determined and stay focused and you’ll have the money you need in no time!
Category: Saving Money