Deciding on how much money to save each month is directly impacted by your monthly outgoings, more so than your income.
Nearly any level of income presents the ability to save a portion of it if you’re careful, but of course, there has to be a balance between being frugal and still enjoying your life.
We’ve listed some of the best ways that you can cut down your monthly expenditure in the hopes that you can choose some to follow to help you improve your savings pool.
Plan, Budget And Cut
First of all, before cutting anything out, you should make a note of all of your expenses and figure out what you have left over once all of your essentials are paid for. This includes housing costs, bills, and your grocery budget.
Next, out of that leftover figure, figure out exactly what is going out of that for luxury subscriptions and non-essential things. You’ll be surprised at how many people have monthly subscriptions for things they don’t use and keep forgetting to cancel.
Spend some time trimming these expenses away and instead move that money aside into your savings for those rainy days. It’ll go to much better use, and you’ll thank yourself for this decision in the future.
Reduce Fuel Usage
Walking or cycling to work not only saves you from rising petrol costs, but it’s also a great way of getting fit and healthier.
The amount of money we spend on fuel every week can be huge and cutting this added cost out of our lives and only using our cars for longer journeys as opposed to just convenient and quick ones is a great idea.
As well as saving that extra bit of cash every month, you’re also contributing to a greener world and reductions in air pollution.
Charity Shops
There are so many charity shops out there that provide some incredible deal on everything from furniture to clothes.
If you’re in need of a new table or a new outfit for a night out, instead of heading into high street stores to pay full price for something, you could instead have a look around the wide range of second-hand items in charity shops.
Not only are you saving money here, but you’re also helping to reduce wastage of these items and supporting a charity at the same time.
Avoid Staggering Phone Costs
Having a mobile phone is essential in this day and age, and many people want to have the best quality they can afford.
While you may be able to afford the latest iPhone however, it doesn’t mean you should necessarily get one.
Some people pay upwards of £60 per month for their phone repayments plus the added contract. Instead, consider buying a cheaper model, or even a second hand one and then simply only pay for a SIM card.
Companies like Lebara Mobile have SIM only plans that are incredibly affordable, where you’re only paying for your calls, texts, and data usage all in one package, every month.
To see their range of SIM only plans visit Lebara’s website where you’ll find plans for as little as £5 per month. This will be a massive monthly saving if you’re used to paying for a 12-month contract of £40 to £50 every single month and these savings will really add up.
Steer Clear Of Takeaways
Paying for a takeaway meal, especially if it’s become somewhat of a common occurrence, can be astronomically costly, even when shared between a group of people.
A pizza night might set you back upwards of £60 depending on how large your group is, and even split between four, that’s £15 each.
Many people fall into the trap of seeing that huge reduction as a great saving, but really, that £15 could buy you three or four meals-worth of ingredients at the supermarket.
While it’s okay to treat yourself every now and again, if you’re having one of those pizza nights once a week, you’ve spent £60 on pizza for that month, when that money could go straight into your savings instead.
Buy Unbranded
Branded products are quite frankly the biggest scam of the century. All that extra money you’re paying for a brand product over an own-branded store product is essentially for the fancier packaging and reputation of the product.
Take medication for example. Buying a branded paracetamol pack could cost you five times as much as buying unbranded ones, and often you might even get fewer tablets in the pack too. These tablets aren’t any more special either and contain the exact same ingredients.
Yet, in spite of this, so many people still lean towards choosing the branded product in the false hope that they’ll somehow do a better job, and this is even the case for some people that are fully aware there is no difference in the products.
Scrap Your Gym Membership
Going to the gym can be an enjoyable experience for some, and often can feel much more accessible than other options. However, unless you’re in dire need of specialist equipment and super heavy free weight, you can get your exercise without paying a penny.
Put on your trainers and go for a job around the block or ride your bike around town instead of doing the exact same on a treadmill or exercise bike.
To encourage you to get out and do this even more, get a friend or two involved and encourage each other to keep exercising when it feels like too much effort.
The chances are, you’re not even using your gym membership enough for it to be worth it either, so get rid of it and get outside.
Cut Down On Expensive Nights Out
Everyone enjoys a night out every now and again, but if you’re an avid socialiser, the chances are you spend a small fortune on drinks when you do go out.
Many people develop habits of going to bars and pubs every week, or even every day. The cost of alcohol is huge, and the more you drink the more you lose your inhibitions and discipline and buy more for not only you, but your friends too.
Search for some alternative ways to spend your nights out and consider even switch to some cheaper drink options too.
