- Portafina shares top tips on how to successfully save money
Whether you’re in the 30% of Brits currently saving for a holiday1, the 20% saving for a house deposit, or if like most people you are simply contemplating your retirement fund, there is no time like the present to take control of your finances and watch the pennies turn into pounds.
Jamie Smith-Thompson, managing director at pension advice specialist Portafina, shares his top tips to get your finances in order, enabling you to efficiently save money in no time.
Clear your debts first.
Before you can start saving money, it is important to first concentrate on clearing as many outstanding debts as you can, as the interest from loans leaking out of your account is likely to be costing you more than you can save. Credit cards and payday loans are the worst offenders for eating up outgoings, so be sure to pay them off so you can be free of loan and interest payments as soon as possible.
Make managing money a habit.
Most of us only manage our money when we are strapped for cash or in a crisis, but making a habit of budgeting regularly reduces the likelihood of a monetary crisis in the first place. By keeping a log of monthly expenditures, you will gain a better understanding of your incomings and outgoings, allowing for more effective budgeting and saving.
Managing your money online can make things so much easier. You do not have to wait to see monthly statements, you can see when money is coming out of your accounts, you can transfer money between your accounts at times of need and enjoy watching your savings accounts grow.
Don’t let money slip through your fingers.
Remember that free 30-day trial for Audible that you never used, but also never cancelled? It’s now costing you an extra £962 a year! By looking through your past bank statements, and making sure you’re not wasting money on services you no longer use, you can save a small fortune in the long term. And those initial savings you make? Why not break down those overhanging debts even further!
Do you really need it?
It can be tempting to buy the new dress or football boots you have been wanting for ages, but ask yourself “Do I really need this?” If the answer is ‘yes’, then the next question is “Can I get it cheaper?”
The internet is a paradise for buyers looking to save that bit of extra cash. Comparison sites and discount vouchers are just two ways to save cash online. Third party cashback sites contract with big stores to offer discount prices. Groupon provides on-demand bulk discounts from food to gifts. If in doubt just Google “Cheapest place to buy X”. Make it a challenge to find that bargain, it’s fun and always a great way to make a killing and save towards Xmas or the next holiday!
Money saving apps
The rise in technology has made our lives easier in many ways – and there are an abundance of apps out there to make managing and saving money a breeze. Money Dashboard keeps track of all your accounts in one place and breaks down spending, so you can clearly see your monthly expenditures. Chip is also a great app for saving as it works out how much you can realistically save without it affecting your regular spending, taking away the amount you should have leftover and saving it in a separate account for you.
Save money smartly
When you spend money, you probably won’t see it again. When you invest, the intention is to get more cash back in your pocket down the line. Therefore, think about stocks and shares and ISA’s for short-term goals and pensions for your long-term goals to maximise tax efficiency. You don’t need to be saving big – start small to get into the habit and build up over time when and you can afford it.
For further information about Portafina’sSaving research, please visit: https://www.portafina.co.uk/news/saving-city
For further information about Portafina, please visit: https://www.portafina.co.uk/.