A surprising number of adults do not have savings. It can be challenging to save when the economy is uncertain, interest and energy rates are rising and food costs are increasing.You may be at a loss, not knowing what to do and being roped into starting a side hustle. Before you work yourself into the ground, see if there are ways that you can save more money each month. To help you on your journey, here are some top tips that can boost your savings.
You may be owed money if you have had a loan
If you have ever had something on finance, for example, a car, then it is always worth checking if you are owed any money. There are some big initiatives out there at the moment, as it was uncovered that many car dealerships were raising commissions without informing customers, which means consumers were overcharged and may be entitled to compensation. This is always worth checking, as that would be your hard-earned money coming back to you and boosting your savings. Conduct some research into car finance claims and find a reputable expert to help you.
You need to treat yourself like a project and take finances seriously
It is easy to say that you are going to save money, but when the month comes around, something comes up, so you’ll start again next month. Unfortunately, it becomes a habit and a vicious cycle, and before you know it, a year has passed and you still haven’t hit your savings goals. This is very limiting, so you need to work on your money mindset and start to take it seriously. You can do this by creating a very specific plan and prioritising it. Break this plan down into steps and automate what tasks you can, for example, a standing order each month into your savings. This way, it will happen without you having to think about it and change your mind. Alternatively, find someone to support you and hold you accountable each month.
Consider the personal allowance on savings accounts
Make sure you check the rules of your savings account. First, savings account interest rates often change. You might find a good starting rate, but banks can change them whenever they like. Make sure you browse comparison sites so your savings are in the best place they can be. You also may want to consider the personal allowance for tax-free interest, and what the best course of action for you is in your current financial state, as well as when you grow your money. As your savings grow, you may start to consider options such as an ISA. This locks your money in for a time period that you choose, but offers higher interest rates. This is a great option for when you have enough to keep an accessible emergency fund and have the means to limit access to other funds. This is an easy way to grow your savings quicker.
The basics are important
Things like tracking your spending, shopping for deals and cancelling unused direct debits are great advice, but these are tips that we already know about. However, many people will ignore this advice and look for something else, something that will quickly fix their problem or make them money quickly. Unfortunately, it doesn’t always work this way. The effort you put into that, you may as well implement the basics. You do this to start with, and you will start to build yourself a solid foundation for your finances. When you know where you are, what you are spending and what your goals are, your daily actions will start to align with this and you will get closer to where you want to be in a shorter period.
Create a wishlist
As you move into adulthood, it is always very difficult to buy gifts for friends and family members. Creating a wishlist is how you can kill two birds with one stone. Not only will it stop you from impulse buying items for yourself and spending money that should go into savings, but it will also give your friends and family members a good idea of what you buy for birthdays and Christmas. It is difficult being an adult and having money, as well as living in a society where we can get everything in just a few clicks and delivered within a day or two. However, this is creating a strain on finances and limiting the amount of money you can spend. So, why not start a wish list of the things you want throughout the year, then when friends and family ask for gift ideas, you can share your list. You may find that you save a considerable amount of money per year, while still getting what you want!
Ask for a pay rise and more benefits
Many people will look to create side hustles to increase their savings. This is an excellent idea, however, you are then working yourself even harder and giving yourself less time to do things that you enjoy. It can be more effective to ask your employer for a pay rise. First, check your contract to see if you are supposed to be getting pay rises and ensure that you have been receiving them. If there is nothing in your contract, your employer is not legally obligated to raise your pay. However, this doesn’t mean you can’t ask for a pay rise. Many people find that they work very hard and take on more responsibilities the longer they are with a company. This provides the perfect opportunity to conduct market research on the average salary for your role and the specific duties you undertake. Alternatively, speaking with your employer about a promotion or a path to upskilling yourself. This could be a great way to boost your savings without having to create a whole new workload for yourself. If a pay rise is not an option, see what packages and benefit options are available to you. They can often support you with things like childcare, food vouchers, medical and life insurance, etc.
Saving money is hard, but with some of these small steps and changes to your lifestyle, you will be able to save more in a shorter time period.
