Saving money is something which we believe everybody should do. Whether you put a set amount away every week, every month or even just put all of your spare change in a jar whenever you have some.
Why is saving important?
Saving money is a great way for teenagers and young adults to be able to learn about bills in the future and a great way to teach people that you might have to wait before you can just buy that one specific item which costs more money than you have. So, saving money is a way of setting people up for later life.
Along with this, at some point in your life, you might find yourself in a difficult financial position. If you have previously saved money, it will put you in a better position and could even help you get out of the unfortunate situation.
Our top ideas on how to save –
Put 10% of your monthly income away
Have you ever heard of the 70, 20, 10 rule? This states that we should spend 70% of our income on the essentials, 20% on things we want, and 10% should go into saving. This ratio is set to be able to keep us ‘grounded’ when spending our money. The last thing that you want is to go into debt due to bad spending habits or due to the misjudgement of your money.
Cancel unnecessary subscription plans
Unnecessary subscription plans will definitely be impacting you financially. For example, millions of people worldwide are subscribed to Netflix, but not everyone uses it to watch series’ or films. This means that people are spending over £100 a year on something that is rarely used. To resolve the situation for them times where you want to use the subscription, you could look online as there are multiple ways you can access things online which your subscription offered for free. Even cancelling a gym membership that you don’t use could save you £80 every month. This would result in savings of £11,500 over ten years.
Ditch bad financial habits
This could consist of that coffee you buy from Starbuck’s every morning. It might cost you £5 but you brush it off because you do it all the time. Or even that restaurant that you go to every weekend with your friends for a weekly catch-up! We are not suggesting you stop drinking your morning coffee or ditch your friend’s every weekend. But why don’t you try to eat and drink the smarter way? Perhaps you could prepare a coffee before you go to work in the morning and take it with you. This will kick start your day at a fraction of the price. Or you could ditch your fancy cocktail for a glass of water when you’re out with friends. You will be able to see your bank account staying at a steadier amount in no time.
The end result – set a goal
If you set a goal, this could be an amount or a physical object, you are more likely to be able to hit it. This could be because every time you put money away, you can see that you’re getting closer to your goal. Some people see this as motivation to keep going as you just keep getting closer to your chosen amount.
If you find yourself in an unexpected difficult situation and you don’t have savings to fall back on, why not consider a loan? Simple Personal Loans offer loans from £1,000 to £35,000 to help you in the most unexpected situations. Not only this, but they offer personal loans which you can spend on anything (we advise you only take out a loan if it is suitable for you and is necessary).