6 Simple Ways to Start Saving Money
Why can’t saving money be as easy as spending money? Well, as the saying goes, nothing good in life comes easily. But from experience, it does get easier. Whether saving for an emergency fund, a big purchase, or simply to invest more, here are a few things you can do to get started.
1. Start saving in a separate bank account
Yes, it’s very basic, but it honestly does make a difference! By separating your savings from your spending money, you help to manage the temptation of dipping into your savings until there’s nothing there. You don’t have a frequent reminder of the total amount of money you have, as your balance no longer reflects your savings. This will force you to budget accordingly, which is a lot harder if your account balance reflects both your spending and saving money.
Some bank accounts, however, allow you to separate your saving and spending money all in one account. A great example is Monzo, which lets you save your money into ‘pots’. The money inside these pots isn’t reflected on your total balance, and you can even choose to lock these pots until a specific date.
So, if you have Monzo or a similar bank account, you can completely disregard this point. If not, it’s time to open your second bank account!
2. Start paying yourself first
When I opened my second bank account, I used to wait until the end of each month to see how much money I had left to save. Although I did have money leftover, it was always lower than the amount I planned. Paying myself at the start of the month allowed me to save more and achieve my financial goals quicker. This is because it forced me to spend the money I had left over in my spending account more wisely.
Start your saving journey by sending yourself a fixed sum of money as soon as your paycheck drops. You can do this manually or through a standing order. The amount of money you send should be a realistic amount that still allows you to comfortably cover your bills and living expenses. With a little discipline, you’ll definitely find reaching your saving goals a lot easier.
3. Start tracking your daily expense
Tracking and recording your daily expenses helps you identify bad spending habits and set realistic future spending goals. Before I took control of my finances, I created a Google spreadsheet to track my daily expenses. Every morning I would check my bank account to see how much I had spent the day before. I would calculate the total amount and add the details to my spreadsheet.
After one month, I was really shocked at the amount of money I had carelessly spent on food and nights out.I never paid any bulk sums, but I was forced to see how £10 here and there can quickly add up. The next month, I was significantly more conscious about how I spent my money and have been ever since.
A lot of us already know how multiple small expenditures can have large effects on our savings, yet we choose to ignore this. I know I did! Tracking my expenses took away this privilege and forced me to see the truth in my spending behaviour. I would feel disappointed at the amount of money I allowed myself to waste on things I didn’t need. As a result, I gradually began spending less and saving more.
Now I enjoy tracking my expenses and filling out my spreadsheet because I know that I have spent my money wisely. If I do treat myself, it’s usually pre-planned, within budget, and on something that truly makes me happy. So, if you have no idea where all your money goes each month, start tracking your expenses! This will provide you with the answer and highlight areas in your spending to cut back on.
4. Start using cashback websites when shopping online
I wish someone had told me about cashback websites earlier! I could have saved so much money.
If you’re a regular online shopper like me, you will definitely benefit from using cashback websites. These websites compensate you with money for using their links to make purchases from your favourite brands. Some of the brands I’ve saved on this year include Shein, Nike, Boots, Argos, and River Island.
The amount of money rewarded is usually a percentage of the total purchase price. This percentage may initially seem small, but over time, the savings definitely add up! I have a friend that cashed out over £300 last year. Hopefully, this year it will be us too!
My two favourite cashback websites to use are Quidco and TopCashback. These are both free to join and offer great saving opportunities. I’m a member of both so that I can compare each website and always find the best cashback at the time of purchase. You can sign up and start saving today using the links below:
- Quidco: (Sign up with this link and receive £1 cashback)
- Top Cashback (Receive a £10 sign up bonus when you earn £10)
5. Start planning regular 'no spend weekends'
You shouldn’t be surprised at how much money you can save by spending absolutely nothing on the weekend. The weekends have always been when I spend the most money. This is usually on activities like clothes shopping, eating out, and going to events. Planning two ‘no spend’ weekends a month really transformed my ability to save.
Your no spend weekend shouldn’t be considered boring. There are a lot of enjoyable things you can do for free, both at home and away from home. If I choose to stay at home, I like to spend the weekend nurturing my hobbies and doing the things I never get around to doing on the weekend. This may look like creating digital illustrations on my iPad, trying out new hairstyles and makeup looks, and learning a bit of Spanish. I create a ‘no spend weekend’ schedule and try my best to follow it so that I never get bored.
If the weather is nice, I usually choose to spend some of my ‘no-spend weekends’ away from home. This may look like going for a walk while listening to a great soundcloud mix, or spending time in the park with my local friends. Wherever I go, it is always within walking distance. This way, I don’t need to spend money on travel.
Understandably, two ‘no spend weekends’ won’t be possible every month, but any opportunity you have to take one you should. And trust me – you can save a lot!
6. Start cancelling the subscriptions and memberships you don't use
No, seriously, cancel them! I wasted a lot of money by paying for a gym membership for a gym I didn’t attend for 11 months. I’d always tell myself “it’s fine, I’ll go next month” instead of cancelling my membership until I was ready to start again. Do you know how much money I would have saved?
Now I evaluate my subscriptions on a regular basis. I do this to make sure the price I am paying can be justified by how frequently I use the service. If I spot services I haven’t used in a while, I cancel the subscription and reapply when I am ready to use the service again. Depending on what the service is, this may include a small joining fee. However, the amount never compares to the amount I saved by cancelling the subscription for the period I didn’t need it.
I most recently cancelled my Spotify subscription. This is because I realised that I prefer to listen to a Soundcloud mix rather than a Spotify playlist. One day I might download Spotify again, but for now I don’t need it nor miss it. You, on the other hand, may make good use of your Spotify account and gym membership. Nonetheless, I’m sure there are subscriptions you’re paying for that you haven’t used in a long time. If this is the case, cancel them and re-subscribe when (or if) you ever need them. You’ll be surprised at how much money this could save you.
What’s the first thing you’re going to do to start saving money? Let me know in the comments below.