Top Strategies for Boosting Your Personal Savings: A Comprehensive Guide
Saving is more important than ever, especially during a cost-of-living crisis that has seen goods more than double in price. Research has shown that three in five Brits are concerned that they won’t have enough to make it through the year and almost a fifth don’t expect to be able to set any money aside in savings. This is a scary thought for many but there are plenty of little ways you can make savings.
It can also be tricky to know where to start when you haven’t got any immediate life goals in place to work towards. Here are some steps you can put in place to help you begin if you’re looking to get started on building your personal savings.
Record your expenses
Having an accurate picture of your spending keeps you aware of where your money is going and makes any necessary changes to your situation. You can track your expenses by checking bank account statements and categorizing your expenses into wants and needs.
Include savings in your budget
Budgeting is a great way to build your savings and it doesn’t need to be complicated. Following the 50/30/20 rule can help you manage your money every month. This means you can spend 50% of your income on essential needs, 30% goes on treats and wants, while the remaining 20% can be allocated to your savings.
Set savings goals
Knowing what you’re saving for can help you track your saving and keep you on track. With your savings goal in mind, you can reach it faster. You must select a goal that is suitable for your financial situation so it’s good to start small and then slowly build upwards.
Determine your financial priorities
With your savings goal in mind, you also need to prioritize what you’re putting your money away for. If you’re saving for long-term goals like buying a new home or funding a wedding, there may be other ways to achieve them. Improving your credit score can help you be seen as a responsible lender so save at a rate that is realistic for your financial situation.
Find ways to cut spending
One surefire way to save is to cut spending. One way is to make more energy-efficient life choices, whether that is by turning off lights when you leave the room or investing in a smart meter to monitor your energy usage.
Other simple ways to cut costs are by streamlining your shopping list, from buying generic grocery items. Meal plans also go a long way to saving pennies as it eliminates the need for takeaways and food waste.