When times are tough, savings can take a hit. If people are struggling to pay for everyday expenses, it’s much, much harder to look further ahead and put money away.
If you have any choice at all to put money away, I would urge you to do so, even if it means doing without something each week to do it.
Savings are a lifeline and are something everyone should have if at all possible.
I appreciate that not everyone is in a position to save, or save easily, which is the point of this post.
I’m going to share some simple ways to put even a little away in savings for when you need it most.
The power of savings
If your boiler breaks down and you don’t have savings, what do you do?
You’ll probably either pay using a credit card, use a payday loan or go without heating and hot water.
None of which are comfortable options.
Two of those put you into debt and the other keeps you cold.
If you had savings, you could use those to pay for the repairs without getting into more debt or having to go without.
If it’s at all possible to put a little money away for emergencies, we strongly recommend it.
10 actionable ways to save money
That’s the what and why, now let’s cover the how.
Here are 10 ways to save money.
1. Understand your outgoings
Before you can actually save, you need to fully understand what’s coming in and what’s going out.
I cover creating a budget elsewhere, but even a simple spreadsheet showing income and outgoings should give you a clearer idea of your current situation.
Knowing this is the key to living within your means, paying down debt, saving or whatever your financial goals may be.
2. Automate your savings
If you have spare cash at the end of the month, the easiest way to save it is to automate it.
Set up a standing order for the day after payday for a set amount. Send it to an instant savings account and leave it alone until you need it.
Sending it to savings right away removes the temptation to spend it and ensures you have the money for the standing order.
3. Stop unnecessary subscriptions
Most of us have subscriptions we don’t really use. A gym membership, a streaming or magazine subscription, food delivery boxes or something else completely.
If you don’t use a subscription, stop it. Then send the money you would have spent to savings. Even if it’s £10 per month, that’s £120 per year.
Combine that with other savings options here and that money will soon build up.
4. Share your savings goals
There’s a lot of psychology around sharing goals and ambitions as it gives you more motivation to achieve them. Something about not wanting to be seen to fail in front of peers.
We can use that to help save.
Once you figure out how much you can save and put the plan into action, share it with someone you trust.
Tell them your savings goals, tell them how you’re doing it and share your ambition to take control of savings.
You’ll be much less likely to fail once you know someone else will know you failed too!
5. Use the 24 hour and 14 day rules
The 24 hour and 14 day rules are very simple and very effective. If you want to buy something less than £25/50, wait 24 hours. If you want to buy something more expensive, wait 14 days.
This removes some of the emotion from the purchase and can help reduce impulse buys.
If you still want that something 24 hours later and you can afford it, buy it.
If you still want that big ticket item after a fortnight and you can afford it, buy it.
You can stretch these to 48 hours and 28 days if you still find yourself making impulse purchases.
6. DIY FTW
Doing it yourself for the win. Do you usually PSE (Pay Someone Else) when something goes wrong or you need work done on your home?
If so, try doing it yourself and putting the equivalent cash in savings. That won’t work for everything of course, gas, electrics and anything technical should still be done by experts.
But for decorating, changing the oil in your car, installing a new washing machine and making basic repairs to your home or car can all be done easily.
Check YouTube videos and the multitude of websites out there that can help and you could save a lot of money!
7. Sell your old stuff
If you have clothes, books or even DVDs you don’t use, sell them on eBay, Facebook Marketplace or other online marketplace.
You won’t make much but you’ll clear space, recycle old items, prevent more going to landfill and make a little cash on the side.
Send that money to savings and you could quickly generate a rainy day fund to help get you out of trouble.
8. Compare bills to avoid overpaying
Comparison websites can genuinely save you money. You’ll still need to perform due diligence to make sure you’re getting a good deal, but they save a lot of time.
Compare your bills, insurances, broadband, mobile phone, savings accounts and anything else you pay out on a regular basis.
Compare like-for-like to get the best idea of how much you could save.
Make sure the new deal doesn’t have any unfair conditions and gives you what you need and send whatever you save each month into savings.
9. Low spend weeks
Low spend weeks are a great way to live within your means or save a little money. They do create a little hardship, but with a little creativity, you can still live well for less.
Low spend weeks means spending as little as possible for 7 days. That means no store bought coffee on the way to work, making your own lunch, cheap meals for dinner and no going out at the weekend.
It can even be fun with a little creativity.
Send whatever you don’t spend into savings and you could give your fund a real boost!
10. Free days or nights out
Switching from going to the pub or dining out to free entertainment once or twice a month can provide an easy boost to savings without making life too dull.
Depending on where you live, consider free TV audience tickets, museums, galleries, parks, beaches, country walks, national parks and similar activities.
There are websites for all these things and, aside from fuel to get you there, most will be free of charge.
Send what you would have spent on a typical night out to savings and you get another boost while still getting out and about.
Those are 10 simple ways to save a little money. I fully appreciate that not everyone has the luxury of being able to save, but if you can, I strongly recommend it!
