Where's all my money gone? If this is the question you might ask yourself a lot recently! it's essential to understand that finding ways to save money can help you get through these financially challenging times and start to enjoy your life to the fullest. it may seem so far out of sight, but considering a few simple changes to your lifestyle will go a long way for your future.
Cost Of Living
We are all looking to find a way to save as much money as possible, whether on our weekly shopping bills, utility bills, car fuel, or even essentials like toothpaste. Whatever we want to save money on, it all counts towards something.
In December 2022, the inflation rise was 10.5% compared to 2 % in 2020. The Office of National Statistics (ONS) measure the increase in inflation by keeping track of the prices of hundreds of everyday essentials like milk which have increased by 46% within the last year. with the annual food rise, inflation reached 16.8% in December 2022. The question we're all asking is, when will these prices go down?
The gas and electricity bills have increased due to the implications of Covid 19 and the war in Ukraine. Many families are struggling to be able to afford to put the heating on during these cold winters. It is devastating to see what is currently happening. The cost of living has affected everyone, and we don’t know when these prices will go down or if they ever will.
How to start saving money for your future?
Growing an income can be difficult for many people, especially if you are in a low-income job during these current times or you're just starting after leaving university. No matter your situation being able to have financial stability is something many people struggle with.
Have you looked at your direct debits and standing orders recently? This could bring some significant savings. For example, if there are cheaper payment methods available for certain goods/services or whether having a year subscription to platforms like Disney plus might be a money-saving tool. Even cutting back on Netflix, Disney Plus and Amazon Prime subscriptions if you aren’t watching them often.
Budgeting your monthly bills would be a massive asset by simply inserting your costs into an excel spreadsheet. This is an efficient way to visualisation of your monthly budget. Furthermore, Online banking allows monitoring of what's going in and out of your account to ensure good spending. However, ensure a social life and financial peace of mind. Many free apps offer you budgeting help that is easily accessible on your phone. For example, apps like SNOOP help you budget your day-to-day spending and bills by connecting your account to the dashboard within the app. This app enables you to avoid going into overdraft before your next payday.
Where can you save?
Minor changes are the most efficient way forward if you want to save more money. For example, cheaper food alternatives are an excellent place to start. This means buying products that aren’t branded could save you a fortune at the tills. Also, it's okay to buy things with orange labels as it may be going out of date on the day or the following day. Freezing certain items allows you to store them for longer. However, when doing this, do consider what you are freezing, e.g., freezing fresh pizzas and meat could save you a lot when in the supermarket. Don’t feel embarrassed about doing this; everyone wants to save as much money as possible, and if this allows you to save those pennies, then keep doing it!
How can we invest our money?
If you are young and want to save up for a house deposit, Cash ISAs are a good way of saving more extensive amounts of money. It is a savings account where you'll never pay interest tax; for the 2022/23 tax year, you can put up to £20,000 into one if you've sixteen or over. I know saving money may be difficult for us all with the increases in prices, but no matter how little you can put away, it all helps.
Premium bonds are better finically way of investing your money rather than just buying the odd lottery ticket or scratch card. The way it works is that you invest your money by purchasing bond numbers. With premium bonds, you can have up to £50,000 invested, and the minimum you can pay in is £25. with a chance to win several prizes. The money you invest and prizes you win are tax-free, making it a great way to invest and earn simultaneously. The prizes you can win can start from just £25 and go up to £1 million!
What to take away?
The most important thing to take away from this article is that you’ve got to make small changes that you are happy with and want to do, whether buying products that aren’t branded or investing your money to make more; it's up to you.
But remember, only you can make these changes to your day-to-day life!