Mums all over the United Kingdom are looking for ways to put new budgeting strategies in place to save money and make it through the year in full control of their finances. And the good news is that there are things you can do to make budgeting (and money saving) easier on you and the family – meaning that you can join these mums on their mission and be triumphant!
Just how much debt is the average Briton in? It’s actually quite a lot when you consider what the statistics uncover. According to an article posted by The Guardian, the average British household is in debt of around £15,385. This debt spread across banks, credit cards and other lenders. If you do not want to be part of this statistic, there is work to be done! Let us get to work on what you can do so save on household expenses and minimize debt in 2020.
Tips for Saving & Getting Out of Debt
Saving money in 2020 is largely based on reviewing your budget and learning how to respect enough not to stray from it. Budgets are a guideline of your finances to follow and if you are able to stick to it, at the end of the year, you will be relieved at just how much you have saved. Below are a few tips for saving money this year.
- Draw up a budget and stick to it.
Knowing sort of what you have in your bank account and sort of what you spend on things each month is just not good enough. You need to have precise and accurate figures. You need to sit down with a pen and paper or your computer and make a full list of absolutely everything you pay for every month. You might need to print a few months’ bank statements to reference. Make sure that you detail your income as well and work out exactly how much spare money you have every month. Then decide what to do with your spare money. Try to stick to your budget as closely as possible.
- Commit to monthly savings.
Don’t forget about saving for the future and unexpected expenses. It doesn’t have to be a huge amount, but it should be something. Make sure that your savings features on your monthly budget as one of your expenses. This will ensure that you don’t overlook it and you actually get used to “paying” your savings every month. Your savings is not something that you should compromise, so make sure that you are dedicated to setting aside a certain amount of money each month to go towards savings. To avoid slacking off on this, you can automate these savings as debits into your savings account.
- Overhaul your regular expenses.
Every month you have a set of recurring expenses. It’s convenient to have these expenses, but the simple fact that they are automated often means that you forget about them. You might even be paying for services that you are no longer receiving. Therefore, it is a good idea to go over your currently monthly bank statement with a fine-toothed comb. There’s a way you can cut back on existing expenses that you can’t get around. Everyone has vehicle insurance, medical insurance, and various other services that they make use of each month. 2020 is the year to shop around. Make sure that you are getting the cheapest possible services that you can.
- Generate some extra cash.
You might be raising your eyebrows at the concept of “generating extra cash”. It’s not a simple task, is it? Gathering extra money each month is not easy, but it is possible if you are able to think out of the box and willing to put in a bit of extra work. You can pick up some extra tasks that bring in money such as working at the local pub, dog walking and house sitting. You can also sell unwanted goods in the home to generate a bit of extra cash.
- Consider long term loans to get out of debt.
If you have mounting debt with high interest rates attached, you could consider consolidating that debt by applying for long term loans that come with low interest. Such loans are typically paid out in 24 hours and are available in amounts from £1,000 to £20,000.
- Implement strict no-spend days.
No spend days are days where you spend no money. Pick a few days a week where you do not spend a penny. Do not buy bread, milk, or anything else. While this might mean that you are out of products for a day or two, you will save money in terms of transport, and anything else you might end up buying while on a shopping trip.
- Get frugal when you go shopping.
There’s a very good reason why you should shop around for cheaper products: it will save you money! Why buy toothpaste for £8 when you can buy decent toothpaste for £2? That is the reality about shopping. Some products are identical or similar and somehow cost a lot more. Take the time to shop around and take not of prices when you are shopping. Spend the most part of 2020 focusing on shopping for the cheapest possible version of your favourite products. You will be quite surprised at how much you can save.
- Make the most of rewards cards.
You will find a wide variety of grocery stores and other product stores that offer loyalty and rewards programs. These will not offer you hefty cashbacks but will go a long way towards saving you little bits of money here and there. Ask your favourite stores if they offer rewards programs and sign up for them.
Last Word
With the New Year comes a whole new opportunity to gain control of your finances and start saving some money. Use the tips above to get ahead this year on the financial front. Happy New Year and happy savings!
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