Saving Money

In these unprecedented times you may be having some financial worries, or maybe now you’re looking to start saving some money seeing as we can’t go to many places at the moment, ready for when we are finally allowed out. I have scoured the internet as well as pooling from my own experiences to put together some tips and advice on how to save money below. I've tried to do it a little bit differently though.

The aim of the game is to pay the bills, eat and try to salvage some remaining money for ourselves to spend on more luxurious items. The tips below have thus been devised in order to try and help improve our understanding and evaluation of the way we spend, view and appreciate money.

There are also some resources at the end of sites with extra advice and tips.

- Round up purchases

You can get some companies and cards that will do this for you, but I personally like to do it myself so that I can check my accounts regularly. This is a really easy way to save small amounts here and there that can add up to more than you realise by the end of the month.

- Check your balances regularly

Leading on from the first point, it’s important to check your accounts regularly, including the pending section. It can be easy to lose track of spending, especially if you’ve been on a night out. Plus, it means any suspicious transactions are easier to spot

- SEPARATE YOUR ACCOUNTS

This is a slightly bigger point, so I’ll break it down. Separating your accounts can really help keep track and divide money up neatly. I have 4 accounts – one for mortgage/bill payments, one for treats, one as my main account where I purchase things like fuel, food etc and a savings account.

• Create an account for treats/personal materialistic purchases. Maybe you have a holiday coming up, or a bigger personal purchase, or maybe you just want to treat yourself. I found that having a separate account for such purchases helps not only keep track of how much I’m spending on myself/materialistic items but also means I don’t dip into any other funds that I need e.g. paying for food

• Keep your savings account separate. It’s really important to keep your savings account separate from any other accounts, as this helps avoid dipping into it or taking more than you may need. This will allow you to save money and have it available in case of emergencies such as car repairs, any repairs in your home etc. It’s good to get into the habit as soon as possible of opening a savings account and putting away regularly in it so that, in case anything happens, you have some spare money

• Separate bills and personal purchases. Having your bills and personal separate though is probably the most crucial I’d say, as it allows you to make sure that your bills and rent/mortgage are covered every month

Whilst you don’t have to have it this way, it is good to make sure that your essentials are covered every month, and if you want to treat yourself then you can track how much you are spending on materialistic goods. If you don’t want to manage too many accounts, I recommend having 3: one for bills, one for everyday expenditure and one for savings.

- Find the best interest rates for savings accounts

Shop around and see which banks offer the best interest rates – it can be easy to be tempted by promotions such as “receive a £50 voucher when you switch” however those vouchers are one offs and don’t necessarily add up in the long run with regards to saving money

- Aim to save every pay day

Regardless of when you’re paid, try to put away some money every time you’re paid. It can be better to do it on pay day as then you may not notice it as much when you have money, compared to just before pay day where you may be lower on funds. It is recommended that people put away 10% of their pay but just aim to put something away

- Understand your priorities

In order to have a good grasp of your spending and saving, you have to understand why you’re spending your money on certain things. If it’s essentials like food or things you rely on like fuel, then it’s appropriate to spend money on them. If they’re things that only bring temporary joy or aren’t as essential, then it’s good to evaluate what you actually want to spend your money on.

- Set goals

Saving money without any goals may seem pointless thus you may feel less inclined to save as much, whereas if you have a goal then you may be more motivated to save more money. Most people as well want to save towards something rather than just for the sake of it. Whilst it’s important to save for emergencies, you may also be saving for big purchases such as renovations, a car, a deposit towards a house etc

- Food shopping

I have a few tips for food shopping so I’ll summarise them briefly:

• Make a list to help avoid buying unnecessary extras, or “rogue purchases” as we like to call them

• Check out the reduced sections

• Freeze meats/bread/things soon to go off so that they last longer

• Check out local markets and budget-friendly shops

• Take bags with you

• Don’t go when you’re hungry as you may want to buy more

• Meal prep where possible

• Plan meals and buy foods that can go into lots of meals; basics like onions, chopped tomatoes, frozen veg, potatoes are just some examples where you can beef up or make a variety of meals

- Wait before you buy

This works really well for more materialistic purchases. If there’s a new clothing item or pair of shoes etc that you’ve spotted and want to buy, put it in a wish list or take a screenshot and leave it until next pay day or the next time you have some expendable income. By leaving it for a while and not buying it instantly, you can better establish whether you actually want it or if it’s just a spontaneous purchase

- Use comparison websites

If you want to try and save money on your bills or utilities, give comparison websites a go. Most of them are free, just be sure to check their legitimacy. The websites do all the work for you so it can save you time and effort. It’s important as well to make sure if you do find a cheaper deal to always read through the terms and conditions, as well as checking the start dates to avoid any overlap and paying double when you may not need to

- Read

It's good to have some level of understanding of the psychology behind money and our relationship with it, in order to better recognise patterns and behaviours, so have a look on the internet for articles and books that discuss the subject in more depth

- Buy used/get it free where you can

There are so many sites and apps now where people sell and buy items so it’s good to see if you can find yourself a bargain. Some great apps/sites to use are: eBay, Shpock, Depop, Olio, TooGoodToGo and you can also join groups on social media for your local area to see what’s available around you. A trick that I learned is that if there were a specific item I was looking for, I’d search the name of the item and would almost every time be able to find someone who was selling it, and at a fraction of the price. If I couldn’t find the exact brand, I could almost always find something extremely similar and again at a fraction of the price

- Set up an ISA

ISAs are good because they make it more difficult to access funds so you can be less tempted to dip into them. Keep in mind how long you want the ISA for though – if you’re planning on a bigger purchase within the next year, it wouldn’t be wise to opt for an ISA that’s 2+ years long. If you’re happy to have a longer ISA, choose a longer one as they tend to have better rates and you save more

- Always search for discount

Pretty much every website will always have some sort of discount code available, all you need to do is search the name of the website/brand + discount code and you may be able to find something. If you have any student friends, ask them to check if they can get you student discount codes. You can also install things like Honey; once installed, it tries all the codes it can find for you, and if it can’t then it gives you coins instead which you can save up and put towards gift cards

Resources/Other Useful Links

Everyday Tips

https://www.thesimpledollar.com/save-money/little-steps-100-great-tips-for-saving-money-for-those-just-getting-started/ *This one had a couple with regards to food and drink that aren’t worded the best so be wary when reading the tips on this website

https://www.moneysavingexpert.com

https://www.supersavvyme.co.uk/home/money-and-saving/how-your-finances-should-all-add-up?gclid=Cj0KCQjwuJz3BRDTARIsAMg-HxV2Sdwk0BFk4er6khpxuYdkY24xnBW9XfdapZuCWFYGvCeZmLZ4BvsaAibEEALw_wcB

https://www.which.co.uk/money/money-saving-tips/saving-money/50-ways-to-save-money-a9g329r4s8hm

https://www.joinhoney.com/page/DR-UK-Evergreen-Simplified-Yellow/?utm_source=goog&utm_medium=sem&utm_campaign=GOOG_UK_200325_NonBrand_All_All_NonBrand-Core_ETA_DR-UK-Evergreen-Simplified-Yellow&utm_content=DR-UK-Evergreen-Simplified-Yellow&from=r

Comparison Websites

https://www.gocompare.com/ps/homepage/cd/?media=A119088&PST=1&device=c&gclid=Cj0KCQjwuJz3BRDTARIsAMg-HxVKTUOYVS7km2p0xkpUClbSfyT1yEBKPA1ZIRZn96ucJvCIXj1-tSIaApghEALw_wcB&gclsrc=aw.ds

https://www.googleadservices.com/pagead/aclk?sa=L&ai=DChcSEwjwqIqivITqAhVF6-0KHaWFAwUYABACGgJkZw&ohost=www.google.com&cid=CAESQOD2TB1yb97tKFQIL1_A3a3UsRZ86B6x5wu0nKVcN5qxvoU-XgfN22tbeojOkMKFGQKMjAKwRRFH7FEj-SxexiU&sig=AOD64_09ywEddjNHThhxsNYBfgoNFzpsLw&q=&ved=2ahUKEwjnroKivITqAhWoRBUIHRwGC0gQ0Qx6BAgTEAE&adurl=

https://www.moneysupermarket.com/home-msm/

Students

https://www.savethestudent.org/shopping/ultimate-list-free-stuff.html

https://www.studentbeans.com/uk

https://www.myunidays.com/GB/en-GB

Books/Articles

The Psychology of Money (1998) by Michael Argyle

Mind Over Money: The Psychology of Moneu and How to Use it Better (2016) by Claudia Hammond

The Psychology of Money: Timeless Lessons on Wealth, Greed and Happiness (2020) by Morgan Housel

Financial Therapy: Theory, Research & Practice (2014) eds. Bradley T. Klontz, Sonya L. Britt, Kristy L. Archuleta