A Guide to Saving Smarter in 2020

April 27, 2020

Being smarter about money is one of the most popular new year’s resolutions every year. Money makes the world go round, and it’s always handy to have some spare in your savings. So, here are a few ways you can do so without feeling the squeeze.

Get in the right mindset

Studies show that a quarter of British adults have no savings and even more would rather choose to go vegan rather than start saving. But it’s easy to do so and means your money can work harder for you – which should give you an extra reason to save.

You need to sit yourself down and look at your lifestyle and see what saving could do for you. Could saving be how you afford that dream holiday you’ve been looking at? Or perhaps that is how you afford your perfect wedding venue or a deposit for that new house? Take the time to get your priorities in order and see how saving can help you.

Get Smart

A lot of banking apps for your smartphone can make it so easy to get your savings working for you alongside your current account al; from one place. You’ll barely need to lift a finger.

For example, some apps allow in-app budget where you can set a savings goals and transfer money from your current account to your savings account (and vice versa) whenever you want for however much you want.

Some banks and third-party apps also provide the opportunity to round out the spending and pool the balance into a savings account. Some UK banks offer this and allow. If you set it up, it can help you save a change of £2 on a £1.80 coffee, for example. This can also be controlled by your app.

Set yourself a target 

What is your savings goal? Everybody wants a savings cushion, but if you have another target for saving, then concentrate on it.  Is it to pay for a vacation? For clearing a debt? For Christmas? Getting married? A house deposit?

When you’re saving, keeping a goal in mind that makes you happy, will make a huge difference. Try even writing it down somewhere and marking off significant milestones in that savings journey. Visualisation will help reinforce your motivation to meet that goal.

Know your budget

You need to know where your money goes every month if you want to save some money. This is where the budget becomes essential. 

Once you know precisely what your profits and expenses are, then you will factor in some savings and potentially transfer the cash into a new account or payday.

If you don’t have a budget for your weekly spending, then it’s a lot easier for your money to get sunk in daily expenses.

Over time-saving money will become second nature to you. As people age, they start to realise the try value of money and how hard it can be to get together the money to afford the bigger things in life that they really want. If you can get a grasp on saving now, you will make things significantly easier for you self in the future.

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