Saving money. We'd all love to be a bit better at it, but we all know how difficult it really is. Every time we make a conscious effort to put away a few pennies each week, an unexpected bill pops up, or you're invited to a social gathering at the most expensive restaurant in town. Some of us just aren't natural savers, and that's absolutely fine – after all, money is there to be spent, right? Well, yes, but it can also pay to have some stashed away for a rainy day (or towards a deposit for your first home).
So, just how do you go about putting together an effective savings plan? With a little discipline, hard work and forward planning, that's how! Here are three effective ways to save – your smile will grow as your bank balance does!
1. Create a spreadsheet
It's really hard to keep track of your savings when, well, you aren't keeping track of them. Luckily, in this modern day and age, it's pretty easy to watch what you're spending and what you aren't. Spreadsheets have come a long way since their initial incarnations, and even though they are far more advanced than their forebears, you don't need a degree in computer science to set one up.
A basic spreadsheet will be able to keep track of your monthly expenses, as well as money coming in. This will allow you to figure out how much you can roughly afford to put into a savings account each month. A handy tool for savers everywhere, there are several excellent spreadsheets to download online if you aren't quite sure how to create one, so be sure to get one up and running as soon as possible.
A basic spreadsheet will be able to keep track of your monthly expenses, as well as money coming in.
2. Make a payment on payday
Unless you really need to reign in your spending habits every time you get paid, this is a really easy win when you're looking to make savings. Simply set up an automatic money transfer from your current account into your savings account to come out each payday. This way, the money will be safely tucked away before you have time to spend it on non-essentials.
You can choose to pay yourself (for that is precisely what you are doing!) as much or as little as you like, depending on your current financial situation. However, a good target is 10 to 20 percent of your monthly earnings, as this will still leave you with enough to play with until you get paid again. Try to think of it as a 'happy tax' – hopefully, you won't even notice the money leaving your account, but once you check your savings, happy is what you'll be!
3. Quit your vices
Cutting out non-essentials is one of the single most effective ways to give your bank balance a boost. We know how difficult it is to quit smoking, or just forgoing your morning High Street coffee. Conversely, we also know how expensive both vices are, but by cutting them out of your life (or at least reducing your intake) you can save an absolute packet.
Say that you smoke a packet of cigarettes a day. By quitting, you'll have saved yourself something similar to $3,000 that would otherwise have gone up in smoke – not to mention the wonders that you'll be doing for your health. It's the same story for coffee. If you're spending five bucks or more for a cup of Joe on your morning walk to the office, it may not seem noticeable at the time, but your bank balance will certainly be feeling it! Why not make a cup before you leave for the day – it'll taste just as good, and your wallet will thank you for it!
Be sure to get in touch with the team to find out more about CAPE's savings accounts.
