Everyone needs to save money, whether starting a family, saving up for a house deposit or even a holiday. But how can you make your money go further?
Here are four simple ways to save money so you can have a little left over and start to invest.
Cut utility bills
Gas, electricity and water are things we all need, but you need not pay through the nose for them. Use sites such as Compare the Market, U Switch or Go Compare to make sure you’re getting the best deal and switch provider to ensure you are. Once you’re in the house switch off lights when you’re not in a room, don’t leave the tap running and put a jumper on instead of turning up the thermostat. These are all things we know but actually doing them can save you hundreds of pounds.
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Eat on a budget
Try and sit down at the beginning of a week and plan your meals, make a list of the ingredients you need and limit waste. You’ll be surprised how much money you’ll save by planning your shopping rather than shopping when you’re hungry. Try not to waste food, instead of throwing leftovers away save them for the next day or even freeze them for another week. Approximately 60% of the food we throw away could be eaten.
Make the most of your money
There are ISAs and SIPPs which are tax efficient ways of saving; either for money you need soon or money you need for retirement. There are also multiple providers offering different rates of interest, it could be worth paying a small fee for a higher rate of interest. Then there’s investing; you can now access stocks and shares at a low cost and have a team of experts manage your money. Leaving savings in a current account could actually cost you money in the long-term as inflation reduces the value.
Pay off debts to avoid interest
If you do have some money to spare and face debts it makes sense to pay these off before investing. You should always pay off your mortgage over investing but watch out for early payment fees on mortgages. Paying off debt whilst interest rates are low will save money in the long term, provided you won’t need that money in the near future.