How to save More Money Every Month

Many of us would like to have a nice sum of money in our savings account. However, it can sometimes seem impossible to be able to have enough money to be able to save any or to be able to save a significant amount. However, there are some tricks and tips that you can use which should help you to be able to save some money every month.

Pay yourself first

By paying yourself first it means that you put money in your savings account as soon as you get paid. By doing this you cannot spend the money on anything else. Many people will wait until the end of the month and then put any money that they have left into their savings account. Although this can lead to you saving some money, it may be that you get to the end of the month and there is nothing left. This could be because you have checked the bank balance and know that there is some money in there to be able to treat yourself. If the money is already in the savings account then you will not be able to do this. You will have to budget better through the month and make sure that you manage on the money that is available.

When calculating how much to pay yourself you will need to carefully check how much income you have and how much you have to pay out for essentials. Then you will know how much money you have left and you can decide how much of that you would like to save.
Set a goal and stick to it

Once you have decided how much you are saving it is wise to set up a direct debit for that money to be transferred to a savings account each time you are paid. This will make it much easier to remember and you will find it harder to find an excuse not to save.
To keep yourself motivated it is worth writing down your saving goal and the reason that you are saving. This is something that you should look at regularly and will act as a reminder to you so that you can keep motivated when you feel like you want to spend a bit more money but there is none left to spend.

Everything helps

It is worth remembering that all money that you put in the savings account will help in the long term. So even if you only manage to put a few pounds in a month, it will still help and you might be able to put in a lot more the following month. If you keep putting money in, even if it just a small amount it will get you into the habit of doing it. Those small amounts will add up anyway and they could make the difference if you get into a sticky situation and need that money to fall back on.

Reduce spending

In order to save more money you may need to reduce the amount that you are spending. You will know whether you spend more than necessary or whether you only buy the essentials. It can be hard to give up things that you treat yourself to but you may not have to. If you compare prices on everything that you buy, you might be able to reduce the cost without having to actually buy less, but just buy them from cheaper places. This is most significant if you do it with large costs such as utility bills, loans or insurance.

It can be wise though to think about everything you are buying and decide whether you really need it. There are many things that we buy, that we do not get lots of pleasure form and so it could be worth deciding whether it is worth keeping up with your magazine subscriptions. Mobile phone packages, TV channels and things like that. It is surprising how much you can change your spending habits based on this.

Look for opportunities to earn more

It can be worth always looking for opportunities to earn a bit more money. If you get paid more then you will be able to save more. This could mean within your own job, perhaps doing some overtime or applying for a pay rise, but it could also mean taking on other jobs. There are many freelance jobs that you could consider doing or other things that could earn extra money. They may just be small amounts and on an ad hoc basis but this could still help you to get some more money in and increase the money in your savings account. Do remember to declare all earnings though as you will have to pay tax on all money earned even if it is outside of your regular job.

When Can Borrowing be good for us?

We are often led to believe that all loans are bad and borrowing can almost become a dirty word. This is because we hear many stories about people who get into piles of debt and have such trouble managing as a result of it. This sort of unmanageable debt can lead to stress, mental illness and physical illness as well. However, not all borrowing is bad and it is really important to understand the difference between good and bad debt so that we can decide when borrowing is right for us.

Costs of borrowing

When people are considering borrowing money, one big mistake that they can often make is to not look into the costs of it. When we go overdrawn, for example, we do not think about how much the interest rate will be because we usually only have one arranged overdraft so we have to use that. The same when we decide not to repay our credit card in full. We cannot spend time comparing rates at that point in time we only have to one card to use and so that is the one that we will use. This is why it is important to monitor the costs of these types of borrowing all the time and switch to cheaper options just in case we need them.

Most borrowing is done by way of an arranged loan. This means that you will have to opportunity to look at the different types of loan available and to compare the prices of them between different lenders. If you do this you can find that you will be able to save a significant amount of money if you choose cheaper lenders over dearer ones.

However, it is still worth comparing these costs. You want to see whether you are happy with paying that much. For example, if you are taking out a mortgage, then look at how much it will cost you overall and see whether are still prepared to pay that much for the property that you are buying. It will be significantly more than the asking price of the house due to the costs of the mortgage which will add up over the long term. Only use the loan to purchase the item if you are prepared to pay those additional costs for it.

Ease of repayment

It is important to also look at the repayments and see whether you will be able to manage them. Find out how much you will have to pay each month and think about whether you think they are going to manageable for you. If you are not sure then look at your previous bank statements and see how much you have left at the end of each month and think about whether you will have enough to cover the cost of the loan. If you will not have enough then see whether there are any areas you can reduce your spending so that you can afford those repayments. If the loan will go on for a long time, then you need to also think about whether you will be able to afford those repayments in the long term or whether you can only afford them for a few months. Try to consider whether your circumstances might change in the future and if this will have an impact on your ability to cover the cost of those loan repayments.

If you think that you will be able to comfortably cover the cost of the repayments then the loan could be a good idea, but if you fear that you will struggle then it is better not to take it out.

Reasons for borrowing

It is also worth thinking about why you are borrowing the money and what it is paying for. There are some things that we can buy which will really help to enhance our financial future and so the loan can be well worth it, as long as we can afford the repayments. Examples of this would be buying home so that you no longer have to pay rent, paying for university so that you can get a better paid job and buying a car so that you can get a job as a driver. Many people borrow for reasons that would not seem to be good though. They might fancy a new dress so use their credit card to buy it, borrow money to go on holiday or to redecorate their home. It is not always that easy though to decide whether your debt is good or bad but if you look into it carefully you will have a much better idea.

It is worth remembering that borrowing can be good when we will gain in the future form it. Think about whether what you are buying is worth the extra cost of the borrowing. Consider whether you really need those items and what impact they will have on your life. Decide whether the borrowing will Improve our future by providing us with things that will make us better off or whether it will only give us a short term pleasure and a long term debt.