Six Simple Money Saving Tips: How to Save Cash and Still Live Your Best Life

Managing your money can be tricky, and plenty of people feel like they never have enough left at the end of the month.

However, there are small ways of updating your spending habits that can help improve your financial situation over time.

This article will explore six smart money-saving tips to help you build your savings without sacrificing your quality of life.

6 Money Saving Tips To Help Your Money Go Further

1. Practice The 30-day Rule

The first of our money-saving tips is the 30-day rule.

The 30-day rule is simple: if you feel like you could be about to make an impulse purchase, wait for 30 days before buying.

Once your initial excitement has worn off, you will often realise that the thing you were so desperate to buy doesn’t seem so great anymore, and probably won’t add much value to your life.

Exercise equipment, new clothes, and games consoles: these are potentially high-cost items that could sit in the corner of your room for months or even years without being used. Instead, consider adding that money to a savings account.

If you are still excited to buy after 30 days, then it’s likely to be a better use of your money, and you can complete your purchase knowing that it was bought thoughtfully rather than just a short-term impulse. 

2. Set a Savings Goal

Even when you are saving money, it’s important to treat yourself.

Instead of spending money on Amazon or buying takeaways, consider setting a larger goal to bring more excitement into your life.

Creating a budget for a holiday with friends can motivate you to skip your weekly takeaway or buy fewer drinks at the pub. Having a larger goal could even help with you save: If you can visualise sitting on a beautiful, sunny beach every time you ignore your favourite drive-through coffee shop, that provides all the motivation you need to start being more mindful with your money.

3. Have A Plan For Your Meals

Food prices and the cost of eating out have been increasing, making it more important to be mindful of your food budget.

Rather than spend £5-£10 every day working in the office, consider planning and preparing your meals to save money.

And it doesn’t have to be boring! A home-cooked meal in a lunchbox can be tastier, more nutritious and cheaper than a meal deal sandwich and a packet of crisps, so consider investing in some quality Tupperware and learning to cook three or four meals that taste great and will fill you up for the day.

Does your job allow you to work from home? Pre-preparing starchy carbs like rice or pasta can give you plenty of energy for those long afternoons, without taking time away from your lunch break. Choose a protein like chicken or minced beef and add your favourite vegetable to create an affordable, nutritionally balanced meal that will help keep your energy levels high without breaking the bank.

4. Use Cash On Nights Out

It can be easy to overspend after a few too many.

With the rise of contactless card payments, it’s not uncommon to get a little bit carried away when you’re at your favourite pub or bar with friends and tap for payment a little more than we should, only to regret it the next morning.

One money-saving tip to help with this issue is setting a budget before you start celebrating.

Choose how much you will spend and withdraw that amount in cash. That way, you’ve started managing how much you are spending before you’ve even started, helping you to preserve your bank balance and preventing a nasty surprise further down the line.

5. Start Saving Early

One of the best money-saving tips is to start saving early in the month, rather than later.

Plenty of people promise that they will save as much as possible during the month and then transfer anything leftover to a savings account or investment, only to find that there is no money left to invest.

The best way to establish good saving habits is to avoid this trap entirely.

Instead of waiting for the end of the month, transfer money to your savings accounts or investments on payday and commit to leaving it in place. Try to start by establishing an emergency fund - a savings account where you keep enough money to cover a month’s worth of essential expenses. This emergency fund can help you bridge the gap between payday and the end of the month, although it’s important to top it up after transferring from it.

After establishing an emergency fund, you can choose a savings account or investment strategy to save your money. Transferring money to savings or investments every payday is a priceless money saving tip. Because you’ve built an emergency fund, you can rest assured knowing that you can cover any gap toward the end of the month.

6. Set A Budget

Of all money saving tips, the most helpful piece of advice is to set a budget.

If you’ve never created a budget before, start by sitting down and reviewing your monthly outgoings and direct debits, and arrange them in order of importance.

Bills like rent, gas, and electricity are non-negotiable as these are critical for day-to-day living. But when you start approaching other expenses, like your phone bill, utility bill or discretionary expenses like Netflix or gym memberships, you might be surprised at how much you spend every month.

Setting a budget will help you organise your daily spending and highlight areas where you could save money. Although it might not seem like it, setting a clear budget can even be fun: by identifying areas where you could cut costs, you are freeing up that money to be spent elsewhere, like on holidays, savings or exploring a new investment. 

Begin Your Savings Journey With Sheffield Mutual

Sheffield Mutual offers unique, clever savings accounts that provide even more ways to save.

Consider investing in our Tax Exempt Savings Plan, which gives you an additional allowance on top of your annual ISA allowance and allows you to earn bonuses in line with market performance (please note that bonuses are not guaranteed).

Alternatively, consider saving your money in a Regular Savings Plan, which allows you to choose a term between 10 and 25 years to save a lump sum, with a sum assured provided as soon as you begin saving.

If you would like to know more about Sheffield Mutual’s savings accounts or you are considering becoming a member, feel free to get in touch with a member of our team by calling us on 01226 741 000 or by sending us an email at enquiries@sheffieldmutual.com. 

This blog provides generic information and opinions of the writer and should not be relied upon for making investment decisions. No advice has been provided by Sheffield Mutual. If you are in any doubt as to whether a savings or investment plan is suitable for you, you should consider contacting a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk or www.vouchedfor.co.uk. Advisers may charge for providing such advice and should confirm any costs beforehand.