Money management is something we all struggle with from time to time. After all, between raising a growing family and dealing with the cost of living crisis, there’s no denying that pennies and pounds simply aren’t going as far as they once did.
As such, it’s hardly surprising that 1 in 4 adults in the UK do not expect to save any money within the next twelve months, with many feeling as though they’ll be living paycheck to paycheck. As a result, learning to become better at saving money during this time is a great way to give yourself better peace of mind and financial security.
With that in mind, here are six ways to unlock your saving superpowers in 2023!
Download a budgeting app.
Downloading a budgeting app on your phone is one of the most effective ways to save money in 2023 due to the simple fact that it provides you with ‘visual’ evidence of your spending habits. This means that it can help you to stay on track with monthly budgets – as you’re more aware of how you are spending your money and the areas you may need to work on. These apps can also send you warning messages or notifications when you’re close to going over budget.
Of course, you can also rely on more traditional methods of budgeting at this time – such as writing it down by hand or using spreadsheets and templates – the choice is yours – and it’s crucial that you choose a budgeting method that works for you and will help you to stay on track.
Find ways to increase your income.
Another way in which you can increase your savings is by finding ways to increase or supplement your income. For example, there are plenty of ways in which you can begin to earn money from home, such as by making money from blogging or other forms of online content.
Alternatively, you could ask for a raise at work. While this may seem daunting, you deserve to be compensated fairly for your efforts and work. Furthermore, there are certain steps you can follow to increase the chances of your request being accepted. For example, you should research the average salary in your area for your role – taking note of companies that pay more for your level of skills and experience. You can use this as evidence to back up your request, though you should also write down a list of reasons why you deserve the raise. The more evidence at your disposal, the easier it will be to convince your superiors that you deserve that increase.
Plan ahead for expensive months.
Some months are more expensive than others – such as Christmas or the times when you seem to spend every free moment at a wedding, birthday party or other form of social engagement. Planning ahead for these events can make it easier for you to budget, ensuring you have enough money set aside to enjoy these special moments instead of spending your time worried about money.
For example, you can help prepare for the festive gift-giving season by joining a christmas saving club. This is a club where you can put a small amount of money into a digital ‘savings pot’ each month and receive this back in vouchers when it’s time to start buying Christmas gifts. This way, your Christmas expenses are spread out throughout the year, as opposed to draining your bank account come December, which can make it easier to afford gifts and presents for everyone you love.
Remind yourself of your saving goals.
As mentioned above, sticking to a budget is the most effective way to grow your savings account in 2023 – but that doesn’t mean that staying on track is easy. After all, it’s easy to give in to whims when shopping and buy things we don’t really need. One way you can resolve this issue, however, is by ensuring that you remind yourself of the reasons why you need to be a little more thrifty.
For example, if you are trying to save up for a family holiday, keeping this in mind can help you curb your spending – especially when you think about all the magical memories you’ll make on your trip!
Cancel Unnecessary Subscriptions.
Between abandoned gym memberships and subscriptions to streaming services, we no longer use – UK households spend almost £170 a year, on average, on subscriptions they do not use or need. As a result, cancelling these subscriptions is another excellent way to boost your savings.
Go through your recent transactions carefully, as you may not even realise you are paying for a particular service or subscription. For example, it’s reported that 40% of people forget to cancel free trials (which is likely why they’re offered up in the first place). The more economical you are here, the better – if you aren’t really using something, don’t keep paying for it on the off chance you will in the future. After all, if you find that you miss it, you can always re-subscribe!
Use price comparison websites to reduce expenses.
You could also increase the amount of money you add to your savings account each month by cutting down the amount you spend on expenses such as utility bills. For example, price comparison websites can help you to determine whether or not you could be getting a better deal elsewhere by switching to another provider.
However, before closing your account with your current provider, do let them know about the deal from their competitor. In some cases, they may provide you with an even more persuasive counter-offer in order to keep your custom. However, these sites are not just designed to help you get better utility deals – but on pretty much all of your other expenses too. For example, you could use them to get better deals for your home and car insurance. Either way, using these tools is a great way to maximise your savings and ensure every pound you spend is spent wisely.