As the new year approaches, commitments to savings are a frequent resolution made. Having a clear plan, especially when the cost-of-living crisis is making things difficult already, can help you stick to your promise to straighten out your finances. Here are some tips to help you achieve this:
3 new year savings commitment to make
Only buy what you need
The art of knowing when to save instead of spending can be crucial when it comes to starting to put money away. By promising yourself that you will only buy essentials instead of unnecessary items, you’ll find that your balance will start to improve.
One way to help with the cost of essentials is by buying own-brand products from supermarkets and looking out for reduced items, which usually appear at set times of the day depending on the supermarket you go to.
Another tip could be to plan your weekly menu and batch cook your meals. You can then freeze any leftovers. By doing this, you will have a stack of homecooked, delicious meals on hand whenever you need them.
Setup a savings account
Setting up a savings account is a fantastic way of staying focused on your goals. Take your time to compare different options and find one that works for you.
It could also be worth going into a branch and talking to someone there. They will be able to help you compare different products and find one that fits your goals best.
One option you could consider is opening a savings bond. Fixed-rate savings bonds allow you to have a set interest rate for the duration of your term, as long as you don’t mind keeping that money locked away for a while.
Setting realistic goals can help you on your way to financial comfort. It may help to compile a spreadsheet of monthly outgoings such as subscriptions and bills and compare them to your current earnings. Having this spreadsheet will help you set a budget for food, leisure, and any other purchases. This, in turn, will help you stick to it.
Breaking a bigger goal down into smaller goals can make them seem more achievable. One example would be saying you would like a certain amount of money by a specific date. For instance, you have an overall goal of £1,000 but you aim for £250 every 3 months.
There are many different ways you can plan to save money, such as opening a savings bond, figuring out a budget, and planning your meals. How are you planning on saving money?