Battling to Save?

Battling to budget? You are not alone. If you sit around and listen to the number one complaint from working Londoners is a constant “lack of funds” to get them though the month and still “do all the things you want to do”.

 Somehow London is the kind of city that functions like a bottomless pit, there just seems to be no end to what you are able to spend in this hub of activity, and that doesn’t do the budget any favours when it comes to trying to put some money away and actually get down to some saving.

That’s said however, there are a few habits that one does tend to pick up along the way that seem to add up over time, but go unnoticed on a day-to-day basis.

The following are a few ways in which you could make some simple changes, which could make a significant contribution to your savings account and help you to achieve your savings goals a lot sooner than you thought!

 Kick the Coffee Habit

 This doesn’t mean you should stop drinking coffee altogether- nothing quite as serious as giving up your caffeine fix, but the ever present allure of an express cappuccino, frappacino or latte could be denting your savings significantly over the year. For example:

 

1 takeaway coffee every weekday can add up over time.

 

£3 x 5 =£15 weekly

 

£15 x 4 =£60 monthly

 

£60 x 12= £720 yearly.

 

This is just a rough estimate, but it goes to show just how quickly something as simple as a daily coffee can add up, so perhaps it’s time to kick the takeaway habit after all.

 

Piggybank

The previous point is a prime example of how small amounts can add up over long periods. So, why not turn take this to heart and start a good old piggy bank. Perhaps, instead of the daily £3.00 coffee, you could put £3.00 into a piggy bank every weekday for a year. You probably won’t miss the £3.00, but you most definitely appreciate the £720.00 it adds up to in a year’s time!

 Beware the plastic

This point does not refer to the environment either, but more about the debit, credit and store cards which we have to rely on over the years. Cards can pose a serious threat to your saving regime. If you are serious about making a start on saving- determine what you weekly expenses are and draw out the amount in CASH, weekly. Money just seems to mean more when you can see yourself handing over the cold, hard cash, instead of swiping away frivolously according to meaningless numbers you see at the till. You’ll be surprised at how much this could save you in the long-term.

 Shop Smart

This doesn’t mean putting all purchases on hold, but merely thinking about the why’s and what’s of your purchasing habits. Go back to the basics and think things through. Are you perhaps shopping out of boredom or impulse, and even more importantly, do you actually need what you are buying? It may just very well be a case of the “wants”, in which case you are wasting money you could be saving.

This also brings up the point of a shopping plan. For example, if winter is coming around and you genuinely require a new coat, then plan your purchase properly. Decide what you need out of a coat and then shop around until you find what you need. Do not fall into the trap of shopping around aimlessly when you could end up buying a random item because it grabs your attention under the shiny lights of a designer store and it suits this weekend’s outfit plan.

Chances are quite good that you will wear your impromptu purchase a handful of times and end up having to make additional purchases because you have nothing practical to wear.

Another shopping tip is the “find it, buy it… and get out” technique. This will save you from some seriously unnecessary spur of the moment purchases that you really don’t need.  Don’t make the search for a coat turn into the purchase of a coat, two jerseys, a few accessories and a pair of shoes- which by the way, you will never wear again, but they seemed like a good idea at the time.

The Danger of a Good Deal

This applies to a vast variety of things, especially in the promotion- lined aisles of the UK. Be it food, clothing, toiletries, (or any other purchase for that matter) make sure you don’t end up wasting money on “good deals”.

A great example is the bulk discount promotions you find in drug stores. Buy one face mask for £10, but get two for £16, sound familiar? Well the truth is that most of us would tend to go for the two tubs of face mask, because it just seems like you are getting so much more for you money, the truth is however, you probably don’t need that much product, and the second bottle will be lost at the back of a cupboard and go off long before you get to it. Effectively, in that “great deal”, you would have just wasted £6.

Sales

Sales can often create the situation of false economy. In theory, sales should be a money-saving opportunity where you pick up goods at a fraction of the original price. However, in reality sales have become a situation that attracts bargain shoppers prone to make unnecessary purchases.

For example:

You walk into a store and find a pair of shoes that you love, however after taking a look at the price tag, you decide against them.

You then walk into a sale and find two more pairs of shoes, at full price you would never have bought them, however at half price they are nice enough. Effectively you have spent the same amount you would have spent on the one very nice pair of shoes, but now instead of an item you love you are stuck with two mediocre items that will be lost in the back of your wardrobe in no time and you will probably have to go out and make another purchase anyway. This is the danger of a sale. The best advice to solve this dilemma… only ever buy something on sale if you would have considered the item at full price.

These are just a few of the ways you can become more aware and hopefully improve your monetary situation in order to save for “the things you really want to do” and to make some future plans. Hopefully by being a little more budget-savvy you can make some savings so you can afford a few more of life’s little luxuries. If things are somewhat more serious for now, perhaps you need to look into a quick cash loan to keep you afloat until you can start implementing a few things in order to make your money work a little better.

About the Author

Julie Samuel is a freelance writer with a background in personal finance. She often advises on the use of cash loans.

Tags: little miss piggy shoes, little miss piggy shoes perth

This entry was posted on Monday, March 8th, 2010 at 4:22 am and is filed under Piggy Vault. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.