Tips for people who aren’t cash rich (Picture: Getty Images) Money-saving tips often assume two things: one, you have enough time, money or energy to start a side hustle. And two, you have enough disposable income to save some each month.
We are in a cost of living crisis. Money is tight, bills need paying and debts are mounting. For many, there’s no money left over to save for some hypothetical future rainy day.
But saving is not just about cutting back – especially when there is not much to cut back on.
And saving is a worthwhile goal – even if it’s just a small amount tucked away.
So, if you don’t have much money to play with this January, we spoke to financial experts for some pointers that don’t assume you have a cushy salary rolling in. Start small
It doesn’t have to be big amounts, it doesn’t need to be right away and it doesn’t have to sit in a bank gathering interest for years.
‘Although the thought of saving can seem like an impossible task, it can really just be a matter of £20 or £50, which is saved over a period of time,’ says Laura, AKA the Thrifty Londoner .
This financial ‘buffer’ can help ease some of the additional stress of having costs come along totally out of the blue, and cover unexpected costs, bills, or emergencies, Laura says.
She adds: ‘It can also provide some security and mean you may not need to take out additional credit or loans. Savings don’t have to be huge, intimidating goals. You can start off small, and slowly increase your pot of savings over time.’
Gary Hemming, money expert at ABC Finance , seconds this, simply saying: ‘If you try to save too aggressively, you will fail eventually.
‘Start by saving a manageable amount and make sure it’s sustainable.
‘That way, you’ll do it for long enough for it to become ingrained in you.’ Do a financial audit
Put the time in – it will pay off (Picture: Getty Images) Maybe you’re painfully aware of every pound that enters and leaves your account, and have shaved off every expense you can.
If you are not, a financial audit can help.
Gary Hemming, money expert at ABC Finance, says: ‘The first step to saving money when you’re broke is to understand exactly what you have coming in and going out.
‘This way, you get complete clarity over your essential and luxury spending.
‘Whatever the difference between the two figures is the money that’s up for grabs – you can start working out how to cut down variable expenses such as food shopping, buying clothes and (relative) luxury purchases.
He suggests trying a daily budget: ‘If you come in below your budget for the day, move it to a savings account.
‘The feeling of seeing the account grow is addictive and takes the pain out of going without.’When you’re broke, this can be scary. But it is better to know what you’re working with rather than bury your head in the sand.Keeping a money diary can be helpful, as can creating a new budget for 2023 that is realistic for you.Check out this free budget planner tool from Money Saving Expert if you’re stuck. Download a money-management app Lots of banking apps offer free features and advice (Picture: Getty Images) There are lots of free banking and money-saving apps out there that are free to download, straightforward to set up and make it that bit easier to save, shift and track your money.Apps like Plum and Moneybox and banks like Chase and Monzo have inbuilt functions that automatically move money into a savings account.The idea is that you start building up savings without really noticing the cash is going.Plum’s (free) basic plan analyses your spending and works out how much you can afford to save and, every four or five days, automatically transfers the money over.‘Using a money management app like Moneybox or Plum can be a good place to start,’ says Melanie Wright, a money expert at Rest Less .‘These can be linked to your current account using Open Banking, and basically round up any spending to the nearest pound, so you can then divert this into a savings account.‘So for example, say you spent £10.30 at the supermarket, the app would put 70p into your savings.‘It will show you round-ups for all transactions you make, but in the months you’re feeling particularly stretched you don’t have to add them to your savings if you can’t afford to.‘It takes the […]
source Feeling the pinch? Expert tips for actually saving money this January
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