What Is The Best Way To Save Money?

ways-to-save-money

Saving money is high on everyone’s list of priorities at the moment. In times when the cost of living is getting higher and wages are stagnating, saving money is something we all want to do. According to research, the average British credit card holder owes over £2,000, assuming an interest rate of around 15 per cent, this would take over two years to pay off at £100 a month.

When you have debts to pay off, bills to pay and a family to support, saving money seems impossible. However, follow some of these easy suggestions for saving money and it might be easier than you think.

Before you can really start saving money, you must put a strategy in place for clearing any debts you have. You need to clear your most expensive debts first, so any large amounts of money owed on credit cards or loans should be cleared. Easier said than done, but by putting a payment plan into action and paying off a higher amount each month, you will save hundreds of pounds by reducing the amount of interest you pay each month.

Once you have tackled your biggest money drain, you can start to think of other ways to save money. Cutting back on your fuel bills can save you hundreds of pounds. By searching for the best deal for your needs or investing in a newer heating system, you could save money in the long run. Making use of what you have at your disposal can make you more money than you might think.

Many of us have hundreds of pounds worth of goods lying around our house. Take a look in that cupboard under the stairs or in that box on top of the wardrobe – full of stuff you haven’t used in months or even years? Then make some money from it by selling it online.

Many of us have extensive CD collections only to now use digitized music, leaving our CD collections collecting dust in the deepest darkest corners of our homes.

Another simple way to save money is to move from branded goods to store-own brands. Often we are enticed into buying branded goods because of habit and good marketing campaigns, but quite often, store-own brands are just as good and a fraction of the cost.

The same can be applied to clothing; rather than shopping in high-end stores, try some high street brands who often replicate such designer fashions for a much lower price tag.

Lastly, one of the best ways to save money is to keep a record of what you are spending your money on and monitor it. With many of us using credit or debit cards to pay in stores and online, it is easy to lose track of what we spend. Sometimes setting a weekly budget for yourself and getting out that amount of cash at the beginning of the week can help you to keep track of what you are spending.

Anum

Anum Yoon is the founder and editor of Current on Currency. She loves all things personal finance, which is why you'll find her work all over the PF blogosphere.

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