How to start saving money on a tight budget
Saving for the future or for something in particular is important, but with bills and other expenses to pay for, putting money aside each month can often feel challenging.
To help you get started, we’ve put together 5 tips on how to save money - even if you're on a tight budget.
1. Create a budget
If you need to save for an upcoming event quickly or you want to make bigger changes to your spending habits, look at where you can cut back. Try creating a budget to see where your money is going and look at where you can make changes.
2. Start small
Saving any amount of money regularly is a positive step – whether it’s 50p or £50. Small amounts can quickly add up, so if you do manage to save a few pounds each month be sure to congratulate yourself and track your progress.
3. Set up round-ups
Rounding up your spending to the nearest pound can be an easy way to add to your savings pot without even noticing it. There are apps you can use which will do this automatically – that way you may not even realise the money is being moved.
4. Stop needless spending
A survey commissioned by MYJAR.com found that the average person spends around £200 a month on impulse purchases. So when you reach the till point or you’re browsing the rails and find a bargain – fight the urge to splurge. Ask yourself, do I really need this? You could even try adding the amount you would have spent to your savings account.
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5. Save in the right place
Keeping your savings in a separate account will help remove the temptation of spending them. You may even be able to earn some interest on your savings to help them grow more.
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What next?
Kick off your savings by opening a savings account and setting yourself a goal. Whether it’s for something specific or just a certain amount, a savings target can help you achieve what you’re wanting to save for.
This article provides general information and does not take into account the financial situation of the reader. For this reason it must not be relied on as financial advice. All accounts are subject to terms and conditions.
