If you’re starting on your savings journey, are stuck in a rut, or even simply curious about wanting to have more money at the end of the month, I wanted to do a quick recap on what I have done so far and my next steps towards financial freedom.
1. Track and Analyse your Spending
See exactly where your money is going. You work hard enough for your income – are you happy that you are maximising it’s value? Choose a month to review or start tracking every single purchase/bill from today
2. Cancel any unnecessary subscriptions
Do you have any Streaming/Music/Delivery subscriptions that you could do without and/or don’t use? Cancel them and see how much extra money you could put towards debt or savings.
3. Switch Providers
Shop around for cheaper electricity, gas, phone, broadband, waste collection, insurance, even mortgage. Look at all of your bills, see if you can get better value elsewhere. Also check with your current provider to see if loyalty is rewarded by way of discount.
4. Start Meal Planning
Pick one day each week to plan out the week’s breakfasts, lunches and dinners. Try to include what you already have at home, and make a shopping list for the rest that’s required.
5. Set a Grocery Budget
If you don’t already have one, set a weekly or monthly grocery shopping budget. You’ll be surprised how far you will make your money work for you when you are capped to a certain amount. Make it a challenge! Buy more own-brand items.
6. Start an Emergency Fund
Start contributing money every month to an Emergency fund – we can budget for what we know, but all we can do is prepare for the unknown. Make sure that you have a rainy day fund for the unexpected events so that you don’t have to reach for that credit card.
7. Pay Off Debt
I am on a path to attack and eliminate my debt. Apart from my mortgage, I have a Credit Card balance, a Personal Loan and a Car Loan; and I am attacking them in that order. I’m hitting the debt with the highest interest first, and making the largest payment I can each month.
8. Investing
To start with, I am doing a regular savings investment account. When I have paid off all of my debt, I will research additional investment opportunities. I am also making sure that I am contributing the maximum possible to my employer provided pension.
9. Saving Pots
Apart from the emergency fund, investments and pension, it’s a wise idea to keep other saving pots for costs that you know will happen throughout the year. Ideas for these saving pots are Christmas, Birthdays, Car, Insurance Premiums, Holidays.