How do you save money?

Former Member

Hello all,

I have a really bad habit of spending money! I'm not very good at budgeting but Im saving up for a big trip next summer, which is super exciting and I can't wait to be away travelling with my best friend.
However with my bad budgeting skills, I'm looking for some advice or tips on best ways to budget?

Thank you in advance!

GreenTea✨

Former Member

I have a saving account already but I'm so useless at putting money in it!

Thank you for the idea

Former Member

I'm saving for a big trip aswell. It's hard, being a shopaholic and all

I think the first step would be to see where your money is going. Maybe from the last month. Write it down or use Excel.
Divide it into your mandatory expenses and variables. See where the unnecessary spending is going.

Now you can budget for saving and spending money. One tip I have is to not make your spending budget too small, I found it hard to stick to, now I have a little bit of wiggle room.

Keep track on your spending throughout the month, use the notepad in your phone for example. That way you can see how much money you have left from the budget.

You could also do a weekly or daily budget. Another option is to withdraw the budget in cash and only use that to pay. See what works the best for you. If you overspend you could take that out of you next budget.

In my experience the most important thing to budgeting is to know where you're spening your money.

Hope this helps. Was that trip to Amsterdam? Maybe I could help you with some saving tips for when you're there

Good luck!

Former Member

Thank you!

I use to track money but gave up so maybe I need to do that again!

And nah this trip is a trip to multiple countries and spending out birthdays in new York!

Former Member

I used to do it everyday but it became too tiring, so maybe set a moment in the week aside to do it.

Wow that sounds amazing! Maybe a moodboard can help to be a motivator to spend less

Azziman

I think both of these are so key. Firstly, having some sort of financial or accounting app that allows you to track your spending is really important - having an idea of what money you have, where it's going, and what you want to do with it is crucial to staying on top of your money. Then, cut back where you can so you have more money in your pocket. Think about what you want to achieve (save for a mortgage deposit? buy a car? holiday abroad?), and save accordingly. I'd build up a rainy-day fund so you can cover expenses for atleast 3 months if something happens, and perhaps the rest goes into some sort of longer-term savings account. 

Some banks (e.g. Revolut) allow you track all your spending and ringfence some savings into one app, so that's something to look out for. Above all though, it takes real discipline - be prepared to live quite frugally to build up savings, and stay off the spontaneous buying - as you're cutting back now so you can enjoy something greater in the long term. 

Former Member

So,
Update!

Each week Im going to put money into my savings account. So far I can budget shopping, stop buying things by walking around the shopping street after work, instead of through!

So hopefully I can start saving! Wish me luck!

Former Member

Congrats @GreenTea on taking that first step towards saving. It can be really difficult to stick to budgets so take it a step at a time!

My bank, and I know others do this as well, have a feature where they will round up transactions and put the round up in a savings account. So if I spend £2.70 in Starbucks, it’s rounded up to £3 with the 30p being put away. You might think that’s not a lot but if you use your card everyday it slowly builds up. 

Azziman

Jordan said:

Congrats @GreenTea on taking that first step towards saving. It can be really difficult to stick to budgets so take it a step at a time!

My bank, and I know others do this as well, have a feature where they will round up transactions and put the round up in a savings account. So if I spend £2.70 in Starbucks, it’s rounded up to £3 with the 30p being put away. You might think that’s not a lot but if you use your card everyday it slowly builds up. 

That's a really great idea that quite a few apps (like MoneyBox) offer. That way, you save automatically, but also helps you to think twice about what you spend on as things are effectively more expensive for you (helps to keep spending down!)x

Former Member

I'm writing down and planning all of my expenses. The trick is to record everything, even the most little thing. Otherwise you get kinda lazy, start forgetting and eventually lose control over the situation.

Former Member

Just thought I'd update. Since July I've saved so much Money and it's exciting!

Former Member

Congrats @GreenTea, I'm proud of you! 

What money saving tips do you think helped you the most?

independent_

Woo well done @GreenTea that’s amazing!! 

I’m not really a spender more than I have to, so I try to let my savings build up. I hate spending money on myself haha so I tend to avoid big useless purchases. 

Former Member

Well done @GreenTea 🥳 Did you do it mainly by using a savings account? We might be able to learn something from your experience!! 

Former Member

I moved a set amount each month at the start of the month into savings and whatever left the day before pay day was also moved into savings

Former Member

I'm still on it with the saving!

Emma_

This is super exciting @GreenTea !

I've started planning a trip (hopefully at the end of the year 🤞) and I've started thinking £20 on takeaway or that money could be used for 2 nights in hostel. £40 on some new clothes or it could go towards some flights.

Its working so far, I'm finding having specific things to save it for is really helping

Former Member

Love that idea @Emma_
I a way that's how I'm remembering to save money, like I really want driving lessons so everytime I put money back, I'm a step closer to learning to drive

Jellyelephant

i am using the "save your change" feature on my bank account - it saves the change from any transactions and puts it in my savings account. I didn't think it would get much but it is actually getting quite a bit in my savings account

Former Member

I use a standing order to transfer a set amount of money into my savings account every month, that way there's no way out of it! My savings account is fixed with a high(ish) interest rate but I wouldn't recommend this if theres any chance you might need that money for an emergency as you lose your interest if you withdraw before the time limit (mines 12 months).

Side note: if you like coffee, get the Pret subscription! its saving me so much money on coffee!!

Former Member

Martin Lewis money saving expert TV show and website are both amazing for advice on money btw! (not sure if anyones mentioned it before but I'll put a link in the spoiler)

https://www.moneysavingexpert.com

Former Member

I've done so good with this and I've gone higher than my original target!

Former Member

When I was trying to save money, I used the app 'Cleo'. It uses personalised budgets and spending breakdowns which I find really helpful to see exactly where my money is going.

https://www.meetcleo.com/

Former Member

It's great to hear that you've achieved your original target @GreenTea! Saving is easier said than done, so be proud of yourself When I started saving more seriously, I set up a specific account and had a direct payment going into it every month. So when my pay comes in now, a proportion will go directly into savings and I won't be able to *accidently* spend it