There is no other way to put it – saving money can be hard. Whether you have your eye on a dream car, are wanting to propose to your partner or are generally thinking about the future, money experts say that it’s a lot easier to think about money when you have something to save for. From big purchases to a life event, these are the endpoints to our saving goals. But how can we help ourselves to work towards this? As financial experts, we offer — top tips for saving money that you can implement today.
Research and prep
To start your preparations and planning, first, begin by researching how much your goals are going to cost. Whether it’s for a new car, round-the-world plane ticket, a wedding or deposit for a new house, these things should be researched in advance. For example, the average UK wedding costs over £20,000 – of course, you don’t have to spend that, but research venues, catering and more to work out what you can afford and work towards saving to that budget.
Record your expenses and be prepared to cut down
Set aside some time to list all your monthly outgoings and expenses. If you have someone else who will contribute to your savings (e.g. a spouse to contribute to a house deposit), make this list with them too. Try and figure out if there is anything that you can cut down on to make this monthly figure smaller such as cutting out weekly takeaway or unnecessary monthly subscriptions.
Work out how much you can save each month – and stick to it
The usual approach to saving money is to put aside 10-15% of your income. However, if you can cope with saving more and have something you need to save for, try upping this figure, even if it’s just for the months leading up to the big spend. For example, John and Jane want to get married in 18 months and need £10,000 for their wedding – this means they have to save about £280 a month each to reach this figure.
Think about the right tools
To help towards your saving goal, consider some tools or small changes that may get you there quicker. Saving accounts, for example, are a good place to start. By comparing different interest rates from various banks, you might find one that you’re eligible for and could consider switching. There are also many apps out there to help you save money such as Monzo, Plum and Chip.
Saving money each month is a great place to start when planning for a big purchase or life event, however, you may need some more help and advice to get you there quicker. From saving for your wedding to be able to afford a deposit on your first house, these life events may require some financial planning. This is where we at Maxim Wealth Management in Glasgow can help. Whilst providing pension, retirement and savings advice, we can also offer knowledge regarding investments and what to do with your money – get in touch with our expert team today.