Most of us have something we’re saving for, whether it be our first (or next) home, a dream holiday or just that jacket we saw the other day. The problem is, saving money is difficult and often takes a lot longer than we’d like it to (or than it needs to) – so what can we do to help speed things up a bit? In this post, we’re sharing 5 simple ways to save money faster…
1) Set savings goals
Often our enthusiasm for saving gradually reduces as time goes on and so in turn, does the amount we put away. When we first see the jacket in the window, our desire is strong and so is our motivation to save the money to buy it. We prioritise our savings in order to achieve our goal.
By setting a specific savings goal (and attaching a clear vision of what we’ll do with the money when we achieve that goal) you’ll give yourself much more motivation to keep going – and to get there faster.
2) Prioritise your debts
The interest that you pay on your debts is much greater than the interest you’ll earn in a savings account, so it makes sense to use your money to clear your debts first and then to start saving it.
Work out what you can afford to put away each month and then use this to clear your debts as fast as you can. Once you’ve done this, you’ll find yourself with more available money to save each month.
3) Cut the bad habits
Are you needlessly spending money on something that isn’t serving you? Perhaps it’s cigarettes, alcohol, drugs or gambling…
Review your current spending habits and look at the areas where you’re spending money that you could be saving in order to achieve that new home, dream holiday or perfect jacket faster…
If you’ve been overspending and using credit to fund your bad habits, then now’s the time to stop. To help, you can register with the VRS and select the option for lenders to automatically decline any applications from you. By doing this, you can rest assured that even during moments when you’re feeling weak, your finances are safe – and so are your savings.
4) Put the money out of reach
Another common frustration for savers is that as fast as you save, you manage to find new reasons to spend and so the pot never seems to grow.
A simple way to prevent this is to choose a savings account which doesn’t allow you to easily access your savings. This way your money is protected until you really want to use it.
5) Use tools to help
Did you know that there are tons of tools out there which are designed to help you to save faster? You can use apps such as Money Dashboard to help you to budget. Apps such as Oval, let you set savings rules based on your habits. For example, you might create a rule which means you pay £1 into your savings whenever you go for a run – or even post on Facebook! Lastly, there are apps like Chip, which can be set up to automatically transfer your ‘change’ to your savings account whenever you pay for something online.
If you’re trying to save for something, then why not try a few of these tips to help you to get there faster?