For many people, January represents the perfect opportunity to get on top of their finances and increase their savings. As a result, some of the most popular New Year’s resolutions are those aimed at saving money.
Are you planning to save more this year? To help you stay on track, here are four easy ways to make big savings in 2022.
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Easy ways to save some extra cash
Thomas Allder, customer director at Vanquis, recently shared his tips for saving money easily in the coming year. Luckily, you don’t have to be a finance expert to make some great savings in 2022! With the right methods in place, saving money can be easy.
1. Create a budget plan
The first step towards saving money this year should be to create an easy-to-follow budget plan. This will help you to stay on top of your income and outgoings and prevent you from spending more than you can afford.
You can create a simple plan by using a spreadsheet or invest in a budget planner if you prefer things to be more aesthetically pleasing.
The simplest way to make a budget plan is to take into account your monthly income and then subtract any bills, subscriptions, or regular financial outgoings. You also need to set aside an amount each week for food and travel. The money that you have remaining is the amount that you can afford to spend on non-essentials, save or invest.
Try to spend less than your budget each month to easily make some savings.
2. Assess your monthly outgoings
Creating a budget plan may bring to light some unnecessary monthly outgoings that are eating into your savings. Old subscriptions, direct debits or costs that were once essential but now are unnecessary can easily build up over time.
The new year is the perfect opportunity to take control of these expenses and cancel any monthly outgoings that you do not need. Try to cancel anything that does not offer value for money or is not used that often.
Instead of putting the extra money back into your budget, save any money that is gained from cancelling these outgoings into a savings account. This is an easy way to save money without reducing your monthly spending allowance.
3. Try a zero-spend challenge
A zero-spend challenge involves not spending any money for a certain amount of time. This could be for just a single day or up to a whole month! How the challenge works for you will depend on your personal circumstances and monthly outgoings. The challenge is very popular at this time of year and is a great way to reassess your spending habits.
You could start by having a zero-spend day each week. If that works, you could increase the amount of time the challenge lasts for. You’ll soon find a comfortable balance, meaning you don’t miss spending and maximise your savings.
What starts as a challenge may become a way of life. Many people find that, after completing the challenge, they adopt smarter spendings habits and think more about where their money goes each month. Any money that you don’t spend during the challenge could be put straight into your savings pot.
4. Use an automatic savings app
Here’s a tip that I personally use for my savings goals!
If manually putting money into a savings account seems daunting, you could consider using an automatic savings app. Apps such as Plum, Chip or Moneybox to top up your savings by rounding up every time you spend.
For example, if you make a purchase that costs £5.40, the apps will round up the total to £6 and put the extra 60p into your savings pot. Over time, this will add up and can be a great way to make savings without even realising it.