Finding it hard to save money every month? Fortunately, saving money is becoming easier. There are now a number of cashback and comparison sites (including MyWalletHero) that can help consumers to find the best deals on a range of goods and services.
Improving technology is also making it easier to save money each month — without consumers necessarily realising it. Direct debits and mobile apps, for example, automate the saving process, and may reduce the temptation to spend.
Of course, individuals will need to live within their means in order to save money each month, while having a goal such as a deposit for a house may make the process easier.
With that in mind, here are my top tips on how to save money on a regular basis.
Have an end goal
Having a goal, such as saving for a new car or the deposit on a new home, can help to increase the motivation to save money each month. Knowing that you will be rewarded when you’ve reached your target may help you gradually find new and innovative ways to reduce your monthly spending.
Alongside living within your means and utilising technology, having a strong desire to save can make the process easier. Although spending money may continue to be exciting, saving can become increasingly fun over time – especially if the amounts saved are eventually used to fund important items such as a car or house in the long run.
Live within your means
Anyone looking to save money each money must first live within their means. Thanks to cashback sites and comparison sites, doing so is becoming easier.
For example, TopCashback offers the potential to earn a payout for simply purchasing the goods or services that you might normally buy, from phone contracts to energy deals, and from clothing to holidays. Although it can take a significant period of time to receive the cashback, and it is not guaranteed, over time it can cut your costs.
Likewise, comparison sites make it easier to find the best deals on a range of products. Comparing prices could save significant sums of money in interest payments on existing debt, while you may also be able to find the cheapest insurance and energy deals. Since such costs can be relatively high on an annual basis, even small percentage savings could add up over the long run.
Use technology to save
Improving technology is making it easier to save money. For example, anyone who finds it difficult to resist the temptation to spend all of their salary each month may benefit from setting up a standing order to transfer a set amount of money from their current account to a savings account on payday. Even if that current account is empty at the end of the month, there will still be a growing savings account balance.
Similarly, using mobile apps such as Moneybox could be worthwhile. This app rounds up spending on a debit card to the nearest £1, with the ‘loose change’ automatically being invested in a specific stock market fund.
Another mobile app, Chip, calculates what an individual can afford to save each month using artificial intelligence. Chip could be useful if your monthly income or expenditure fluctuate and you therefore find it difficult to save the same amount each month.
Saving money can become simpler and easier if you have a definite goal. Doing so may make it easier to live within your means, while the use of technology could make the process less time-consuming and more fun. Saving may even become more appealing than spending, and could improve your long-term financial future.
Some offers on MyWalletHero are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.