For any spontaneous spenders, the idea of budgeting can ring alarm bells - after all, the thought of having money left over at the end of the month can seem unattainable.
If you’re planning to budget for a holiday or car, it doesn’t mean you have to cut back on the things you enjoy doing in a month; eating out, going for drinks etc. Instead, money-saving advice experts explain you have to be smart with your money.
At PIWoP - a revolutionary price drop alert tool, we know how important the value is of every pound that you save. That’s why we want to help you understand how to save your money and create healthier spending habits.
1. Start by keeping a spending log.
You may have heard this advice before, but it can be eye-opening if you complete it properly. For a month, keep track of all your purchases and you will soon see patterns in your spending and where you need to cut back.
2. Write down all sources of income.
When you have a list of your income and expenses in hand, you can determine your priorities. This is where you can begin your budgeting process. For example, there will be obvious spending priorities such as housing and other fixed costs. However, you can make changes to your spending habits with things like video subscription services or your daily coffee.
3. Note down your budget in pencil.
When you write down your budget in pencil it will remind you that the budget is a fluid document. As you live with it, you will probably need to make changes in the first few months - but that’s okay! Feel free to set aside a little bit of extra money each month, as it’s better to blow a budget of £20 than to impulse-spend £200.
4. Set a savings goal and make it something specific and important to you.
By setting a meaningful savings goal, it provides you with the motivation you will need to stay on track. Try writing your goals down and leave a reminder of them in your wallet or on your computer. However, be patient with yourself if you do get off track. Developing a new habit takes practice and so you may need to learn to love this new way of saving.
For more money saving tips and advice, take a look at our blogs.