Everyone wants to be a gifted money saver. Everyone wants to find themselves still flushed with cash two weeks after pay day. Everyone wants their bank account to be prepared for the worst, but without the right habits it can be near impossible to suddenly start saving like a pro.
According to the Guardian, 70% of the UK’s working population are “chronically broke”, and on top of that, 30% of these poor souls living paycheck to paycheck say that they are concerned about their level of debt, or simply not managing to get by.
Learning how to save your money effectively is paramount in regrettable situations like this, but jumping in at the deep-end is a good way to get in over your head. So, here are a few good habits of a successful money saver to get you started:
Keep track of the little things
It’s vital for a low-earner to understand that everything adds up. A cup of coffee here, and a £0.79 app there; they don’t seem like much at the time, but when you’re wondering where all the money went, these small daily expenses are often to blame. If you are going to spend a little here and there on these cheap luxuries, make sure to keep track of each cost so the resulting damage to your bank account doesn’t come as such a shock.
Understand the difference between wants and needs
It’s certainly okay to treat yourself every now and then, but if you end up treating yourself daily then your bank balance is going to plummet. Understanding the difference between wants and needs is the answer to this problem. Although it can feel miserable to limit your once-regular luxuries, it will feel wonderful in the long-run when you see all the savings you’ve accumulated from the simple practice of not spending.
Have a budget
Creating a budget is one of the best pieces of money saving advice you will hear and is probably the biggest step towards a full piggy-bank. Although you will have to push the boat out a little to draw up your budget. It’s worth preparing a written chart or spreadsheet that you can update and balance regularly to help you fix your messy spending habits. This is an essential tip as you can’t begin to save if you don’t know how much money you have to begin with.
Try a price tracking tool
The last thing you want to do when trying to save money is overspend on a regular purchase. By using PIWoP’s price tracking tool, you will be able to save money whilst getting the best shopping deals there are. You can easily keep track of all the items you’re interested in, and when any of them drop to a price you want to pay, you will receive a price drop alert and can purchase your discounted items online from there.
If you would like more information about PIWoP, get in touch with our team or visit our ‘How It Works’ page today!