At the moment there is a recession on and it can be a difficult time to start saving money. This is the case especially if you have little experience with saving money, but it is still possible. Saving money does not have to just be for those who are in high flying careers, even students and children can save money and actually the sooner you start getting into the habit of saving the better as it is an important skill to have.
* Regular savers.
There are savings accounts where you can save money regularly and be rewarded for it. These differ from bank to bank but they are a very good idea as it encourages you to pay in a set amount and keep it there. They offer different amounts of interest depending on certain terms and conditions; some require that you pay in a specific amount each month and that you do not make any withdrawals. You need to make sure that you check the small print and see whether it is suitable to your lifestyle or if you can make it so. You can set up direct debits direct to the account so that paying in the money is of minimal effort.
* Make a budget.
It can be difficult to make a budget but it is an important way to save. Making a budget will show you where your money is going each month and encourage you to make cut backs and lower where you spend. Before writing a budget you need to think about how much money you have at the beginning of each month and what amount is reasonable to expect to be spent in various areas. Break your spending down into headings; these may consist of something like bills, rent, food, travel, and socialising. You then need to split your money up between these headings. As you make your budget you will see that perhaps you are over spending in some areas and so you can cut back and use that money elsewhere- like in a savings account. It is important that once you make a budget that you actually take it seriously and stick to it. Once you begin to stray from your budget you can really fall behind and it can be difficult to get back on track.
* Put loose change away.
This may seem like a very simple thing to do but if you have loose change in your pockets at the end of the day put it away in an envelope and by the end of a certain time scale count how much you have in that envelope. You will be surprised by how much this adds up. This is a good way to encourage young children to start saving. If you encourage them to just put a handful of change away they will be inspired to see how this adds up over time.
* Shop around.
When you go shopping be sure to shop around and compare prices. The cost of items vary dramatically through different stores and just because something is advertised as being on special offer it doesn’t necessarily mean that it is a good deal. Check prices carefully and work out which is most beneficial cost-wise. You can do this by going from shop to shop but there are also websites available on The Internet which will help you to compare goods and see which is best for you.
* Pay by direct debit.
When you have bills for energy and gas the companies can be very complicated and seem to offer all kinds of deals to try to draw you in. Make sure you read the small print. It is often the case that if you pay by direct debit that the price of your bill will be slightly reduced. This is worth looking into even if it is only a little bit of money that it will save you it is worth doing!
* Cut back.
Look at your lifestyle and work out whether or not you really need to be spending what you are already spending. There may be certain areas in which you can cut back your outgoings and that money can be put away to save towards something else. Often it can be easy to spend money if you don’t think about it properly but once you begin to address where your money goes there can be some obvious areas in which you can cut back. Perhaps you don’t need to go to the movies every week or you don’t need to buy new clothes on a weekly basis.
Saving money does not have to be difficult. It can be as easy as just putting some loose change away every day but it is something which you need to take seriously. Saving money has many positives and it should be a way of life. If you don’t save money then you may not be prepared for events which can happen in the future and chances are you can fall into financial hardships.