3 Simple Ways to Save

Saving money is a good habit to be in but it can be difficult to get into a routine with it. Regular saving is the best way to build up your emergency fund and save up for other things like holidays or big ticket items for your home.

If you haven’t managed to save before, once you have mastered these simple methods, it will be easy as pie.

Deal With Your Debt

The first thing you need to do is deal with your debt. This will help you to increase the amount you save each month as well as improve your credit rating. Dealing with debt is simpler than you might think, you just need the right method for you.

If you have multiple high-interest credit cards, these debts will be eating into your ability to save. There are two ways to deal with your debt and both are quite straightforward in principle. The first way is to make a list of your debts, ordering them from the highest interest to the lowest and then prioritize paying off the highest interest debt first.

The second method is credit card debt consolidation. All you need to do is move your debts to a balance transfer card in order to reduce the interest you are paying. This will also make your repayments easier to manage each month.

Whichever method you choose, make sure you stick to it strictly to achieve your goal of a debt-free lifestyle.

Plan Ahead

A lot of saving is about planning ahead properly rather than being caught in the lurch and having to take out a loan to cover your costs. This means saving now to ensure that your future expenses will be covered.

There are some inevitable costs you can plan for such as holidays or insurance bills. Though these costs may not be monthly expenses, you will have a good idea of when they need to be paid. This means that if you divide the number you are aiming for by the number of months you have before the payment is due, you can work out how much you need to save each month in order to be able to afford it.

Automate Your Savings

However good you are at intending to save, the reality is that if you aren’t in the habit, it can be difficult to achieve. And, even if you do remember to save most of the time, it is almost too easy to think, ‘not this month’ and spend what you meant to save.

To avoid these problems, it is always advisable to automate your savings so that the allotted money leaves your account and goes to your savings account without any interference from you. This means that no matter what, you will save the right amount each month.

Once you have dealt with your debt, gotten into the habit of planning ahead for large expenses and automated your savings, you will find that your financial situation looks a lot brighter. Dealing with money is never easy to start with, but once you have a system, it will be plain sailing from there on in.