Budgeting Tips for Savvy savers.

Now that Christmas is over and has left holes in many wallets. It’s time to think money and do the money makeover.

I have always wondered how other people seem to have so much spare money. I have not been financially savvy ever since I can remember until 2018 when I decided I had do something to change that. it’s sad that financial literacy is not taught in schools and most of us were not taught by our parents – well maybe they didn’t know.

I decided to do my research so I can learn and improve my financial status. I found that they are very careful with their money. They know how to stretch their finances in a well planned fashion – well no one has ever been rich by being a big spender. So here are smart ways financially savvy people save their money and never go broke:

SET FINANCIAL GOALS

  • Plan to get out of debts
  • Have special funds for rainy days – this prevents you from dipping into credit card or unplanned overdraft as you will end up paying interest.
  • Get an extra income – to top up your salary
  • Make sure you are insured eg, contents insurance
  • Plan for the future

Setting strict financial goals at the beginning of the year help boost your goal of doing what you want to do…..for example; you want to buy a new car, saving for a deposit for a house etc.

BUDGET LIKE NEVER BEFORE

People with savvy financial sense know exactly how much money they have. Be honest with yourself, list on (paper or create a spreadsheet or download for free budgeting apps such as Money Dashboard and Loot or print out a free Budget Planner online) of all your income and expenses. You will know if you spend more than you earn. Which is great as this will hopefully prompt you to tidy your spending ways.

ASSESS YOUR LEISURE EXPENSES

If you break even, cut back on other expenses of course your bills need to be paid but if you buy clothes, shoes, go to nail salons and spa every month and go out every weekend; try to put those on hold- after all you must have a lot of clothes and shoes after years and months of shopping.

As for nail salons and spa sessions – try doing them at home. You will be surprise what you can do through Youtube videos that can guide you and save a lot of money.

Try spending weekends at home, attend free business meeting or other community gatherings, walking clubs – you will make new friends, learn something new…all for free and your liver will thank you ( if you normally go out to drink alcohol).

As for us parents, we spend a lot of money indulging our children. However, there are many ways of entertaining children without spending money or just spending a little. For example; during school holidays – every city has free children and family activities. Just pack lunch from home and have few pounds for ice cream if it’s summer or hot chocolate if its winter.

RE NEGOTIATE YOUR BILLS

It is always worth contacting your creditors, energy suppliers, TV and broadband providers to negotiate better deals. For example, if you are with Sky TV you can negotiate your monthly payments and still get the tv channels you want for you and your family. I did it and I save £20 a month.

When it comes to your gas and electricity, check the tariffs you are on and request to be changed to the cheapest… This will not be done if you don’t request it. If the cheapest tariff is still high consider changing the supplier – this can save you hundreds of pounds a year.

ASSESS YOUR TRAVEL EXPENSES

Travel expenses can be a pain especially when you have children who commute to school by bus. In my quest to finding ways of saving money, I found that you can apply for a free school bus pass from your city council. You can save £40 or more every month.

As for petrol/diesel, I use necta card whenever I fill up. You can use necta card at Sainsburys and BP pump stations. Every time you fill up your car you get points to your nectar. You can use those points to buy groceries at Sainsburys or fill up your car.

You can do it, you can save for that which you dreamt of having. I am still on this journey and l can say that being financially literate is helping me think different about saving and budgeting.

CHECK THOSE COUPONS AND SAVE £££

Do not be afraid to cut those coupons. You can save money on food and clothes if you open your eyes to couponing. There are websites where you can print your coupons for free.

Please let me know if you have other methods of budgeting or if this has helped you.

Happy New Year!!!

By Bella Sasa Tati