Written by Ollie Norman, Content Marketing Manager at LiQuid
The cost of living crisis has got everyone feeling the crunch, and with more and more of your disposable income going towards your everyday expenses, it’s become harder than ever to save. At the same time, it has never been more critical to maintain a rainy day fund to cushion you against sudden financial surprises. And, if you’re trying to make money without a job, it’s much more comfortable to have some savings as a safety net.
Thankfully, there are a range of ways to save money, from the classic approach of setting a carefully managed budget, to newer options like money-saving apps and customer loyalty programmes. By combining these strategies, you’ll have the chance to save as much as you possibly can – although, you should view any saving as success when you first start.
Here, we’ll offer 10 money-saving tips that you can use as part of your cost-cutting strategy. These tips won’t all apply to everyone, but we are certain there will be something here that works for you.
1. Work out your budget
Starting from the day you get paid, note down in a spreadsheet everything that comes in and out of your bank account. Don’t just write down the amounts, but what you spent the money on. That way, you can separate out essentials – how much you spend on utilities, for example, or groceries – from impulse purchases, and calculate your outgoings in each category.
This is more difficult if you don’t have a job, but the principle is the same. If your finances are particularly unstable, it may be best to average this out over a three-month period. However, in such cases, you may need to adjust how much you are able to save from month to month and manage your finances much more carefully.
2. Spot the overspending
Once you’ve divided your outgoings into categories, you can determine where you are overspending. For example, if your energy bills are your biggest expenditure, see if you could save by switching suppliers, or ask for a cheaper tariff. If you are spending a lot on travel, investigate cheaper ways to get around, and if the problem is impulse purchasing, put a cap on how much you budget for impulse buys each month.
3. Cut out unnecessary expenditures
Examining bank statements and credit card bills is a great opportunity to spot spending that you wouldn't normally notice. One of the biggest things that is often overlooked is spending on subscription services, and many people have ongoing subscriptions that they are completely unaware of. Cutting out the services you don’t need could free up much more disposable income than you expect.
4. Change your habits
Another habitual expense that many people stop noticing after a while is the money they spend on smoking. However, this is a very expensive habit and if you can cut down or quit, you can stand to save hundreds or even thousands of pounds every year.
This doesn’t necessarily mean quitting altogether, as you can still save if you switch your cigarettes for a cheaper alternative such as vaping. You can buy vape juice for £1 online, meaning that this is a perfect way to save if you are a regular smoker.
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5. See how much you can save
Once you know how much you need for essentials each month, and have worked out where you can cut back, you will have a rough idea of how much money will be left over. You need to divide this into the money you will save, and the money you will spend. It’s often tempting to try to save as much of this money as possible, but this can also make life a lot less fun. When budgeting, make sure you have enough everyday spending money and remember that saving is about consistency, not about big, one-off contributions.
6. Make money in your spare time
There are lots of ways to earn a passive income, and there are many resources on this site that could help you. For example, you can make money by participating in market research, filling out surveys or acting as a secret shopper. In a lot of cases, you may be paid in vouchers rather than in cash – however, you can get many of your essentials from popular online marketplaces, so you can put your vouchers towards this. Alternatively, you could buy treats with these vouchers and move a matching amount from your disposable income budget into your savings.
7. Find coupons and discount codes
Along with free gift vouchers, you can also find many free coupons and discount codes for products. If you don’t want to spend the time to find these yourself, you can find apps that will search for codes on your behalf. This is a quick way to save money without needing to make any lifestyle changes.
8. Don’t buy everything from one store
It’s tempting to buy everything you need in one big, weekly shop. While this is convenient, it fails to take into account the wide variance in prices you will often see between different stores. By taking the time to shop around, you can ensure that you get everything you need to buy at the lowest possible price.
Just bear in mind that if you are ordering online, you might spend more in delivery fees than you save, so don’t forget to factor this in.
9. Find things for free
There is a wealth of free entertainment available and it’s not hard to find. If you have cut out streaming services or other subscriptions, see if there are free alternatives that can give you the same experience. You might have to put up with adverts, but you can’t save without sacrifice. You might also be able to share an account with a friend and split the cost, but check the terms of service of your favourite platform and make sure this is allowed first.
10. Pay in cash
If you really struggle to keep up-to-date with your finances and calculate how much you’re spending on the fly, pay in cash instead. That way, you can draw out exactly how much you have to spend, and clearly visualise how much you have left after each purchase.
Being able to see the money change hands is also a good way to take responsibility for your spending and feel the impact, which is more difficult than when you pay on your phone or using a card.
These tips are only the beginning, but if you start with the ones that work for you, you will be surprised at how quickly the money in your savings account starts to add up. A final tip is to make sure you are benefiting from a good interest rate, so that your money starts to multiply without you needing to take any action at all.
