‘I can’t save money, I don’t earn enough. Once all of the bills are paid, there’s nothing left to put aside.’ You hear that a lot these days, especially amongst younger people. While it’s true that the cost of living has gone up and people aren’t earning enough to have huge amounts leftover for saving each month, there aren’t that many people who are in a situation where they can’t save anything at all. Most of the time, it’s bad habits or other factors that are stopping you from being able to save money. If you can get to the root cause of those problems and solve them, you’ll be able to start building a healthy savings accounts. These are the reasons why you can’t save money.
When people say that the bills are eating up all of their money, credit card repayments are often included in those bills. But that’s a bill you don’t need to be paying. As soon as you clear that debt, the money you were spending on credit cards repayments can go straight into your savings account. The reason that it’s so hard to clear those debts is the interest payments. A lot of people are paying the minimum amount which just covers the interest, the debt itself isn’t actually getting any smaller. The solution to that is a credit card consolidation loan, by rolling all of your debts into one loan, you’re only paying one set of interest instead of paying it on all of those different credit cards. One single repayment is also easier to manage so you’ll be able to clear that debt a lot easier.
You Spend Too Much On Bills
If your bills are really eating through all of your disposable income, maybe you’re paying too much for them. Energy bills are the most common thing that people overpay on because they stick to the big suppliers. What people don’t realise is that there are loads of different energy suppliers and often, the smaller local ones that you’ve never heard of will give you a way better deal than the big, well known ones. Get on a good comparison website and see whether you could be paying less. All the money you save can be put aside into a savings account.
You Spend Too Much On Food
I’m shocked at the amount people spend on food because it really isn’t that hard to save on your weekly bill. Simple changes like buying the supermarket own brand stuff can save you loads. So can switching to a budget supermarket like Lidl or Aldi. It’s the exact same quality for half the price. You should also be on the lookout for discounts and deals wherever you can. If you do all of these you could easily halve the amount you’re spending on food every week. That adds up to a big saving and you can put all of that money aside.
Saving is difficult when the cost of living is rising a lot faster than wages but if you are clever with your money, you can always save a little bit.
What are your best money-saving tips?