Tuesday, 24 March 2015

Life | 5 Money Saving Tips You May Not Know


We all love to have a little bit more cash in our pocket/piggy bank/bank account but in this day and age, it seems so difficult to set some money aside. With higher expenses and lower incomes, it ultimately comes as no surprise so I have compiled some tips to make sure you have more month at the end of your money :)
 
1. Set up a Savings Account
This is probably an obvious one that too many people miss out on. Savings accounts at most banks allows you to have a savings account complete with separate account numbers so you can really budget and put money aside. Most savings account do not come with a card, but if they do - even a cash card - just say no to it! It removes the temptation to dip into your hard earned savings and forces you to make a transfer to your current account before you can even use the money.
 
2. Have a Goal
The last couple of years I have attended weddings in Hong Kong/Macau, and a return ticket from London can cost GBP600 upwards. This may not seem a lot but when I need to factor in accommodation and spending money, it all soon adds up. It was definitely an incentive for me to save in advance as I did not want to worry about finances while on holiday - the last thing I want to think about!
 
3. Set up a Standing Order
If you get paid on a regular basis whether it is monthly or weekly, it is easy to set up an automatic payment such as a standing order from the account your pay goes in to transfer a set of money into a savings account on the day or day after you get paid. That way you are saving but probably without realizing it as the money leaves your account pretty soon it comes in! The beauty of a standing order, you have the authority to change the amount of money that gets taken out which is great if your pay is variable or have some other unexpected expenses. You can stick the savings in an instant access or lock it away depending on what you prefer - speak to your bank or building society and ask them about what options are available
 
4. Utilise your Tax Allowance
So this really applies mainly for UK tax payers and residents - apologies! In the UK, the government set up a scheme known as an ISA - Individual Savings Account. Our tax year runs from 6th April to 5th April the following year and each tax year, the government determines an allowance you can save that is tax free. While you earn interest on savings accounts, generally speaking you will still need to pay tax but the ISA allows you to earn interest without paying tax - just make sure you have your National Insurance Number to hand when you apply! For 2014/2015 tax year, the allowance is GBP15,000 and for 2015/2016 tax year it rises to GBP15,240.
 
5. Save Together
Saving by yourself can be demotivating sometimes especially if you are the one with the goal. If you are in a relationship or have a partner, maybe consider opening a joint savings account? That way, the goal is shared and if two of you are saving each month rather than one, the goal is far more easily reachable. You can save for Christmas, or your next holiday together or for a house deposit, and motivate each other along and see the progress of how your savings are doing. A bit like bringing a friend to the gym with you I suppose?
 
What are your savings tips?
Did you find this helpful?
What are you saving for?
 
Let me know in the comments below!
Enjoy,

 
 
 



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Disclaimer: I am not a tax adviser nor am I am a financial adviser, just someone who happens to know a little bit about banking in the UK 

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7 comments

  1. savings account for sure, it's necessary

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    1. Yup I agree too, and not many people realise that you can have more than one! Definitely helps when separating funds :) xx

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  2. These are really great money saving tips! I love that your country has a tax allowance scheme, I don't think we have that here in the third world Thanks for sharing, I need to step up my saving game!

    lifeisashoe

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    1. Hi there, glad you found these helpful! xx

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  3. This comment has been removed by the author.

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  4. Great tips Diana! I think having a goal is the most important one.. if you don't have a goal saving is soooo much harder!

    thetouristoflife.com

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    1. Hi Yvonne, thanks for reading! I agree, having a savings goal makes things a lot easier, even if you're just saving for a rainy day xx

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