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Unlocking Financial Freedom: 5 Strategies to boost your savings:

When it comes to saving money, everyone has their own little trick. Sometimes, it feels like we aren’t getting anywhere or we are saving very little. Here are some of the tricks that I try and use to save a little for a “rainy day.”

1. Budgeting:

  • Track your expenses: Know where every penny goes. Use apps and spreadsheets, or keep receipts. I have created my own spreadsheet, and I tend to collect receipts to track my spending. I am planning to use an online account like Monzo or Revlout in the future to better track my spending.
  • Create a budget: I am really bad at this, although I don’t have anything in particular that I need to spend on however, all the information I have read says it is important to allocate a certain amount to each spending category. Stick to it and review it periodically.
  • Avoid impulse buying: Whenever there is something big I have to buy, I always sit on it and give myself time to think about big-ticket items. Sometimes, some companies will give you a discount to entice you into buying if you have left items in your shopping basket.

2. Reduce recurring expenses:

  • Try and negotiate bills: I live on an island with few providers, so I can’t negotiate rates, especially if I threaten to switch. However, I have managed to switch some of the mobile phone providers located off island.
  • Refinance debt: I don’t have any loans at the moment. If you have high-interest loans, consider refinancing them for a lower rate. A lot of finance companies will require evidence that can restructure your loans. Aim to produce a spreadsheet which shows you are serious about spending and saving, and they may renegotiate your loans.
  • Bundle services: The last time I did this, I wrote down all the required services on paper and sent it to different service providers asking for a quote. Go for the best quote and secure an all-round discount.

3. Smart shopping:

  • Whenever possible, I try to buy in bulk. Larger quantities often mean a lower per-unit cost. IF there is space, I buy things like mouthwash, toothpaste, milk, and anything that has added discount when more units are bought.
  • Use cashback and reward cards: But ensure you pay the balance in full each month. Credit cards charge a huge amount of money. Set up an alert on your phone so you don’t forget to pay them off.
  • Shop during sales: Wait for seasonal sales or discounts.

5. Reduce lifestyle expenses:

  • Cook at home: The cost of eating out has skyrocketed. And it doesn’t always taste as good. Eating out frequently can add up. If you want to feel that social atmosphere, maybe invite a few friends and have some food at home.
  • Cars are expensive; try and cycle as much as possible, walk or bike it if you can.

I am in the process of developing some spreadsheets which I have used to show what I am spending my money on. If you are interested shoot me an email and I will send you a copy with some info on how to get started.