Trying to make every penny go as far as possible in our lives is, quite frankly, exhausting. We’re all feeling that pinch, no matter how much perceived spare cash we actually have. This is why learning to save money is as much about lifestyle changes as it is about discipline. If we constantly feel like we’re going without, it can have a negative effect on our mental health. Therefore, we should aim to achieve financial freedom by making small everyday changes that can make a big difference, but while we can slash things across the board, we won’t necessarily enjoy life to the fullest, which is why we need to know the areas that can result in the best bang for our buck and cut a couple. Here are a few suggestions:
Your Car and Transport Options
You may see people investing in the latest and greatest cars or opting for high-end brands, but the problem is that many people choose cars that can be an absolute drain on their finances. You only have to look at the wealth of car finance claims to see how much of a money trap cars can be, especially when opting into hire purchase (HP) or personal contract purchase (PCP) agreements. You can evaluate your transportation costs and consider downsizing to a less expensive model or eliminating unnecessary expenses, such as premium insurance plans.
Subscriptions
We all think we need every subscription, from Spotify to Netflix, but if you’re really feeling the pinch, this is one of those things that might need to go. Households reportedly spend approximately £500 a year on subscriptions they don’t fully utilise. When you consider what £500 could go toward, it might mean a better holiday (or even your first holiday in years)!
Utilities and Household Expenses
This is a major area where we’re all feeling the strain. Simple changes can make a big difference, like washing your clothes at a lower temperature or taking shorter showers. If you monitor your energy usage and take steps to reduce it, you might be surprised at how much you can save in the long run.
Future Planning
These days, many people are deciding whether actually having children is financially viable, given the estimated cost of £150,000 to £220,000 to raise a child up to the age of 18. While some are questioning if they can afford children, we should all ask what is truly worth investing in for the future. Many of us live day to day, but if we take a good look at our long-term goals, we can start making small changes now. For example, putting money into a high-interest savings account rather than letting it sit in your bank account is an effective approach.
There are plenty of other things we can do, like batch cooking to save on food costs, but many of us dislike the idea of cutting back too much. Instead of eliminating everything and making life miserable, perhaps try adopting one or two of these habits to see the difference they can make.