How to Save Money In Small Ways, Everyday
Credit can quickly become a dirty word: growing debt, poor credit scores knocking you back and the endless easy temptation to have whatever we want as soon as we want it. However, there are ways to reduce your debt and what follows are some tips on how you can save some money in order to do so:
Budget
Setting and living within a budget is crucial. Work out all your income and all your outgoings for each month and see what the difference is. Next, work out your most expensive debts. These are the ones that charge you the most interest and therefore, they should be paid off as quickly as possible. This will be a struggle at first, but once you have reduced one or two payments, you will have more to spend on other bills – those which incur less interest and will, therefore, be easier to pay down, even without the extra money now freed up from those first repayments.
Earn More
This may sound like one of those ironic affirmations that are very easy to say but very hard to put into practice, but it is, in fact, sound advice. The simplest way to earn more is to ask for a pay rise, especially if you have been in your current role for many years without any raises. Other alternatives include seeking a new job which pays more, or taking on a second job. Sometimes, the only way to be able to save money is to earn more, so give some consideration as to how you can achieve this.
Calculate Purchases by Work Done
This may sound complex, but it is actually very simple. Instead of saying something is ‘only twenty pounds’, for example, teach yourself to say, ‘This is three hours’ work.’ It is amazing how such a simple trick can lead to a person’s desire to spend money being dramatically reduced. There is something very real about spending two or three hours’ labor on a trivial item. Purchasing only things that provide value for money is a good way to save money that can be used for other worthwhile purchases.
Invest your money wisely, and use loans and overdrafts sparingly, as tools to help you build and repair your credit rating. Even if you have good or bad credit, you can take out a small loan. Once you are in a good place financially, make sure that you stay that way – rebuilding credit scores is never a guaranteed business.