feeling the squeeze

Feeling the squeeze with bills going Up? Here’s some tips how to save money each month

Working out how to save money each month can seriously increase your contributions to your savings goals. The hardest part? Getting started. Once you’ve found the money-saving tips and tricks that work for you, saving becomes a habit rather than a chore.

And nothing says “habit” quite like a monthly goal. Setting a target to achieve each month can give you the consistency necessary to build up a healthy savings account over time. Read on to discover the secrets to saving money each month, so you can start improving your financial health today. How much money should I save each month?

How much money you should save each month depends on your lifestyle and expenses. A good target to aim for is 20% of your overall income, but you should feel empowered to start lower if that seems like too much of a stretch. Remember: Every little bit counts.

So, how do you know if a 20% savings target is too high or too low? It starts with assessing your current cash flow. Take some time to calculate your monthly income and expenditures — basically, the money coming in and the money going out of your bank account. Keep tabs on any expenses that predictably recur each month, such as your rent, and any that fluctuate based on your spending habits. Before we get into actual savings methods, let’s get something out of the way. Saving money doesn’t have to be painful. In fact, you probably should allow yourself a little wiggle room to enjoy yourself — within reason. If you’re too hard on yourself, you may develop an “all-or-nothing” mentality that ultimately undermines your savings goals. 12 With that in mind, let’s look at one saving and budgeting method that may help you reach that 20% savings target. It’s called the 50-3020 rule.

How to use the 50-30-20 rule

If you’re looking for an accessible, easy-to-remember budgeting tool, look no further than the 50-30-20 rule. Created by US Senator Elizabeth Warren when she was a law professor specializing in bankruptcy law, the 50-3020 rule suggests breaking down your monthly expenditures according to the following rules: • 50% of your gross income should go towards your needs, e.g., rent, utilities, debt repayments • 30% should go towards your wants, e.g., eating out, gym subscriptions, holidays • 20% should go towards your savings goals

According to the 50-30-20 rule, you should be saving 20% of your income each month. This is a nice, round number, but think of it more as a guideline than a rigid rule. Putting aside 20% a month can be a bit easier to manage if you have a regular, fixed income. Knowing how much money is coming in and going out can empower you to take advantage of one of the best savings tools of all: automatic deposits. If you set up an automatic deposit that sends 20% of your monthly income into a designated savings account, you won’t have to remind yourself to do it each month.

Another benefit of automating your savings? It prevents your money from sitting in your bank account until you manually transfer it into a savings account — thus reducing the likelihood you’ll spend it. Now that you’ve got an idea of how much money you should aim to put away each month, here are some tips on how to do it. But remember: While doing all of the following would be an excellent way to start making some serious savings, trying to do too much too soon can be counterproductive.

Instead, start by choosing the tips that seem most achievable. Then, once they become habitual, begin integrating other moneysaving practices into your routine. 1. Start paying off your debt 2. Save money on your utility bills 3. Save money when grocery shopping

4. Reduce your phone bill

5. Cancel any unused subscriptions

REFRESH YOUR TIRED KITCHEN

by just swapping the doors and worktops

Before

From theUK’s #1 Kitchen makeover experts.

• Excellent reputation • From simple door replacements to fully fitted kitchens • Choose from a wide range of quality doors, worktops, appliances, sinks & taps • Installed quickly and cleanly by our own local professional fitters in just a few days

FAMILY RUN BUSINESS

CALL FOR A FREE ESTIMATE ON:

0117 944 3223

Visit our showroom: 11/12 The Promenade, Gloucester Rd, Bristol BS7 8AL

EST. 1999

9.59/10

Over 290 reviews on