At Sage we are all about making sure we are good in all aspects of our lives. Here in the UK we have officially gone into a recession so it feels fitting that this post is all about finding the right savings method.
Saving can be an amazing tool to give you peace of mind at such an unpredictable time. If this year has taught us anything it is that nothing is guaranteed, many have unfortunately lost far more than expected. If you are fortunate to still earn an income then finding the right method to save will help yourself now and your future self.
Here are some tried and tested methods;
Set a Goal
Having a savings goal is a great tool as it gives you more focus as opposed to saving “just because” things such as a holiday or a new car help you to keep yourself motivated.
Cash
By using cash physically seeing the money leaving your hand allows you to assess if you really want to purchase the item.
Dave Ramsey has many great resources for his cash envelope method which has been proven a cult fave. Essentially, a person deducts the money from their bank and divides everything into categories such as Groceries, Self care, Petrol and then strictly spend that amount.
They also have loads of cute cash envelopes on Etsy or if you want to get a head start make your own.
Savings challenges
Savings challenges such as the 52 week challenge where you set an amount to save weekly until the end of the challenge. Such as this one.
Budgeting Spreadsheets
If you like Excel and you like to categorise your money, this may be the one for you. Budgeting spreadsheets are good for saving, creating an emergency fund, tracking your spends etc. There are many versions available such as this one.
Separate bank accounts
This is simply dedicating a specific account for bills and important payments and a another for leisure activities. Monzo is a great card for just tracking your spends and it automatically labels the areas such as travel, eating out, & entertainment. Which is easier to decipher roughly how much you spend on each area monthly.
Standing Orders
(A favourite at Sage). An “easier” form of saving is setting up a standing order with your bank where you will set an amount to be debited as frequently as you choose. This is great as you essentially forget that you’re saving.
Tip: A great way to minimise spending is to turn off app notifications and remove all of the newsletter subscriptions, also download an ad blocker to remove temptation.
Are there any other ways of saving that you can think of? Share some tips or let us know your fave from the list above.
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