From juggling debt to saving up for a milestone purchase, there are so many reasons to want to improve personal finances and save money each month.
The Trades Union Congress has found that UK household debt is more now than it has ever been, including during the last financial crisis. Specifically, their 2018 research uncovered that unsecured debt accounts for over 30% of household income in the UK.
Not all debt and borrowing can be avoided with better money management – but a lot of it can. So, how do we start saving money monthly with improved money management?
Get the Basics Right
The first place to start is to understand your finances. This means making a monthly spreadsheet of your common income and outgoings. By doing this, you can identify how much disposable income you have and how long it would take for you to reach your specific saving goal.
Although a lot of people make these monthly assessments, fewer people update them and analyse how their monthly finances change over time. This is recommended because it can help identify problems, but it can also boost your saving motivation if you see that you are saving more.
Make Use of Technology
You could make the above on the back of a napkin, but it would be better to do it on a spreadsheet using the computer. But technology is not just for this part of your new monthly strategy. You can also use apps to help save more each month.
The choices are extensive. Some apps will help you track finances while others will give an in-depth analysis of your spending. Some will even offer you exclusive discounts to help you save money.
Research Saving Tips
Using apps to save money is not the only fantastic tip to reach your saving goals. There are hundreds of awesome tips you can find by browsing forums, blogs and following finance gurus on social media. Some of the best and most practical tips can be found via the Money Academy videos you can watch here.
Saving money monthly is easier when you spend less of it!
Use a Saving Facility
The fourth key step to saving money each month is to use a saving facility. Obvious, right? For most people, this means a savings account with your bank. To get the most from the money you have already saved, make sure you find the account with the best benefits and most lucrative interest rate.
If you set your interest payments so they are paid monthly, you can see the money you make from your account as you go.
Can I Get Further Support?
The above tips are foolproof ways to analyse personal finances and make them go further each month. If you need further support and guidance, it is worth researching local or national debt/finance charities. These people can help you manage ongoing debt, provide resources and help improve your financial literacy.