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If you aren't naturally thrifty, committing to saving requires lifestyle changes. Saving money could be hard to sustain; some people start strong, saving £500 a month or more, but lose steam after a few weeks.

Before you begin, you must have both a long-term and monthly savings goal. You should know what you're saving for, how much you need to set aside per month, and how you will get that amount. Often, daily expenses, impulse buys, and seasonal purchases add up, deterring real savings. Here are some tips to help you with money management.

Choose own-brand grocery products

People have favourite grocery brands, and the differences in taste among common goods mostly come down to preference. However, using supermarkets' private label or own-brand products could significantly reduce your monthly shopping bills. 

Good Housekeeping reports that switching as few as seven products for private label counterparts could net you about £240 extra savings annually. [1] You could save much more if you do this for your entire cart.

Stay updated on product discounts

Also, look out for discount schemes for products. Type into your search engine the name of the company producing the item, followed by the words "discount code" or "discount." Some brands release coupons and codes regularly, so always visit their websites.

Use pre-loved items when you can

When done right, thrift shopping can help you find products that are good as new at a fraction of the cost. Car boot sales, local 'buy and sell' groups on social media, charity shops, and online marketplaces like Depop, eBay, and Amazon are all excellent sources of pre-loved items.

Subscribe to cashback sites

Topcashback, Quidco, and other cashback sites reward you with a one to five per cent rebate for shopping with them instead of through a retailer or another online marketplace. 

Both of these sites have millions of members worldwide and offer cashback on products from thousands of retailers. On average, you stand to earn about £300 a year shopping through them. Compare UK Quotes lists several other cashback sites you can use.[2]

Conduct regular lifestyle reviews

The Office for National Statistics reports that in 2019, households in the UK spent about £585.60 per week. About 44 per cent, or nearly half of the figure, went to "transport, housing and recreation and culture." [3]

Leisure expenses like coffees dates, evenings at the pub, or meals out with friends and family add up. In money management, it is crucial not to deprive yourself. However, do set a monthly or weekly leisure budget, so you do not go overboard.

Set up a savings account

When you follow the tips here, you will have enough money to set aside for a savings account. There are plenty of options that could help you maximise your budget and reach your goals like cash ISAs, savings accounts, or fixed-rate bonds.

Aside from saving, you can also invest your money. Though this is riskier than putting your resources in a bank, it has greater growth potential. Speak to a financial adviser to figure out the best option for you.

Conclusion

Whether you're setting aside money for retirement, saving for your children, or preparing for rainy days, smart spending will help you reach your goals faster. Commit to a money-wise attitude, be intentional about saving, and seek help from a financial expert.

At Harry Robinson, our wealth managers are committed to helping people reach their life goals. We provide financial advice in Cardiff, creating custom growth strategies for our clients. Contact us today for a no-obligation health check or for more information.

References

1. Good Housekeeping. https://www.goodhousekeeping.com/uk/house-and-home/household-advice/a25831249/save-money-food-shop-grocery/. Accessed on 17 September 2020.

2. Compare UK Quotes. https://www.compareukquotes.com/money-saving/everyday-money/best-cashback-websites-uk. Accessed on 17 September 2020. 

3. Office for National Statistics. https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/expenditure/bulletins/familyspendingintheuk/april2018tomarch2019. Accessed on 17 September 2020.

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