Welcome to part two of my 5 part budgeting series! It could be saving for your dream holiday, investing in a business, saving for the deposit on your first house or paying off debt. Whatever your reasons are for wanting to budget here are my top 10 tips to help reduce your outgoings and work towards that next goal.
Part 2 – My 10 tips to reduce your outgoings
1 – Be prepared to make the sacrifice
Put simply many people want to make the change but aren’t quite prepared to follow through with that with action and cut out what they deem to be ‘essential’. If you want to save for a holiday or finally get rid of that debt, cutting back is a huge step in the right direction but YOU have to take action.
2 – Look at your TV Package
The price of TV and broadband can take huge chunk out of your monthly income with some packages being in the £100’s. If you’re serious about reducing your outgoings and you are not in a contract it may be worth while cutting your TV package altogether and investing in a good ‘freeview’ package. If not, start by calling your TV company to see if you can reduce your package to the most basic one, depending on who you are with this action alone can save you well over £50 a month.
3 – Reduce your phone bill
This is one that have recently done myself. I was paying over £60 a month for my Iphone6S, a simple look at my online billing account resulted in the realisation that I was out of contract. This gave me the option to reduce my monthly bill to £21.00 a month if I kept the same phone for a package that’s pretty much identical to my previous one! A huge saving of £39.00 a month!
4 – Cancel any unused memberships or subscriptions
If you aren’t using the gym and you aren’t in contract, cancel it! There are so many free ways you can work out. Get outside and take a walk or search ‘hiit workouts’ on YouTube and you will have access to hundreds of different accounts dedicated to helping you stay fit and healthy.
5 – Cut out all none essentials
That coffee you have every morning, the sandwich that you got from your local shop at lunch, the weekly outing to the pub for drinks. By cutting back, these are all area’s you can save a huge amount of money on. Take 15 minutes to calculate how much a week these add up to and you will soon feel inspired to direct that money to exactly where its needed.
6 – Shop smart
Popping to the local shop multiple times a week can really increase your monthly shopping bill. Start grocery shopping once a week by creating a meal plan, in doing this you will know exactly what you need for the week ahead allowing you to buy more efficiently. If you have excess, you can always freeze it for the following week! We found that doing this reduced our outgoing food bill by £30 a week.
7 – Figure out how much you want it!
How much do you really want that holiday? How much to you really want to be debt free? All of these things may seem a lot to sacrifice but the decision is with you. If you want these things you have to take action. Quite literally the decision is in your hands. However, what you can’t do is complain about how you can’t reach these goals if you simply aren’t willing to sacrifice in order to achieve.
8 – Don’t underestimate the power of small changes
£40 off a TV bill may not sound that much in the grand scheme of things but trust me when I say each of these small changes add up to a huge amount. In just 3 of these tips I have demonstrated how you could save well over £100 a month on your bills, that’s £1200 a year before you have even looked at other areas where you can reduce payments such as gas and electricity! Small steps forward create big results.
9 – Change the mind set
This may seem a bit out there but I really found that being grateful for the services I am paying for changed my approach to finances. That’s not to say you can’t be frustrated if you feel you are being ripped off in anyway but I no longer resent the fact that money leaves my bank every month. In fact, I’m so thankful that there are companies that provide heating, that provide internet, that provide running water. Yes, I have to pay for the privilege but I’m really so grateful they exist.
10 – Put the money you have saved away!
Don’t save from these areas only to allow it to be filtered off somewhere else. Put it straight in to your savings account or straight towards reducing that debt. Make the work you put in count!
Have you found any creative ways to save money? Id love to hear so feel free to comment below!