We all would like our money to go a little further each month and have some left over so that we can put aside some spare cash into a savings account for the future. Sometimes, though, money seems to leak out of our accounts or our wallets without us being consciously aware of where it has all gone.
Thankfully, there are lots of ways to get more bang for your buck without being penny-pinching or depriving yourself. After all, saving should be about being smarter with the money you have, and putting it to good use.
So here’s our guide to spending smart:
1 Shop around
The power of the internet means that you can compare prices on just about anything. Motor insurance, holidays, children’s toys, clothes – you can make significant savings by ordering and buying online, or going direct.
Sites such as ShopMania trawl the web to find the cheapest deals on a whole range of goods. Just don’t forget to factor in the cost of delivery to make sure you get the best price. To find the best deals on household bills, consult a switching and comparison site website, such as Bonkers.
2 Be organised
Remembering to pay on time for your credit card bill, utilities, insurance renewal or other items can make a big difference to your finances. You won’t be hit by unnecessary penalty charges, and you will have time to shop around for a better deal.
If you are planning a trip to the theatre or a family day out, there is often a discount for booking tickets in advance online – but you usually have to do this a day or two in advance. Buying train tickets months in advance also secures you the limited number of cheap seats available.
3 Pay annually
Many companies offer a discounted rate if you pay for your motor or home insurance at the beginning of the year, rather than monthly.
You’re also likely to get a better deal if you sign up to pay for your utilities like gas and electricity by direct debit, rather than quarterly bill.
If there is a magazine you read regularly, check out special discounted deals where you can subscribe for a year and receive issues at a heavily discounted price, rather than buying individual issues at the newsagent.
Likewise, art galleries and cultural organisations like Heritage Ireland offer free admission and a host of other benefits if you choose to become an annual member.
4 Harness the power of group buying
You can find discounts on services at sites like Groupon, so if it’s a day out or a salon treatment that you really want, you might find a good deal in your local area.
However, vouchers usually expire after a couple of months, and be careful not to buy anything you don’t really need. To be sure you are getting a genuine deal, don’t forget to compare the special offer with prices for similar services elsewhere.
5 Use cashback sites and voucher codes
Schemes such as Voucher-Code take you to sites where you can get discounts on clothing and goods, or offers of free delivery. CashBackIreland gives you money back for shopping via its site.
6 Manage your spending
Get into the habit of saving on the essentials of life – try, for instance, combining your usual supermarket shop with a visit to one of the discount supermarkets for non-branded essentials.
If you drive to work, you’ll find petrol a big cost. Download the Pumps.ie app on Android and iTunes, a crowd-sourced list of the cheapest fuel within a couple of miles of where you live.
Cancel non-essential direct debits like gym membership and magazine subscriptions if you don’t use them.
7 Set goals to get saving
Rather than set yourself an unachievable goal, start instead by aiming to save small amounts on your weekly expenditure such as £5 by skipping your morning takeaway coffee for a couple of days or taking your own lunch to work once a week.
This way you can slowly set up a fund with three months of emergency cash. Once you are in the savings habit, you can set your goal a bit higher.
8 Don’t get emotional
Sometimes we shop not out of necessity but because of boredom or depression. It’s not called “retail therapy” for nothing!
However, spending to cheer yourself up can mean you end up buying things you don’t need. Or if you go on a spending spree with a friend just after payday, you might be more impulsive than you intended. Think about how you are feeling and why you are spending, and make sure you are doing it for the right reasons.
9 Live by the 30-day rule
When you feel the impulse to buy something, wait 30 days and then ask yourself if you still want that item. A good approach is to write it down on a piece of paper, date it, put it in a drawer, and have a look a month later. More often than not, you’ll find you didn’t really need it at all.
10 Treat yourself
Being smart with your money is not about denying yourself fun or pleasure in life, but prioritising your spending so that your money goes on things that are worthwhile and positive, rather than just leaking out of your wallet on non-essentials.
Take a good look at where your money goes, and think about where you are spending consciously, and where you are wasting cash on things that don’t give you much lasting pleasure or value. That way, you’ll really be using money as a tool to enhance the good things in your life.
Coöperatieve Rabobank U.A., trading as RaboDirect, is licensed by the Dutch Central Bank in the Netherlands and is regulated by the Central Bank of Ireland for conduct of business rules. Terms and conditions apply. RaboDirect is part of the Rabobank Group.
