Saving is far more likely to be successful if you budget in some luxuries but this can feel counterproductive if you have a target to hit or a low income.
A luxury item could be anything from takeaway coffee, buying a books or watching the latest Netflix television show and it's important to keep some of the things you love - we can't be expected to give up everything.
These tips might help you find a balance between saving and getting enjoyment out of day to day life.
As always the best tip for budgeting is to start by writing down what you spend - the more you can track as you go, the more you will know how much you are saving and the more progress you will see.
Streaming television
How many online streaming services do you pay for? Can you live with just one?
Chances are you will be committed to one show or one service for a few weeks at a time so the tip here is to manage your accounts so you are only paying for what you watch.
Both Netflix and Amazon will allow you to restart your account after you choose to pause it so you can easily halve the amount you pay each month.
The best part is the screens don't need to be in the same home so you can invite family or friends to save with you.
Group accounts
Sharing streaming services or subscriptions can mean you spread the cost of luxuries.
A Premium account on Netflix cost £13.99 and can cover up to four screens meaning you could end up paying just £3.50 for a month of TV.
If you want to keep a service like a year's worth of free delivery to a favourite store, you could ask friends to see if they would like to pay a portion and halve the cost for both of you.
Audible books
If you have an account with Audible books it is worth checking to see how many credits you have.
For those who subscribe and pay £7.99 a month for a single credit, it might be worth looking to see how many you have in your account?
If you have more than one you might consider spending it on a book and pausing the payment.
You will need to spend that credit or you will lose it but once the account is paused you can still access your purchases.
This will give you time to catch up on listening without losing the luxury of spending for what you are not currently using.
Driving
Driving might be essential for some trips like commuting or picking up kids from school but there may some trips throughout the week that you could limit.
Or at the very least group together into one trip.
If you have the habit of taking a 20min detour on your journey home each night to pick up dinner you might consider doing one big shop and limiting that trip to one a week.
This could make your fuel payments go that little bit further.
Coffee
It is hard to call a coffee from Starbucks an essential when most of us can make it at home for a fraction of the price.
However, it is a luxury we all indulge in and at an average price of £2.50 each the cost can add up so follow these tips for a healthy relationship with coffee:
- Look for a reusable cup discount
- Black coffee is often the cheapest thing on the menu
- Shop somewhere that doesn't charge for dairy-free options
- If you half the number of coffees you have you half the monthly spend
- Alternate between homebrew and your favourite barista
- Don't lose your loyalty card- go digital
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