Thursday, 15 January 2009

How to start saving when you haven't any money!!

Everybody knows they should be saving but how can you if at the end of the month there's nothing left?
I've always known the importance of saving, squirreling away small piles of notes for 'the future' then raiding them when the car breaks down. This was fine when I worked for a living, I could soon restock the piles when my wage packet arrived, but how do you save when the amount coming in only covers your living expenses???

Cut your Outgoings - Nights out, takeaways and new fancy clothes can all be easily cut from your spendings, but if like me you've already cut these or didn't spend them to start with you need to look at your essentials and cut back. Check are you on the best deals for your utilities? go to a comparison site and check or ask your supplier if there is a better package they can put you on? or both offer online searches

Make A budget - Get your bills and your statements infront of you and work out where your money's going. You can then choose to cut back on non -essentials (do you really need to spend £1.90 once a week on coffee or could you take a flask?) For the essentials (gas, electric, telephone etc) you now have accurate figures of what you spend.

Deal in Cash - Once you have written down the amounts you need each month, withdraw that amount and put it into a small envelope for the month. I keep each of my spendings seperate, money for 'petrol' and 'food' are both in seperate brown envelopes. Having only cash I can't go over my set budget and am more likely to search for bargains doing so. Any money left in the envelope atthe end of the month can go straight into your savings.

1 comment:

Rae said...

This is something I definitely need to get my head around. Im just so scared of doing it - of facing the truth about my bank balance I guess - how bad is that?!

The idea of drawing out cash and using only terrifies me, but it's the only way. You're right; I'm going to tackle this one next month. This month I've been switching my accounts to an ethical bank, so next month the budget will begin :)