Frozen salaries and rising living costs have meant that working within a fixed budget is becoming increasingly harder. However, there are many ways that consumers can act to curb their spending, even with limited finances.
Pay with cash – When you make purchases by card, it’s easy to end up overspending. In contrast, paying with cash will make you more conscious about what you spend. It will also help to limit your spending potential.
Save first – With the UK economy in a constant state of fluctuation, saving for a rainy day is essential. Yet when finances are stretched it can seem impossible to put money aside for future plans or goals. Setting up a monthly direct debit from your current account into a savings account, such as an ISA, will help to ensure that you build up a healthy savings pot.
Spend only what you have in real terms – Once your monthly salary is in your account subtract amounts for food costs, bills and other expenditure and calculate how much discretionary income you have left.
Uses your car less – Rising fuel prices coupled with an increase in motor insurance costs have made owning a car a costly enterprise. To remedy this consumers should alternate between using their car, walking, cycling or using public transport. Drivers could also invest in a car sharing scheme to cut down on costs.
Cut down on eating out and takeaways – Eating out every night of the week can put a large dent in your budget. Making a meal at home could mean that you could get more for your money, and many supermarkets offer a meal deal for two for just £10.
Cooking can also be a great and inexpensive way to pass time. Invite friends round for a pot luck dinner and they can also help to share the cost of your meal.
If you still feel you need further financial assistance, a same day payday loan could help you pay for certain expenses.