One woman shared her top personal finance tip for saving money – and it’s all about what you do the day before you get paid which can make a big difference to you
Putting money aside is challenging amid the increasing cost of living, including elevated rents and grocery prices. With the typical rent stands at thousands per month around certain areas, according to U Homes, it becomes evident why conflicting priorities means setting aside money for a house deposit, or indeed a getaway, would slip down the list.
Nevertheless, one woman revealed her principal strategy for tucking away some cash as it approaches payday, to make your circumstances somewhat easier because you’re working towards the objective you’re keen to achieve. Alicia Chapman, who posts financial guidance, said: “No one talks about this enough.”
So, what does Alicia suggest you do the day before you receive your wages? She said you should “transfer ALL the money you have left into your savings”.
She said it’s irrelevant whether it’s £5 or £500, but you should move it across, because everything accumulates towards whatever it is you’re saving for.
It may seem futile to put away a small remainder of your money immediately before a new salary arrives, but that ‘surplus’ money holds substantial influence.
It demonstrates you succeeded in living within your budget for the month, which can be genuinely difficult in these financial times.
Mentally, beginning the new month by viewing only your fresh salary prevents the misconception of being more affluent than you actually are.
It prevents you from reasoning along the lines of ‘Oh I have an additional £100 this month so I can treat myself to something,’ and it compels you to exist on your regular budget.
Furthermore, this practice is genuinely significant, as setting aside just £5 into savings means that by year’s end, you’ll have accumulated £60 towards your objective that wouldn’t otherwise exist. And if you’re able to put away £500, that becomes £6,000!
That £60 annually might not stretch to purchasing a property, but it establishes the discipline of a saver, and if you’re fortunate enough to set aside additional funds, then it’s a welcome advantage.
In the comments section, others revealed their clever saving strategies, as one woman explained: “Honestly, if you take £50 out of the bank every Sunday night and don’t spend any more than that, you will always have money in the bank before payday, bills are separate.”
Alicia responded: “I love that system! What will you spend that £50 on? Non-essentials?”
She replied: “Just every day things, you will not use your bank card in that week, believe me, it works.”
Another enquired: “Does that mean you do your food shop out of the £50 too? Or just for random spends?”
She answered: “No food bills separate just for pocket money, cash in the purse, no using cards, it worked for me as I was fed up being in my overdraft all the time, or not checking how much I was spending using my card.”
