Spending some time considering your spending habits will help you see if you can save money anywhere. To help see where you can save cash, have a look at your outgoings in relation to what you have coming in then divide spending into essential and non-essential items.
Cutting back spending on non-essentials
Budgeting is essential if you’re struggling to meet outgoings. Here are just a couple of ways to cut back:
- Look at the Direct Debits that go out of your account each month
Things like gym membership and magazine subscriptions. Now think about whether you’re getting value for money out of all of them. If not, cancel them.
- Try listing the smaller non-essential items you buy each day
Such as take-away coffees or drinks after work. Put them in order of priority. Pick off the lower priority items first and cut them out one at a time.
Cutting back spending on essentials
For things like food and regular commitments, try shopping around to get a better deal elsewhere however think carefully before you cut back on insurance, especially life insurance.
Ask yourself whether spending a small amount on the premium is better than the risk of not having a pay-out should you die or paying thousands of pounds of your own money if anything were to happen to your home.