Guest post by Bree Diaz
Most probably, you’ve heard people telling you that they wanted to save money and be financially stable. Of course, that’s a good thing to hear. But sometimes it’s just difficult to save money, especially if you live in a city like London where the cost of living is rather high.
The average annual salary in London is £38k, and trends have shown that it has gone down due to the pandemic. Moreover, many employed individuals are living below this average annual salary.
With just enough salary and all the necessary expenses to survive, saving money seems like a tall order for many Londoners. But we’re here to impart bits of knowledge on how you can save money while living in an expensive city like London.
Start a Savings Account
One essential step to your money-saving journey is to open a regular savings account. With such an account, you can gain a small interest on your savings in the bank. Yes, it’s not that big an interest, but it’s way better than saving your money on your piggy bank or splurging it on your wants.
Take some time to research and inquire about the different types of savings accounts. While most banks stick to the standard interest rate, some banks offer a bigger interest than others. You can learn more about the benefits of saving your money on sites like Personal Money Store.
Set Up a Budget Plan
Knowing what goes in and out of your budget is crucial if you want financial stability. Hence, you should set up a robust budget plan for that purpose. In this way, you can keep track of your weekly or monthly spending and make informed spending decisions.
Nowadays, there are mobile applications that can assist you in your budgeting. However, while budgeting apps are on the rise today, this doesn’t mean that traditional ways of budgeting aren’t effective anymore. For instance, there are still many folks out there who keep a logbook or a diary in which they record their expenses for the month.
When planning your monthly budget, keep in mind to focus on your important expenses. Make sure that it fits the budget you have for the month.
Review Your Budget Regularly
There are unexpected instances that may affect your budget negatively. That’s why you need to review your budget every month. Sometimes unexpected expenses prop up, so you need to be ready for such eventualities.
Cut Off Your Expensive Vices
If you have expensive vices, it’s time to cut them off to save money. Most people today can’t pass a day without smoking a cigarette or drinking alcohol. So, controlling or stopping your vices is not that easy. But if you think of all the benefits that may follow after you stop drinking or smoking, this tip is worth pursuing.
One significant benefit of quitting smoking or drinking is that it improves your health. You reduce the risk of getting sick and going to the hospital and paying medical bills. Besides good health, you can also save more money and spend it on essential things in life if you just stop these vices.
Save Loose Coins
Every penny counts should be the motto of everyone. If you have loose coins, don’t forget to set them aside because these small amounts can add up to make bigger amounts. Avoid throwing them away because these coins are valuable.
Hone Your Haggling Skills
Everyone who wants to save money must learn how to haggle. It’s an essential skill that can help you obtain discounts when you’re shopping. Of course, you can’t do this everywhere, but there are special places where haggling is permitted, such as in your local market or a car dealership.
Cook Your Own Food
Cooking your food at home is another excellent way to save because you can choose the ingredients and minimize the cost of a meal. It can also help you avoid going to an expensive restaurant. Plus, there’s inner satisfaction when you’re cooking your own food that everyone must experience.
Be Smart with Your Transportation Habits
Your transportation expenses can eat up a no-small part of your budget if you’re not keeping track of it. In London, commuting is rather expensive compared to other major cities. So, instead of taking a cab, you can bike or walk to your destination if it’s not that far. In this way, you can save money.
Switch to Affordable Utility Providers
For sure, many people are complaining about the costly charges on their utilities. If you are one of these folks, it’s time to change utility providers and save money now. Yes, there are options for you to get discounts and affordable charges on your internet, phone, or electricity.
Take a Side Hustle
You can’t save more if you don’t earn more. So, besides your job, you need to look for a source of income that can give you the opportunity to save more money. You can start a small business or take up an online job for that purpose.
The tips in this article can help you a lot if you want to save money while living in London. The city has a pretty high cost of living. Thus, you need to put extra effort into your budgeting and savings.