When it comes to New Years’ resolutions, saving money often appears top of the list of goals that people set for themselves – and Generation Z and Millennials in particular. Although becoming stricter with your spending may seem like a difficult feat, saving money is all about getting into good habits and there are lots of easy things you can do to reduce your outgoings, without sacrificing on the luxuries in life.
Helpfully, the experts at Rooster Insurance have identified 5 easy changes you can make in the New Year to help you spend less money, whether you’re preparing for a large purchase, such as a home or car, you simply want to have more money at your disposal, or if you’re trying to build savings.
1. Don’t Get Swept up by Sales
The slashed prices in the January sales may be enticing this year, but often sales encourage us to spend money that we wouldn’t have had there not been a discount available. Before you make your next sales purchase, think about whether you really need that new jacket or coffee machine and think about the savings pot you could be topping up instead.
If you are someone who is easily influenced by deals and promo codes, there are a few easy steps you can take to avoid the temptation: mute notifications on your phone for shopping apps, limit the time you spend browsing online, and also avoid impromptu trips to the shops on your lunch break. Instead, write a list of luxury items you would like to own, then allow yourself to wait a month before buying one of the items to see if it is still something you really want – this is a great way to stop impromptu purchases.
2. Cut Down Your Fixed Costs
Fixed costs are the non-negotiable bills and payments you need to make in order to live or work. And some of these costs can be astronomical. Take car insurance for example. Whilst it is a necessity for any drivers in the UK, it is not a cheap purchase by any means – in 2019, it was reported that the average driver in their 20s was paying a steep £1,036 each year for car insurance.
Most insurers will base their quotes on how national data indicates you drive. So if the majority of 25 year olds regularly brake harshly or have been in collisions – that will hit you in the pocket. But it doesn’t have to be this way. With apps such as Rooster Insurance, you can get a quote for an insurance premium based primarily on how you actually drive, rather than how insurance data suggests you drive based on things like your age, marital status and whether you own your own home. Good drivers can achieve savings of up to 40% on their insurance.
3. Think About Where You Buy
Whilst you should always take into consideration what you are buying, it is also important to think about where you are buying from – as where you shop can make all the difference on how much you are spending.
For example, petrol is typically more expensive at motorway service stations than it is at supermarkets or filling stations, so if you are going on a long road trip then make sure to fill your tank in advance.
Furthermore, opting for non-branded food at budget grocers is also a sure way to save some pennies, whilst shopping at designer outlets is a great way to satisfy expensive tastes in a more affordable way.
4. Bring a Packed Lunch
When you’re not working from home, it is easy and convenient to pop to the local supermarket and grab a meal deal for lunch. However, as delicious as your favourite shop-bought sandwich may be, the average meal deal on the high street costs around £3.70, whilst a chain coffee shop meal deal is more likely to set you back £5-£7 – this means you could be spending upwards of £20 a week on your lunches.
A simple way to save money in 2021 is to commit to bringing your own packed lunches to work as many days a week as possible – why not liven up your lunch box and use this as an opportunity to test out any new recipes you’ve been meaning to try?
5. Environmentally and Economically Friendly
Adopting more environmentally-friendly habits is likely to be a resolution for lots of people this new year and, fortunately for those looking to cut back on spending, many of these habits will also help you to save money, too.
Your parents may have badgered you growing up about switching off lights and plugs when you aren’t using them, but this is one of the simplest ways to reduce your energy consumption and your electrics bill at the end of the month. Until you automatically do so, set a reminder on your phone every night to switch off all your appliances at the mains.
Championing slow and second-hand fashion, as opposed to the fast fashion industry, is a socially-conscious and eco-friendly change you can make in 2021. Whilst some slow and vintage fashion shops can be quite pricey, charity shops and re-selling apps are typically far cheaper than buying on the high street and are a sure way to get some unique pieces for your wardrobe.
So, there you have it – 5 simple tips to help you save money without having to drastically change your lifestyle.
Do you have any money saving tips we didn’t discuss above? We would love to hear from you in the comments below!
