Soaring energy costs and the general increase in day-to-day living expenses mean it’s financially tough for many people right now. Recent research from Tesco Bank revealed that seven in ten (71%) Brits have seen their cost-of-living increase in the last three months, while 42% have been forced to make cutbacks on their day-to-day spending.
And it seems people aren’t expecting things to improve any time soon, with 75% of Brits concerned about rising costs throughout 2022 and many people up and down the country unsure how they’re going to navigate these testing times ahead.
The current climate is an important reminder to get budgets and savings in order, and Tesco Bank is sharing five tips to help ease the financial worries or put minds a bit more at ease.
Start to budget
Budgeting can sound like a scary concept, especially for those that haven’t done so before, but it’s not all about cutting back on spontaneous activities or small daily perks. Small steps like setting up a budgeting app on your phone to track where your money is going can really help. You can then use the insight from the app to set yourself targets for the month and even reward yourself with any small pots that build up. A bit like going to the gym, the more you do it, the more likely you are to stick with it.
Round-up purchases you make
Lots of banks and apps enable you to round up your spending to the nearest pound and put it in a savings account for you. It can be an easy way to save, without even realising you are, and build up a healthy savings pot in time.
Collect points where you can
Many retailers have points systems which can be saved and put towards future purchases or money off vouchers so it’s worth maximising these. Sign up to schemes which let you collect extra points and don’t forget to use any double or triple points vouchers you might have.
Save whatever you can afford – even the pennies
Many of us tend to think that we need to save big or there’s no point in doing it. But this isn’t the case. Saving what you can afford, no matter how big or small, is a great habit to form. You could even start with a family penny saving challenge of gathering 1p one day, 2p the next, 3p the next and in a year’s time this will have added up to hundreds of pounds.
Set yourself a goal
To help stay on track it’s good to have a goal in mind. Giving yourself something to work towards is a great way to stay motivated. Your goal can be as big or as little as you want – maybe it’s a dinner with friends, an extra on your summer holiday or upgrading your car. Keep this goal in mind every time you save.
