Every year after the fun and merriment of Christmas (and the chocolate, don't forget that), there comes a slight panic when we look at our bank balance. Often, we find ourselves going into the new year with dread and worry about the state of our finances.
If you're worried about starting the new year in the red, don’t worry. These money-saving hacks will help you claw back some cash in 2023.
Easy money-saving tips
-
Cancel unused subscriptions
Ever signed up to a free trial for a service and then forgotten about it? Well, the chances are you’re now being charged for it and unless you take action to cancel it, it will continue to auto-renew.
So, take a look at what is coming out of your account and cancel anything you do not need. It’s easy to get caught out on free trial offers, so put a reminder in your diary to cancel them before payment is taken.
ADVERTISMENT - CONTINUE READING BELOW ↓Equally, take a look at other monthly outgoings that you don’t need. Are you still paying for a gym that you didn’t use much? Do you have a TV streaming service that you don’t need? They all add up to hundreds of pounds a year, so ditch them and save money.
-
Be sale savvy
The first rule to remember here is "a bargain is only a bargain if it’s something you actually needed in the first place".
So, as tempting as the January sales may be, only buy something if it is something you need, otherwise, you are just spending money, not saving it.
-
Stop using contactless cards
Seriously, we would all consider the purchases we're making SO. MUCH. MORE. if they were made with physical cash rather than a contactless card.
Although we're all using contactless payments more after the pandemic, it’s important to keep track of your money.
CONTINUE READING BELOW ↓watch now -
Take unwanted things back
Once Christmas is over, so too is the awkward 'pretending you like a gift' thing - and whether it's a pair of socks, a book you already own or a coat that's two sizes too small: TAKE IT BACK. We're all guilty of saying we'll "do it tomorrow" and eventually being so lazy we miss the returns period, but you'll seriously regret not having that money when you're left with items you didn't want in the first place.
-
Or sell them online if you've left it too late
Sell any unwanted stuff online. Yes it's a lot of effort and yes it will end up consuming all your free time, but not only will it equate to a bit of extra cash in your account, but loads more free space in your home too.
-
Do Dry January
You might whine about how January is depressing enough as it is, but say you spend an average of £30 (that's approximately P2,000) a weekend on a boozy night, cutting out the G&Ts for just 30 days (or the weekends..) would save you around £120 (that's approximately P8,000.)
ADVERTISMENT - CONTINUE READING BELOW ↓ -
Regift things
There shouldn't be such a taboo about regifting things, providing the person you give the item to will actually like it - and the person you originally received it from will never find out. The same can be said for gifting things from charity shops, raffle sales, or discount stores: if the receiver will like it just as much as if it were new, what's the problem?
-
Delete your credit card details from online shopping
Fresh year, fresh start. By doing this and manually having to type your details in every single time you want to buy something online, you will consider whether you actually need to buy it - or whether you're just doing it because it's super easy and you're impulse buying. Get into the habit of leaving things in your basket to consider whether or not you actually need them.
-
Be frugal
If you really want to claw back some money and make some savings in your life, it's worth just asking yourself again and again if you're just buying something for the sake of it. Will it change your life? Do you need it to make you happy? Would you rather have £20 in your pocket or another bottle of Prosecco? OK OK, so maybe sometimes it's the latter, but make the decision to skip the fizz once in a while and your pockets might feel heavier.
ADVERTISMENT - CONTINUE READING BELOW ↓One way to tackle it is to give yourself a no-spend week each month and see how much you save. P.S. that includes online shopping...
-
Review and refresh your budget
According to Chartered Financial Planner Makala Green, the beginning of the year is the perfect time to refresh your financial plans, or do a budget if you haven't already got one. Plus, since our priorities have changed a lot over the last couple of years, any previous budget you might have could be a little outdated now.
"It would help if you took this opportunity to reassess your spending, review priorities, and ensure that you're spending on the most important things for you and your future. It's worth exploring your top financial values and figure how your spending aligns," Makala says.
-
Clear and reduce debts
Clearing debt is a process, and as Makala says, it needs to be managed in stages rather than simply trying to pay off as much as possible as soon as possible.
ADVERTISMENT - CONTINUE READING BELOW ↓"Start by working out how much you owe, then prioritize which debt needs clearing first, ideally the one with the highest interest or urgent debt," she explains. "Then pay as much as you can afford and try to remain consistent in payments until the debt is cleared. If you've got little or no money spare to pay debts, seek advice straight away. Consolidating debt can also be an efficient way to help reduce debt or interest and make paying debt more affordable."
-
Eliminate expensive habits
Most of us have at least one or two habits that cost us more than the unusual. Depending on just how expensive the habit is, it could be really beneficial to cut it out of your spending until you're in a more financially stable position.
"On average, people who smoke ten cigarettes a day spend £37.80 per week, or £1,971 per year (based on an average packet of cigarettes costing £10.80). So, just think of how much you could be saving," Makala explains.
ADVERTISMENT - CONTINUE READING BELOW ↓ -
Consider a 'no spend challenge'
If you're been on TikTok in the last few weeks you may have come across the 'no spend challenge'. It's essentially a month-long challenge where you challenge yourself not to spend anything.
Now, obviously, bills, rent, transport, and groceries don't come under this, but the rest of the rules you can decide. Some people opt to not spend anything apart from these essentials through the month, others will factor in events such as buying a partner's birthday presents into the challenge, where they know they will have to spend money.
Once you've decided on your parameters, it can be super satisfying and kind of addictive to tick off each day in the month that you haven't spent something.
-
Walk to save
It costs a lot to get around, especially if you're based in a big city. If you're heading into the office every day, or frequently hitting the town during your weekends, maybe reconsider your usual travel methods. Is the bus a more wallet-friendly alternative to the train? Is the route walkable? These trips might just start to add up, so it's probably a good idea to work out if leaving an extra twenty minutes early might just save you some significant cash.
ADVERTISMENT - CONTINUE READING BELOW ↓Plus, putting your walking boots on is better for the environment. Bonus!
-
The 50-25-25 Rule
We have TikTok to thank for this one. The 50-25-25 rule is a good method, particularly for students and part-time workers, to prioritize dividing their money in the most efficient way possible.
The concept is this: Divide your accounts into three. One for rent, bills, and short-term savings, one for long-term savings, and one for day-to-day spending. When you get a paycheck, put 50% of that pay into the account for rent and bills. Then split the remaining amount to put 25% into the long-term savings and 25% into day-to-day spending.
This way, you'll be able to effectively split your money, building saving habits that will ensure you're putting money into each of those aspects. This tip is not only great for those who have no idea how to disperse their pay each month, but also those who want to know exactly how much they're putting into each of their accounts.
ADVERTISMENT - CONTINUE READING BELOW ↓ -
Take the cash
Another TikTok tip here, though this one comes in the form of a clever hypothetical question. Next time you're scanning the shops and see something you want (a cool jumper, a new pair of trainers...dealer's choice) stop before you buy. Say you spot a necklace for £20 that you fancy. Before you waltz over to the till, ask yourself this:
If someone came up to me and offered to give me either this necklace or £20 cash, what would I prefer?
Believe us, nine times out ten, it'll be the cash. It's because this question makes us face the cold hard truth that the cash is ultimately more valuable than the thing we've suddenly decide we want. So, keep this question in mind next time you come close to that impulse buy.
-
Lots of pots
If you have lots of little things you're trying to save for (maybe finally getting that filling done, or replacing your old running shoes), then the best way to approach this for some is to create money-saving pots. Odds are, if your money is sitting in one account, you're going to end up spending it. But if you set money aside at small rates at a slow pace, then you'll start to build up to your target without even really noticing it.
ADVERTISMENT - CONTINUE READING BELOW ↓ -
Test yourself
People are quick to set themselves challenges in other areas. (Half-marathon, anyone?) But we rarely set the same goals when it comes to our finances. But setting yourself a money-saving challenge might be the best way to really stack up those pennies.
-
Take advantage of the benefits you already have
It may sound obvious but taking advantage of benefits you're already being offered, but not taking up, is a great way to save a little bit of cash. Does your company offer discounted gym memberships? Does your phone company have any freebies on offer?
-
Get to know your money
Perhaps the reason that a lot of us feel unconfident with our money is because...well, we're not familiar with it. It's that feeling of not wanting to look at your account to avoid seeing the no doubt low numbers, or avoiding looking at your statement because you don't want to be confronted with your splurges.
ADVERTISMENT - CONTINUE READING BELOW ↓But the most helpful thing we can do in order to get control of our finances is to get to know our money. Take an afternoon to sit down with a cup of tea and look, really look, through your finances. Double check what direct debits and standing orders you still have being taken out each month. Look at your statement and come to terms with the fact that maybe you've ordered just a few too many Deliveroos the past three months. (It's okay, we've all done it.)
But unless you do this, you'll have no idea where you're going wrong. Once you've reckoned with your banking app for long enough, you'll feel much more in the know about your own finances. That's the first step to working towards more efficient money.
***
This article originally appeared on Cosmopolitan.com/uk. Minor edits have been made by the Cosmo.ph editors.
