Most people want to build up their savings, even if its just something small to cover a rainy day. But it’s easier said than done. Life’s expenses can seem never ending and that can make saving a real challenge. Of course, a new job or a pay rise can help but, more often than not, the best way to save more is to spend less. In this article, we’ll share some tips on how you can do that effectively.
Cut Unused Subscriptions and Payments
Start by checking for any regular payments like gym memberships or streaming services that you no longer use. Cancel these services to save money, and you might even get a refund. Even if you use a subscription occasionally, consider whether it’s a necessary expense. Look for cheaper alternatives.
Avoid Temptation
Preventing impulsive spending is key to having more money to spend. Help yourself by blocking notifications from delivery services and retailers and unsubscribing from marketing emails even though you might miss out on exclusive offers. Alternatively, set up a separate email account for these promotions. Of course, staying out of stores and limiting online browsing to avoid temptation might not come easily to everyone so you might want to try out other activities you can pursue to keep busy.
Plan Your Food Spending
Food is one area where people tend to waste a lot of money by buying too much. Set a budget, create a meal plan and make a shopping list which you don’t deviate from. Avoid grocery shopping when feeling hungry to reduce impulse buys and shop less frequently, only topping up on essentials between trips. Grocery shopping online also helps you stick to a budget, as you can see the total as you add items to your cart.
Look at things from a different perspective
Your impression of things changes depending on how you look at them. For example, before making a purchase, calculate how many hours of work it would take to pay for it. This perspective might discourage unnecessary spending. Alternatively, consider how giving in to a purchase affects your debt repayment or savings goals. Visualising this can help keep your spending in check. It’s also always worth sleeping on a decision. If you’re tempted to buy something, wait a day. You might find you don’t want it as much after some time. Finally, you might want to keep a note of your debt or savings goals in your wallet to remind yourself why you’re avoiding unnecessary purchases.
Challenge yourself
Create some fun rules or challenges to make sure your spending does not have a negative impact on your ability to save. Ideas include selling something before you buy something new to help offset the cost or always trying to get stuff for free either from online sites or friends and family. You can always create ‘no spend days’ and compete against family members to see how long you can manage without spending any money.
Pick the right savings account
Of course, saving money is just one part of the puzzle. It’s also important to try and make the money you save work as hard as it can for you by finding the best interest rates around. For example, MeDirect’s MeMax Savings Account is an instant access account which offers 2 per cent per annum, paid monthly. You can also explore our range of Term Deposit Accounts, including the 3.1 per cent per annum currently available on our 1-year account.
The MeMax Savings Account is available in Euro and rate quoted is gross of tax, paid on a monthly basis and is compounded. Account holders can deposit up to €2,000 per month up to a maximum account balance of €50,000.
The term deposit account rate is quoted is gross of tax on a per annum basis. Interest is paid into a savings account. Accounts can be opened with a minimum of €100 and deposit must be kept in the account for the duration of the term and therefore you will not have access to your money. Terms and Conditions apply and are available upon request.
MeDirect Bank (Malta) plc, company registration C34125, is regulated by the Malta Financial Services Authority and is licensed to undertake the business of banking in terms of the Banking Act (Cap. 371). The Bank is a participant in the Depositor Compensation Scheme established under the laws of Malta.