If you’ve already set yourself some New Year’s resolutions, it’s not too late to add ‘better financial management’ to your list. By deciding to spend a little less in 2021, you can enhance your financial situation and even increase your savings. With this in mind, take a look at these top tips for reducing your outgoings in 2021:
Cancel Unused Subscriptions
Now that so many products and services are available on a subscription basis, it’s easy to lose track of how many memberships you have. However, there’s a good chance you’re paying for things you no longer need or use. Check your bank statements and identify all the active subscriptions you have before deciding whether you’re really getting value from them. If not, double-check the terms and conditions before cancelling or downgrading.
Repair, Instead of Replace
When something gets broken or worn out, don’t automatically throw it out and order a replacement. In many cases, it’s far more cost-effective to have something repaired. Whether you reglaze glasses, upcycle old furniture or have a new screen installed on your phone, you’ll be amazed at how much you can save when you stop replacing older products with new ones. As well as using professional repair services, you’ll find plenty of How To guides online, so you may even be able to carry out some repairs yourself.
Try the 30-Day Rule
If you’re going to treat yourself to a purchase, try implementing the 30-day rule first. This simply means that you place the funds in a savings account for 30-days before deciding whether or not to make the purchase. If you still really want the item, you’re free to take the money out of your savings account and use it. If not, you’ve avoided making an unnecessary purchase and saved the money instead!
Cut Essential Bills
Essential bills, like utilities, food and insurance, will inevitably eat up some of your budget, but you could be spending more than you need to. It only takes a few seconds to complete a comparison search and you could save hundreds of pounds a year by switching to a different provider. Similarly, don’t let your account switch to a standard tariff when your current deal runs out. Letting agreements auto-renew often means you pay more for things like energy or insurance, so take an active role in choosing your next deal if you want to save money.
Set Savings Goals
When you have a clear goal in mind, you’ll find it easier to set money aside in your savings account. Whether you’re planning a dream holiday when international travel is reinstated or you want to move to a different area later in the year, having a defined savings goal will help you to stay on track and motivated.
Cut Your Expenditure Now
It’s always a good idea to reduce your outgoings and save as much money as you can but 2021 is a great year to do it. When we’re all staying at home more than usual, it’s easier to resist impulse buys and implement financial habits that you can stick to now and in the long-term.