How to save money each month: 9 quick wins (2024)

Monthly saving is something thatmanyof usfind challenging, but the good news is that a few small changes can quickly start having big effects.

If you are looking toclear your debts, save up for a dream holiday or just have a bit more money to play with each month,these budgeting tips on how to save money each month will help you control your expenses andmaximiseyour income.

Budgeting is a skill that we allhave tolearn at some point. Most of us do this by trial and errorwhenbecoming financiallyindependent, buttaking a more structured approach can helpboost your monthly finances and take care of debts.

There is no gettingaround the fact that modern life can get expensive, especially for those thatliketo treat themselves to the finer things,socialise, dine out or jettofar-off places for a holiday.With some basic budgeting, it is possible to do the things you love withoutworryingthat you are spending beyond your means.

People often think that saving more each month or implementing a budget means makingsignificantchanges.Butthe opposite is often true.Making a few relativelyminorchangescan have aconsiderableimpact on your financial position,improveyour wellbeing andopen upa whole range of new opportunities.

Here areour top tips for trimming your expenses, boosting your savings and getting the most from your money.

How to save money each month: getting started

Tracking expenses

First things first, when it comes to knowing how to save money, you need to have an accurate picture ofyour finances.Then, it’s time to set up a spreadsheet and start listing allyour regular expenditures.

Startwith regular bills, rent or mortgage paymentsand then addany debts andyourspending on food and other essentials. This is your baselineand is how much you need to havein your account each month.

The remaining money is, in theory, your disposable income.You can choose to break downyourspending into categories liketravel, hobbies andsocialisingif youwantto get an even clearer pictureof your spending habits. Or you can transfer it all to a separate account to make sure you don’t overspend. Either way, knowing exactly how muchspending moneyyou have each monthiscrucial toseeing how much it is feasible for you to save.

Trimmingspending

Once you can see exactly where your money is going, you can startfinding ways to cut your spending.Again, there are lots ofpotential options here, including:

• Cancelling unused or unnecessarydirect debitsor subscriptionslike gym memberships– lots of them renew automatically without your input

• Reducing your purchasesonluxuries (such ascommittingto make your morning coffee at home instead of getting a takeaway)

• Deciding to only eat out or get a takeaway once a month

These and other small tweaks caninstantly result insavinga good chunk of additional money each month.

Identifyinggoals

The best plans don’t try to do it all. Instead,they focus on a couple of clear andachievable goals. We would recommend having one short-term and one long-term goal at a time.

Your short-term financial goal maybe something like:

• Setting up an emergency fund (usually classed asenough to coverall ofyour essential expenses for a few months)

• A holiday

• Something related to a hobby like a new bike or games console

For longer-term goals, peoplemainly focus on saving for their first house and retirement, but things like establishing a fund foryour child’s education also qualify.

Making ongoing changes

With the ball well and truly rolling, you may already be seeing some early success. But don’t be tempted to stop here. There are lots more ways to help you save money each month.

Reduce your bills

Most of us don’t like dealing with bills.This is whymany of us end up paying more than we need to. Luckilyprice comparison websites make the process of swapping energy, insurance orwifisuppliers much simpler than it used to be. You willlikelyfindintroductory offers for new customers that will let you savesome extra cash each month.

Use tax creditsand allowances

You may be entitled to tax reliefs or benefits that you are notusing.There aremanyobscure tax reliefsavailableout there,including the marriage allowance, tax-free childcare, rent-a-room relief andmanyothers. You may be able to reduce your annualincometax billand save yourselfa good chunk of change.

Onthe savingsside, your personal savings allowance can help reduce your interest payments. It is currently £1,000 for basic-rate taxpayers and £500for thoseatthe higher rate.

Consolidate your debts

If you have a few different pools of debt,combining them all may make your life easier and helpyou pay less in interest. There are two main ways to do this. Firstly, you can take out a new loan and useit to pay off your existing debts.You will now only have one payment (and interest) to worry about.

Alternatively,you can look at 0% transfer creditdeals. Thismeansthat you won’t be charged any interest on transferred debts for a set period. This can be a great way to starthammering away at any debts you are trying to get rid of.

Change your shopping habits

There are lots of small changes you can make to save a bit more cash at the till including:

• Don’toverlook supermarket own brands

• Utiliserewards cards to earn while you spend

• Explore buying staples like rice in bulk

Cook more

This is an extension of the point above.Starting to make more of your meals from scratch cannot only have a positive impact on your health but can reduce your monthly food spend byquite a lot.The mark up on pre-made sauces and ready meals isrelativelyhigh. You can make a large amount of great, freshtomatosauce for the equivalent of a couple of pence per serving.

Get smart about eating out

Having a budget and savings goals doesn’t mean an end to treating yourself toa nice meal now and then.But there are someways youcan be a bitsavvierabout it:

• it is often cheaper to order directly from the restaurant rather than through an app or delivery service

• there are lots of sites that offer vouchers from some of the most popular restaurants

• make sure to ask for tap water(it’s free) instead of bottled water

• some chainrestaurantsoffer clubs where you can get access to deals – if you have an absolutefave,this can be a real game-changer

• bringingyour own alcohol (if allowed,of course) can slash your final bill

Reduce your car use

Cars are expensive to run and maintain, so it makes sense to try and limit your car use. Cycle to work schemes are a great way to get yourself a decent bike without having to shell out hundreds of pounds upfront.Andyou could gain some greatmental and physical benefitsbypeddling more, too.

Become a bit more efficient

Heating and electricityare essential expenses, but that doesn’t mean you have to deal with large bills. Thereisa range of ways you can boost your energy efficiency and potentially lower your costs:

• turn downyourheating and wear a jumper inside during the colder months

• invest in some insulation– up to a third of your house’s heat could be seepingthrough your roof otherwise

• install a smart meter and start monitoring your energy use

• use draught excluderstrips or foam rollersto deal with any gaps around windows, doors or pipework

Make monthly saving automatic

Once you know how much youwillsave each money, it’s time to lock it in and take it out of your hands. Set up an automatictransfer from your current account to your saving account every monthso that it happens without you needing to do anything.Then you just get on with your life in the knowledge that your savings are growing month by month.

Saving moneydoesn’thave tomeangiving up everything you enjoy doing.These monthly money saving tips can help you make big changes to your financial situation. If you want to go even further, Unbiased can match you toan adviser who can helpyoumake your financial dreams a reality.

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