It’s so easy to overspend. Just a couple of pounds here on your morning coffee and a couple pounds there on lunch or snacks will quickly add up. I am sometimes doing that too…
It may not seem like much at the time, but when you work out how much it costs you across the year you may be very surprised – particularly when you work out what that money could have been spent on instead.
As I already mentioned in my money saving new years resolution post the best way to cut down your spending is to work out what you are spending your money on and how much you are spending on it. This handy quick cash finder is an easy way to do just that – simply enter how much you spend on what and how often and you can see how much it costs you weekly, monthly and yearly. You could be surprised how much your daily habits may actually cost you in a year..
Once you have done that, here are six easy ways to cut down on your spending…
1. Make your own cup of coffee
Let’s say you spend £2.15 on a latte each morning as you head into work. Over a week this adds up to £15.05, then in a month £64.50 and across a year a whopping £784.75 – the cost, perhaps, of a decent holiday! This is a huge amount of money for one coffee a day, isn’t it? So, why not invest in a travel coffee mug and make your own at home or purchase a jar of coffee granules to keep in your drawer at work and make it when you get there? Of course, this will still come at a cost, but a significantly smaller one. I am happy user of Tassimo machine as one of my work colleagues had bought it for us when he started working with us. I then usually buy the capsules for £3.99 in B&M as they seem to be the cheapest there, that way my coffee is as delicious as in coffee shop and cost me about £0.50 🙂
2. Make your own lunch
Research has shown that employees could save up to £1,300 a year if they prepared their lunches at home instead of buying pre-packed sandwiches and snacks from shops. More than 60% of Brits who buy their lunches out spend an average of £1,840 while those who make their lunches at home spend just £552 across 46 working weeks. Plus, by making lunch at home you can make something both healthier and tastier – bonus! I do my own lunches mainly due to the fact that I like to know what is inside my meal and that there areas little preservatives and artificial enhancers as possible.
3. Cook at home
Have meals out and takeaways become less of a treat and more of an everyday occurrence? If you spend £20 a week on either a meal or a takeaway across the year this will cost you £1,040! Not only is this very expensive it can also be bad for your health. Instead stock your fridge full of healthy food and cook yourself a nutritious and delicious meal each night. That’s not to say you should never eat out – but the less you do it the more of a treat it becomes. Again I cook every night after work and if I lack inspiration I use services such as Gousto to brighten my cooking routine and recreate recipes I loved. Sign up through my link and use a code SAVE50 to get your order for half of the price 🙂
4. Only buy clothes you need
We are all guilty of buying clothes that just sit collecting dust at the back of our wardrobe. How many clothing pieces you do have and did not wear for 6 months or longer? When minimising clothes spent try to avoid the clothes shops – if you can’t see it, you can’t buy it. Then before you buy anything think – do I really need this? Will I wear it? How often? If you do buy it, try and sell something old – giving you a few pennies towards it and extra space in the wardrobe. Use apps such as Wallapop, ASOS Marketplace or shpock or simply head to eBay 🙂
5. Avoid impulse buys
The money you earn in a week can be spent in a matter of minutes on an impulse buy. So, before you buy anything – sleep on it – you may find when you wake up in the morning you realise that you don’t really need it. If you do need it, shop around. You could find you can get exactly what you need much cheaper and remember always check if there is any cashback on the item you are going to buy.
6. Cancel your gym membership
Your New Year’s resolution was to get fit and so you went down to the gym and signed up. Your intentions were good but will you actually use it? The average gym membership in the UK is around £32 a month – £384 a year. If you know you won’t get your money’s worth, cancel it. You can still exercise, just for much cheaper if not free, by going for a run, using YouTube tutorials or pay-as-you-go classes. I stay fit for £5.76/ month when using my freeletics app.
Rather than spiraling into debt because you have wasted your money, you will quickly build up a significant amount of savings, ready for a rainy day.