10 Sep 2020 • 3mins • Fonk

Saving money on a budget

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When you’re working with a tight budget, the last thing you might want to think about is saving money for the future. It could even seem impossible. But a couple of quid a week soon adds up. Here are our tips on how to save money, no matter your budget.

Save a little here and there

You might have already worked out a budget and cut back on the things you don’t have to have – which means you’ve done a lot of the hard work already. But a tight budget doesn’t mean your savings have to reach a dead end.

Have a look at each of your spending areas and try to eke out even more from each one. For example, you might be able to save £10 on petrol by taking your bike for local jaunts, or £5 on your food shop by making savvy use of any deals.

Track your spending

If you haven’t set yourself a budget yet, you could start tracking your spending to see exactly where your money’s going. Make it super easy by letting the Yolt app do it for you – just connect your bank accounts and you’ll automatically get a detailed spending breakdown. You can even set up an in-app budget to take back control of your money and focus in on areas where you could save.

Set realistic targets

Stashing cash away is all about making saving work for you. There’s no point struggling to put aside hundreds of pounds each month if it leaves you miserable. Try stowing away £20 or £50. If you do this regularly, your savings will soon start growing and you shouldn’t feel the pinch as much.

Focus on paying off debts

Credit card or personal loan debt can take up a sizeable chunk of your monthly income, especially if you’re battling mountainous interest. One of the best ways to boost your monthly budget and get your savings on track is to tackle debt as soon as possible. This means you’ll pay less interest overall and free up more money to save – win-win.

Factor in savings upfront

Including savings in your budget, or transferring a set amount as soon as you’re paid (rather than waiting to see how much you’ve got left over at the end of the month), means they’re less likely to be swallowed up by other expenses. Setting a savings Goal can give you money motivation, and you can keep tabs on your progress at any time in the Yolt app.

Saving money doesn’t have to mean giving up all the fun stuff. See how to work out your living budget and keep the lifestyle you love.