Saving money can be tremendously difficult – especially when you don’t have much money to start with. With the cost of living already soaring in 2022, thanks to rising inflation, the pressure on household finances is greater than many of us can remember.
Anything you can do to stretch your money further will help you to lower your stress levels, and to allow you to build up a cushion of cash, in the event that you should run into any further financial difficulty.
Working out your bills and loan values
It’s a good idea to get a general overview of what you’re spending your money on, and how you might spend that little bit less of it. It might be that you have monthly outgoings that you don’t need anymore, and that you’d forgotten about. It might be that you’re allowing a contract to roll, and spending over the odds in the process.
If you’re living from paycheck to paycheck, then you might have already eliminated many luxuries – make sure that you’re aware of all of them, and that all the spending you’re doing is deliberate and necessary.
If you’ve taken out a loan, then you’ll also want to work out how much you’re paying back each month. You might look into different sources of finance, like pawnbrokers, if funds are tight. Just be aware of the interest you’re paying, and don’t be suckered into parting with anything you’d rather keep.
Set up a savings account
If all of your money is going into your current account, then you might not make as much back in terms of interest. A savings account is a means of lending your cash to your bank or building society. They’ll pay you for the privilege, investing it in causes they think might yield a return. This kind of thing is regulated heavily, so that you can always be sure that there’s going to be a certain amount of cash available for you to withdraw.
Start a side-hustle
If you have time to spare, then you might be able to boost your income. This can be fulfilling as well as profitable, especially if you’re making money out of a hobby. You might even take on a second job – provided that the hours don’t conflict with your main job.
You might not even have to commit time and energy to make money on the side. If you’re the owner of a driveway, you might rent it out to people who need it. You might also look at selling a few of your possessions using online marketplaces like eBay and Facebook. Treating yourself to a declutter will not only generate cash, but generate space inside your home, too.