What Should I give up so that I can Save Money?

If you want to increase the amount of money that you have in savings, then you may have to change the way that you spend to do so. You may normally spend all that you earn and then look to short term loans to tide you over. This can be tricky as many of us do not want to change our lifestyles dramatically in order to increase the amount that we have saved, but it could be our only option if we cannot increase our income. It is good to try a number of different things or at least just think about them, so that you can work out which might suit you the best.

Switch to cheaper providers

If you switch to cheaper providers then you will not need to necessarily change anything about the service that you are getting but you will pay less. This can apply to insurers, utility suppliers, phones broadband, television and things like this. Sometimes you can move to a cheaper package and find that there is very little difference between what you were getting before and what you get now. For something like insurance, there may be no difference at all. For television, you might get different channels, but you may prefer them to what you had before. It is worth having a look at what is being offered by other providers so that you can see whether you can switch to another, get a similar service and save money.

Switch to cheaper retailers

The same applies when you are shopping in a store. You need to think about whether there are cheaper places that you can go to buy the things that you are getting. Often you will find that there are similar products sold in cheaper places and this will enable you to be able to spend less. You will need to be careful of the quality as you will not want to pay less but not get such a good product as it may not last as long or be as good to use. However, you also do not want to be paying more than necessary for things and so if you can get what you normally buy at a lower price it will mean that you will be able to have the same amount of items but pay less for them.

Cut out what you hardly use

It is also worth thinking hard about everything you buy and question whether you really want and need those items. On bigger purchases this is more important, but if you do it with every item that you buy, then you could find that you will end up making lots of small savings that will really add up. Consider things that you may not miss, perhaps a magazine or newspaper subscription where you rarely get time to read them, a television subscription where you make very little use of the extra channels you pay for, food you buy that goes off and you throw away or insurance you pay that you never claim on. There could be all sorts of things which fit into this category.

Cut out what you don’t need

If cutting down as suggested above is not enough, then you may have to start thinking about cutting out things you do not need. This could include things that you really enjoy or really want and so it can be more difficult. You need to think about whether you are prepared to give up these things in exchange for being able to put more money in your savings account. Consider the advantages of having more savings, such as having money to fall back on so you do not need a loan in emergencies, saving up for specific items or just having that feeling of security that you have money behind you. Thinking of this might help you to find it easier to give things up as you will remember the reason that you are doing it.

Cut down on everything else

You may also need to cut down elsewhere as well. Obviously, we cannot go without essentials, but we may be able to reduce them a bit. We could try to use the car less, eat and drink less, buy less items for gifts, spend less on our hobbies or go out less. These things will have a significant impact on your life and you will need to think carefully about which you are prepared to do and whether you want to do them all or the time, just occasionally or anything in between.

So there are many areas that you can possibly cut down within, but you will have to think about whether you feel that these are areas that you are willing to sacrifice things or not.