If your finances took a hit in January, now is the time to get back on track. Get into the habit of saving little and often with these tips.
Define your savings goals
Be specific about what you want to save for, whether it's a certain amount or a family holiday. Create a vision board with pictures of your goals and look at it daily for motivation.
Track your spending
Keep a record of everything you spend for a month. You can do this by writing it down in a notepad or using budgeting tools like a Microsoft template or the Snoop app that connects to your bank account.
Set a budget
Once you know your income and expenses, determine what is essential and what can be cut back. Set a monthly budget for categories like food, entertainment, and transport to help you stay on track.
Trim non-essential expenses
Take advantage of the short month of February to cut back on non-essentials. Consider pausing streaming services or evaluating whether you really need certain subscriptions like Amazon Prime. Use the money saved to boost your savings.
Automate your savings
Implement an automatic transfer to your savings account each month, adopting a "pay yourself first" mentality. Look for savings round-up features offered by most banks that automatically save a small amount every time you spend.
Maximize interest
Make the most of high-interest savings accounts. For example, NatWest customers can earn 6.17% AER interest on their Digital Saver account by saving £1 to £150 per month, up to £5,000.
By following these tips, you can get your finances back on track and start building a solid financial future.
