Money saving tips: Woman uses simple technique to help her ‘save hundreds’ | Personal Finance | Finance
Saving money can be a challenge, but for those who are able to afford to set aside some cash, it can have a great outcome. Express.co.uk spoke to Jane Brown, 27, from Northern Ireland who discussed how she has been able to change her savings habits.
Miss Brown said: “In the past, I can’t say I really had any savings habits at all, if I had money left I’d pop it in savings, but there was nothing I was really saving for.
“If there was a big expense, it used to be a huge panic. I’d see whether my parents could lend me any money for me to pay them back later.
“But COVID-19 changed things, as I had more money left at the end of the month, and I didn’t have anything to waste the money on.
“It really changed my outlook on saving and getting my finances together more.”
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Tesco Bank found one in eight Britons are in a similar position, pushed into dipping into their savings on a regular basis.
Miss Brown has decided to take the approach of separate accounts for different costs in her life.
As someone just embarking upon their savings journey, she has described it as a way to remain disciplined and keep goals in mind when it comes to managing money.
She decided to open a Lifetime ISA, as well as several other savings pots to help her progress towards her respective goals.
Miss Brown explained: “Now, when I get paid I look at what I can put into each pot. I’ll put a certain amount into my house saving pot, another amount into my general savings for daily expenses, one for my car, and one for my dog, for example.
“My budget probably feels excessive at the moment, but it’s helped me to save hundreds and it helps me to be careful with what I buy.”
With the cost of living continuing to bite, Miss Brown also explained she is being far more intentional about her day-to-day habits.
She brings packed lunches to work in order to avoid spending money she doesn’t need to, as “little expenses were really adding up”.
The Brown family is also trying to slash their food waste, and cut back on the electricity they use around the home.
Many people will want to take similar steps to revolutionise their finances like Miss Brown has done, but might not know where to begin.
She encouraged people to act sooner rather than later, and added: “It was really helpful for me to go through my fixed expenses which actually have to be paid, and then getting rid of the stuff I don’t need.
“Sometimes things will come out of your account that you didn’t realise or no longer need, and understanding your finances in that way can really help.
“When I started with savings pots, I felt guilty about dipping into them when I needed – but that’s what they are there for, to be used.
“Try to be flexible. It’s okay to have a goal and to spend consciously, but don’t punish yourself so it feels like a chore, and don’t be unrealistic about how little you can live on.
“While I still feel uncertain about the future, it’s good to have a regime I can stick to, and one I can change later down the line.”
