In this blog post, we share our top financial advice to learn how to save more and spend money in the more important areas of life. It is time you start to plan more effectively and learn how to motivate yourself to save. You’ll also be surprised by the amount of money we spend on things we don’t necessarily need. Read part one of ‘How to spend less, save more and reap the benefits’.
1. Set Clear and Concise Saving Plans
It’s often easier to save money when you are working towards something. Our biggest failure is setting a target without us having anything to incentivise ourselves to achieve it. Why will I save €200 a month? What do I gain from it? It is often difficult to stay determined when you are hit with thousands of advertisements from brands and people encouraging you to buy their wondrous products. Focus on something that will inspire you to save.
Take Mark and Emma for example. Mark and Emma decide they want to become homeowners. New mortgages are now required to have between a 10% – 20% deposit set aside as a down payment. They need about €40,000 for a down payment, so they devise a plan to make it happen. Each is tasked with saving about €1,000 a month (or half their wage) for nearly two years. It may be difficult, but they want this and when you want something, you’ll make it happen.
2. Take a hard look at monthly expenses
As financial advisors, we like to go beyond the usual services provided. It is amazing the amount of times one of us have sat down with a client and taken a hard long look at recurring monthly expenses you can cut out. Set aside some time at the end of every month and comb through your bills. You’ll be surprised by what you will find. People have spent hundreds if not thousands on unnecessary subscriptions and daily costs. Do you have a subscription to Sky, but also have Netflix? Do you buy your lunch or make it? Rate things by use and enjoyment, but be ruthless. If you only watch Netflix, why have all the television channels? Also take the opportunity to negotiate bills for your TV, internet and phone providers.
3. Take your DIY game to the next level
Has anyone seen Zoolander 2? For those unfortunate to have witnessed this travesty of a movie, there was one humorous moment when Benedict Cumberbatch plays an androgynous model called ‘All‘ in the movie. It’s time you learn by example and become your own chef, handyman, barber and car washer. Become ‘All‘. Besides the benefits of saving money, you will learn how to expand your skill set and apply them to other areas in life. Don’t know how to cook? Consult the internet. Everything you need to know about how to do something is available online. You never know, you might discover a new hobby or a pastime!
4. Benefiting from Financial Advice
Whether you’re looking to save a couple of hundred euros per month or save thousands for your mortgage or wedding, speaking to a financial advisor is a great way to learn how to effectively save for what matters. Our professional team of financial advisors help our customers to allocate their spending to what really matters and cuts out the unnecessary costs that are draining your financial resources.
To book a financial consultation with a member of the Alpha Wealth team, click the link below and fill out your information today.