Inspired by an exchange between a pensions expert and consumer champion on Twitter this morning, I was thinking about some ways to save money each month.
By spending less on the things we don’t need each month, we can save more to meet our future financial objectives.
This might be repaying debt, building a cash savings emergency fund, investing in an ISA or contributing to a pension fund.
What spending less on the things we don’t need enables us to achieve is the ability to allocate more of our finite financial resources to the things we do need.
Here are seven things that you might be able to stop spending money on each month.
Obviously not everyone spends money on these things and, in some cases, different lifestyle choices and priorities means cutting back on some of them is unthinkable, or at least unpalatable.
Hopefully though this list offers some food for thought.
1 – Cigarettes – if you’re a smoker, find a way to stop. Not only will your health (dramatically) improve, but you will save a large amount of money each month. Assuming a 20 a day habit, stopping smoking can save you £240 a month!
2 – Satellite TV subscriptions. Do you really need to spend £67 a month for a premium satellite television package, including movies and sports? Freesat is available at lower cost, and with TV on demand services through devices such as Apple TV, you can pay for what you actually want to watch.
3 – Bottled water. This one is bad for the environment as well as being a waste of money. Here at Informed Choice HQ, we like the Bobble reusable water bottles with their built in filters. Turn tap water into purified bottled water and save 50p a bottle.
4 – Gym membership. At this time of year, gyms across the country are filled with people who no doubt have the best intentions to get fit and healthy for the year ahead. Those working in gyms call these new gym members ‘turkeys’, although probably not to their faces. At £50 a month, not signing up for a gym membership is an easy saving opportunity. Instead, get yourself along to your local Parkrun on Saturday morning (free) or simply use the Great Outdoors as your gym.
5 – Playing the lottery. Chances are, you are not going to win the National Lottery. I’ve heard it described in the past as a form of tax on people who don’t understand statistics. At £2 a ticket, you can’t make big savings here by kicking this particular gambling habit, but £104 a year (or more if you play multiple lines each week) can soon add up.
6 – Eating out. Going out for dinner is expensive. According to Horizons’ Menurama survey, which tracks price changes across 116 chain hotels, pubs and restaurant outlets, the average cost of a starter, main course and dessert is now £20.41 per person. And that’s before drinks and a tip are factored in. Besides, eating in is the new eating out. Check out the service offered by our friends at The Original Supper Box Co. just down the road in Warnham.
7 – Designer clothes. High price brands don’t always translate into high value clothing. When spending money on designer label fashion, most of your cash goes to the brand, with only a small amount spent on materials, production and shipping. Research in the US found that a t-shirt manufactured for $5 is sold to a retailer for $15 and sold to the consumer for $50. For some people, dressing in the latest designer fashion is important. For others, there is a money saving opportunity here.
What other things could you stop spending money on each month to instead save or invest for the future?
