For others, even if we're living within our means, finding the capacity to start saving for a healthier financial future can be a challenge. If this sounds familiar, consider the following creative ideas to free up some funds.
Identify ways to reduce your expenses or costs. You'll find this a lot easier if you talk about it with a partner or loved ones. If your friends, family and those close to you are aware of the changes you're trying to make, there’s a much better chance that you'll see them through.
Could you cut the number of times you go out each month? How about your impulse buying and online shopping? How much could you save by cutting back on a few luxuries? What are some fun activities or hobbies you could do for free instead?
If these changes don’t make enough of a difference, look at your other expenses. Could you reduce your food bill by better meal planning or shopping at a discount supermarket? Have you compared car or home insurance rates recently to see if you could be paying less?
If you can be flexible with your daily or weekly schedule, you can often find plenty of ways to free up funds. How about going to the cinema at a less popular time, when ticket prices are cheaper? Could you schedule your meetings a little later in the day, so that you can travel off-peak? How about making your lunch, rather than buying it at work?
Selling items you don't need or no longer use can be a very effective way to free up funds (and can help reduce unwanted clutter). There are specialist online retailers, as well as auction sites like eBay, where you can sell your unwanted items. There are buyers out there for CDs, DVDs, games and consoles, and a strong market for good quality clothes that you no longer wear. Many people discover that they really enjoy selling stuff they no longer need at boot fairs, quite apart from the valuable income it can generate.
Credit and debit cards make payments easy, and contactless payments are even easier. But you can only use them if you have them with you. Try leaving them at home for a day or two and stick to cash for every purchase.
Cutting your expenses can feel hard, especially if your spending habits have developed over many years. It takes constant repetition to form a new habit, so stick at it. Remember, all those small sacrifices you make may bring big rewards in years to come.
