Whether you are saving for your first home or you are a homeowner hoping to build a financial safety net or increase your deposit for the next move, it will pay to save. Sonya Matharu of The Mortgage Mum has some top tips to get you started
There’s no doubt about it, if you want to achieve your goals and secure your financial future, knowing how to save is a must.
Yet whilst saving money is an essential aspect of money management, for a lot of people it’s intimidating, with many often struggling to get started.
But it doesn’t need to feel daunting and uninspiring—which is why in this column, we’ll be discussing some actionable tips for you to get started!
Step One: Set clear financial goals
I know, it sounds completely obvious, right? But you’d be surprised how many people say ‘I want to save lots of money’ without knowing what they want to work towards.
Regardless of if you’re saving for a down payment on a home, your retirement, your ‘what if’ fund or that item of clothing you saw that you just can’t live without—a financial goal is a must.
It helps you to get clear, stay focused and have something to work towards. So, set aside some time to sit down and think about what number you need to reach to successfully hit your savings goal.
Step Two: Create a budget
Nobody likes this step because there is nothing fun about limiting yourself… Unless you’re doing it right!
A budget doesn’t have to be a bad thing, it can help you understand your spending habits and identify areas where you can cut back and save money—or help you understand which things bring you joy.
For example, coffee. You might get your favourite coffee three times a day at £4 each. If you stopped this for one week, you’d have enough to buy a Nespresso machine and would be able to make them at home for a fraction of the price. An easy way to save money if that interests you.
However, if those coffees suit your busy lifestyle because you can grab them on the run, or they give you a moment of your day to take time for yourself, it doesn’t make sense to give them up.
There might be something else you can cut back on to create savings that doesn’t have as much of a negative impact. It’s all about finding opportunities to save that work for you.
Step Three: Review your expenditure in further detail
Much like the coffee example above, there are many different ways to cut costs. Once you have your budget in place, you’ll be able to see what outgoings you have for each month and year and spot any opportunities for savings.
For example, speaking to energy providers to negotiate your bills, consolidating debt, cancelling unused subscriptions, buying annual passes for things you use regularly or utilising loyalty schemes.
Step Four: Celebrate your progress
This is an essential step! For every milestone you hit, take time out to celebrate. It can feel counterintuitive to spend money when you’re saving, but you mustn’t enable your finances to solely become about saving.
How you celebrate is completely up to you (although I do not advise blowing your savings!), but common ways previous clients have celebrated is by treating themselves to something small, or taking themselves out to lunch or a walk to reflect on how far they’ve come.
Overall, it’s important to remember to get clear on your vision. Every little bit counts and even the smallest of steps can lead to significant financial gains over time if you stay consistent.
Next…Making overpayments on your mortgage
If you already have a mortgage, making overpayments can help you save money and boost the investment in your property.
You can find out more about overpayments and how they can benefit you financially next week when Gemma Bennett of The Mortgage Mum explains all.
Sonya Matharu is a senior mortgage broker for The Mortgage Mum
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Connect with The Mortgage Mum team
You can connect with Sonya via her website www.sonyamatharu.com and you can contact Gemma via email Gemma@themortgagemum.co.uk: or at her website, here.
gemmabennett_themortgagemum.co.uk
https://www.instagram.com/sonyamatharu_/
Gemma Bennett _The Mortgage Mum
https://www.facebook.com/sonyamatharu
Gemma Bennett
https://www.linkedin.com/in/sonya-matharu-349265182/
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