Saving money will be incredibly important in 2022. Many families are set for a difficult financial period: inflation is at its highest point in 40 years, meaning that essentials such as groceries and fuel are surging in price. This can be a stressful time, but there are small ways you can ease any financial worries. Read on for tips on saving money.
50/30/20 rule
Setting a budget up for yourself can be difficult: everyone’s financial situation is different and requires some fine-tuning. However, a good place to start is with the 50/30/20 rule. This states that you should spend 50 per cent of your monthly income on essentials, 30 per cent on non-essentials and 20 per cent should be put towards savings. You might need to alter this slightly, but it’s a good place to start.
Savings account
You shouldn’t leave the money you’ve saved idle. Instead, you should open a savings account to help it grow. At the same time, it’s worth opening a debit card account that allows you to track your spending. This can help you stick to your budget and spot any mistakes quickly.
Make a list of your needs
It can also help to make a list of your essential needs every week. For instance, this might be bills, groceries and even surprise costs such as buying car tyres online if you’ve suffered a puncture. By prioritising these essential needs each week you can avoid having to make important sacrifices.
No-spend day
A no-spend day can also help you budget. Try having a day once a week where you avoid any purchases. It’s difficult, but it can also help extend your budget across the week.
Avoid credit cards
Credit cards can seem attractive – they help you afford items that you don’t currently have the money for. But if your debts mount up, you can make your financial situation more perilous. As such, you should try avoiding credit cards unless they’re absolutely necessary.
Audit your subscriptions
In isolation, your subscriptions might not seem important. You might have various entertainment subscriptions for streaming, or a regular food subscription coming in. However, when combined, these subscriptions can cost you a significant amount each month. Try looking through all your subscriptions and consider whether you really get the most out of all of them. If there’s a subscription you don’t really need, you should cut it out of your monthly spending.
Saving money is going to be difficult in 2022. But with a little extra effort and by following the advice above, you should be all set to navigate this difficult period and save money.
