Save money – making your pay cheque last

Tough economic times and inflation means working to save money so your pay cheque lasts.

06:49 12 December 2013

When financial trouble hits, the first thing people recommend is to create a budget and see where you can save money. Creating a budget and a financial plan to go with it will be of great help when it comes to stretching your pounds.

Here are a few steps that can help you build the financial plan you need to reduce stress and keep you financially afloat.

• Check your spending habits. The first step to learning how to save money is to learn where your money goes. Spend a month and create a spending diary. Everything from the cash you use to purchase a small cup of coffee to your credit card payments. You will be surprised at where your money goes.

 

• Sit down, figure out what you have, and need – in order to understand how to save money, you need to know how much you have and how much you need in order to remain financially solvent. 

 

• Start cutting back. Look at your spending habits and start removing things you do not need or changing things. For example, if you frequently order takeaway dinners, try making dinner instead. It is cheaper and can save you a considerable amount of money.

 

• Give yourself an allowance – cutting out all your extras can lead to serious splurges. These can destroy your plan to save money. Make sure all your basics are covered. Then give yourself an allowance but make sure it is cash. It is harder to lose track when you are dealing with cash.

 

• Change things – try walking more to nearby locations instead of driving. Use vouchers and discounts to save money.

 

• Give your life an overhaul. Take a hard look at your life and go back to the most important and basics.