Many of us will still be relieved to have seen the back of 2020. If you had big aspirations for your savings last year but were unable to meet them for some reason (say a pandemic that shut down the global economy for example) then 2021 may very well be the year you become financially ready for whatever happens next.
December typically has a big impact on our bank accounts, but now that the festive period and we’ve made it past the depressing ‘blue Monday’ of January we can start making changes to our financial habits to make money go so much further.
Emergency loan company Wonga recently published a list of money saving tips on their blog and I’m going to parrot the ten best below to save you another few clicks. So without further ado, here are ten great ways to be financially ready in 2021 right now.
1.Review recent transactions
Small impulse purchases may seem harmless at the time, but they can easily add up. You may be spending a great deal of money on things you could easily go without, so why not review your recent bank statements to see if there are any purchases you could have easily avoided? By adding up these costs, you can find out how much you’re really spending on unnecessary products and services each month.
2.Shop around for better deals
Maybe you’re paying too much for your household bills, mobile phone contract or finance products? More generous deals could be available just around the corner. You may even get a better tariff from your service providers if you tell them you’re thinking of leaving. Price comparison sites can also be very useful for this purpose. You would be surprised how much you could shave off your monthly expenses this way. Don’t be afraid to give your service providers a phone call either to discuss your bill.
3.Be careful with your bonus
If you’re lucky enough to be receiving a bonus from your employer this year (by no means a certainty appreciating the current economic climate admittedly) but consider putting it (or any significant savings you have accrued) into a high-interest savings account rather than going on a shopping spree. This can encourage you to continue saving in the future, but make sure you still keep some of your savings as fluid, easily accessible cash in case of an emergency.
4.Pay with cash
Many retailers are only accepting card payments due to the pandemic. However, it’s always worth carrying cash with you if possible as people tend to be more careful with their spending when using physical notes and coins.
5.Use a checkmate
An independent figure with an objective view can advise you on whether a purchase is likely to harm your finances severely. When we have our hearts set on something, it’s all too easy to proceed despite the potential consequences. A checkmate can help you reach a sensible decision.
6.Buy second-hand
You can save a great deal of money by purchasing second-hand goods rather than brand new ones. Many second-hand items remain in excellent condition and are as good as new, yet they’re available for a fraction of what you’d otherwise pay.
7.Buy groceries in bulk
It’s often possible to strike a great deal when you buy products like toiletries and groceries in bulk. This also means you won’t need to think about purchasing these items for a while. Buying in bulk can serve you well as long as you know you’ll use the items.
8.Take your lunch to work
Purchasing food at work every day can be very costly. It’s a wise move to plan and prepare your meals in advance so you can enjoy them at work. This way, you’ll avoid handing over vast sums of money in the canteen each month.
9.Don’t leave appliances on standby
You can reduce your fuel bills by turning appliances off at the wall when you’re not using them. Leaving appliances on standby can cost you much more than you expect, and it only takes a moment to press the ‘off’ switch.
10.Remember to treat yourself occasionally
You don’t have to give up all the things that you enjoy in order to become financially ready. If you don’t treat yourself at all, you may start to feel disheartened and disillusioned. Remember to reward yourself for your efforts once in a while.