One of the most common complaints we make as we get older is that our money doesn’t seem to stretch as far. The cost of living is rising, the pandemic has made it more difficult to save money and it has become more challenging to achieve financial goals, such as buying a house. It’s not easy to stay in the black and avoid financial worries, but there are ways to make your money go further. If you need help with saving or maximizing your income, this guide is packed with helpful ideas and advice.
Always shop around
One of the golden rules to follow when trying to save money in the modern world is to shop around. Whether you’re buying pet food, diapers for your baby, health insurance or a new TV or laptop, it’s hugely beneficial to get into the habit of comparing prices and looking for the best offers. Competition for customers is fierce among retailers and businesses that sell products and services, which means that it’s usually possible to choose from a range of deals. Use search engines and comparison sites to compare prices and look for companies and brands that offer the best value. The lowest price is not always the best offer. If you’re buying a specific product, for example, and the price is $1 lower on one site than another but the other retailer offers free delivery, as opposed to a shipping fee of $3, it makes sense to pay more for the product and save on delivery.
Online shopping and using price comparison sites is a simple, quick way to cut costs. It’s particularly beneficial to shop around if you have an insurance policy that is due for renewal. Companies often reserve their best discounts and incentives for new customers. This means that you could save a substantial amount of money on your policy by swapping to a different provider. If you’re happy with the service you receive, it’s worth contacting your existing company and asking if they’ll beat or match competitor offers. You can also do this with phone, broadband and utility contracts.
Compare savings accounts
Savings accounts are designed to help you earn interest while keeping your money safe. If you have an account, you can add funds and withdraw money when you reach a savings target or you need cash. There is a huge range of savings accounts available. If you want to put money aside, it’s worth taking the time to explore and compare different accounts and seeing what benefits they offer. Key factors to consider include interest rates, withdrawal restrictions, flexibility and tax incentives. Figure out which account is best for you based on how much you plan to save, whether you need access to your funds within a set period, and whether you’re eligible to take advantage of tax-exempt savings. You can research online or seek advice from finance experts.
Consider investing
Investing is a means of growing your money and earning more. There is a vast array of options and opportunities to choose from and this means that it is beneficial to look for a financial advisors service. If you’re not an experienced investor, or you’re hoping to diversify your investment portfolio and you need advice about new opportunities, speaking to experienced advisors will help you to make decisions. It is crucial to understand that all investments carry a level of risk.
Before you decide how much money to invest and what kinds of investment opportunities to explore, outline your personal goals. Do you have a specific target in mind, for example, paying for your child to go to college or saving a down payment for a house? Are you keen to invest to create a retirement fund? Do you want to boost your income in the short term? Consider how much money you have available, whether you’ll need access to your money and how quickly you want to see results. If you have limited funds and you want to try and make money fast, you may be interested in buying stocks. If you have a substantial investment fund and you’re more interested in long-term success, buying real estate may be an appealing option.
Timing is critical when investing money. The stock market can be volatile and unpredictable, the values of cryptocurrencies can rise and fall and conditions within the real estate market can favor buyers or sellers. Once you have decided how you want to invest your money, find the right time to buy or sell. If you’re buying a property to rent, for example, it’s a good idea to avoid buying when the demand is peaking and selling when demand is falling. Ideally, you want to purchase real estate when prices are low and demand is increasing and sell when prices and demand are high.
Explore retirement plans
Saving for your retirement may seem premature if you’re in your 20s or 30s but it can help you get ahead. If you’re an employee, for example, find out more about pensions and retirement savings plans offered by your employer. In many cases, employers match contributions. If you can afford to pay a portion of your salary into your plan each month, this will help you to earn more and boost your retirement fund.
Pay off high-interest debts
Paying interest can have a dramatic impact on your monthly income, especially if you use credit cards or you have high-interest loans. You may find that you’re spending so much on interest that you’re not able to reduce your debt significantly. If you have debts, such as loans and credit cards, try to tackle the debts with the highest interest first. Pay off credit cards before you put money into savings accounts and use any money you have in savings to clear debts. Try to avoid taking out additional loans or using cards that you can’t pay off. If you have a credit card, and you’re paying interest, look for offers to switch your balance to lower interest cards. You can compare offers online or get help from independent financial advisors.
Sign up for savings
If you shop online regularly, you may have noticed that by the end of the day, your email inbox is full of messages from different brands and retailers. If you are looking to buy products, it’s worth signing up to discount sites and subscribing to email lists for your favorite brands. Following businesses on social media can also help you gain access to promotions. You may receive emails with 10% off or exclusive access to a flash sale, for example, or you may be able to save on your first order or earn points for every purchase. It is important to remember that brands send emails and share posts to try to lure you in and encourage you to make purchases. Focus on offers that are relevant to you and avoid buying items that you don’t want or need if you’re trying to reduce debts or hit a savings target, or you’re using credit cards to buy luxury items that you can’t afford. If you find it hard to resist temptation, take your name off the email list and unfollow brands on social media.
The cost of living has soared in recent months, and many of us are looking for ways to make our money go further. If you’re keen to make your money stretch as far as possible, it’s a fantastic idea to shop around for the best deals, explore investment opportunities and reduce interest payments on outstanding debts. Sign up for savings and discounts if you’re looking to buy products, compare savings accounts and take advantage of funds and plans that help you to save for the future.
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