Saving money can be really difficult and demotivating, especially when you’re ending up short at the end of the month – but one woman has shared an easy way to save cash up before payday
Saving money is not easy amid the rising cost of living, including higher rents and food prices. With the average rent in London now sitting around £2,250 a month, according to U Homes, it becomes clear why competing priorities would mean saving money for a house deposit, or even a holiday, would fall down the pecking order.
However, one woman shared her top tip for squirrelling away some dosh as it gets closer to payday, to make your life a little easier because you’re saving towards the goal you’re desperate to reach. Alicia Chapman, who shares finance tips, said “no one talks about this enough”.
So, what does Alicia recommend you do the day before you get paid? She said you should “transfer ALL the money you have left into your savings”.
She said it doesn’t matter whether it’s £5 or £500, but you should transfer it over, because everything adds up towards whatever it is you’re saving for.
It might feel pointless to save a tiny remnant of your money right before a fresh pay packet arrives, but that ‘leftover’ money carries a lot of power.
It proves you managed to live within your means for the month, which can be really tricky in these economic times.
Psychologically, starting the new month by seeing only your new paycheck prevents the illusion of being wealthier than you are. It stops you from thinking along the lines of ‘Oh I have an extra £100 this month so I can splurge on something for myself,’ and it forces you to live on your standard budget.
Plus, this habit is really important, as if you saved just £5 into savings, by the end of the year, that’s £60 you’ll have towards the goal that you wouldn’t have had otherwise. And if you can save £500, it’ll be £6,000!
That £60 a year may not be able to buy you a house, but it gives you the habits of a saver, and if you’re in a position to save up more money, then it’s a bonus.
In the comments, others shared their savvy saving tips, as one woman wrote: “Honestly, if you take £50 out of the bank every Sunday night and don’t spend any more than that, you will always have money in the bank before payday, bills are separate.”
Alicia replied: “I love that system! What will you spend that £50 on? Non-essentials?”
She said: “Just every day things, you will not use your bank card in that week, believe me, it works.”
Another asked: “Does that mean you do your food shop out of the £50 too? Or just for random spends?”
She responded: “No food bills separate just for pocket money, cash in the purse, no using cards, it worked for me as I was fed up being in my overdraft all the time, or not checking how much I was spending using my card.”
