The cost of living crisis is having a significant impact on UK residents right now. Inflation is at a 30-year high and fuel prices have risen and are set to rise again later this year.
With everything going up in price, many people are pausing their plans to save for the big things such as a house or a wedding. But is it possible to set aside cash for the savings account?
If you had gotten into good habits before the recent squeeze and want to make sure you can still put money in your ISA, read on.
Little amounts help
Before we look at savings opportunities, it’s worth noting that the amount you will save might be smaller than it was before. Where you might have been able to put £100-£200 aside each month, it’s likely that this amount will be less than that.
But even small amounts going into your savings all add up. Having that money set aside is hugely beneficial for your finances. Anything you save when you follow the tips below can be earmarked for your savings account.
Think about energy
Energy costs are one of the most significant concerns and have been for a while. There are some ways to keep costs as low as possible. Making sure electrical outputs are turned off when not in use and limiting the amount of time you have the heating on – and turning it off completely in the warmer months, are some of the key changes you can make.
Investing in things like rugs and curtains can keep draughts out, saving on losing heat in the home. Checking that your property is insulated is also helpful.
Just the essentials
Look at your food bill. Are there ways to cut back there? Swapping out branded products for the supermarket version is a good way to free up some cash for the ISA.
Also, try to limit takeaways and meals out. While it can be tempting to order food online, these indulgences can soon add up.
Look at what you have
Have you been working on a project? Maybe you’ve been thinking of turning your hobby into a side hustle? If you have the potential to make additional money alongside your day job, this is a great opportunity to go for it.
Here, you could use the money you earn at work to tackle the bills and usual outgoings, while your extra earnings from your side job can go towards your savings.
Check your budget
Look at your income and outgoings. Lay out your bank statements so that you can see where your money goes.
Could you save by doing the food shop somewhere else? When did you last check your phone contract? You’ll be surprised by how much you can save by looking at a physical printout of your current spending.
From there, you can set a budget. Keep assessing your spending in the coming months to see if you’re sticking to your new plan.
Do you have any tips for saving? What will you be doing to make sure you can set that money aside?