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Five money-saving habits to try

30.07.2021

By Beehive Money

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Beehive makes managing your money simpler, so you can reach your saving goals faster. From tips on saving during university, to gathering a deposit or getting a handle on Christmas spending, there are lots of ways we can help those pounds stretch a little bit further. 

With money, it’s often about setting up good habits – the earlier the better. Here, we’ll share five tips on doing just that.

Habit 1: Work out your disposable income

If you know how much you have, you can work out how much you can save. First, write down your income, then make a list of any bills or outgoing spending first. Now, work out what’s left – this is your disposable income. You can put some, or all, of this money away each month – it’s totally up to you. We find it’s easiest to work out your finances using a spreadsheet, and that’s a good way to keep track of what you’re saving over time, too.

Habit 2: Pay your savings bill

If you’re finding it hard to remember to pay into your savings each month, then it can help to imagine it as an extra ‘bill’. Simply set up a standing order on payday, and the money will be automatically moved into your savings account – without you even having to think about it.

Habit 3: Think about the big picture

Money takes on more meaning when you consider what you’re actually saving for. From lifetime goals like putting down a house deposit or building a retirement fund, to short-term aims like a holiday, Christmas spending or a ‘buffer’ for that bit more financial security, having a target in sight can help you visualise how those pounds are adding up. You don’t even need to put it all in one savings account – you can spread it out into smaller pots. Even better, ISAs are tax-free and you can put away up to £20,000 every tax year, though do check the limit on each account.

Habit 4: Track your spending

As well as paying into a savings account on payday, as we suggested earlier, it can be handy to set up a separate bank account for your spending money, too. This way, you won’t dip into the red and can keep your bills, savings and spending totally separate. If you find you need a bit of extra cash each month and your spending pot isn’t enough, read our guide on cutting your everyday spending, which could save you hundreds a year.

Habit 5: Round your balance

There are a few clever ways to round your spending and transfer the ‘change’ to your savings account. Some bank accounts can be set to do this automatically, where purchases are rounded up, or you can try ‘skimming’, where you check your bank balance every so often, round it down to the nearest pound, and move the cash over yourself. It’s a digital way of putting your pocket change into a savings jar and just gives you that bit extra each month.

At Beehive Money, we know the world of finance can seem complicated and confusing. We’re all about making money easier to manage, so you can reach your savings goals quickly and easily. Take a look at our blog for tons of helpful articles on money topics, or get in touch with our friendly Customer Advocates for some help.

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