When it comes to preserving your funds there are some simple habits you can cultivate that are easy to manage and will help you enjoy your money and life to maximum effect.
These habits don’t need to spoil the fun. Spending and investing intelligently will help you enjoy your collateral more efficiently and effectively.
Avoid getting into debt
Some debts are unavoidable. Mortgages and student loans for example, can be good ways of investing in your future over time.
On the other hand, debts such as credit and store card bills not paid on time are an unnecessary waste of money. If they’re not not paid within a specified period of time, usually up to 2 months, they attract a punitive interest rate often of potentially 20% or more.
If you must use one of these cards, keep track of your spending, making sure it’s within your means and have a direct debit on your bank account for total repayment of your card debt at the end of the 2 month period so that you don’t attract any interest payments; If you lack that kind of discipline, avoid this kind of debt altogether.
Adopt a savings plan
Each month put aside a little money into a savings account and make a deal with yourself that under no circumstances, barring dire emergencies, will you dip into these savings. Give yourself a target. Some current bank accounts offer high interest rates as long as you put a minimum amount into your account each month. It doesn’t matter if you spend this money during the course of the month on outgoings. Nationwide offers 5% interest on up to £2500 for the first year on its Flexplus account, which means that you can earn up to £125 for the year if you keep a balance of £2500 in your account. In this way, not only will you be saving, but you will also be making money by doing so. TSB has a similar scheme where you only have to deposit £500 into your account each month. With this account you get 3% each year on a maximum balance of £1500 in your account.
Open a current bank account offering perks you’d otherwise pay for
Some bank accounts offer fabulous perks for a relatively small monthly fee. Nationwide, again with its Flexplus account, for £13 per month offers mobile phone insurance, travel insurance, car breakdown insurance and market beating exchange rates on foreign currency and purchases when you travel. The account also offers an interest free overdraft facility on the first £250 you overdraw. If you paid for all those benefits separately you’d pay far in excess of £13 per month, so it’s a real bargain.
Join a dining club
If you love to eat out but find it expensive to do too often, join a dining club such as ‘The Gourmet Society’; This particular dining club offers 25% off your total bill on specified days at a wide range of restaurants for an annual fee of £34.99. You can take out a trial membership for 3 months for £1 to see if it suits you.
There are myriad ways to save money and make it go further and these are just a few. Talk to your friends about how they make their hard earned cash go further and do your own research. You may very well come up with some exciting ideas of your own – let us know if you do!