Saving for short-term and long-term goals is the core of financial literacy. It is the foremost way to become financially independent as soon as possible. 

Having adequate savings not only helps you live life to the fullest but also ensures a safety net for emergencies. But here’s the thing: The hardest thing about saving is just getting started. Once you’ve got a plan in place, things become so much easier. This guide is that plan. 

Follow these tips to save more money for future expenses and lifestyle needs:

Track Your Expenses and Make a Budget

First things first, know how much money you’re spending. Track your expenses like a private detective. Start with big-ticket items like mortgages, insurance payments, utilities, groceries, and transportation. 

Then, get into the day-to-day expenses. We’re talking coffee orders, dining out, shopping, and even cash tips. You can use a spreadsheet or an online spending tracker to categorise all the expenses.

Once you’re done calculating your expenses, budget like a pro. Use a time-tested budgeting strategy, such as the 50/30/20 rule, where you allocate 50% of your income to needs, 30% to wants, and 20% to savings. 

All of this will make you more aware of your spending. 

Reduce Day-to-Day Expenses

Speaking of spending, it’s time to audit your day-to-day expenses. Cut those unnecessary expenses that appear too little to be causing an issue. Here are some tips you can follow to get started:

• Cook your meals at home and research local restaurants when you want to treat yourself.
• Leverage discounts and cash-back opportunities.
• Cancel your inactive subscriptions, such as entertainment platforms and sports channels.
• Cancel memberships that renew automatically. 

Automate Your Savings

Another effective way to boost your savings is automation. With an automated savings account, you can build steady funds without having to manually deposit money into an account every few weeks. It’s convenient and stress-free. 

Pro tip? Use a money comparison site when choosing a savings account. These are independent and impartial sites authorised by the Financial Conduct Authority (FCA) providing comprehensive data on a wide range of financial products, including savings accounts. You can find the best rates, ensuring strategic savings. 

Avoid Impulse Buying

Here’s a bitter truth: If you don’t control that urge to live life to the fullest, things will become super difficult later on. 

One of the most common ways people make impulse buying decisions is through a credit card. It is tempting to put the expense on your credit card, not knowing how you’re going to pay the bill at the end of the month. 

The best way to prevent impulse buying is to wait. Make a wish list and look at it after some days. Once you delay a purchase, there is a great chance you’ll realise the item was something you wanted, not needed. You can either develop a plan to save for it or remove it from your to-buy list for the better.