Wouldn't you like to have an extra £400 in your account each month? Well, it can be done – and all it could take is a bit of careful budgeting.
Research from TopCashback.co.uk has revealed that 60% of those surveyed are now on a weekly or monthly budget, with 59% doing so to prevent overspending. A further 23% say they budget to feel in control of their outgoings, while 12% are tightening the purse strings in order to reach a savings goal.
It can seriously pay off, too, particularly for those who really stay on top of their finances. A quarter of those surveyed say they use a budgeting tool with 47% keeping a record of their spending on a monthly basis, while 25% say they can budget by simply checking their current account balance. Those who keep a record of their incomings and outgoings are able to save between £100 and £200 each month, while those who keep a separate bank account for their 'everyday spending' save an average of £300-£400 each month.
Unfortunately, not everyone is quite so strict when it comes to keeping an eye on their spending. The survey found that 40% don't budget at all, with 24% dipping into an overdraft, using a credit card or even taking out a loan each month. This unchecked spending can quickly ramp up, with 32% admitting that they overspend by £50-£100 each month.
A further 17% admit that they only sometimes stick to a budget – or don't manage to stick to one at all – with common 'budget-busters' including grocery shopping (56%), eating out (48%), socialising with friends (44%) and buying clothes (41%). Of course, no-one said it would be easy – although 72% say it is, 28% find it challenging – but there are things you can do.
For example, three-quarters of those surveyed would happily tell their friends, family and colleagues they're tightening their belt in a bid to manage their money, which could prove to be a great way to stay on track – if they know you're actively trying to budget, they'll be less likely to tempt you with thoughts of nights out or mid-week coffees, and simply knowing you're accountable to someone else could be enough to boost your resolve.
Or, what about setting a clear goal? If you know why you're being so ruthless with your spending – if you're saving for a holiday, a car or a house deposit, for example – it'll make it far easier to stay motivated. This motivation will be compounded when you start seeing the money add up, and if you have a separate savings account that's solely reserved for this goal (you could even name the account after it for added incentive), it could make all the difference. After all, if you can save £400 a month simply by sticking to a budget, why wouldn't you want to give it a go? Get saving!
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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