"Do not save what is left after spending, but spend what is left after saving"

How do I save?

What are you spending?

Before you know what money you have available to save, you need to work out what you spend.  Everyone has regular outgoings so make sure you itemise out exactly what you spend money on and how much it is each month. Just track this for a couple of months and you should be able to get a good idea about your spending habits, what is essential and what is luxury. Your list could include:

• Bills
• Rent
• TV Licence
• Internet
• Utilities
• Taxes
• Food
• Transport (for work)
• Clothes
• Subscriptions
• Eating Out
• Leisure

You may also have some one-off annual costs (e.g. holiday costs or a big purchase). If you, divide it by 12 and you’ll get a breakdown of how much it would have cost you in those months you’re tracking.

Set yourself a budget
On payday, when you’re likely to have the maximum amount of money in your account for the month, work out what percentage of your spend is essential. If you then take that off your income, you’ll be able to see how much you have left for saving and spending. Read our “Rule of Thirds” blog over on the i-stock website to see how you can break this up more and work out what percentage of the remaining money you can spend and save.

Stop buying what you don’t need
There are bound to be loads of things on your list that you didn’t need to buy and that you could have lived without. There may even things that if you made small switches, you could save yourself a few pounds. For example, why not try keeping fit at home or buying a bike instead of paying for the gym you may rarely go to. Make a cup of tea at home and take it in to work instead of buying one on the commute, or simply make your own lunch rather than forking out for shop bought snacks.
There are also entertainment cuts you could make. Consider what you’re subscribed to with your TV package, do you watch all the additional channels you’re paying for? If you do some research, you may even find a better deal.

Essentials can still mean savings
Unfortunately there are some things in life that you can’t not pay for, however there are ways you could make these spends more efficient.

• Switch utility providers
• Buy a cheaper brand of food
• Find some deals and stock up if sell by dates allow
• Make a weekly meal plan. That way you are unlikely to waste as much.
• Loyalty cards are a great way of receiving vouchers and discount.

Get together some extra fund

If you have the time and feel it won’t be too much, why not look for a second job. It could be good to take on a short contract role if you have something you particularly need to save for, or just need a little extra boost. If you have a talent, why not offer it for some freelancing, so if you’re a particularly good photographer or writer, why not sell your services for a little extra cash. You could also look to the online community to help, selling any old items like clothes or books that you may no longer need.

CHILD SAVINGS

Saving is a brilliant lesson to pass on to your children.  Starting them young will only help them as they progress through life. Make sure you set them on the right path with a savings opportunity:

Child’s Bank Account
These are a great way of getting your child to learn how to save and to manage their money and are available through most banks or building societies.

Junior ISA
With a Junior ISA, your child will be able to save with tax free interest. A Cash JISA or a Stocks and shares JISA has a huge potential to grow cash over a longer timescale, just like an adults ISA.

Child Trust Funds
Since their introduction in 2002, these have since been replaced by JISAs.  However, some children may still have a trust fund from which they can benefit from tax free savings.  The money is locked away until they turn 18, with a generous amount invested by the Government each year since the child’s birth. You can add up to £4,3268 to a Child’s Trust and nowadays it is possible to transfer this to a JISA if needed.