Top 5 ways to save money in the New Year
With the new year already underway and sure to sail by, there’s no time like the present to start considering ways of saving your hard earned cash. You may be ahead of the game and are already putting aside the pounds, or perhaps you have not quite got around to this just yet, and if so, we are here to help.
The following tips show how you might be able to be a little wiser with your money day-to-day and also how you can save long term.
- The 30-day rule.
Instant gratification is something most of us are often guilty of seeking out. Avoiding it is one of the most important rules of personal finance. Waiting 30 days to decide on a purchase is a brilliant way to implement this rule.
Quite often, after a month has passed, you’ll find that the urge to buy has passed as well, and you’ll have saved yourself some money simply by waiting. If you’re on the fence about a purchase anyway, waiting a while can give you a better perspective on whether it’s truly worth the money.
- Write a list before you go shopping – and stick to it.
One of the easiest ways to save money is to only shop when you have a list. Because when you’re without one, you typically end up making impulse buys and unplanned purchases – all things that cost money.
Creating a list before you go to the grocery store is especially important. Not only can it help you buy items that fit with your meal plan, but it can also help you avoid buying food you might waste. Always create a list and, more importantly, stick to it.
- Clear out the clutter and sell it online
The start of a new year is a prime time to take stock of your belongings. It can be difficult at first to part with possessions but once a bit of money starts coming in that can all change! There are various online platforms which allow private sellers to list items for free each
For those of us who are not quite as ’online savvy’ as we’d like to be, there’s always the option to sell unwanted items at a car boot sale or something similar.
- Invite friends over instead of going out.
Going out to eat or “out on the town” has a way of completely destroying both your food budget and your entertainment budget in one fell swoop. It is often cheaper to stay in with friends and come up with your own entertainment.
Instead of hitting the town, host a fun pitch-in dinner with your friends. Play cards, sit around a fire pit, or watch movies with your guests. You’ll all save money – and have a great time.
- Tax Exempt Savings Plan (TESP)
An affordable and tax-efficient way to save regularly for the future
Putting a little bit of money aside every month can help set up a fund for your future. National Friendly’s Tax-Exempt Savings Plan lets you do just that, giving you a tax-free lump sum to spend on whatever you like at the end of your chosen term.
You can save for yourself or for children or grandchildren and can use the proceeds to help fund a range of things – from holidays to university fees or maybe just a nest egg for the future. It’s a great way to build up savings steadily over time.
About our TESP
TESPs are exclusively available from friendly societies and anyone over 16 can buy one. Our premiums are fixed at £25 per month and you can choose to save for between 10 and 25 years.
When the policy pays out at maturity it is free from income tax and capital gains tax. Your money is invested in our with-profits fund in a mix of company shares, property, cash and fixed interest gilts and bonds. This spread of assets represents greater potential for growth than a deposit account offered by banks or building societies in return for a risk to your capital. At the end of your chosen term, the policy pays you a lump sum of money called the guaranteed maturity benefit, plus any bonuses which are based on the performance of our with-profits fund.
For you or a child
You can take out a policy for yourself or as a gift for the future for a child or grandchild. Children’s policies cannot mature before the child’s 16th birthday, so their policy might need to run longer than 10 years.
If this type of savings plan appeals to you, visit our website to apply, receive further information and to download our Tax-Exempt Savings Plan pack. You can also give our friendly team a call on 0333 014 6244.