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It seems a like the economy has been on a downward spiral for years. To be honest, that feeling is probably accurate. As we enter a new recession and see soaring rates of inflation, it can be a easy to feel dejected with your financial situation.
After all, when money is tight, things can feel pretty bleak. In my opinion, this is all the more reason to make the most of your money. If you’ve only got a tiny amount available to save each month, it’s important to ensure your savings are in the best place.
It can be hard to save when times are tough and it can be even harder to find out you could have had a better return on your investment. These are my best tips for saving for something important when money is tight.
How to Save for Something Big When Money is Tight
Finding cash to put aside when inflation is high and wages aren’t improving can be a challenge. It’s not impossible, but it takes a bit of effort and not everyone is willing to put that effort in. Some people are full of good intentions but don’t know where to direct that effort because info isn’t readily available. I’m going to share how I have personally found ways to save when money has been tight.
The most common goals seem to be saving for a car or a deposit for a house, so these are big items that need a lot of cash. Achieving the end figure may not come quickly, but with a bit of dedication, this advice should speed it up slightly.
Get the savings in the right place
If you’re saving a house deposit and you’re on a low income, those savings are going to take some time to build. While inflation is high but interest rates are low, it’s important to keep and eye on your nest egg and ensure that money isn’t losing value by experiencing an almost non-existent return.
By that I mean, if your savings interest plummets to 0.5% but everything costs a lot more, your money is worth less than it was in relation to the changes in the economy. It’s a good idea to keep on top of the rates available and move your savings when you see a better one. There are free calculators online that work things out like compound interest for you which can be a big help. The currency is usually set to dollars, but the figures are correct, so just imagine it says pounds instead.
Answer surveys
I know full well everyone bangs on about surveys, but that’s because they’re a good source of income. Personally, I stay away from the ones that earn pennies because they take up too much time for a small return. Instead, I prefer to go on market research calls or even in-person research days. You can get anything from about £40-£200 for these types of market research, which is often a better hourly rate than a regular job. While the surveys may not be a regular income source, they’re a nice bonus to add to your savings when you do them.
Use a third party app
Lots of apps are in the discreet savings game now. By this I mean the apps that round up 54p every time you buy a coffee, or 25p when you buy a meal deal. You can have these apps to take savings every time you spend and pop them in a separate ‘pot’ in your bank account.
They work by taking whatever the amount is that rounds up to the nearest pound, and over the course of a month, it can soon add up. Once the money has been saved for you, you can put it in a savings account of your choice to get the best interest rate.