The UK lockdowns might have been tough for many of us, but one of the unexpected benefits for some people has been the ability to save money. With non-essential retailers and recreational businesses closed, many people were finding themselves spending less than before.
As the UK emerges from what will hopefully be our last lockdown, economists are predicting pent up spending will be unleashed across the country.
Saving money might feel like it is harder to do when lockdown is over, especially with warmer weather on the horizon. If you have enjoyed saving up some cash during lockdown, you will probably want to continue doing so.
Here are our simple ways to help you save after lockdown:
Set out your budget
Sticking to a budget can be difficult, but it is essential when you want to save money. Lay out all your income and known outgoings on a spreadsheet and include the amount you want to save each month.
There are several budgeting apps you can use to help keep you on track, such as Emma, Yolt and Plum.
Track your expenses
Planning and assessing your finances will help you save. However, tracking what you spend throughout the month will help even more.
At the end of each month you can analyse what you have spent money on and then make cuts for the next month if required.
Commit to a savings goal
Creating a savings goal can help you stay on track with your savings. You could tie your goal to something you want to purchase, such as a house or a holiday.
Then set yourself a six- or 12-month savings goal to break down your target into manageable amounts.
Resist the urge to “revenge spend”
Revenge spending has become a popular concept since non-essential retail first reopened in April. The thought behind it is splashing out on new items after being unable to do so for so long due to the pandemic.
Consider the impact on your savings if you feel the urge to revenge spend on unnecessary and costly expenses.
Keep on top of your financial commitments
Making sure you pay all your bills on time and fulfil all your financial commitments is important as we move out of lockdown.
Keeping your payments up to date will help you accurately budget for non-essential spending and saving while, more importantly, keeping your credit rating in good condition.