4 ways to save money in 2020
Trying to save money is often challenging, especially when you think that there is nothing left to cut. Since the January blues are now over, take back control of your personal budget and make some savings.
Making some of these changes might not be easy at first, but it can be worthwhile. More importantly, it gets you into the habit of checking how much you spend every month and reviewing your expenses every 12 months. Saving money is really important and will give you more freedom in the long term.
Some of the saving ideas below can seem small when looked at in a single month. But when you add up those small savings at the end of the year, you will see how much you saved. Here are 4 ways to save money in 2020:
Switch your direct debits
Electricity/Gas: Based on information from the Commission for Regulation of Utilities (CRU) in the 2nd quarter of 2019, there is a slow down in people switching energy providers. Click here for more information.
CRU estimates that customers who switched or renegotiated every year for the last 4 years could have saved €704 on gas, €1,097 on electricity or €1,696 on their dual fuel costs. So don’t hesitate to contact your gas and electricity provider! You could get a discount or find cheaper options.
TV & Broadband: Look at your TV & Broadband package and see what you could save by switching or altering your package. Also, you might realise that you’re not watching TV that much. So look at streaming services like Netflix, Amazon Prime or NowTV as alternatives to your normal TV package. They are usually less expensive and provide you with a more personalised experience.
Mobile Phones: Are you out of contract on your mobile phone? Stay that way. Look for cheaper sim-only deals that could save you money. (I’ve saved €420 per year by being on a sim-only deal.) If you need a new phone, buy a sim-free phone, and factor in the cost over a 24 month period.
Insurances & Bank Charges: Examine every insurance product you have: Car; Health; Home, & Mortgage Protection. A month before renewal, take 30 minutes and explore your other options. Ask yourself what you would save in a year if you cut all of these costs by 10%. Check other banks to see what options you have in changing bank accounts to save money on fees and charges.
Save Money Idea 2
Examine your financing
Do you have any loans or financing? Make sure you understand the complete cost and type of loan. If you have cash to hand, check and see what the cost of clearing any finance ahead of schedule could be. It might be a better option to clear your debt early instead of waiting until the end of the schedule.
If you have credit card debt, focus on clearing the debt as quickly as possible, even diverting potential savings to clear this debt. Explore any options around personal loans and see if would be cheaper to borrow and clear the credit card debt. Then throw the credit card in the bin.
The cost of car-financing can be quite severe. Always think “Do I need this, or just want this?“. If it is a want, wait until you can afford it. This means you will drive an older car, but will save more money. Over time you can build a fund to purchase your chosen car.
Don’t Despair or give up! We all know how hard this is.
Keep the following in mind:
- You’ll save money – The changes you make now have a multiplier effect over time.
- You’re dealing with it – Dealing with problems sooner rather than later is always better.
- A better future – You’re setting up yourself and your family for a better tomorrow by tackling today.
Save Money Idea 3
your daily spends
- Lunches ((5 days x €5) x 48) weeks per year = €1,200 per year in lunch spending.
- Coffees One in three Irish people now buys a coffee at least once a day. ((3 days x €2.5) x 48) weeks per year. = €360.00 per year in coffee spending.
- Dinners. Plan your dinners, this will help you spend less by only buying what you need.
- Give yourself a realistic weekly budget. Include your nights out, weekend spending and any other spending. If it’s a bit overwhelming for you, we can create a financial plan and help you fix your budget.
- If you smoke, vape or drink too much, figure out a way to stop now. Smoking or vaping will only increase your expenses, health insurance, life insurance and mortgage protection costs.
Save Money Idea 4
Measure, Monitor, Maintain.
For daily spending, use an app like fudget to track your spending.
Look at revolut or similar online debit cards as your daily cash wallet, instead of your current account. You can set up different budgets on there, which makes it easier to see how much you spend, and what you’re buying.
Stop using cash as much as possible, and use your card instead. At the end of the month, you can easily see where you spent money instead of multiple cash withdrawals.
Open a savings account. There are plenty to choose from, each with different features. After working out your budget for the month, move the savings amount into the account straight away. This will remove the temptation to spend.
Why Get Financial Advice?
When you have a big decision to make, or your life is changing there’s a lot to think about.
Impartial professional financial advice helps you make a better decision that gives you better options and saves you money for the rest of your life.
How we can help you
- Get life insurance for a mortgage in Ireland
- Get your personal financial plan in place.
- Increase your monthly & annual savings.
- Plan for a secure retirement.
- Buying a home or investment property.
- Protecting your family.
- Life insurance in Ireland