by Marie Bywater

Created on: July 25, 2010

Saving money is essential in today’s climate whether it be for a treat, new car, rainy day or in case of unexpected emergencies. Jobs are being lost on a regular basis and if you do not have enough money put away in your savings you may find yourself staring debt in the face. Saving money while you are earning money is not difficult. There are many saving money tips but below are the top 7 ways to help you save money, whether it is for redundancy or your summer holiday.

Make a budget

The number one way to save money is to spend less.  Most people keep spending their hard earned cash each month without even considering what they are spending it on. How many times have you looked in your bank account and thought where did all that money go? If you are one of these people then it is time to make a budget.  A budget lets you save all your incomings and expenses for the month ahead. This enables you to know how much money you have left over. You should use at least 70% of your leftover money for saving. The other 30% can be used for treats and luxuries.

Do not use credit cards

Using credit cards and not paying them off is a waste of money. Each month your credit card is accumulating interest, which you need to pay back.  Next time you want to buy something make sure you have the money upfront rather than putting the debt on your credit card.

Only eat out on special occasions

Dining out is a very expensive pastime and one that should be kept for special occasions such as birthdays and anniversaries. However if you do want to eat out once a month as a treat look for restaurant coupons, which can help you save a few dollars off your meals.

Avoid buying things you do not need

Impulse shopping is the biggest waste of money around. In order to quit wasting money on buying things you do not need, you need to take limited cash out to the shops with you and go aided with a shopping list.

Make use of grocery coupons and special offers

If we did not eat we would be rich. Food is extremely expensive but luckily there are many special offers and grocery coupons available all year round to help save money on shopping.   Further savings can be made by buying items in bulk and avoiding buying brand names, which tend to be more expensive.

Buy clothes during the sales

Clothing is essential, and if you wear your own clothes to work as opposed to a uniform you are going to need more clothes. There are many clothes sales during the year which can help you save lots of money on many items.

Stop smoking

If you are a smoker now is the time to stop and save the money you would spend on cigarettes. You can save this money into a piggy bank, and use some of it for special treats such as a meal at your favorite restaurant or a new handbag.  You can save the rest of the money into your bank account.

These 7 saving money tips should help you save at least an extra hundred dollars each month.  This saved money should be placed in a high interest bank account in order to grow your savings. There are many tax-free bank accounts which let you invest as much as £5200 in the UK each year.

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