1. Review your direct debits to avoid overspending.
One of the simplest and most efficient strategies to cut your spending is to keep track of how much money leaves your account each month.
Maybe you're still paying for a magazine subscription you don't read. Maybe you neglected to cancel your app payment after the free trial ended. Have you remembered to cancel or put your gym membership on hold for the month?
Directly from your online banking, you may see which direct debits are leaving your account. Alternatively, use an app to locate and cancel unneeded subscriptions while also keeping track of your monthly spending. If you have many bank accounts, this is extremely beneficial.
2.Make timely payments on your credit card
If you don't pay off your credit card balance in full by the end of the month, you'll be charged interest on the amount you spent. If you use your credit card to withdraw cash, you will be charged a higher interest rate.
If you only pay the minimum amount due on your credit card, you will still be charged compound interest on the remaining balance, which might harm your credit score and make it more difficult to borrow money in the future.
If you must borrow money, stay away from credit cards. Overdrafts with no interest are the way to go.
3. Spend less on entertainment.
The days of going to the movies and ending the night with a few drinks at your neighborhood bar are long gone. Coronavirus-friendly entertainment is usually centered around your preferred streaming service, which, while less entertaining, can be a great way to save money.
It's a great way to be creative while learning new culinary skills by recreating your favorite restaurant dishes. If you do succumb and order takeout every now and again, you will normally spend less than you would at a restaurant because you will save money on drinks.
4. Create an emergency fund.
To create an emergency budget, include all of your sources of income (including maintenance loans, grants, and cash from parents), as well as everything you need to spend money on (such as rent, bills, travel, etc.). To discover what else you're spending your money on, compare this to your actual bank statement.
After you've figured out what you're spending your money on, you can start putting together an emergency monthly budget. Which of these items do you have to spend money on every month? What are you unable to live without? Be ruthless. Keep in mind that this is an emergency budget, not a regular monthly budget.