Increasing costs of utilities, such as heating and electric, means less money to spend on the things and the people you love. According to Nudge, by creating a budget, you have the chance to be 3 times better off in the future!
Check out their tips on learning to manage the household budget and reduce your utilities…
• Standby Offenders
Although it's hard to measure exactly how much energy is wasted by leaving appliances on standby, Nudge states that you can save around £30 a year by turning them off at the switch. It may seem like a small amount but changes like this can soon add up.
• Energy Eye Opener
Turning off all the lights when you go to bed can save you an estimated £281 per year.
• Feeling Hot?
Turning down your thermostat by just 1°C could cut as much as 10% off your heating.
• Stop the Shop
Spending here and there can add up, even £20 per week in addition to your larger food bill will cost you on average an additional £1000 per year!
• 50/30/20 Rule
50% of your salary for essential bills, 30% of your salary for things you want, and 20% of your salary to put into a savings account.
• Jam Jar Method
Split your spending into physical or digital containers, using pots, jars, or an online tool. This will help you have a much clearer visibility of your budget and also help you to stay within your spending limits.
• Break it Down
Break your spending down into daily or weekly chunks to help better manage your finances. Try drawing out a certain amount each week and spending within that amount. If you have any left at the end of the week, put it into a savings pot - see how much you can save in a year!
• Stop Impulse Online Purchases
Clearing your stored card details from your browser, mobile, or app, will stop it from being as quick and easy to buy with one click. Also, try asking yourself questions like, "Do I really need it?" If the answer is no, don't buy it - seems simple, but sometimes that's all we need in order to restrain ourselves from getting too carried away with online purchasing.
• Have a 'No Spend' Day/Week
Try a 'no spend day/week'. Only spend on essential items and get creative with entertaining the kids.
• Treat your Savings Like a Bill
By setting up a standing order to be taken each month immediately after payday, the money's gone into your savings account before you have a chance to miss it!
• Make it Fun
Set challenges, get the family involved. What about trying to save £1 in week 1, £2 in week 2, £3 in week 3, and so forth? Do that for a year and you'd have £1378 saved up!
This blog was brought to you by the team at Nudge, a personal finance solution that helps people maximise financial opportunities, overcome financial problems, and make managing money stress free. https://www.nudge-global.com/
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