1. Identifying your financial goals

First things first. Before you embark on any money-saving schemes, it’s just as well to identify what your financial goals are. Start by considering what you might want to save for - both in the short term (one to three years) and the long term (four or more years). Then estimate how much money you’ll need, and how long it might take you to save it.Your possible short-term goals may include an emergency fund (three to nine months of money to live on), holiday money or a deposit on a car. Your long-term goals could include a deposit for a home, school fees or money for retirement.

2. Setting a budget

We all know we need to do it - but how many of us actually do? If you plan to save money you really need to see where your money is going each month. A budget can help you feel more in control of your finances, and make it easier to save money for your goals. Here’s how to create a budget.

• Calculate your net income - The foundation of an effective budget is your net income, or the money you have to spend minus deductions for taxes and employer-provided programs, such as retirement plans and health insurance.

• Work out your spending - Once you know how much money you have coming in each month, the next step is to work out where it’s going. Track and categorise your expenses, so you can determine where you may be able to cut and make savings.

• Set realistic goals - Before you start sifting through the information you’ve tracked, make a list of your short and long-term financial goals - see section above.

• Make a plan - This is where you set priorities and it may well be worth adopting the 50/30/20 rule.

• 50% spend on absolute needs - food, rent, mortgage and utilities

• 30% spend on things you want - holidays, streaming services and eating out

• 20% spend on money that you can save or pay off debt  - credit cards, retirement fund, emergency fund and children’s education

Once you’ve set your budget, make sure you stick to it. But, of course, keep reviewing it at regular intervals.

3. Prioritise paying off debts

There’s not really much point in saving money in one place, if you’re paying high interest on debt in another. For example, if you have a card that charges 20% interest a year - that’s £200 interest on a £1,000 debt., and your £1,000 savings only earns you 1% (£10 per year). If you paid off the debt with your savings, you’d be £190 a year better off.

4. Try the 30 day rule

It happens to us all - we see a stunning coat, or the latest iPhone, and we must have that item, there and then. We don’t think about the money, the impulse is so strong. But stop - if you can exercise some self-control and enforce the 30-day rule on yourself, you may just save some money.Here’s how it works. Write down what it is, the cost and then commit to thinking about the purchase for the next 30 days. Consider if it’s a true need or want. If at the end of 30 days, you still feel you want/need it - buy it. If you’ve forgotten about the item or realised it really wasn’t that important, you’ll have saved that money.

5. Set up a savings account

If you plan on saving money, it’s a good idea to set up a savings account. But there are a few things to consider in choosing the right one for you.

• Interest rate: How much interest will your money accrue while sitting in an account. Interest might be fixed for a set term, or variable as the market changes. It could also be paid monthly or annually, so check to see what suits your needs.

• Access: You need to decide if you need an account that offers you instant access, or one that you’re happy to leave your money in for longer.  Often the longer you’re prepared to lock your money away, the higher the interest rate you might receive.

• Terms and conditions: Always check these. Do you need to make a minimum deposit or save a set amount every month to qualify?  It’s a good idea to look out for any charges for making withdrawals, too.

• Paying tax: It’s important to check the tax implications of your savings.

6. How to save money on food & groceries

According to the Office of National Statistics, the price of food and non-alcoholic beverages in the UK  rose by 17.4% in the year to June 2023.Close to half (47%) of adults in Great Britain said that they were buying less food when shopping in the past two weeks. Plus, the 59% of adults who said that their cost of living had risen in the previous month were most likely to say that rising food costs were a reason for this. While these figures are for the UK - it’s a trend that’s being seen worldwide. So what can you do to save money on your food and groceries to counteract the rising prices? Here are some tips.

Plan your meals

If you plan your meals for the week - you’ll only buy the ingredients you need. To that end it’s probably best to only visit the supermarket once a week with your meal plan list - that way you won’t be tempted to impulse buy.

Shop smart

You can review prices online and then use supermarket budget ranges for items such as tinned and fresh fruit, vegetables, pasta and rice is a real help too. Avoid the big brand names - you’ll usually pay a premium for them.

Buy seasonal

Prices come down when there’s an abundance of any kind of food and, when it comes to fruit and veg, an extra bonus is that they taste much better when it’s in season.

Beware the multi-pack

You may be tempted by seemingly great offers, but don’t end up with a mountain of food you can’t eat before it goes off. Think before you go for a multiple offer such as ‘two for one’ or ‘buy two get one free’.

Compare like with like

Always compare prices on the supermarket shelves. Larger packs are often better value, but only if you are going to use it all.

Only cook one meal

You’re not a restaurant. So don't try and cater for a variety of likes and dislikes. Make one meal for everyone. It costs more to buy the different foods and cook separate dishes.

Freeze and save

Cooked too much casserole or curry? Never mind - freeze and use on another day. And remember, bread freezes very well - especially if you’ll be using it for toast.

8. Save money on utilities

Energy bills are soaring everywhere and make up a huge proportion of most people’s household bills. According to the Office of National Statistics Gas, electricity prices in the UK rose 36.2% and 17.3%, respectively, from 2022  to June 2023. They’ve also been one of the largest contributions to the overall inflation rate since April 2022. So we’re all looking for ways to save money on these vital utilities. Here are a few tips:

• Shop around for a cheaper energy provider. By making sure you’re on the cheapest tariffs on the market, you could save yourself so much.

• Turn off lights when you leave a room.

• Swap your light bulbs for LED light bulbs. LED bulbs are 75–85% more energy efficient than standard light bulbs, they also last 15–25 times longer.

• Get a smart thermostat that adjusts your central heating intelligently, potentially saving you a great deal of money.

• Make sure your home's energy efficient - by sealing up any air leaks. Gaps around your windows and doors can increase your electricity and gas bills.

9. Cancel any unused subscriptions

Remember your subscription to that streaming service that you fancied watching that documentary on? No. Well, if it’s still running - it could be leaking your money, without you enjoying the benefit.Few of us ever use our subscription services to their fullest. So, it’s more cost-effective to cancel any unused subscriptions now, rather than keep them on and to a time when you may hypothetically use it.

10. Buy second-hand

Second-hand. Pre-owned. Pre-loved. Nearly new. However you say it - there’s less and less stigma these days in wearing previously owned clothes or buying second-hand furniture. It’s actually really cool. As well as saving you money - it has the added benefit of being a great way to recycle goods.There are so many places to find these second hand items - it’s a growing business. Check out the charity shops where you know you’ll also be giving something to a good cause. Then, check out:

• Nextdoor

• Gumtree

• eBay

Make the most of WorldRemit’s no-fee transfers

As we said at the start, WorldRemit is all about helping you save money. That way there’s more money for you, and more for your loved ones who you may be supporting with money transfers. To that end, we have explored these subjects to bring you useful tips on how to save money:

• How to manage your money and improve your finances

• 10 tips to save money when you move abroad

• 9 tips to travel on a budget and save money on your next adventure

And that’s not all. If you start sending money with us, you can enjoy your first three money transfers free of any fees. Simply use the code 3FREE when you come to send.  So, why not sign up to WorldRemit, and make a money transfer today?

The contents of this blog post do not constitute legal or financial advice and are provided for general information purposes only. If you require specific legal and / or financial advice you should contact a specialist lawyer or financial advisor. Information true at time of publishing.