Begin your savings journey

It is getting to the very end of January, have you began your yearly saving yet? Not to worry if not, it’s never too late.

Here at Texas Cash Back, we do understand the struggle of saving up money. Especially when you believe you don’t have enough to save or even know where to start. Therefore, we have decided to help you find the right path and the easiest method for you which will save you money without even realising.

Our top saving tips

Debt – You should add up how much you spend paying your debt each month, and you’ll quickly see that eliminating your debt should be one of your priorities. Once you have got that out the way, you will be able to go full force with your savings. This will give you a great chance when it comes to saving to your full potential and reaching your end goal.

Eliminating your debts can be difficult if you don’t currently have the resources to do so, but have you considered a debt consolidation loan? Although they may not be the best idea as you are going from paying off one debt to another. They help you repay all of your debts in one go. This means that you only have one to focus on. This makes it easier for you to manage.

Set goals – Setting goals is essential when saving as it gives you an endpoint. Not only this, setting a goal might act as some sort of motivation to help you get on track. Or give you a different mindset where you are aspiring to reach that specific amount.

Choose a specific amount – Everyone’s income and their outgoings are different. You need to find the perfect amount for you, whether it be an amount you think will be the easiest for you, or whether it be one which will push you to your best ability. There are plenty of examples on the internet of ways you can save money quickly and efficiently.

One of our favourites has to be the 50/30/20 rule. The rule is a simple plan that categorises spending into three categories: needs, wants and savings. It explains that for the best, easiest results you should split your monthly income into 50% spent on needs like food and basic things to survive throughout the month. 30% on things that you want and lastly, 20% for your savings. This lets you live the lifestyle which you want to live. But also enables you to build up some cash behind you. This is so if you ever need some extra cash for unexpected bills you don’t have to get a loan or use a credit card.

Get rid of unnecessary habits  – Your biggest negative spending habits are right in front of your eyes. But you probably can’t see them. Is that right? Whether it is your unused gym membership, your morning coffee or your daily trip to the supermarket. Sometimes you don’t always realise how much you are spending as it has become the norm for you, but once you take a minute to look at your outgoings smartly, you will see the problem.

Do it yourself – Are you one of those people who buys your lunch every day at work? Or someone who takes a trip to a big chain coffee shop for a morning drink to wake you up? Well maybe it is time to fix that problem, and also fix the bank. You will save yourself a lot more money if you bring your own lunch from home and prepare your morning coffee before you leave the house. It will probably be money you didn’t even know you had.

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Read our previous post on the pros and cons of cash-back mortgages here.