The Best Way To Save Money Fast – Dangerous Direct Debits

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This post will focus on, in my opinion, the best way to save money fast by looking through your bank statement. You may have already seen my similar post on financial stress (click here).

During this hard time of quarantine there are many households worrying about their finances and how they can save money here and there. This can be difficult even in ‘normal times’ however something as simple as looking through your bank statements can make a huge difference.

Those Dreaded Credit Agreements

Let’s be honest, we all have or have had unnecessary monthly payments to prevent larger cost at the time of purchasing items. The purpose of finance or monthly payments is obviously to spread the cost on items that may be slightly out of reach financially. However, near on everything these days has a payment plan option, from kitchen appliances, furniture, clothing, jewellery, vehicles, garden furniture and so on. Furniture

A lot of people take advantage of monthly payments. Many do it just to help keep their savings account high; others do it to be materialistic. I personally know of someone who will happily take a credit agreement out on cars just to they look good on the driveway.

The sad thing is these cars are very old, but in good condition. They then purchase a personalised number plate to hide its age and pay a valeter to come and make it look brand new. The probelm is, due to the age, these cars come with issues and the fact that the cars are of a known and expensive brand, repairing them is costly. So let’s just add all of this up, a £6000 car and a £4,500 car equates to £10,500 straight off the bat. A rough payment for these would probably be roughly around the £4-500 each (Inc interest), so there is a £1000 a month gone straight away. If you then take repairs and fuel into consideration, they are both v8 petrol engines, that is another few hundred pound, at least, gone. Before you know it £10,500 worth of car has burnt a much bigger hole in you pocket and all for the sake of image.

range rover

I am afraid that a lot of people have this outlook; they want the latest trainers, the expensive watch and end up falling into a hole of debt.

 

Be In Control Of Your Finances And Yourself

Now, obviously the above paragraph is an example of someone who cannot help but portray a false image of themselves. You have to hold back those urges. I look at it like this, its pointless buying the latest designer outfit to show off in the local bar or nightclub, if you have to then borrow money to drink in that bar or nightclub. It just doesn’t make sense. You have to ask yourself, would I rather have money in the bank, build on that figure and then be able to afford the odd luxury item here and there at no extra cost, or shall I just take the risk on credit and see what happens? Remember, life has a habit of creeping up and throwing a curve ball every now and then. Then all of a sudden you need as much money as possible. I myself have experienced this.

The Best Way To Save Money Fast – Weeding Out The Unnecessary Expenses

I started having a look through my bank statement with a fine tooth comb recently mainly because I have never really done it, but also to see where my money is going every month.

socialising

My advice is to have a read through your last bank statement and highlight all of the things you have purchased or have remaining payments on that aren’t necessary. For example, I have personally saved a little bit of money during the pandemic by not socialising as much. By no means am I suggesting you stop socialising (when things are back to normal obviously). However, a £30 night out can quickly turn into £100+ night out. So, I have simply worked out roughly how much money I would spend on a night out and I have put it away.

Also when looking through my statement, I noticed a few payments that were necessary at the time but no longer necessary now, therefore I can pay these off and save a monthly outgoing. I noticed I had a monthly payment for a coffee table which was slightly out of reach at the time of purchase but now it’s an unnecessary monthly outgoing. Admittedly this was a 0% interest finance so I do not pay any extra than what the table is worth. However, it’s still an outgoing. I logged into my account that shows my breakdown of costs and I cleared the payment of £185 that was outstanding. Now, admittedly some people may not be able to justify paying that amount of money off, that’s completely understandable, but why not pay off what you can afford? Even if is £10, £20, or £30 its still making a difference. I also decided to pay my car insurance in one hit instead of monthly. This saves my finances forking out £40 a month (and interest) and ill I had to do was part with £280 for one month.

I Can’t Afford To Pay Things Off, Even slightly- What Can I Do?

Of course, there are people out there who cannot afford to do the above, however, I can guarantee you that those people pay out for some luxuries they do not need.  Something as simple as a coffee from the local coffee shop on your way to work, or a meal deal from the local sandwich van all adds up over the weeks and months. Cut these out. Take your own coffee and make your own lunch. Once you have done this for some time and saved, you can then treat yourself to a meal deal once a month.

If you still cannot pay monthly payments off and you do not treat yourselves to unnecessary luxuries, do not panic; see my dealing with financial stress post here. I advise you also speak to your bank or even a financial advisor for some advice. There are always loop holes when it comes to money and ways to help you relieve your financial stress.

How I Can Afford To Pay Off Certain Payment Agreements.

As mentioned above, it’s not possible for everyone to be able to pay off debts etc so easily. Well, I am fortunate enough to be able to do so with the help of an online business building platform called Wealthy Affiliate. Wealthy Affiliate teaches you how to start an online business and grow it into a success. This will help you bring in another income whilst blogging and promoting a passion of yours. We have all wanted to be our own boss haven’t we?! Well here is your opportunity! Also, what ties in nicely with my post, is the fact that WA offers a FREE membership! You get to learn from the very best and do so for FREE.

Change your life today and become your own boss! I started my own online businesses (this one and others) back in 2019 and it has been the best investment I have made (I am a premium member now). Take a look at my Wealthy Affiliate review below and see what you think.

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I hope this post has been helpful and has shed some light on the best way to save money fast. If you have any questions on this post or Wealthy Affiliate please leave them below.

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10 Responsesso far.

  1. Natalie says:

    Hi, thank you for sharing your experience on saving money!

    Indeed, this is very timely in light of the ongoing crisis.

    Me personally, I try to avoid buying things in credit if I can afford to pay it off all one-time because it’s usually less expensive.

    The best way to save money is to spend less than you earn 🙂

  2. Lintang says:

    Nice share mate, I think now I know why I’m not wealthy till today. Thanks for sharing

  3. Tatjana says:

    great article. Found myself in it, haha. I definitely have to cut on some unnecessary things, for now.

  4. Hello Russ – very good and timely article. This is so important not just now, but anytime. I’ve been canceling memberships and unnecessary extra’s on my cellphone bill too. All adds up. Thanks for the reminder.

  5. Sir Wilbert says:

    Russ,

    Great article!!! It takes a lot of guts to take a personal inventory of what you need to live and get rid of those so called luxuries you feel you can’t live without. But if your not going to create new sources of income then this I feel is a must to start paying off debt. Thank you for sharing and this is a friendly reminder because we all can let go of some stuff to have the things we really need.

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