8 Tips To Clear Debt

Whether you have built up debt because you went a little wild with the credit card, had bills to pay or you're on a low income we all have the ability to save a hefty some and reach our financial goals. In this post I will break down my best money saving tips that are so quick and easy to do whilst also bringing you great returns. Most people do not live a frugal cash saving life forever. This is an intense guide to saving money to get you to your saving goal.

1) Identify why you want to save?

This point seems obvious and not really important. Why does it matter why I am saving money? Well it is important  because having a target enables you to avoid "dip ins" which will quickly deplete your savings. Want a new Ipad? That's your only reason to spend your saved money. Want to pay off your credit card debt? Thats your only reason to spend saved money. Want to build an investment? Thats your only reason to spend saved money. You get the point.

2) Build a budget.

This is the foundation of all your money saving. Take an average month where you dont have any exceptional spending i.e Christmas and that month half your family have a birthday probably isn't your choice. Write down every single penny you spend from 15p to use the toilet at the train station to £150 on food shopping. Once you have recorded everything filter the records into categories. Food, eating out, travel costs etc. This enables you to start eliminating things that are not essential. 

3) Stop that gym membership

For the vast majority of people, any time period after January your gym membership is a waste of money. If you're a frequent gym goer then this tip likely doesn't apply to you. Record how many times you actually use the gym in a month and then calculate if its cheaper to just pay for  each time you attend. Most people save at least 50% of their money by cutting the gym. Unless you're training to be a Hulk impersonator the chances are that your workout is doable at home. There is plenty of youtube channels dedicated to home work out routines and they're entirely free. 

4) Analyse your food shopping

The first tip here is to never ever food shop when you're hungry. You'll walk the aisles and everything will look appetising. Cook and eat a full meal before you go shopping and you'll drop a lot of impulse buys. Also, don't shop after work. Last thing most people want to do is think about cooking when they've finished work so more likely to buy quick and easy meals which always cost a premium. 

5) Buy a brand down

Always buying lindt chocolate? Maybe try Cadbury's. Always buying the finest french wines that are hand picked? Maybe buy the cheaper/est brand. Always buying salmon? Try mackerel or pollock, its significantly cheaper and just as healthy. Remember, you're saving for a big financial goal. Being debt free tastes a lot better than salmon. 

6) Threaten to leave

Countless people have had amazing success with ringing up your subscriptions and saying you're going to cancel. Sky TV have given people discounts of up to 75% off when threatening to leave. Normally, I'd say to cancel such subscriptions all together but if you're a football and/or movie watcher then these bundle subscriptions can be significantly cheaper than a few hours in the pub or a night at the movies with junk food.

7) Switch your mobile phone provider

Mobile phones can be a serious drain on the wallet especially if you're tied into a contract. I left EE and paid £8.50 to leave a month early and then signed up with voxi who run a deal that gives you unlimited minutes, texts and 6GB of internet for £10 a month. If that wasnt already good enough you get unlimited social media data for free. 

8) Start building your savings straight away

Again, this sounds obvious but you need to start saving money right from day one. If you're bad at keeping savings in your savings account then get a fixed account where you can't withdraw money. If you're better with money then i'd recommend Marcus bank. Marcus is operated by Goldman Sachs and is currently offering a 1.5% interest rate on all savings. 

I hope this blog post helped you begin to start saving up more money and aided you towards reaching your financial goals. If you enjoyed the tips then be sure to share them with a friend or family member sending them the link to this post.