Saving money doesn’t just give you more financial freedom and security. It also offers you the option of additional expenditure on the likes of fancy cars and flashy holidays. But often, it’s easier said than done.
It is possible to establish healthy savings habits: you just need a little time and effort, as well as a few simple switches in your day-to-day life and general spending habits. With that in mind, here are some of the best ways to kickstart your savings in 2022.
Invest In Property
Stocks, property, even collector’s items: investing could potentially herald a decent payout. For those just starting out, purchasing an investment property can be a wise choice. While you’ll need to pay for the property itself, by leasing it out, you’ll have a regular monthly income.
Firstly, however, it would be beneficial to seek the support of a comparison service such as Trussle as they can provide ample mortgage advice, relative to your circumstances. Having a chat about your options could help to determine where and which sort of property you should invest in, and should you submit an application, they’d endeavor to respond within a matter of days.
Once you’ve acquired your property, there’s always the chance you’ll have some initial expenditure to ensure the home is up to scratch. Whether it’s small DIY jobs or larger scale renovations, the initial costs could be the difference between potential renters lining up in droves or an altogether lack of interest.
Related: How to strategize on having a savings plan
In addition, these changes could very well boost the value of the property in the long term, which would be very beneficial if you eventually choose to sell it on.
Once you’ve got the hang of investing, and perhaps have additional savings to use, you could then begin to look at other means of investment. After all, many experts recommend investing in various assets to reduce risk and enhance the potential for growth.
Avoid debt
If you want to save money, you should try to avoid debt. A student loan is one type of debt that could be beneficial, as is a business loan to get your start-up off the ground. Credit cards and payday loans, on the other hand, are examples of bad debt which are best to steer clear of.
How you use your debt is important too. If you have a credit card that is paid off every month, on the whole, that’s fine. If you’re maxing out your cards each month, and not paying on time, you’ll then face additional fees and charges and it could also impact your overall credit rating.
Spend Wisely
Another important thing to remember if you want to save money is that you need to minimize your costs and spend intelligently and intentionally. As Better Money Habits report, this may require a budget, but you’ll be in a better position to understand exactly how much you’re spending and where you could save.
As NerdWallet Keeping track of your spending can also help you to identify areas where you need to cut back. Could you go without your morning coffee on the commute?
Why not try making lunch at least three days a week? Bear in mind that you should be striving to reduce your spending as much as possible so that any spare money can be invested for personal growth.
