‘Take care of the pennies and the pounds will take care of themselves.’ How accurate is this saying? Indeed, most of us are looking for ways to cut back on our spending. By analysing where you are spending your money and by cutting back a little on some spending habits, it would make it possible to save a substantial amount each month. Rather than spending your money on everyday treats, such as getting the morning takeaway coffee or buying the latest fashionable item, think of the considerable rewards you could treat yourself to, for example, travelling to your dream destination.
It will also give you a sense of financial well-being. You can learn more about financial well-being from our medirectalk with Morningstar.
Here are some tips you might want to consider to better manage your spending:
Do not splurge on payday
Your pay has arrived, and you feel like the wealthiest person on earth! Well, it would be best not to start buying everything that comes to mind. You should make a budget and be aware of where your expenses. Make sure to put aside some money every month and create a small nest egg.
Make sure that whatever you buy, you consume. This is an important step not only for the environment but also for your pocket. Prepare your meal plan and purchase only the ingredients on your list. Make a conscious effort to use everything you buy, and you will save a fortune. If you are in the habit of eating out often, remember that preparing meals at home, can help you save.
Check your workplace benefits
It is no surprise that getting sick can be costly – not just because you cannot work, but also because of medical bills. A perk that is sometimes offered by companies is health insurance, life insurance, eye check-ups or even company discounts. Make sure you are aware of the benefits that your company offers and make the most out of them.
Check your costs and change suppliers
Have you ever gone through your monthly expenses and analysed if there are competitors which could offer the same service but for less? Once you initially do this you can then keep a regular lookout, perhaps a competing service provider has a promotional offer that can end up benefitting you even more.
Refinance your loan
Refinancing is the process of switching your current home loan to a new deal. Refinancing a home loan could save you money by lowering your monthly payments, amongst other things. And who wouldn’t want to save some money every month? You can learn more about the benefit of refinancing by clicking here.
Stop paying interest
Don’t let your credit cards run into the red – make sure you pay them off on time and in full every month. The interest charged on credit cards can add up, so you can save the money you would otherwise spend on paying the interest. This is one of the best ways of saving – avoid getting into debt.
Give yourself an allowance
Budgeting how much you spend each month will surely help keep your expenses in check. However, everybody deserves a treat now and then and therefore putting some money aside for you to spend however way you want will still help you save in the long run because it allows for some splurges but stops you from overspending.
Start saving now
Saving brings the peace of mind that many of us crave. It is easy to set up a savings account and by doing so you can make your money work for you without having to do anything. With an interest rate of 1% when locking your savings for one year, MeDirect makes it easy to start saving with as little as €100.
And to make it easier, MeDirect is giving you the facility of becoming a customer from the comfort of your home through our website when clicking Become a Customer.
Click here to find out more and to open a term deposit account online today.
MeDirect Bank (Malta) plc, is licensed to undertake the business of banking in terms of the Banking Act (Cap. 371) and investment services under the Investment Services Act (Cap. 370). The Bank is a participant in the Depositor Compensation Scheme established under the Maltese laws. Rate quoted is gross of tax on a per annum basis. Interest is paid into a savings account. Accounts can be opened with a minimum of €100 and deposit must be kept in the account for the duration of the 6 months. Terms and Conditions apply and are available upon request.