Monday, 30 June 2014

Making money go further: Tips from your mum

Many have heeded their Mum’s advice to be more frugal. Implementing the penny jar for loose change and cutting down to one takeaway coffee per week can make a big difference, but most mums are savvy enough to know many more tips to help make your money go further. These days there are a whole host of things you can try to get the most out of every pound that comes your way. That said, some of the tried and true money savers that worked for your Mum and her generation are still good to today, even in our fast-paced, technology-heavy world. The speed and mediums of information exchange may have changed, but the fundamental principles of good money management haven’t. Earn It, Save It, Invest It – this is the mantra of many mums, some of whom remain the most successful financial wizards in the world. For more information on how to get most out of your money you can also try the websites of wealth creation education organisations like Learn to Trade.

Here are a number of other tips that will help you spend less and invest more -

Cook at Home

That’s right, one of your mum’s top money saving tips is to spend less on eating out. Cook at home and invite friends to your place rather than going out. If everyone brings a course or a side dish, it can cost you very little to host – you may only have to make the main course. Try sticking to easy-to-freeze meals like pies and pastas with homemade sauces so you can reuse any leftovers easily, plus you can freeze it and thaw later in the week to use as a base for a soup or a great sauce for pizza. Vary your condiments and herbs and you can have a few lovely nights in for very little outlay. Work out how often you eat out, what you spend, and how much this might save you per month. Now think about that money doing something besides sitting in a savings account. Can it pay down some debt? Can it be added to an investment fund you’ve got going? How hard can you make your money work? The harder it works, the more return

Avoid Debt Like The Plague

You’re already ahead if you’re not carrying any personal debt, such as credit card debt, personal loans or store cards. Should you have any accumulated personal debt, cut your expenses to the bare minimum and make it a priority to clear that as quickly as you can. If you’re storing stuff you don’t need or want, see what you can sell it for on second hand sites like eBay or Gumtree. Look for savings on phone data plans and insurance – anywhere and everywhere you can find a spare pound makes a difference. You might even consider selling your car and taking public transport for a while. Put everything you can spare towards that debt until it’s gone. Move forward with a clear household budget that will help you steer clear of the debt treadmill in future.

Invest

Once you’ve paid off your debt, see if you can keep tithing a similar amount of money into an investment account. This is when all your careful money management really starts to be fun, as you can drive your money to work as hard as it can for you. Set some investment goals and track your progress. You’ll find taking a proactive interest in your money pays dividends.

In the end, most mums know that investing is all about making the money do the work. The more you save, the more money you have to invest. And you can take it a little easier if you’ve got your money doing a lot of the hard work.

But what about you, do you have a top tip for making your money go further? Don’t keep it a secret – share it in the Comments box below.





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