One of most people’s biggest regrets is not saving money earlier, which can be said for many people who were affected by the last recession.
Having something to fall back on when the rainy day comes is what we all want but if we don’t start building it, it will never come. We’ve pulled together a few tips that should help you save money and increase the amount of disposable income you have.
Start a savings account
Opening an account today is very easy, you can be in and out of the bank within an hour with a savings account ready for you to start filling up. If it doesn’t cause too much financial restraint on you, why not try saving 20% of your income every month in your savings account?
If you can manage it, it will pay off to be a good investment for you. Figures released by Scottish Widows’ suggested that 1 in 5 people had no sort of savings whatsoever meaning that 20% of the population were simply relying on their salary for the month to keep them going. Nobody wants a rainy day but we have to prepare ourselves after what happened last time as anything could happen and prevention is better than the cure.
Find extra sources of income
We’ve taken an extract from Robert Kiyosaki’s book, Rich Dad Poor Dad where he explains about paying himself first:
“Of course not,” said Rich Dad. “I firmly believe in paying my bills on time. I just pay myself first…before I even pay the government.”
“What if you don’t have enough money?” I asked.
“I still pay myself first,” said Rich Dad.
“But don’t they come after you?”
“Yes,” said Rich Dad. “That’s why I always find a way to pay.”
This leads us on to our second suggestion, finding extra sources of income. Some of you will know what we are talking about when your salary is just not enough; after taking out the bills, travel money, grocery shopping, overdraft for some and other expenses, we are sometimes left with next to nothing left to survive the month on.
With another source of income, you would be able to use that as disposable income (not forgetting to save some money first). The next question is, how can you earn a second stream of income? We’ve pulled together a list of 12 possible ways for you to earn extra cash in your spare time, some which we got from the Satsuma Squeeze:
- Start a blog
- Paid for surveys
- Take part in competitions
- Become a tutor
- Rent out some space in your garage or spare rooms
- Mystery Shopping
- Be a film extra
- Quality tester
- Use cashback websites
- Music reviewing
- Sell your ink cartridges
- Work at events
If you do find yourself unable to manage your finances properly, the Money Advice Service are always there to help you with many guides on getting out of debt and having a financial plan in place to protect your future.
If you have other ways in which people could save money and increase their disposable income, do let us know in the comments.