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10 money saving tips from successful savers

Posted on 10 August 2014

Tried-and-tested ways to save money

With the cost of living and dying both increasing, saving may sometimes seem impossible. The good news is you don’t need a big income to start your savings goals. Here are our top 10 money saving tips that have been proven to work.

1. Change your mindset

Successful savers realise that saving money is about priorities and planning ahead. Beverley of the blog Pack Your Passport, who saved more than £2,000 in just 6 months to go travelling to Australia, had a clear savings goal which motivated her to save. Would you like to afford a new car or your child’s wedding? With a goal, you’ll understand that every pound saved adds to your savings for that wedding dress or a new car.

2. Make changes to your lifestyle

Reaching your money-saving goal will involve changing some habits. Small changes can make a big difference over time. Ian and Rebekah Pugh managed to save £900 a year on food bills by setting a limited shopping budget and shopping at local stores instead of supermarkets.

3. Start as early as possible

Many successful savers learn to save at a young age. Jen Walshaw from the blog Mum in the Mad House encourages her children to save by paying interest on what they have already saved during the month. This is a great way of keeping children motivated to continue saving more money. It’s important to teach children the benefits of saving money. After all, the sooner you start, the more you can save.

4. Consider own-brand goods

Supermarkets these days offer some good value own-brand products, which can save you more than buying essentially the same product from a well-known brand at a higher price.

5. Weigh up your savings options

The first option many people think of for saving money is in a savings account with a bank or building society. Whilst this is good, there are other choices that could be more suited to you. A NISA (New Individual Savings Account) protects your savings from taxes incurred with regular savings accounts.

6. Keep track of your spending

You need to know how much you’re spending before you can decide on how much you should save. Cass, writer for the blog Frugal Family cites this as a top tip, try her downloadable budget planner. Another popular blogger, Frugal Frank, recommends recording all of your expenses, no matter how big or small they may be. Many people spend a great deal more than they realise, so recording all your expenses will help you work out where you can cut back.

7. Find ways to cut back on expenses

Expenses can be categorised as fixed and variable. Fixed expenses stay the same every month, e.g. rent, insurance, mobile phone plan. Variables include money spent on food, petrol, clothing, entertainment, etc. The challenge is choosing which expenses you can drastically reduce. Do you really need Sky TV? Can you and a colleague share the commute to work and cut petrol costs?

8. Clearing your smallest debt can encourage you to save

According to the money and debt blog, Johnnydebt.co.uk, staying motivated is key to successful saving. For example paying off your smallest debt can be beneficial in the long run. To have one debt cleared, no matter how small it may have been, can encourage you to keep on saving to pay off other larger debts. It all comes back to the psychology of saving.

9. Automatically add to your savings

Deduct a certain amount from your salary every month to put into savings. You can take things one step further by setting up an automatic transfer to ensure the amount goes into your savings account the day after every pay day.

10. Pay off your debts as soon as possible

A top tip from Rob Dab, a finance writer for the Debt Advice Blog is to try and pay off more than the minimum amount each month. If you save £5 on your weekly shopping bill, then why not use the money you saved towards making a higher repayment for that month? Making small changes like this will help your clear you debt faster.

SunLife offers a range of straightforward and affordable products including over 50s life insurance, funeral plans, equity release, pet insurance, home insurance, car insurance, ISAs and Will writing services.

Here's the information that you need to know about who we are and the other companies that we work with in order to provide our products and services.

Who are SunLife?

Phoenix Life Limited trades as SunLife and is the provider of the Guaranteed Over 50 Plan, SunLife Insurance and the life insurance policy payment option for Funeral Plans. Phoenix Life Limited’s registered office is at 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 1016269). 

SunLife Limited distributes financial products and services and is a company limited by shares, registered office: 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 05460862). SunLife Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (registration no. 769427).

You can contact us by post at SunLife, PO Box 1395, Peterborough, PE2 2TR or by phone on 0800 008 6060.

If you choose to add Funeral Benefit Option to your Guaranteed Over 50 Plan, Dignity Funerals Ltd arranges and provides the funeral services, registered office: 4 King Edwards Court, Sutton Coldfield, West Midlands, B73 6AP (registered in England and Wales, No. 00041598). Dignity Funerals Ltd is a member of the National Association of Funeral Directors.

Who provides the Funeral Plans?

Dignity Funerals Ltd arranges and provides the funeral services, registered office: 4 King Edwards Court, Sutton Coldfield, West Midlands, B73 6AP (registered in England and Wales, No. 00041598). Dignity Funerals Ltd is a member of the National Association of Funeral Directors.

The life insurance policy that pays for your funeral will be provided by Phoenix Life Limited, trading as SunLife.

Who provides My Smarter (ISA)?

My Smarter (ISA) is provided by Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority. Details can be found on the Financial Services register, registration No. 188832. Member of The Investment Association. Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.

Who provides the Will writing services?

Hugh James is authorised and regulated by the Solicitors Regulation Authority (SRA Number:303202).

The information contained on this website is based on Hugh James' understanding of the law of intestacy in England and Wales only as at April 2014. The law in Scotland and Northern Ireland is significantly different. This is for information purposes and is not intended to be legal advice.

Who provides SunLife Pet Insurance

SunLife Pet Insurance is arranged and administered by BDML Connect Limited. BDML Connect Limited is authorised and regulated by the Financial Conduct Authority (No. 309140). Registered in England and Wales Number 02785540. Registered Office: 45 Westerham Road, Bessels Green, Sevenoaks, Kent, TN13 2QB.

Who provides SunLife Home Insurance

SunLife Home Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.

Who provides SunLife Car Insurance

SunLife Car Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.