5 simple ways to cut down your spending in 2016

2016 is almost here, and hopefully it will be a year of health and prosperity for all of us. Of course, it’s also the time of the year when we hope New Year’s resolutions will replace bad habits. As a parent, one of the ongoing things we grapple with is to try and manage spending, while not letting money get in the way of the opportunities and experiences our children should enjoy.

So, for me, 2016 is going to be a year of trying to trim a bit of fat off the monthly spend and finding ways of being a bit thrifty, without feeling like we’re not allowed to have any fun. I did a bit of research recently, and found five easy ways to free up a bit more money in our budget…

1) Save on the little things

It’s an old cliché, but this last month I took note of all the little expenses during the day. The £2 coffee from Costa, buying lunch every day at work, and all the little drinks and snacks for the kids. It was staggering how much it amounted to by the end of four weeks. Taking your own lunch, cutting down on treats, making your own coffee in a portable cup and generally turning a blind eye to all the shops when walking up the high street will make such a difference to your finances, and allow you to save up for the bigger things in life.

2) Coupons, coupons, coupons

This is a bit of a double-edged sword. On one hand, the variety and abundance of coupons out there mean there’s a wealth of savings to be had. It’s so easy on your mobile apps too, so spending a bit of time researching the myriad of deals out there really can do the world of good. Yet it must be remembered that coupons are also simply clever marketing, meaning you could be enticed into buying or doing something that isn’t necessary, purely because it feels as though you’re making a saving. Be careful that you only make use of discounts for goods and services that matter to you.

3) Get rid of credit card debt

Christmas is obviously a time where credit card debt can spiral a bit. It’s a fun time of the year, but also a costly one. Credit cards are quick and easy, but they are also expensive, and when you’re stuck making minimum payments on a massive debt, the bankers are laughing all the way to the, err… bank. You can easily consolidate your credit card debt with low cost personal loans. When you consider the extortionate APRs on credit cards versus the starting APR of 5% offered by some lenders, there’s a huge interest saving to be had on repayments via such a loan.

4) Buy bulk

As anyone who is bringing up a family will know, you’ll always need lots of everything. Where possible, stock up on boxed or canned items in bulk, and when it comes to household necessities, don’t be scared to go big if the discount justifies it, even if it feels like you’re taking a knock initially. My theory always is that if you reduce the number of times you need to go shopping, you reduce your overall spend.

5) Online savings accounts

This is a new favourite of mine. Whether you’re saving for home improvements, a new car, a holiday, a rainy day, or all of the above, I’d strongly advise setting up multiple savings accounts. It’s quick and easy to do, and then once you receive your incomes every month, simply transfer a small amount into each. Although these savings are accessible in case of emergency, it will feel as though they’re ring fenced, and, once they’ve accumulated over time, you’ll be pleased you did it.

So, there you have it… Five easy ways to save money this year, and a simple way to take your budget by the scruff of the neck and get the most from your pounds for you and your family. I haven’t always followed through on my New Year’s resolutions, but with a little bit of prioritising and self-discipline, I know that sticking to the above could really make a big difference. I hope it can be of help to you too!