In the financial year ending April 2020, household disposable income in the UK actually increased incrementally by 2.3% (or £700) when compared to the previous 12 months.
However, there’s no doubt that the cost of living on these shores continues to increase at a faster rate than real wage growth, with a rising number of people struggling to make ends meet nationwide.
In this post, we’ll look at the best and easiest tricks to start saving money, depending on your circumstances and your unique habits as a consumer.
#1. Use a Prepaid Credit Card
Let’s start with the basics; as budgeting is crucial if you manage your spending and determine precisely how much disposable income you have on a weekly or monthly basis (depending on how frequently you’re paid).
The question that remains, of course, is how can you proceed once you’ve made such a calculation, particularly with regards to managing your regular spending?
One of the best options here is to utilise a prepaid debit card, which enables you to regulate your spending over a specified period of time and prioritise different items of expenditure.
This makes finance accessible and easy to manage, allowing you to spend with peace of mind without operating outside of your means.
#2. Eliminate the Coffee!
While estimates vary, studies suggest that us Brits spend an average of £303 per annum on coffee while out and about, which is a significant sum that’s often indicative of mindless spending.
As we can see, just eliminating this can save you considerable amounts of money each year, creating additional funding that can then be deployed to other and more strategically important areas of spending.
To replace this, consider investing in a thermal or travel mug, before making your own coffees at home and taking these out whenever you head for a walk or a local shopping trip.
#3. Consider Thrift and Charity Stores of Clothing
The thrift market has boomed in recent times, and it’s no coincidence that such growth has occurred at a time when the economic climate has become strained and real wages have stagnated.
There’s no doubt that second-hand clothing and goods are more readily available and competitively priced than ever before, whether you’re shopping in online marketplaces or at local stores.
Second-hand stores and charity shops remain widespread despite the relative decline of the UK high street, and here you’ll often find good quality and durable items that offer exceptional value to shoppers.
Of course, you may have to be patient when shopping in such stores, as there’s no fixed inventory and their listings depend largely on real-time donations. However, this remains an excellent option when looking to save money, especially if you’re able to frequent both on and offline marketplaces.