Money in the Bank: Simple Steps to Savings Success

Many of us have things that we want to save up for, whether it's the holiday of a life-time, a house deposit, or even retirement. Unfortunately few of us get very far when it comes to putting a savings plan into action. Some people believe that they don't have the money to put into savings in the first place, others continually dip into them rather than finding alternative ways to pay the bills. The question is: How can you free up money for the things you really want to spend your earnings on?

Food Glorious Food!

Every year we consume enough food to feed every single person on the planet, considering the amount of hungry people in the world its clear some of us are getting more than our fair share. This means it's an area where we could save money, and take positive steps in eating just what we need rather than everything we see advertised on TV.

If we were honest, most of us would admit that we buy things at the supermarket that we don't need. It seems like a good idea at the time, we decide to treat ourselves or there's a special offer that we just have to take advantage of.

You can reduce the amount you spend on food by:

1. Keeping a journal of all the food you throw away in the course of a week. Next week, knock everything you threw out off your list.
2. Make a list of items you need and stick to it, regardless of offers.
3. If the item isn't on your list you will be wasting money on it.
4. Never go shopping on an empty stomach. If you are hungry you will be more likely to make impulse buys, bumping up the cost of your shopping trip.

Everything Must Go!

Looking around your house do you think you really use everything you have? Many of us have hoards of impulse buys, or unwanted gifts that we could sell on to better and more appreciative homes. If you don't fancy standing out in a car-boot sale or market, there are always the online options of eBay and Amazon who both take a small commission for items sold on their site. Be brutal, do you want that item more than you want your once in a life time holiday? Or can you really do without it?

Make Sure You Have the Right Energy

Once upon a time, there really wasn't an option regarding who you received your gas and electricity bills from. But with the ever-increasing energy rates, it's really important that you are getting the best deal. A little effort will save you a lot of money in the long term and there are websites dedicated to comparing deals for you, so you don't have to do any of the leg-work. uSwitch.com is probably the most popular, and they also offer price comparisons on a range of other house-hold and life-style necessities.

Don't forget to switch off all your appliances and un-plug them at night, this can save you up to a third on your bills!

Savings Sense

When you open a savings account there are some important factors to consider, as there are a variety of options available.

When it comes to savings accounts it is always a case of interest rates versus access. That is you are very unlikely to find a savings account that offers a very high rate of interest with unlimited access to the funds. Most of the time an account with a high interest rate will have restrictions on the frequency or amount of money you can access from your savings. Accounts with lower interest often mean there are few restrictions, if any on when or how you can have your money.

The best kinds of savings accounts are those which offer some access to funds with an interest penalty. The month you withdraw you will have a lower interest than months where you don't. This not only provides an incentive for you not to withdraw your money, but also means that if times get desperate you can access your savings without any large penalty or period of notice.

Most banks offer a complete savings review. Some of the more confident institutions will offer comparisons against competitors, showing you other savings deals you could have across the market and how they compare with their own accounts.

The golden rule of saving is to make sure that the amount you want to save per month comes out of your account as soon as your pay packet goes in. Doing this forces you to budget around your savings. Telling yourself "Whatever I have left at the end of the month, I'll put into a savings account" doesn't work because in truth, the majority of us don't have anything left by the time the end of the month swings round!