Money saving tips: How Britons can save in 2021 – ‘small changes make a big difference’
Martin Lewis advises savers on using money saving apps
Money saving proves challenging to take up, let alone maintain, and the goal is likely to be top of the list for families in the new year. Difficult financial circumstances have been brought about by the pandemic, and people will be looking to tighten their belts as 2021 brings about uncertainty. But for those who are looking to embark upon a money saving journey, there are particular steps to take.
Express.co.uk spoke to Elin Helander, chief scientific officer at the money saving app Dreams about the matter.
She was able to provide insight into how Britons can strive towards financial goals this year, and the kind of mindset needed to conquer aspirations by 2021.
Ms Helander said: “The New Year can be a great incentive to look at and reassess where the majority of your spending is going each month.
“Tackling your finances though can be a pretty daunting task, especially if you generally prefer to ignore them and hope for the best.
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“Financial management tools are a great way to run through weekly and monthly outgoings and offer a way to better understand our incomes and outgoings.
“You may even be pleasantly surprised that a few small changes can make a big difference.”
Money saving is often a mountain to climb, but understanding finances is often considered the key to success.
Gaining insight into one’s financial situation and how to make small improvements, can help a situation get better in time.
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Ms Helander added: “From a financial perspective, when we vow to improve our financial wellbeing, we often focus on stopping frivolous spending, or avoiding buying new things; but why should you cut down on your morning coffee if it is something you enjoy?
“I would recommend reframing your thinking, instead. Rather than feeling as though you are restricting yourself, focus on how empowering the act of working towards your dreams can be.
“As you begin to see your savings grow each month, it will build a sense of achievement, giving you a huge mental boost, therefore pushing you to save more.
“Creating a separate account for savings, setting up a standing order, or even withdrawing a small amount of cash each month, that is affordable to your income, can be a great way to accrue a nice honeypot that can be put towards a bigger reward later down the line.”
However, sorting out one’s monetary situation is just the first step on a journey to becoming financially secure.
Next, Britons should focus on the future they can achieve in 2021 and beyond.
Ms Helander explained: “Once you have sorted out your finances and outlined your savings goals, you can begin to plan for your future.
“For everyone, circumstances are different but having a better understanding of your finances is the first step in improving them.
“It may feel like a deeply personal thing to set yourself savings goals, but working with a partner or family members is one way to gamify your savings journey.
“Who knows, you could even surprise yourself with how much you are able to save throughout 2021, just by gaining some clarity on your income and reassessing where it is going.”
Ms Helander said that for those who wish to save money this year, setting concrete goals which are measurable are key.
She concluded: “Having clear aims in mind can help you to calculate how much you need to save each day, and the habits you should adjust to achieve this.
“This could even be cooking your own lunch rather than buying it, or buying second hand clothes instead of brand new ones.”
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