Saving money whilst you are in debt can seem like an impossible task however, there are ways. Adopting a saving plan that doesn’t require those taking part to save specific amounts of money each month can pave the way to financial gain without implementing copious amounts of commitment.
Here, Vantage Leasing looks at three ways to save money when you’re in debt. And none of them involve setting aside specific amounts each week.
The lend don’t spend challenge = £53 a month or £636 a year
Generation rent has moved beyond property, as millennials and Gen Z alike opt to rent everything from outfits to cars. Two thirds of the UK have rented clothing, 1.6 million people choose to lease a car and according to Google trend data, the search term renting furniture has received a 353.86% uplift in the last month alone.
Choosing to rent products instead of purchasing them can save a person an average of £636 a year as it’s likely to be the cheaper option. Ringfence the amount saved as and when you rent so you can see exactly what you are saving.
A no-spend month = £852 a month per household
The average UK household has £213 a week of disposable income, a 9.2% fall in previous years. Choosing to participate in a ‘no spend’ month is not for the faint-hearted, but the rewards can be huge. Of course, there are exemptions. Ultimately, the rules are that a household only purchases what is essential. For instance:
- Car Insurance & Petrol
- Rent/Mortgage
- Groceries
- Utility Bills
- Debt repayments
If a month is too long, then you can amend the challenge to no spend weeks or even no spend days. The no spend challenge not only reaps financial rewards, but also encourages a person to spend mindfully, avoiding unnecessary spends.
Ban to stay on plan = £80 a month
Scan your past three bank statements and highlight the expenditures that exit your account most regularly. Is it takeaways? Taxis? Or maybe subscriptions? Place a temporary ban on these for a month. Putting a hold on luxuries will give you an opportunity to not only save money but determine if you really need said luxuries.
Remember to avoid unsustainable goals. It’s great to approach saving money with enthusiasm however, creating unrealistic saving expectations will lead to disappointment if you cannot keep to them.
