7 Tips To Save Money As A Pensioner
If you are saving money for your pension, you need to make sure that you have enough to sustain your lifestyle. Therefore, it’s important to learn how to spend and use money wisely. Here are the top 7 ways to help you save money as a pensioner.
1. Save First And Spend Later
You need to pay yourself first before you spend your money. It’s the best way to guarantee financial freedom in the future. You can rely on the 50/30/20 rule when it comes to budgeting. Simply put, it means that 50% of your salary goes to your needs such as debts, food and bills.
The next 30% of your bills go towards fun and entertainment such as eating out. The next 20% goes towards your future needs such as saving for emergencies, investing and debt payments above the minimum, Mobility Giant have payment plans to suit your budget. If using this payment method doesn’t work for you, especially if your money is tight, you can always adjust the ratios as you go.
2. Avoid Paying Interest On Your Credit Card Debt
If you have credit card debt, you need to have a strategy to pay it back. If you don’t have a lump sum to pay it off immediately, you can always use various other strategies for the best results. For instance, you can transfer the debt to a 0% balance credit card to avoid any interest payments for a fixed period (usually up to 30 months). Here, you will pay a fixed amount every month until you have cleared the debt.
Additionally, some cards have a transfer fee for small balances. Therefore, you need to plan for this. You can avoid setting up a direct debit because if you miss out on the minimum payments, you will have expensive charges. If there is a debt left after the 0% period comes to an end, you can always look for another deal. Don’t purchase anything using this card. MoneySuperMarket and Moneyfacts will help you find the best 0% balance transfer card.
3. Stay On Track
Don’t let any money slip through your fingers. Use a digital bank to transfer a specific amount of pocket money to your card. Additionally, with prepaid cards, you will only be able to spend what you have loaded. If this is too high-tech for you, set up a spending account to use every day with a separate card then transfer your weekly income to it.
4. Always Use An Incognito Browser For Online Shopping
When shopping online, always use an incognito browser as a way to save money. Your browser history will be automatically deleted when you close a tab. Companies will not be able to track what you are shopping online and change their prices. It’s also a great idea to use an incognito tab when planning your next holiday.
5. Avoid Splurging On Payday
At least 1 in every 5 people spend at least half of their monthly salary within 48 hours after. Your disposable income doesn’t need to burn a hole in your wallet. You need to prioritize the most important things and put away some money for savings before you start spending. This way, you will have an idea of your total disposable income for the entire month.
6. Get Savvy With Your Savings
Try putting your money away into an investment fund if possible. Look for one with the most affordable terms to make sure you are getting a good return on your investment. You don’t need to be an expert to start investing.
7. Claim Tax Relief
If you are working from home, especially due to COVID-19, you can always claim back some relief. Read the terms and conditions to make sure it’s applicable to you before applying.
Thank you,
Glenda, Charlie and David Cates
