Money management tips SAVING SUCCESS…

• Set a budget: The first step to effective money management is to set a budget. Create one that covers all your expenses including bills, food and discretionary spending.

• Track your spending: This will help ensure that you stick to your budget. This can be done using a budgeting app or a spreadsheet.

• Save for emergencies: Set up an emergency fund to cover unexpected expenses, such as a car repair or medical bill. Aim to put by at least three to six months' worth of living expenses.

• Pay off debt: If you have any outstanding debt, focus on paying it off as quickly as possible. Start with the highest interest debt, such as credit card debt and work your way down.

• Cut unnecessary expenses: Review your monthly expenses and identify areas where you can cut back. This could include cancelling subscriptions or eating out less.

• Plan for retirement: It's never too early to start planning for retirement. Consider investing in a workplace pension scheme or setting up a personal pension plan.

• Invest wisely: If you have extra money to invest, do your research and invest wisely. Consider seeking advice from a financial advisor.

• Review your bills: Review your utility bills and insurance policies to ensure you're getting the best deal. Switch to cheaper providers if you can.

• Avoid impulse purchases: This is especially important for expensive items. Take time to consider whether the purchase is necessary and whether you can afford it.

• Practise good financial habits: This includes living within your means, avoiding unnecessary debt and saving for the future.

According to a study published in the Journal of Consumer Research, saving money can create a ‘saving identity’ that encourages individuals to save more in the future. The study found that people who identified as savers were more likely to engage in money-saving behaviours and to have more positive attitudes towards saving. This suggests that even small savings habits can have a compounding effect over time, leading to long-term financial success. So, saving money not only helps you to reach your financial goals but can also lead to a positive feedback loop where the habit of saving becomes ingrained in your identity.