Most people, will recommend to open a savings account - and for some of us, this could be the answer. For others, well… not really.
My suggestion and challenge for you starting TODAY:
Withdraw the amount of money you want to spend by the end of the month. Try to be as realistic as you can based on your plans; and yes, it will look like a large amount of cash.
Keep all the money in your wallet (it’s so that you can keep it in one place and have it all the time with you).
Note down (keep the receipt) with the total amount.
Every time you have to make a payment, use cash - DON’T use plastic (ie. debit/credit cards).
If you need more money, withdraw, note down and carry on.
At the end of the month, first, see how much you’ve withdrawn and how much you’ve spent.
Next month, repeat the process - you will see you tend to spend less.
Why? The explanation is quite simple: you see the money being less and less in your wallet - every time you make a payment. It’s behaviour: the brain registers the first withdrawal as a large amount; at the end of the month, the brain registers the actual loss. Visualising the money stock diminishing rather than have it as numbers on your card balance, will actually change your behaviour. Also, to pay by cash, takes longer than to pay by card.
Is there anything extra I can do to save money?
Yes. Cook more often - in my experience, each time I don’t cook and I order/buy ready made food, I end up spending more money. You could argue that it takes more time; but consider this way: when you order, someone has to prepare/cook the food. How long do you think it takes them? (about same as it would take you :) )
Plan a “going out” night/day. Most money on alcohol is spent in weeks/days where you have not planned to go out.
Make gifts rather than buy them. By putting time and effort in actually crafting a gift, you show that you care - even if it’s just a cake or even a card.
Before you go shopping, make a list and stick to it. Also, if it’s food shopping, eat before you go shopping.
Be respectful with your money. Don’t drop it on the floor - and if you do, pick it up. From where I live to the tube station and back, I make about £1-£20 a week when walking - just by finding and collecting money.