How I Save £1000 a Month using 3 simple tips

Saving money can be as easy or as hard as you make it, I make it easy and here is how I save £1000 a month using 3 simple tips. I am in no way suggesting that you can save the same amount on any salary but rather you can save up to that much in a month. I work in the corporate world and also run this blog part-time were I am able to earn passive income regularly. When it comes to saving money, its all about your priorities, tracking your expenditures and your earnings.

I am a budgeter by nature and I am always happy to share with people how I save £1000 a month using 3 simple tips. Of course, I didn’t just get good at saving this amount overnight, it took me years of learning/making mistakes before I found what worked for me and what didn’t. You could be earning £100K a year but still, struggle to save money on a monthly basis especially if you live above your means and have poor money management skills. As part of my monthly personal money management, I square away about £1000 a month and deposit that into my saving’s account.

How I Save £1000 a month using 3 simple tips

Like many people, I like nice things and love it even more if I can pay for it without getting myself into debt, this is why I love saving money so much. When I was in high school, I had zero concepts of why saving money is so important and worse even when I went to university I had little to no money management skills. I learned about the importance of saving money when I was a struggling student with debt piling up every single day.

Fast forward 10 years later, I have gotten a hang of my personal finances and I manage them weekly, monthly and yearly. Every week I put together a budget for my planned and unplanned expenditures and also make a point of saving at least 10% of the planned expenditures budget. At the end of every month, I look at what I spent my money most on and work to reduce that for the new month. I use a lot of budget trackers to help me manage my money.

The tips in this post are so simple, anyone can follow them.

Write down a Budget

Writing down a budget is the easiest way to know where your money is going and what you are spending it on. But this only works if you are honest about your incoming and outgoings, because more often than not, we exclude a couple of things or even exaggerate our spending. When I write down my budget, I write down every single penny I spend, I don’t round anything off and I also check the amounts on my receipts as some take days to reflect on my statement.

Writing a budget will help you know how much money you can save every week and every month. I know I can save at least £200 a week or thereabouts if I forgo certain expenditures like eating out 3-4 times a week. I know I can save that money if I don’t buy another cashmere jumper from Zara and definitely don’t need another bottle of my favourite Moscato from my local supermarket. It is all about knowing where your money is going and how much of it you can save.

Money Saving Apps vs Envelope Money

I have said this before on the blog and I will say it again, use money-saving apps like Plum (affiliate link) to help you track your spending and help you save automatically. I like Plum because every week it rounds off my spending and moves that money into my allocated pots. I am one of those people that appreciate ‘out of sight, out of mind’ tactics as this helps me to save by forgetting I had the money in the first place.

If you don’t want apps to be connected to your bank account where your income lands and where 99% of your outgoings come from then I recommend the envelope system. Where you put money in 4 envelopes and write each week on them. Spend only what you need and what’s left doesn’t get moved to the next envelope, it is saved. The problem with the practice is since the money is readily available you are more inclined to spend it. Choose wisely which is best for you.

Change your Shopping Habits

When it comes to changing one’s shopping habits, I am more talking to me than to you. I like a few branded items that I don’t skimp on but recently I have found more branded and generic items taste absolutely the same and often made by the same manufacturers in the same place. When I was a broke student, I only bought Asda’s own branded items same for Tesco (my two favourite supermarkets). After university, I upgraded to their branded items or other special brands doing the same thing just costing me a little more money.

For many years I had always thought branded items were better than generic items (except for custard cream) until I challenged myself to only buy the store’s own brand. I found little to no difference and also noticed I preferred the store’s own brand than branded and it saved me a tonne of money. I can buy my custard creams for £0.13p instead of buying the branded ones for £1.12p, this is daylight robbery but we are snobs, we don’t mind. It’s time to re-evaluate your spending habits.

I want to make a disclaimer here, I earn from the blog as well as from my corporate gig, saving a £1000 is not a difficult ask nor does it impact my everyday living because I choose to live below my means and prefer to save money for things that I want. We all want good things and if you work for it and save for it then I don’t see why you can’t have the nice things we all crave. I hope you find these tips helpful and you can start saving your coins for the future.

Additional Information

If you want to achieve financial freedom, there are so many tips online on how you can achieve this and most experts recommend the following:

• Retirement fund – save for your pension fund
• Have multiple accounts – one account where the money is paid into via automatic deposits for the various accounts
• Only spend on necessities (know your wants vs your needs)
• Have an emergency fund (this should be liquid money that you can access easily should something go wrong)
• Pay off your debt (either start with small debts or big debts but make sure every month you pay off the minimum)
• Save 4-6 months of your annual payroll (whether employed or self-employed)
• Invest your money (stocks, bonds even the real estate)
• Spend what is left on travels and personal entertainment