As the rising cost of living crisis means we are spending more every month on household bills, groceries and days out, a savvy mum has shared how to save thousands in the year with a few simple habits
A money-savvy mum has shared how to easily save up £5,000 while managing bills, household costs and extras.
After cash leaves your account to pay for tax, utilities and general expenses, it can be very hard to have anything leftover for a rainy day. And during the cost of living crisis, things have become increasingly difficult.
Thankfully though, there are tips and tricks out there that can help you save money. Gemma Bird, who is social media sensation better known as Money Mum, has shared how you can save £5,000 up by the end of the year without feeling the pinch.
The mum-of-two and best-selling author, said: “It’s never too late to start saving – small changes can add up to big results. It’s all about making saving a habit, not a hassle. Some of my favourite tips are small changes that you don’t even have to think about and might not even notice leaving your account.”
First up, Gemma says you can use a cash stuffing method which she dubs “a simple yet effective way to save”. All you need to do is label 100 envelopes £1 to £100.
Gemma, who is from Essex, said: “Set your own amount of time and fill each envelope with the corresponding amount. By the end of the year, you could save £5,050. If you finish the saving challenge before the end of the year, you could even add more envelopes to your stash – helping you save even more money!”
The mum, who has 470,000 followers on Instagram, has also shared the 50-25-25 Rule – a super easy way to manage your money while ensuring you save without thinking about it. Gemma explained: “50% of your income covers necessities, 25% is for flexible spending, 25% goes straight to savings – ideally through an automatic transfer on payday. So, if your monthly take-home pay is £2,000, setting up an automatic transfer of 25% means you’ll be putting away £500, without even thinking about it.”
It can be as easy as that! Gemma added: “Saving money doesn’t have to be a daunting task. Setting yourself small challenges can end up having big results and extra money that you can put into a pot to save for something bigger!”