Stashing away money for a woman is harder than men although it is not true for homemakers only. Independent women are also struggling to have enough money for their retirement because of a huge pay gap. This is a worldwide issue and not very easy to uproot. It may take forever. Instead of criticising the structural differences leading to the gender pay gap, you should find out how you can make the most of your money and live life during retirement with full comfort.
Of course, you have to meet all of your expenses from the chunk of money you receive from every month as salary. You will also have to build your emergency cushion to meet any unforeseen expenses. Saving becomes harder when you are a single mother; not only will you fulfil your needs but also spend money to rear your children. While you have a lot of expenses lined up, it seems tougher to put aside money for a rainy day, but it is not impossible. Here are some tips you should follow to build your savings.
The rule of thumb says that you should be consistent with the habit of saving money. You do not need to skimp on essential things. Even a small amount of money can add up if you continue to save money. While you have to meet all of your savings, you cannot save a big amount of money in a short period. So you have to be patient. You should set a financial target that you could easily achieve. For instance, if your monthly income is £500 and you set aside 20%, you will have £1200 saved in your emergency cushion by the end of the year. The amount of savings depends on your monthly income. The higher the income, the higher the savings will be, and the lower the income, the lower the savings will be.
Buy in bulk
This suggestion may seem odd, but it is worth it. It may cut down half of the cost. However, you are not supposed to buy perishable goods in bulk. For instance, your children need notebooks, pencils and pens. You can buy them in bulk. Look out the discount deals so that you can save a few pennies when you go shopping. Even if you save £10, it can add up to a large amount. Make sure that you buy only essential things. Do not make impulsive purchases as they will cost you nothing but a small fortune.
Cut down on unnecessary expenses
Create a budget to analyse your monthly incomings and monthly outgoings. If you want to know how much you can save, you will have to find out your total expenses. Do not forget to add in little expenses such as magazine subscriptions. Add up your total expenses to know your net worth. Whether or not your outgoings exceed incomings, you should evaluate which expense is unnecessary. Whittle down on them as they may help you save a lot of money. You can save by using your mobile data moderately, cutting back on dining out, magazine and gym subscriptions. If you are a fitness freak, you should prefer a brisk walk in open fresh air.
Use cash as much as possible
If you want to be on top of your expenses, you should make all your purchases with cash only. Most of the time, you use your credit when you do not have cash or you like something that you cannot afford. This deal can prove very expensive as you have to pay not only the cost of what you buy but also the interest. Your finances can be disturbed if you mix cash with the use of a credit card. Credit cards are majorly responsible to exceed your expenses. The use of credit cards is generally beneficial when you have to make a big purchase so that you can earn some points later and when you need money urgently and you are running out of cash. However, make sure that you pay off your debt as immediately as you get money.
You have to stay organised if you want to build your savings account. If you are unable to save money consistently, you should use the savings app. These apps will be linked with your bank account from where they will pull money and transfer to your savings account. You just have to set the limit and all the work they will do. There is no minimum limit, you can activate and pause your savings depending on your financial condition and goals. You will find many saving apps that you can download in your cellphone. Some are free and some will cost you a tiny amount. Understand all features of these apps and then choose the one that fits your budget.
As an independent woman, you can save money if you spend frugally and track your expenses