Accountant Explains: 6 Ways to Double Your Savings THIS Month

I'm Nisha I'm a qualified accountant and a former investment banker and in this video I'm going to reveal the six things I did to double my savings and how you can do the same without making any drastic changes to your lifestyle let's get into it number one make it simple by breaking it down this sounds ridiculously simple so much so that most people don't do it yet just by taking these two steps you're twice as likely to reach your savings goal the first step is to break your goal down into smaller more manageable chunks and

add a timeline to it let's use the example of saving 10,000 when you just look at that big number it seems pretty daunting but when you break it down it becomes much more doable than just trying to work towards a vague lofty Target with no timeline so let's say you want to save 10,000 in 12 months then you need to save around 193 per week that's a lot more manageable than trying to save 10,000 all at once it feels like maybe it's something you can do with a little bit of planning what about if you

want to save that 10,000 in just 6 months then you need to save 385 per week or if you want to do it 3 months you need to save 77 per week now we've broken it down the second step is to automate set this up as an automatic transfer from the account you get paid into into a separate savings account by doing these two things you're now a paying yourself first so when it comes to finance it's very easy to keep increasing your spending to consume all of your income but when you reduce the amount

that's available to you it prevents that money from just slipping through your fingers on everyday expenses and B if you get a few months in and you're feeling too restricted you can always course correct and adjust the automation but at least you built up a solid savings Habit in the meantime or you can do the next step which is number two revise your top three the best place to optimize your spending and make room to save more is by targeting your biggest expenses according to the office for National statistics the average person's biggest costs are

transportation and housing this takes up almost 50% of most people's take-home pay the good news is that finding a way to save one these can make the biggest difference so for instance when you look at your housing cost can you renegotiate your rent most people just accept what the landlord says but you should also have your own number that you're willing to pay and explain why your landlord should potentially consider it and I've done this before for my own rent I negotiated the rate down by exchanging other things in return so I gave up a

parking space as I didn't have a car and therefore my landlord could just do whatever they wanted with that parking space potentially rent it out to someone else and make some money for it I also signed an extended lease at the time giving them reassurance that there won't be any void periods that was one of my biggest expenses that I got down do the same with other big expenses are you paying for unused features of your car insurance since housing and transportation are amongst the biggest expenses people have this is where you can really save

big by the way if you're enjoying this video I'm running a completely free 5day save 1K this month challenge it's starting this Monday the challenge is completely free to join all you have to do is go to Nisha meave before Sunday midnight to sign up and by the way we ran this challenge in June and there were thousands of people in the community all sharing the best money tips the best savings hacks so I guarantee you'll learn one new thing that you can Implement into your life straight away it's completely free to sign up the

deadline is this Sunday you can head to Nish show.me slave for all of the details number three ask yourself these two questions it's so easy to get caught up in the hype when a new product launches or hits the market we instantly convince ourselves that we absolutely need this latest and greatest even if our current version is totally functional this is where you need to before you buy that thing pause and ask yourself two really important question questions the first is do I really need this when you're laser focused on an ambitious saving goal like

£10,000 or $10,000 then you have to be ruthless about your discretionary spending it's so common for our wants to sneak into the needs category derailing our progress so before making any purchase take a step back and honestly assess whether that think a true necessity if the answer is no then you need to know what to cut back in order to stay on track if the answer is yes then you're going to ask yourself the second question which is how can I get this thing for cheaper by pausing and asking yourself this question you're more likely

to find an alternative to get that thing for Less whether it's looking through comparison websites negotiating deals buying it secondhand or waiting for a Black Friday sale when you ask do I need this and then can I get it for cheaper you open up the door to so much more savings that can be funneled right into your savings goal number four start with debt repayments in most cases you want to do this before you start saving money when you save money you're basically lending your cash to the bank for it to then lend to other

people so the other people or the other person is borrowing the difference here is that you earn interest from your savings whilst the bank earns interest from borrowings and the thing is it always costs more to borrow than you can earn by saving so let's say you save 5,000 which earns 4% annually in a high interest savings account this generates about 200 in interest over the course of the year but if on the other side you have 5,000 in credit card debth at an 18% interest rate the interest charges will cost you 900 over that

same year so even though you're saving money on this side you're still in the negative by 700 it's always going to cost you more to borrow than you will earn from saving High interest debt is going to go faster than the interest you make from savings that's why it's more effective to pay off high interest rate debt first and once that debt is cleared you can then start building your savings without the drag of compound interest working against you and then number five think want do framework this is a simple way to categorize your spending

into three buckets fundamentals which is essentially your necessities that you absolutely need rent or mortgage Transportation groceries utility bills even phone bills internet fun which is your wants this is your guil free spending date night outs going to the movies hanging out with friends buying your nice clothes shoes and then you've got your future and that is everything that is going towards the future you short and long-term savings and Investments what you want to do here is use a think want do framework balance how much you think want and you do spend in these three

FS start by S doating how much you think you spend on each category compare it to how much much you want to spend and then finally track how much you actually spend for example let's say you spend 500 in the fund category every month but you want to spend 300 and when you track your spending you're actually spending 200 a month once you know this you can redirect that 300 from fun into your future I.E to put it towards your saving goals getting this balance right is a key to funding more money into your savings

without feeling deprived or taking away from what you already enjoy and finally focus on the other side if you're looking to save more money there are essentially three ways to do it the first is to cut your costs which we've already spoken about the second is to optimize your spending which we've also spoken about and the third is to earn more start a business negotiate your salary switch jobs sell some old stuff there's a cap on how much you can save you can only save as much as you can make but you can always make

more so those are six things that will help you double your savings with a little effort if you like this video remember to sign up to my savings challenge Nisha meave for all the details thank you for watching