Cost cutting – Five easy ways to save money

For me saving is natural and easy. If I don’t need it, I won’t buy it. That’s why I am able to save over 75% of my income and no, I do not earn a fortune. I just don’t spend it. I would consider myself frugal however, until I started taking this FIRE thing a little more seriously, I too was guilty of wasting money. Some simple ways I’ve managed to save a few pounds are given below.

Mobile Phones

Mobile phone contracts can cost you an arm and a leg. Your initial period ends and you continue paying the same price – how this is allowed, I do not know, but we can all easily avoid this trap. I recently moved to a sim only deal cutting my monthly bill from £45 to £8 saving £444 a year. Now I don’t mind if i do and nor should you!

Parking

Now I have the pleasure of commuting to work by train. Unfortunately, the train station is 4.5 miles away so I drive. Previously, I was spending £5.35 a day to park at the station, I only go into the office 4 days a week but this was still costing me roughly £1,000 a year. I now park on a residential road for free and walk for 10 minutes. Yes my commute is longer but i’m richer for it.

Lunches

Taking your own lunch to work can save you a small fortune. Buying lunch is a real indulgence that you can cut out. Instead of buying a sandwich from one of the many coffee shops that will cost you in the region of £4.50, make it at home or even in the office. This could save you around £700 a year, and don’t get me started on buying coffee from these establishments – the markups are insane.

Insurance

Most of us are likely to have at least two forms of insurance. In the UK, this is typically Car and Home Insurance. But did you know that you can save in the region of 14% of your insurance premium just by getting your insurance quote around three weeks before your renewal date. This saved me £48 on my car insurance.

Ditch the car

If you can walk, walk. If you can cycle, cycle. We are all now accustomed to driving, even the shortest distances. Enjoy a slower pace of life and walk to your destination. It’s simple, less stressful and far nicer. You also will no longer have to endlessly search for somewhere to park. Financially it’s free, it might take you a little longer but what are we all in such a hurry for anyway.

The Savings

These simple changes have allowed me to cut my expenses by roughly £2,200 a year. With the help of compounding over the next 20 years these small changes could add up to a nest egg worth c.£85,000 assuming a 6% return.

How have you managed to save money? Let me know in the comments below