Financial concerns are one of the leading causes of workplace stress, so it’s no surprise that our data indicates that it affects so many of us. Learning how to properly manage your finances takes time but, to get you started, here are Lumien’s top 5 tips for saving money:

Set a goal

This could be a specific amount that you’d like to save, or a reason for the savings (e.g. a holiday). Setting the goal can motivate you to make sacrifices in some areas to save and allows you to track your progress.

Balance treats with sacrifices

When treating yourself by spending money on something, try to “make up” the money you spent by making sacrifices elsewhere. This allows you to treat yourself without it impacting your monthly budget, as well as identifying areas you can save in the future.

Prioritise debts when interest rates are low

When interest rates on savings accounts are low, it can make more sense to pay off debts than to save. For example, if you have £500 in a savings account with 1% interest and £500 of credit card debt at 10% interest, you’d be £45 a year better off paying of the debt than saving.

Check for offers

Check your bank for cashback offers. Many banks offer cashback on certain purchases, but this often needs to be activated. Logging into your online banking and turning this on is a good way of earning some extra money for very little work.

Shop around for insurance

Shop around for insurance. Contrary to popular belief, many insurers do not give their best deals to existing customers. Make sure you don’t let car or home insurance auto-renew without first checking that you’re getting the best deal.

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