1 Spending instead of saving
If money is freely available, the temptation is to spend it. Ricky Chan, a director at IFS Wealth and Pensions, advises making a standing order to set aside 10 per cent of your income into a long-term savings account. “If £2,000 comes in every month, set aside £200 immediately so you only have £1,800 to ‘spend’ that month. By the year’s end you will have saved £2,400.” That’s one month’s pay, plus interest.
2 Ignoring the big savings
Switch your mortgage. “If you are going to shop around, focus on the bigger expenditure items, where savings could run into hundreds or even thousands of pounds a year,” says Jason Witcombe, a financial planner at Evolve. Thousands of people each year