Saving money is challenging at the best of times, but amid the pandemic, it is likely to be the case many are forced to make their pockets stretch. While the impact of COVID-19 is undeniable, 2021 is presenting opportunities for Britons to turn over a new leaf when it comes to finances. For those who are renting, there is of course a consistent outgoing to reckon with, but putting away money is still an achievable goal.
The rule of thumb is that 50 percent of income goes towards needs, 30 percent towards wants and 20 percent towards savings, or paying off debt.
This formula, of course, can be modified if a person wishes to save more, but it is important to also be realistic on a money saving journey.
Another potential way for Britons to save money while renting is to get a roommate, or sub-let a room out to a lodger.
Being able to split rent payments will of course reduce the cost of rent for an individual who is wishing to save.
In addition, any interest a person owns while saving into their ISA is tax-free, providing an extra boost.
A similar offering is available through a Lifetime ISA, designed for buying a home or for retirement.
A final option which may help in putting more money aside while renting is to find an alternative income stream.
This may involve getting a second job, or turning a hobby into a business which can provide profit.
Either way, utilising skills and hobbies are often considered ways of procuring additional cash, even while renting.
It is important to note, though, that this kind of saving is often a long-term goal.
Therefore, it will involve a high level of planning, as well as financial discipline if Britons wish to reach their goals.
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