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How To Use A Bi Weekly Savings Plan

Budgeting, paying your bills and starting to put cash into your savings pot can be tricky. It can be even harder when you get paid fortnightly. Saving enough of that cash for the end of the month whilst also trying to build a savings fund. Let's have a look at some of the best ways to use a bi weekly savings plan. 

How Much Do You Want To Save?

Let's first figure out how much you want to save. When we have a goal in mind it's easier to see things in black and white and work towards that goal. Let's say you want to save £2000 into your savings pot over the course of the year. This could be for anything. Maybe next year's holiday. Maybe to put towards a house deposit. It could be to help buy a new car or even to put away for the children. Whatever you want to save for, that £2000 is our goal. Dividing that between 26 bi weekly pay cheques, works out at just under £77 a fortnight. Where can you find that? How can you find that? We need to budget that into your finances.

Pay Yourself First

In order to save money, we must first change our mindsets. It's easy to shell out money on everything you need to. Think about that new pair of jeans you had your eye on, look at your account, see the money in it and part with it with just a few clicks. That is cash that could go in your savings fund though. Do you really need those jeans? Or is that £40 that could go towards your goal? Settle your bills, pay your rent but also pay yourself. We so often put ourselves at the bottom of the pile and that won't help us reach the goal we've set. A mindset shift helps you cut back on unnecessary purchases and move your money tow the areas where you want it to be.

Two Options

One of the things we ask ourselves when we think about saving is how we can actually save. It's usually pretty tight week to week and month to month as it is so how can we find more cash? Using a bi weekly savings plan is all well and good, moving your money around when you get it, but you can't move more than you have. There are two options which can become a solution here. You can either cut your expenses or you can enhance your earnings.

Cut Expenses

In order to cut your expenses, we need to figure out how to save money on essential purchases. Cut the non essentials out and live with what you have, but the essentials such as food, you can find ways to cut back. Make a meal plan every week and only buy what you need. Consider shopping locally at markets where you can get better prices and support small sellers. When we only buy what we need, we only use what we need. So much money is literally thrown away with food waste every year and if we get a handle on this we can save money.

Think about your subscriptions and memberships. Do you need to be spending £40 a month on a gym membership? Do you need to have subscriptions to Amazon Prime, Netflix and NowTV? Could you just watch free to air TV and utilise your DVD collection? How about cutting the Spotify subscription and using your shelf of CDs or listening to the radio? Turn your heating down a few degrees and layer up with an extra jumper. Walk into town rather than using the car and paying for parking. Find ways to save a pound her and there and you'll be surprised at how quickly it all adds up.

Earn More

Increasing your income is the second option. Could you make use of your spare time rather than sitting on the sofa flicking through channels or scrolling through your phone? You can earn money on the side of your job by taking part in focus groups, answering surveys and even using your hobby to earn a living. Could you sell your photography prints? Maybe you can make crafts which can be purchased as Christmas gifts? Perhaps you could get a part time job for a few hours a week. Maybe just one evening of delivery driving a week will get you to that extra £77 every fortnight?

Have a look around you right now and find ten things you don't need, want or no longer use. Get them sold. Facebook Marketplace is your friend for selling for free and there are loads of eBay alternatives that are great for sellers too. Switch your bank account to one which will pay you to move. A free £100 is 5% of your savings goal, earned by simply swapping who you bank with. Be sure to put your savings into an account which is earning some interest as well. This will help push you closer to the target. Enhance your earnings little by little and you'll reach that goal.

Own Your Goals

You'll get there. It will be hard and sometimes you'll make mistakes and realise you've spent money where you didn't mean to. You might even get lumbered with an unexpected bill for car repairs or something similar which sets you back but don't get disheartened by it. Get to know the pattern of your income. It's often a strange thing to get used to when you start getting paid fortnightly. It's easy to fall into the trap of thinking you have more money during the middle of the month without remembering that you need it for those bills at the end.

Shift that money mindset, realise you want to make changes and move your money into a savings account. Your priorities will soon change when you see the success of your work. Crate a bi weekly savings plan that works for you and your situation. If you continue to work towards and own your goals, you'll smash them. 

 

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