Money saving tips from Sidmouth Financial Planner Denese Molyneux

It is a simple fact that if you do not spend all of your money then eventually you will have saved enough so that your money will keep you!

This is true financial independence – not having to work or rely on another (or the state) to keep you. Many people tell me that they have difficulty in saving money so this month I want to give you some tips on how to save.

The easiest way to start saving is when you experience a sustainable source of additional income. What does that mean – quite simply, it's when you get a pay rise at work.

Think about it; how long do you feel the benefit of that pay rise? The first month for sure. Month two…….maybe. By month three the additional income has been incorporated into the general household expenditure.

Rather than leaving your pay rise in your current account immediately set up a standing order to a savings account for at least 50% the extra amount you've received – all of it if you can. You've never had the money before and managed without it, so you won't miss it.

Another easy win is when you've finished paying a debt, a car loan or similar. This money has been leaving your current account on a regular basis and you've managed without it. Divert the equivalent amount to your savings as soon as the debt is honoured.

Another idea is to look at what you actually spend and be more mindful of it. Think: do you really need that Starbucks today? A regular latte will cost around £2.75.

If you pick one of those up every working day that'll cost £13.75 a week – or £660 per year. Add that £660 to your pension for your working lifetime, say 30 years, with a 5% annual return, and you've got £58,674.

What about lunches at work? Do you go via Tesco and pay £3.00 for your BLT? That's £15.00 per week, £720 per year – or £864 into your pension.

Use the mantra, 'Pay yourself first'. Set some money aside so that you have enough to comfortably retire (maybe earlier than anticipated) and for emergencies. You know it makes sense!

Written by Denese Molyneux - Molyneux Financial Planning