One woman’s money-saving tip could save hundreds of Britons | Personal finance | Finance

The 39-year-old is mortgage-free and debt-free because she stopped paying by card and started using cash instead. He follows a who? Study that found Britons are turning to using cash instead of cards to help them easily manage their finances and reduce spending.

When it comes to saving money, it’s often the old fashioned ways that are the most effective.

That’s certainly true for lifestyle blogger Becky Derbyshire who paid off £8,000 of debt and her mortgage in 10 years by taking this choice.

She told “I’ve been doing this for years – it really annoys my husband as I’m always loading my pockets with various changes and notes which end up going through the wash.

“Yeah, so I withdraw £400 at the start of each month and allow myself £100 a week max, although often I don’t even need that much.”

READ MORE: Santander raises interest rates on mortgages and savings

Now that the cost of living crisis is crippling people’s pockets, experts including Becky recommend others try exchanging cards for cash.

Ed Fleming, managing director of promo code website Savoo, told “Switching to a cash-only budget can seem daunting at first, but it’s a great method to help us stay on track. good track with our spending.

“It’s easy to scan our credit and debit cards, and even our mobile phones, when making a payment, but using cash lets us realize how much things really cost and if we really need them. .”

The good news is that Brits don’t have to ditch online payments altogether to benefit from this money-saving trick.

Ed added: “Not everything we have to budget for can be paid for in cash, for example online bills, rent and mortgage payments.

“The first step in moving to a cash-only budget is to figure out what we can actually afford with physical cash, such as groceries, entertainment, dining out, and clothing.

“You can then use the envelope technique to reserve a certain amount for yourself each month for these expenses.

“Another tip is to set aside a dedicated time to withdraw money from your bank account.”

He continued: “Whether you prefer to start the week with a new budget or prefer to have everything ready on the first of each month, sticking to a routine will help you avoid overspending and take out more than you need. really need.

“Building a cash budget is also a great way to save in the long run, especially if you use buy it now, pay later programs and credit cards.

“With buyers having to pay interest if payments are made late, these methods can really hamper our savings efforts and even damage credit scores.

“Making sure to use cash in these cases is the best way to avoid overspending and spending money that we don’t have in stock at the exact time of purchase.”

About Vicki Davis

Check Also

Uncertain year for Korean banks amid looming debt crisis, CEO terms end

FSC Chairman Kim Joo-hyun (center) poses for a photo with the heads of the country’s …