Building financial security starts with the basics, and one of the most fundamental basics is spending less than you earn. That is easier said than done, particularly when the cost of living is high, but there are practical steps most people can take without dramatically changing their lifestyle. Here are ten that are worth considering.
1. Build a budget
It sounds obvious, but many people genuinely do not know where their money goes each month. Writing down your income alongside your fixed costs, things like rent or mortgage payments, bills, and loan repayments, and then your variable spending, gives you a clear picture. Once you can see it, you can start making deliberate choices about where to cut back.
2. Audit your subscriptions
Streaming services, gym memberships, apps, and magazine subscriptions all add up. It is worth going through your bank statements and identifying anything you are paying for but rarely or never use. Cancelling even a handful of unused subscriptions can free up a useful amount each month.
3. Cook more at home
Eating out and ordering takeaways regularly is one of the most common ways money quietly disappears. Cooking at home is almost always cheaper, and batch cooking or meal planning makes it less of a daily effort. Even cutting back on bought lunches during the working week can make a noticeable difference over the course of a month.
4. Shop smarter
Whether you are buying groceries, clothes, or household items, a bit of planning goes a long way. Look for supermarket own-brand alternatives, use cashback apps or loyalty cards where available, and avoid shopping when you are hungry or in a hurry, both of which lead to spending more than you intended.
5. Reduce your energy use
Utility bills are a significant household expense. Simple habits like turning off lights, not leaving devices on standby, and washing clothes at lower temperatures can bring costs down. If you have not reviewed your energy tariff recently, it is worth checking whether you are on a competitive rate.
6. Consider public transport or active travel
If you currently drive for journeys that could reasonably be done by bus, train, cycling, or on foot, switching can save a meaningful amount on fuel, parking, and wear and tear. Season tickets for regular commutes are often considerably cheaper than paying per journey.
7. Negotiate your bills
Many people pay more than they need to for broadband, insurance, mobile contracts, and other services simply because they have never asked for a better deal. Calling your provider and mentioning that you are considering switching is often enough to unlock a discount or improved terms.
8. Buy second hand
Charity shops, online marketplaces, and local selling groups are good sources of clothing, furniture, books, children’s items, and electronics at a fraction of the new price. For items you do not need to buy new, second hand is usually perfectly adequate.
9. Pause before you buy
Impulse purchases are a significant source of unnecessary spending for most people. A simple rule of giving yourself 24 to 48 hours before buying anything non-essential means many of those items never get purchased because the urge passes. If you still want it after the wait, you can be more confident it is a considered decision.
10. Automate your savings
Setting up an automatic transfer to a savings account on the day you get paid is one of the most effective savings habits you can build. By moving money before you have a chance to spend it, you treat saving as a fixed cost rather than something you do with whatever is left over at the end of the month.
Small changes applied consistently over time add up to a meaningful improvement in your financial position. A financial adviser can help you make the most of what you save by making sure it is working as hard as possible for your future.
Approved by In Partnership FRN 192638 June 2026
