13 Ways on How to Spend Less and Save More Money for Investing

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Most times, the problem when it comes to money is that lots of people tend to neglect savings and investment and concentrate more on expenses. Although it is more fun and easier to spend all the money you laboured for within a short period but the sad truth is that there are lots of reasons why you need to spend less and save more money to invest for the future.

Stay on this article as we guide you on the ways you can reduce spending and increase savings and investment:

1. Track Your Financial Growth

Calculating your net worth will help you to determine an overview of your financial standing. Net worth is determined as, your assets which include; investment, savings and cash in checking, real estate etc. minus your debts like mortgage, overdue credit card bills, student loans, etc. By doing this each year, you will be able to monitor your progression towards any debt repayment goals and savings.

2. Make a Budget

Another thing you need to do is that you need to have a realistic budget that you stick to. You need to be intentional about your savings goal and not only think about it. This includes you being realistic about your current household financial situation. You then need to set numbers that are attainable and correspond to your spending to enable you to save.

When you know what you are spending money on, you will likely not overspend. Monzo and Starling are two digital banks that can you with this.

There are also free budgeting apps like Money Dashboard that can help you manage all your accounts in one place.

3. Pay Attention To The Cash Flow Concept

Understanding what cash flow is, how it works and what your household financial situation looks like is very essential. Revise your expenses and your income then determine your savings habit.

4. Work With Your Partner

If you have someone you stay with, or you are married, teamwork and communication about your household finances are very important. To save and invest more, you both need to be on the same page with your plan, desire, and resources.

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5. Differentiate Between your “Want” and “Need”

Understanding the differences between your wants and needs. Identifying them will help you to avoid unnecessary expenses and help you say NO when something that does not correspond with your financial goal comes up.

6. Cancel Redundant Subscriptions

The thing with subscriptions is that they tend to pile up. Before you know it, those little subscriptions have become very expensive.

The Covid-19 lockdown and the work from home period gave people a lot of free time and subscriptions could have piled up. Now you have to ask yourself if you really need Netflix, Disney+, and Amazon Prime accounts?

7. Save First, Spend Later

When we make money, it is really important to save first before trying to sort anything else.

The rule of thumb is to use the 50/30/20 flexible approach to budgeting. What this means is simple. 50% goes to your needs like food, bills and debt. 30% goes wants. These are things you want to buy. 20% goes for savings and financial goals.

You can always adjust the ratios to what works best for you.

8. Pay Attention To Your Accounts

Do you know about tax-free ISA allowance? You can take advantage of your £20,000 tax-free ISA allowance. ISA rates aren’t great but it makes sense if you leave the money untouched for a long period.

You can get more information about it here www.gov.uk/individual-savings-accounts. You can find the best cash ISA rates at Moneyfacts.

Secure your accounts by turning on multi-factor authentication on all of your accounts to provide an extra layer of security. To do this, first protect your money and yourself by knowing where all your account is which includes; credit cards, retirements, banking, and student loan

Also, there are several safety precautions you can take which includes; setting up credit report monitoring, etc.

9. Improve Your Financial Credit Score

To increase your credit score, the most important thing you need to do is to keep your credit utilization rate under 30%. You also need to pay off your bills on time as at when due.

Lots of credit companies pay attention to your account on the length of your credit history, the mix of credit accounts you use, and the last time you applied for new credit.

10. Plan For Your Benefits

You probably have employer’s benefits that you are not aware of. Some of these include wellness opportunities, gym reimbursements, or financial planning sessions.

Make sure you pay attention to them by taking a few minutes through your HR portal or reaching out directly to your benefits manager can yield positive results.

You should take time out to find out the benefits your employer offer.

11. Be A Clever Customer, Not Loyal

It is easy to get attached to brands. But are they always the best option for you. The truth is, the emotional connection we have to brands apart, cheaper doesn’t always mean worse.

Sometimes, cheaper could be better and more suited to your needs.

To save more, you really have to be more clever with your brands and vendors. You can use comparison sites to search for better deals.

12. Maximize Your Savings Potential

Your rate of savings is determined by the percentage of income that you keep every month concerning your expenses i.e. Income – Expenses = Savings.

By increasing your savings, you are putting yourself in a better overall financial position. This will give you extra money at hand to save or to accomplish your goal, be it to invest or buy a house.

There are several ways to increase your savings, you can unimportant monthly subscription, get a side hustle, ask for a raise at work and more.

13. Reduce your expenses

This is another way you can save more by making sure that you are spending only what is important.

You can do this by making a list of all of your non-essential expenses for the last month. How do you achieve this? You can keep track of your expenses for a few months.

Rank them from the most important to least important and reduce or cut spending on the least important or unnecessary.


There are several ways you can spend less money than you make. But most of them rely on you either making more money or reducing your expenses.

The methods discussed are proven ways of reducing your spending so you can have more money saved for investing.


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