Be smart with your salary – and get rich

Take it away on payday

Do you end every month out of money? Has that always been the case, even though you’ve had multiple pay rises since your first job? Many of us tend to spend to our limit, so all our money gets spent regardless of how much we got paid. To spend less and save more, set up a standing order on pay day to move a percentage of your salary to a savings account. You won’t even notice it’s gone and having less money to play with each month will keep your spending in check.

Get a pre-paid debit card

Setting a weekly budget for going out, drinks and food is easy; sticking to it, especially after a few drinks, is really hard. Either withdraw your weekly budget in cash at the start of a week, or sign up for a pre-paid debit card (app-based bank Monzo offers one) that you can top up each Monday for your week’s spending. Both approaches will make you think more about each transaction and whether you really need it, rather than mindlessly throwing your cash or credit card around.

Curb your impulse buys

It’s easy to overspend on things we don’t need: a recent US study by Deutsche Bank Securities found middle-income families spend 50% of their money on “luxuries” while low-income families spend 40%. In another study, half of respondents blamed emotions for overspending. Combat impulses with the 30-day rule: when you see something you want, write it down with the price and date. If 30 days later you still want it, get it, but there’s a good chance you won’t.