How-to Guides » OLD GUIDE Build up your savings

Squeeze down your budget

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1. If you’re finding it hard to save, see if you can make cutbacks elsewhere to free up some spare cash. The best way to help you do this is to keep a spending diary and set up a list of earnings and outgoings using this Statement of Affairs calculator.

Once you've done that, you should be able to identify areas where you're spending a little more than you should be. This money could be put to far better use in your emergency savings account.

2. You'll find that all good savers are great at budgeting. For more tips on how to do that, read Five Steps To Brilliant Budgeting! And check out 12 Ways We Can All Fight The Recession for lots of tips on how to cut your everyday living costs.

For example, if you can, remortgage to a cheaper mortgage deal and switch to a more competitive gas and electricity supplier. These are just two key ways you can make big savings on your monthly expenditure.

3. If you're finding it difficult to squeeze down your budget any more than it already is, you could think about taking some steps to earn a bit of extra every month instead. Read Ten easy ways to make money and Make money from your hobby! to get you on the right track. You can then pour all the extra cash making straight into your emergency savings pot!

4. To give your savings pot an extra boost, track down any funds you’ve forgotten about. You'd be amazed how many millions of pounds are languishing in current accounts and savings accounts which haven't been touched in years.

Thankfully, there is a simple process for reclaiming what is rightfully yours. This article shows you how to hunt down everything from dusty premium bonds to cash in dormant accounts and unclaimed tax.