It is hard to manage finances when you don’t have someone to split the bills with. According to the Hargreaves Lansdowne barometer, “the cost of putting roof overheads – rent, mortgage, fuel, and council tax uses at least 34% of the single person’s income. Compared to this, the couples spend only 23% on such expenses. Accordingly, the expenditure on aspects like food, communications, and other elements is higher than couples for a single person.
Single people require and use the same amenities. However, they manage the expenses single-handedly without support. It shrinks their saving goals every month. Thus, they generally cut on things that bring joy to their life. It could be eating out, watching movies, or planning trips. However, despite that, they fail to save enough, given the high cost of living.
According to uk.finance.yahoo.com, “singles can only save up to £42/month according to average calculations. It is far less compared to couples (£383).” It thus takes them more time to achieve their financial goals. However, you can end this struggle by understanding a few tricks to save more as a single person. The blog details about it, so read ahead to learn more.
What does a single person struggle with the most financially?
Rising housing costs, utility bills, and mortgages cover the most expenses for single people. Here are other aspects that they struggle to deal with the most:
The most alarming concern is not having a financial buffer for emergencies. Around 46% of individuals lack an emergency fund critical for unforeseen financial times. Thus, it leads to panic and further affects the monetary standing. In such situations, you can get help from your family members.
For example, you may check guarantor loans online to see if you have someone you can trust with finances. A person with a good credit rating and income may help you get instant cash for emergencies. He would be liable to pay for the dues if you cannot qualify or make the loan payments. It is the quickest way to meet any requirement without panic.
6 Expert strategies to save money as a single person
Thus, managing expenses as a single person is tricky. However, you can take track of things and define a saving goal. It is because you are solely responsible for the finances. You have no one to fall back on. Check the aspects that you can downsize on.
For example- you don’t need a 3bhk apartment as a single person. Instead, you can split the rent by renting in shared accommodations. It will help you divide the rent and pay less overall. It is one of the ways of saving money as a single person. Here are other aspects that you may try:
1) Get a discount on Council tax
Yes, single people in the UK are entitled to a council tax discount. Does it sound like a piece of good news? Yes, it is very much possible. According to the House of Commons Library, “People living on their own are entitled to a 25% discount on Council Tax.” You can even leverage it if you live alone without sharing the accommodation.
For example- if the property value is £52001-£68000, you must pay £1809.82 as council tax. However, with a 25% discount, you only pay £452.45 on council tax. It means a whopping savings on your end. Thus, if you have not leveraged it until now, get it done!
2) Install a water meter
If you are living alone on a single income, check ways to cut down expenses. One such strategy is to switch to a water meter. It is better than the pre-payment one because you pay only for the units or gallons that you consume. It is different from a pre-pay one where you pay a fixed amount regardless of the units you consume.
Thus, you may be paying more unnecessarily. Monitor your water consumption by analysing the bills of the previous 6 months. It will help you know the average units you consume. Accordingly, compare the costs and install a water meter if it helps you save money.
3) Switch to a cheaper car insurance cover
Yes, you can save money on car insurance by switching to a better policy. Compare the costs now and after adding an experienced driver to it. Yes, having someone who knows how to drive or has been driving for years is beneficial.
Most car insurance providers offer cheaper policies to someone who can manage the car well and can repay the premiums timely. Thus, cheap policies reduce the premium costs that you must pay on the car yearly. Thus, it will prove the best money-saving point for you.
4) Prefer a work-from-home mode
Check whether you may qualify for a work-from-home working module. Most companies offer one if you have been a regular and experienced employee. Getting a remote working module helps you kick out some expenses that affect the savings unnecessarily. It could help you cut on travelling expenses, buying lunches, coffee, or car parking. Moreover, individuals with a car may struggle to save enough for fuel or re-fueling the car.
You can also save on the apparel that you must buy at least twice a month. Calculate the costs that you generally incur when travelling to an office. Compare it with the work-from-home setup. It will help you analyse the difference accordingly. What could be better than saving more than spending?
- Share the subscriptions with a roommate
If you live in sharing and have a good bond with the other person, then this may help. You can save money on the subscriptions that you use. It could be cable, OTT, mobile, electricity, gas or other subscriptions. Paying half the cost is simply magical. You can save enough towards your goals. However, analyse whether you can trust the other person with the same. Unless you can rely on the person financially, things may not work accordingly. There should be mutual coordination between the two. You two must be able to pay your share of the liabilities.
Otherwise, it may affect your relationship. If you failed to save accidentally, don’t worry. You can finance the money required with quick cash facilities. If you have bad credit, a no-guarantor loan may help. You don’t need to bother someone even if you lack the right credit. You can use it to pay the remaining bill without worries. It keeps your relationship and bonding intact. Later, you can repay the dues in easy instalments.
6) Prefer home cooking and meal preparation
It is something that you cannot go without a day. Yes, everyone needs food to remain active throughout the day. However, individuals with busy schedules prefer dining out or packaged lunch. It may prove costly if you do so daily. Moreover, it is not healthy for your mind and the body. Thus, switch to cooking instead. It will help you save money on lunches, breakfast, and dinner. You can, however, grab a snack or two in between the meals.
You can also plan groceries for a week. It will cancel the guessing game or ordering food often. Instead, you have the meal and the ingredients ready. You just need to dedicate a few minutes to prepare the meal. It is better than spending your hard-earned money on food alone.
Bottom line
These are some strategies to save money as a single person. You must cut or slash your necessary expenses by reviewing the monthly outgoings. It will help you save money that you can use towards other goals. Similarly, claim a council tax rebate of 25% as a single person. Check the further eligibility and provide valid proof to get one. You can also split the costs with a roommate if you have one. It may prove a money-saving move.
