I live alone what is the best way to save money?

I left home a while back and am living alone and working as a salesman in a reputable company. I've been trying to save money but I just cant seem to make ends meet at the end of the month and have to resort to borrowing on my credit card. No matter how many promotions or bonuses I end up with I seem to blow it all. Please help, any advice would be considered!

When you’re living alone you can save a lot of money if you work towards it. Living alone means that you do not have a lot of other commitments other people have because you’re independent and have fewer responsibilities, this means you can really make your saver bank account grow with a little planning and patience. Many people ask how to save money while living along, if you are interested then read on.

Your mindset

You have to create a mindset that is money orientated; your goal should be to accumulate as much money as you possibly can so that when you are in a responsible position you can take care of everything and not worry. Do not look at short term enjoyment, instead look to long term financial freedom.

Time management

When you are living alone you should have a lot of time on your hands, you need to use this time effectively and not waste any of it on short term instant gratification. Have several money making projects on the go and allocate your time between these projects, always assess how to use the time effectively and always monitor your progress. If you can spend at least 6 hours per day this way after you come from work you are laying the foundation for a great stream of income in the future.

Income Streams

The first thing you have to do is create as many income streams as you possibly can and then work on growing them substantially. If you are working always look for a promotion or a better job so that you can increase your income. Find other ways of making money, for instance you can try your hands on the stock market, ebay.com, writing a blog, renting out rooms in your home. The more income streams that you have the more money you can potentially make.

Reduce your expenses

Always look to reduce your expenses, the less money you spend the more your bank account will grow. Think of it as forgoing the short term benefit for the longer term financial austerity. If you are living in a house and there are spare rooms then consider renting them out to produce additional stream of income. Look to spend less on food and clothes and find cheaper ways to pay the bill, in a nut shell you have to become more frugal with your money. The more frugal you are the further you can stretch your money which will mean a lot of surplus money at the end of the month.

Invest your money wisely

Once you are able to secure a significant chunk of your money to saving you can’t just leave it in a low interest bearing current account, you need to make it work hard for you. Look at the types of investments you can make while assessing the risk. Personally if I was able to save £1000 per month I would place it in the highest deposit account I could find, some accounts pay 6%, another strategy in regular savings account. A regular savings account provides you with the highest interest on deposits, you normally have to deposit £500 per month and if you can somehow secure two of these accounts with different banks then you can divide your savings and enjoy a 10% return

Reinvest your profits

If you are able to make a profit on your investments then you need to reinvest it so that the capital keeps on growing. Reinvesting the interest you earn means you will be earning interest on interest which will make the proceeds grow even faster. Within no time you will be able to accumulate a large wealth.

If you live alone and are single you have the perfect environment to really push your creative talents into making money. Once you have made money don’t spend it recklessly as this income may cease one day, try and save as much of the income you can for a later date. Once you have accumulated a substantial income where the interest you earn is paying for your living then you can start enjoying yourself.