I am by no means a professional financial advisor, I’m just sharing some of the things that have helped me. So don’t go and make drastic decisions and say I told you to. I didn’t tell you to do jack diddly doo da mate.
Now on to the main to stuff…
My initial 3 key tips when you’re thinking of spending or managing your money are these
1. Don’t watch what other people are spending
2. Don’t watch what other people are spending.
3. DO NOT WATCH WHAT OTHER PEOPLE ARE SPENDING.
You don’t know how they got that money. How hard they had to work for it, if they inherited it, if they got it by dubious means, etc. It doesn’t even matter. It’s not your business. Don’t get caught up in a hype.
Way back when
I feel like I grew up in a household where it felt like every question after ‘Did you read your Bible and pray?’ was ‘Are you saving your money?!’. My parents were on it from day dot. Pretty much every penny (literally penny) I was given was expected to be saved. I did not grow up with pocket money and if I ever did get money it was literally a couple of pounds and it was the expectation that it would be saved. I grew up getting excited about getting pound coins and 50ps. That’s real life. Even spending that would be frowned upon (sweets were unfortunately not considered viable expenditure. Sigh). At the time I didn’t really mind that aspect of it, I just wanted more tangible money than what I was getting lol. I’ve never really been a big spender (but discount and sales Queen, yasss), so saving didn’t feel like chore to me. I just wanted bags of money yo…like my friends were getting. You know them ones when your friends would tell you they got 200 squid for their birthday plus a b c d e presents, the kind of money & gifts you knew you weren’t gonna see from your parents in the next 10 years? That. Even £50. Real.
Savings – Current Accounts and ISAs
As someone who works I know what my monthly income is. Before that money has even hit the bank I’ve already calculated how it will be spent. After tithes, offerings, donations, and rent or house contributions, the next split I do is savings, needs and wants. I pre-commit to an amount I want to save and never waver from it. Ever. Except for exceptional circumstances. The needs get addressed, and the wants do too…but only if there is the disposable income for that. If not, they roll over till the next paycheck and I see if I have the money then. If not, rollover again and so on and so forth. For me, sometimes it has helped actually having a tick box list of all these outgoings so even before my pay has landed, I know how much I’ll be left with and how much I can put away to address the wants at a present or later date.
Investing – Shares and Premium Bond
If you’re finna to not just save money but make some too, buying Premium Bonds and shares are ways to do this. Shares involve risk (the more you buy the greater the risk, but also potentially, the greater the return), but premium bonds don’t (not on what you put in, just in terms of the potential return). Yes. You could be earning money on your money for no risk. Like I said, I’m no financial advisor so I’ve hyperlinked the above for you to do your own research into them and decide what’s best for you. Also see the links below. They involve you investing some of your money, of course, but let me tell you how sweet it is when in a moment of current account I-need-a-dollar-dollar-a-dollar-is-all-I-need poverty, you receive an unexpected dividend in the post that will just cover you till the next paycheck. G L O R I O U S.
And if you’re sitting here reading this thinking, I can only afford to save £2 a week, then do exactly that. Something as little as that, £5/£10 week, helped me pay off my student overdraft. Yes it took about 2 grinding years, but it’s paid. It’s done. That bank doesn’t own me and that last payment felt so good.
And trust me. Sometimes it can feel like your savings are crawling along like a snail and it can be quite frustrating, but it really can be a safety net in times of need. The way I combat this frustration is by not checking the balance very often at all. I just put in the money, and then when I actually look at the balance every few months, it feels like I’m DJ Khaled (bar all that cringe say my name nonsense)
All these tips are well and good, but to be honest if you have a compulsive spending habit, the above means diddly squat. Self control is the key to this and then comes the discipline. Furthermore, I have not even touched on topics such as credit cards, American Express and more. This post is already quite long and is more about savvy saving rather than spending, and I can’t do all the groundwork. Sometimes do your own research too.
I don’t know it all, neither can I write it all, so if any of you have more suggestions on how to make money travel further, comment below.
Some useful links: