Well hello to you my reader chums! I've always been a good saver. Growing up in a family who were always money-conscious and taught me the value of the pound has made me aware of how to make money last and invest when needed. I'm no money expert, however, I've picked up many money- saving tips over the years which have helped me save and manage my money as a freelancer.
If you're saving up for a big occasion or keen to learn better money skills, here are my best financial tips to stay savvy with money.
Focus on your needs, not your wants.
In an over-consuming world, we constantly compare ourselves to what everyone else has. Here's your reminder, that what you see online is not normal and unlike a normal life. Most people aren't on holiday all the time, most people don't buy new clothes all the time and most people don't have a 10-step skincare routine. It's normal to want things, you have to enjoy life, whether it is a weekend away or some new trainers, however, you don't need to constantly be shopping for things you want.
Focus on affording the things you need, and the things you want come every now and then. And if you want something that badly, waiting for it will be a great reward and you'll appreciate it more. For example, you may see a trending gadget online and think you want it as everyone else is getting it, however, once the trend is over, you may forget about it. If you wanted it that badly, it would have stayed on your mind.
Set an automatic payment to your savings account.
It's easy to forget to save money unless you push and remind yourself. There are two ways to save effectively. The first is putting money in your savings account as soon as you get paid and the second is setting an automatic payment to your savings. With an automatic payment, you won't have to think about actively saving as it'll do it for you - and you can actively save on top. For example, send £10 a week as an automatic as it's the price of two coffees and not necessarily money you'd miss (unless you're on a really tight budget). From there, you can add more to your savings but there's already money ticking over into the account.
Don't touch your savings (unless it's an emergency)
I know so many people who can't save as they always dip into their savings, and therefore the money doesn't increase. Don't do that. You need to get into a disciplined mindset where once the money is in your savings, it's only to be used for that saving purpose, such as a new car, a holiday or buying a new washing machine. Whatever it is, the money is in there for a reason. The only time you should ever touch it is if it's an emergency, such as your car is broken or you need to replace something immediately.
Have a set budget for days out and fun activities
When we have a day out or an activity booked, it can be easy to simply enjoy ourselves and not think of the money repercussions. However, to keep an eye on your money, have a budget for that day out. For example, say you're going for dinner and drinks, have a number in your mind that you expect to spend and don't go over that.
Understand what your disposable income is and how you spend it.
Everyone has different levels of disposable income. If you have a budget spreadsheet listing all of your expenses each month, you'll know what's left to spend on whatever you want. It could be £50 or even £500. Whatever the amount, decide where you'd like it to go. For example, you could put some towards a holiday and some on a meal out.
Have set savings goals each month
It can be difficult and unmotivating to save if you don't have a goal. I recommend setting a goal for the year and then breaking that down to how much money you need to put in your savings each month to reach it. The goal will push you to be more careful and consider your money when spending too.
Any money left at the end of your month put it in the savings
This is a privileged position to be in. However, if you have any money left over before your next payday, put it in your savings account. Even if it's £10, it can make a massive difference over time.
Plan for birthdays/Christmas in advance.
Shopping for presents adds up over the year and if you don't plan for it, it can set you back with your money. At the beginning of the year, list all the birthdays you have coming up (and other occasions) and set a budget for each one, giving you a rough prediction of how much you intend to spend and on which month too.
Use what you have, rather than buy something new.
It's incredibly easy to buy and replace items rather than use and fix them. If you have things in your house that are a little old but usable, continue using them. You don't have to buy new. Or if something breaks and you need an item, see if you can find it second-hand rather than spending a large amount of cash.
Always be on the hunt for deals - shop around.
Deals are always around, from supermarkets to holidays. You don't always have to pay full price for anything. Think smarter not harder and remember, by looking after the pennies, the pounds will look after you. If you're shopping for something new, search different shops and see where is the best value for money.
Avoid buying things on finance.
Buying things on finance isn't a financially smart move. I understand in some cases, like your phone, it can seem impossible to have the money upfront. However, for larger items, such as a car or a sofa, by buying it on finance, you're really spending more in the long run, wasting money and adding to your monthly expenses. It's better to save up or buy second-hand than be stuck with a large bill every month.
I hope you enjoyed these tips. What would you add?
Thank you for reading <3