MONEY MATTERS: SAVING SEASON

A huge part of turning 25 has meant really focusing on and investing in the future that now seems to be fast approaching!!! Saving was always something I had way in the back of my mind, but when I got to a point where my bills and life expenses were slowly increasing just as much as my desire to ‘look cute’ AND my desire to be an entrepreneur AND my desire for my future family to live well, I realised it was time to buckle down and ‘sort my life out’ for real lol. As a result, ‘Serious Saving’ has now become a much more fundamental part of my monthly routine, because it’s really hit me that the wedding, house, kids, bills aren’t going to pay for themselves! lol

WHY Save?
The more I think about the position I’m in now and position I desire and aspire to be in, the more I realised there are actually countless reasons why it’s actually so important to save! And when you realise how much smart saving can really do for you, it will make you want to save even more!

1. FOR A RAINY DAY – Theres nothing worse than having an unexpected bill or debt come through the post and having that feeling it the pit of your stomach, knowing that paying that bill means you’re about to be broke till next month #Stress!
2. FOR YOUR DREAM WEDDING/HOME/CAR – Being strict and consistent with your savings will mean you will able to obtain your dream home or car a lot sooner than you think.
3. EXPAND YOUR OPTIONS FOR OPPORTUNITY – Having money put to the side means you can truly invest into your dreams and obtain all the necessary equipment and resources to push them to their fullest potential
4. FOR VACATIONS – Saving a substantial amount for a holiday means you will not only be able to afford good quality all inclusive accommodation, but will also mean you will have money left over for shopping, food and excursions that will create lasting memories
5. TO TREAT YOURSELF– For women especially, having money on the side to get your hair done, nails done, pedicure, brows, wax etc is part of our monthly pamper routine. Furthermore, theres nothing wrong with treating yourself to a new dress or bag once in a while -if you can afford to
6. PAY OFF SCHOOL FEES– University Debts can be very expensive so having money put aside to pay off your student loans can really ease the burden of debts so they don’t creep up or get worse later
7. FOR FINANCIAL INDEPENDENCE- you don’t want to have to rely on your parents or family forever. It’s a great feeling to be financially independent and know you can not only take care of yourself, but have something left over for an emergency
8. FOR RETIREMENT- Making sure you have something saved for when you decide to retire means you can still maintain a good quality of life and still have stability.
9. FOR YOUR CHILDREN- Putting money aside each month towards your children’s future and education will really help them to have the best opportunities and resources in their future
10. FOR PEACE OF MIND- Being in debt or being scared to check your balance is not a fun feeling. Knowing that you always have something saved on the side eases that worry and fear

HERES AN EXAMPLE OF HAVING A GOAL AND PLANNING HOW TO SAVE TOWARDS IT:

SHORT TERM SAVING
(these things can help build your credit score for long term ventures e.g. buying a property)
Putting adequate money aside each month to go out as direct debits or standing orders, means you have no way of missing payments or ending up in debt
This can be more monthly payments like
– Car Insurance
– Car maintenance e.g. petrol, oil, tyres etc
– Rent
– Gym Membership
– Gas and Electric Bills
– Phone Contract

LONG TERM SAVING
For me this consists of things like:
– Saving towards buying the house where I’d like to start my family
– Saving Money to invest in my business ventures
– Savings Accounts for my future children
– Pension/Retirement

I can wholeheartedly say I have definitely not always been financially responsible which has left me in tight situations in the past. Not to point where I’ve missed payments, but to the point where I have had to sacrifices things that really mattered to me, or luxuries I was looking forward to, to take care of my fundamental responsibilities.


EFFECTIVE WAYS TO SAVE-

1. IDENTIFY THE DIFFERENCE BETWEEN A WANT AND A NEED-
– That new pair of shoes you’ve had in your basket for the last week is not as important as paying off bills you know you have outstanding. I remember going to an event with my friend and her not being able to call me because her phone had been cut off and she had no data. I remember telling her off for even coming out in the first place to spend even more money on drinks, food etc. But I also remember thinking #WakandaLifeIsThis? and promising myself to never allow myself to be in a position where I couldn’t afford to at least cover my monthly necessities and bills.
– Going to every single persons birthday party, event, baby shower, wedding when you know your account isn’t exactly ready to accommodate all the food, drinks and petrol you’ll use to get there isn’t really wise! Sometimes you have to sacrifice and make sure you are investing just as much time in you as you do everyone else till you at least obtain your ‘needs’, then you can focus on your ‘wants’
2. MAKE SURE YOU ARE EARNING ENOUGH TO BE ABLE TO SAVE THE WAY YOU NEED TO
You cant expect to save £800 a month if you are only earning £1200 a month and your bills and expenses total about £500 – be realistic about how much you need to be earning.
I am a huge advocate for having SECONDARY INCOME- you have no idea how handy and productive this will make you!
The diagram above demonstrating how to plan out saving towards a property highlights how you can determine how much you really need to be earning to meet your goals
3.OPEN SAVINGS ACCOUNTS
Have savings accounts for both short term and long term savings like the example above so your monthly expenditures will not impact your long term goals. The diagram above shows an example of how you can map out your finances. There are several different types of savings accounts e.g. ISA, Bonds, Everyday Saver etc so do your research to determine whats best for you. For example Help To Buy ISA come highly recommended for those trying to save towards a property due to the interest you can earn- read more about them https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/
4. MONITOR YOUR SAVINGS
Use a table, an app, a budget sheet, your spouse, or a notepad to keep track of your monthly ins and outs.
For me this has helped me determine what I need to spend less on and what I need to invest more in.
Some months you may need to spend or save more or less, (e.g. when you’re about to go on holiday and know you’re going to spend money) so make sure this is accounted for and act accordingly to keep you on track with your goals

Hope you found this little snippet into saving helpful! Saving is an area I could talk about for ages based on both my own mistakes and learning experiences. I’m still in the early stages of this journey so I definitely intend to share more as I learn.
But I hope this will encourage you to make wiser decisions as you work towards your goals x

Don’t be an April Fool! lol Start your saving journey sooner rather than later 🙂

2 Comments

  • Nicole says:

    Amazing, thank you for this inspiring piece, I can definitely relate, keep up the great work!

  • Nkasi onyesoh says:

    I really liked the section “effective ways to invest” detailed yet straight to the point and got me thinking we could also do more to save and improve the way we do it!! Good read Izzy x

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