I feel like money is still a little bit of a taboo subject. Personally I’m comfortable with talking about money, which is why I wanted to write this post about managing money, as managing your money successfully is not an easy thing to do. It doesn’t matter if you earn £10,000 or £100,000 a year. You’ll still struggle to be able to do everything you want and save at the same time. I know I’ve struggled to manage my money in the past. Even as a child I’d spend my pocket money as soon as I got it. Or I’d borrow a few weeks worth of money in advance to be able to buy what I really wanted then and there.
Managing my money didn’t get any easier once I was at University, but being skint is part of being a student right? I thought I’d be able to manage my money better once I got a graduate job and started to earn a decent wage. But it still took a while to get into the habit of saving regularly while still getting to do all the fun things. But a few years ago I discovered a great approach that has really helped me save regularly and build a pretty nice saving pot while still being able to go on holiday, go to festivals and just do the fun things that cost money!
Managing my money using the 50,30,20 approach works best for me. If you haven’t heard of it before it works on the basis that you spend 50% of your money on essentials – so rent and bills. You then save 20% of your money and use the other 30% to spend on the things you really want to – like clothes and makeup!
As I’m saving really hard for a house, I’ve turned this around a little. I’m able to save 50% of my money as I live at home, with 20% going on bills and rent and then 30% is for me to have fun with – so holidays, makeup and clothes.
Now I know this might sound easier said than done. Trust me it’s taken me a long time to get into the habit of saving regularly. Years ago I used to have a savings account that I put money into each month and by the end of the month I’d have transferred all the money back into my account to spend! But what’s really helped me is setting goals and then setting a budget.
The main goal for me is getting my foot on the property ladder. With that as the focus I was able to work out a budget that would allow me to fulfil that dream within 18 months. Making a budget does seem like a scary and daunting thing to do but it’s so important to know how much is coming in, how much is going out and where you can make savings. There’s no point in saving money if you have debts so make sure those are paid off first. And if you’re paying a lot of interest on your debts then you might want to consider a consolidation loan to ensure you can manage one simple payment.
One of the other important things to consider when making a budget is that it’s realistic. There’s no point making a budget that you won’t be able to stick to so make sure you have money allocated for everything you want to do. Mine includes sections for meals out, holidays and shopping – because I wouldn’t want to live without these!
How do you manage your money?
I’m a student, and while being ‘skint’ is a connotation of the student status, I’ve managed to save really hard while I’ve been at uni because, like you, I really want to move out of my family home when my degree is over in June. I budget a certain amount for each week and don’t go out every week like most students – I’ve given up alcohol and I feel that’s where I’ve saved most of my money. When I do fancy treating myself, I’ll do a bit of online shopping when everyone else has gone out on student night – then it’s just the money I would have spent if I was out with them!
Lovely post, good luck with saving for that house!!
Thank you, good luck with your savings as well! x
I believe that if you want to save money, you will find a way to do it. Sometimes my friends ask me, where do you find the money to travel with the minimum wage that you earn every month? Well, I don’t drink coffee every day from Starbucks like they do, I make my own lunch from home to eat at the office, I dont go out every Saturday etc. and I save the money to do something big, like a trip or holidays! There are are plenty ways to do it if you really want to save money.
Yiota
PinkDaisyLoves
That’s true, though for some people I know it can be easier said than done x
I really need to do this. Im rubbish at saving and every month I end up asking myself where all my money has gone. I think Im going to give this technique ago, so fingers crossed!
Let me know how you get on with the 50,30,20 approach x
Cough me and saving money don’t hand in hand. I should however look into this technique. xx
I was the same a few years ago but it’s just something I forced myself to do and I’m so pleased I did! x
I’m terrible at saving money. I’m definitely a as soon as I get money I spend it kind of girl but I really really need to budget better. I think that this technique is something I will give a try but I also need to cut down on things like eating out and getting takeaway.
Having a budget will help you see where you can make savings in areas like eating out and getting takeaways – good luck with saving! x
I have to say I think this is a brilliant idea, and one I’m going to start myself to get some holiday spending money.
Great – let me know how you get on with it! x