Growing up I was never the best with saving money. I’d spend my pocket money before I received it and would forever be borrowing money from my parents. I’d like to say that as I hit my early twenties that all changed. But it didn’t. I graduated from University at the start of the recession so finding a well paid job wasn’t quite as easy as I thought it would be. After interning (unpaid!) for about a year I finally got a ‘proper’ job that came with a ‘proper’ salary. But as I was working and commuting to London, the money never seemed to last very long in my purse. A combination of socialising a lot in London, designer handbags and exotic holidays, meant that by the time I was in my mid-twenties I didn’t have a very healthy savings account.
The reality was that while I did have a savings account, I never put a lot in there. And what I did manage to put away in a month, normally had to come back out again. It wasn’t a very healthy approach to finances and I would strongly urge you to not follow my example! It wasn’t until the start of this year that I actually sat down and started planning my financial future. A house was naturally at the top of the list but with my attitude to money, I knew it wouldn’t be easy.
But since January, I’ve managed to save £12,000. Now it’s not been easy. It’s been really hard! I’ve sacrificed a lot. Gone are weekend’s away, big holidays, new clothes and handbags. So how have I managed to save so much? Well I sat down in January and worked out my goals. From there, I worked out how much money I would need to achieve those goals. I then worked out monthly how much I would need to save and then worked out a budget that fitted in with those savings. And the most important thing is that I stick to it!
It probably won’t come as a surprise to know that the majority of my income goes into various saving pots. I know this isn’t realistic for everyone, but for me it was. I live at home with my mum and step-dad so I pay a very small account of rent compared to market rate. And I have no debts. I made sure any debt was paid off before I started to seriously save. Plus I really want this. And because of that I’ve found it easy to compromise on things and go without certain things because I can see the end in sight. It’s also helped by the fact that I’m able to earn money through my blog. Now I don’t earn thousands each month, but I do earn enough to top up my savings on a monthly basis by a few hundred pounds.
By doing all this, it now means that by the middle of next year, I should be on the property ladder. And I can’t wait!
How long did it take you to save for your first place? Has your attitude to money changed over the years?