I wanted to do a post about saving because it is a topic that I like learning about and getting tips on. I also wanted to focus this on young people because most people are studying or have jobs that don’t pay amazing so I wanted to give my tips on how to save when you don’t have a lot of extra money.
- Budget. This is something everyone talks about but it is so important because it means you know exactly how much money you have, how much you pay on expenses such as rent/mortgage, bills, travel etc. You can then see how much money you have left on food, activities, and luxuries. Don’t be discourage if it is not a lot of money, that happens to a lot of people during certain periods of time and there are things you can do to make your situation better, like relocating to a cheaper flat/house, get a job or a second job (think babysitting etc).
- For students; take advantage of student discounts. I would definitely recommend this to all students because it does help. I don’t mean that you go out and spend lots of money on clothes because that one shop offers you a 10% student discount. No. Use it on necessities, such as travel. If you live in London you get 30% of your weekly or monthly Oyster card which is definitely a good deal. This does not apply to pay as you go though. Anywhere you can get some money of one things you know that benefit you, definitely use it.
- Set of a monthly amount that you put in your savings account, the moment you get paid. If there is anything that you are saving for (which most people do), this is important. The important thing is not how much you spend, if you can only afford to save £20 a month, that still counts and after a year you will be reassured to have £240 than nothing. Small amounts help and if you keep your savings in a savings account you also earn interest on it. It is important to set aside your savings when you get paid and not wait to the end of your pay period as you are less likely to set aside money then because you might not have much, if any, money left.
- “Downgrade” on products. A tip that I have had to use is to switch more pricer products that you use to cheaper ones. I’m taking about make up, skin care, clothes, shoes and so on. I was used to spending money on high end makeup and being able to buy shoes and clothes regularly. Then there came I period where I couldn’t do that anymore and I only bought shoes, clothes that were cheaper when I absolutely needed it, and I switched from high end makeup, to drug store makeup which can often be just as good.
- Avoid loans, credit cards and overdrafts as much as you can. I know it’s tempting to apply for loans, overdrafts or just get a credit card when your money doesn’t stretch for what you want. But if you are able to pay for your necessities and maybe a couple luxuries, I would avoid getting myself into debt. I definitely know that it sucks to not get that coffee in the morning, to not be able to go out as much as you want or used to, or not buy the things that you want, but getting in to debt because of that is not worth it in my opinion. It’s difficult to pay back debt and its not fun. If you also know that your financial situation will improve in the future I would try to cut back and live with not having all the things that you want.