Your 20’s are normally the time when you have the most disposable income…
Depending on where you are in your 20’s, you tend to have the most money you every going to have, your bills are limited and most of us don’t have children just yet.
So why is it so important to start saving now ??
I tend to follow the Carrie Bradshaw philosophy… I like the money where I can see it, handing in my closet. I have a terrible shopping addiction and I thing I may need to go to meetings… “Hi my name is Lauren and it has now been 3 days since I bought my last pair of shoes…”
But it is so important that you start saving for your future now.
We all have different goals and no matter what they maybe they are going to cost money, whether you want a big white wedding, a house, starting your own business or even own a pair of Christian Louboutin’s. No matter what you want to do in life, it’s going to cost.
I am not saying that I amazing with money and my other half will properly laugh when he reads this. Being a girl is expensive with all the make-up, clothes, shoes, ladies thing, etc. My parents always moan that I spend too much money, but I work hard for my money!! But I did need to make some changes.
So over the last couple of year I have taken a hard look and my finances and tried to devised a plan of action…
I sat down and worked out how much I spend a month, what my direct debits are and also thing I need to pay for like my car and went from there.
Here are a couple of tips I have learned and seem to be working for me, because girls… we need are own money!!
Calculate your finances – Work out how much money goes out of your account a month and how much you need to live of and save what ever is left.This way you can see exactly what you have to play with each month. With bank charges being so high, you don’t want to be on the red every month (been there done that!!).
Split you savings – I have 2 savings accounts, one for long-term saving that I DO NOT TOUCH, no matter what and one that I dip in and out for car maintenance and emergency. This way when the exhaust decided to fall of my car towards the end of the month I have money to sort it and I don’t damage my long-term savings.
Don’t waste money – Sounds simple and I am starting to sound like my parents but I am prime example of some one who wastes money. All them little £1 or £2, they all start to add up over the month. I have stared to buy food and juice that I leave at work so I have breakfast and lunch. This way I am not temped to go to the shop every day to food (the biggest thing I waste money one).
make a plan… – Money doesn’t grow on tress (even if I wish it did) and like my Grandma always say the bank doesn’t accept buttons. So you need to plan for the future. I have stared a pension. Never in my life did I think at the age of 20 I would be paying into a pension…But I am sure I will thank myself in years to come.
Talk to your partner (if you have one) – Me and partner both having saving and though we are saving for different things, we both know what we are up to. My partner earns more than I do and he is better at saving but that doesn’t mean I rely on him to pay for every thing, we like to work our finances fairly (don’t get me wrong his bailed me out of some sticky patches). We don’t fight about our money and we both know what we are up to… We do have the occasional disagreement about big purchases but at the end of the day as long as we are saving, we have are own money.
Enjoy your money – I am not saying you have to be a kill joy, save all your money and stay at home. I am just saying save some and enjoy the rest. Even saving a little every month will make a huge difference. I used to just save what ever I had left over at the end of the month and then I got addicted to saving money, I like seeing my account go up instead of down. But still go out and enjoy your money. Go on the girls weekend away, go to the festival, treat your self to those shoes. Just don’t do it ever week-end
Keep it private – Your savings need a little privacy, don’t go shouting about how much you have got saved to your friends and family. Your friends may think that you are then loaded and wonder why you say you can’t afford things and your family are just to nosy, they don’t need to know. My little sister thinks because I have savings I should be out shopping in designer shops all the time and not Primark, she also asked for a Michael Kors handbag for her birthday from me!! notes to self, keep savings privet. Don’t get my wrong I do love the finer things in my, just my bank account doesn’t.
Bad Habits – Now is the time to kick the bad habits. Don’t waste money, don’t buy the silly gadgets you see on instagram and definitely don’t lend money you know full well you will never see again. Changing your habbits with money will save you so much. Don’t look at work money as some thing to spend, look at your money as your future and some thing to treat your self with.
your future may seem a long way a way and you may not have even figured out what you are going to do yet. Do you want child??, where do you want to do live??, what do you want to do?? They are all questions we properly don’t know that answer to yet.
But no matter where you go or what you do these things do unfortunately cost money (man I wish they didn’t). So go out and enjoy life, live everyday. We don’t work just to pay bills and die but just make sure you put some away for a rainy day…
You never know what the future will bring.
With love Lauren-Amy