4 Proven Strategies to Save You Money
Saving money can be near impossible. If you are anything like me, just checking my bank balance can be nerve wracking by mid-month! I thought that saving was out of the question, and if i wanted make it possible, I would need to move back in with my parents, or at least have to make a drastic lifestyle change.
Each month i would ask myself "where is my money going". Yet i was secretly too afraid to look through my Bank statements and find out. I would convince my self that i did not have the time or just did not think about it at all.
Here is a little world statistic for you.
5% - Have created generational wealth - payed off mortgage, will pass on a large inheritance.
15% - Middle Class - Home owners, have saving, annual holidays, live comfortably
80% - Work through retirement, will never have savings, will live wage, to wage.
Now these statistics are not necessarily based on income. You could earn £10,000 per month and still end up in the 80%. Those statistics are based on the management of your money.
If you was not taught money discipline, the chances of being in that 80% are high.
So what should you do? where do you start? Decide TODAY that you are going to implement these simple strategies below.
#1 Get out your Bank statements right now!
Start with income VS bills - rent, gas, electric, Council tax, subscriptions. These are going to come out of your bank on a certain day every month whether you like it or not. Work out, down to the penny the total sum, and minus this off your monthly income.
Ideally your bills should not amount to more that 75% of your income. If you can get that down to 50% you are winning.
I looked at my bank statements and was in horror when I realised I had been paying for 2 Netflix accounts, 2 Amazon Prime accounts, and I was paying £29.99 a month for a website domain I set up a year ago and completely forgot about, Ouch!
#2 Start looking at your daily expenditure
If you are anything like me I was buying food at work, and doing weekly food shopping. I spent so much money on food and drink it made me want to cry! My intentions at the start of the week were always to cook. I would stock up my fridge with ingredient, and a few days in, after working all day a takeaway was just too appealing and the food in my fridge would go to waste.
Cut back - It's nice to treat your self occasionally, but everyday? come on, £700 a year on coffee? £2,500 a year on lunch?
What should you do?
For one month, just one, cut your daily spend allowance in half. if you spend on average £15, £7.50 is now your budget.
Why a month?
Because setting out to do this for the rest of your life will overwhelm you. Goals should be trailed. It tricks your brain and makes them feel more achievable.
#3 Move your money
#4 Stop looking at your monthly income as yours
Example; if you earn £2000 per month, 75% of that goes on bills, then your actual earnings are £500 per month. That is the money that you own, that is your monthly income.
Advice
Wealthy people stay wealthy because they are smart. They understand money and how to manage it.
Unconsciously spending only sabotages you! stop falling into the "treat my self" cycle. Constant treats end in constant struggle.
Once you implement these things into your life and become conscious of your spending habits, you will no longer need to feel anxiety over your bank balance or feel out of control.
You should know how much money you have in your bank account at all times. Download your baking app and check it daily. Download a money management app, there are lots of free apps available.
And finally, remember, live within your means. If you want a more lavish life style, you can have it. There are 100's of ways to make extra income, but non of them happen over night and all of them will take commitment and time.
I really hope these help. Comment below if you have tried any of these strategies, or have any more great money management tips.
Paris
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