When I first started getting pocket money, as soon as I was handed my weekly £5 I would walk to the toy shop around the corner ad buy a new beanie baby. The concept of saving money baffled me. When I was 18, I deferred my university place and worked hard/ played harder for the year. I was still pretty bad at saving so my dad would take £500 off me every month and put it in savings for when I finally went to university. Even at university, I was terrible with money, managing to get around £500 into my overdraft before getting myself a job. I paid this off with the money I had originally saved and since then, I’ve been good with money.
When I graduated, I came out with £1500 saved. Luckily, as I stayed in Leeds and had rent to pay without actually having a job. By the time I got into paid work, I had £300 left and I was determined to build my savings back up. I’m not in a full time job, so let’s say my wage is below the bread line but I’m managing to live fine and save at the same time, so I figured I’m actually in a good position to give advice.
Work out how much you can realistically save
The formula for saving is apparently 50-30-20: 50% of your wage should be spent on important things like rent, bills, tax and food, 30% put into savings, and 20% spent on clothes, nights out and makeup or whatever. If you’re on a low wage, 20% isn’t really a lot to spend on things like seeing friends and date nights, for me it would be £180 which is less than I survived on a month at university! I aim to save £200 each month, just over 20%, with less busy months putting away more. On the month I did my spending ban, I saved £400. Saving huge amounts each month may seem great but if it means you’re struggling or unhappy, it’s worth cutting back.
Save first, then spend
As soon as I’m paid, I transfer the amount I want to save that month before doing anything else. That way I know how much I have left for everything else. I’ve tried to get all of my bills so that they come out the same time as I get paid, so once they’re out it’s obvious exactly how much I have left to spend on food and myself. This stops me spending money that should be saved or spent on important stuff.
Open a savings account
Fact: it is physically impossible not to spend money if it’s in your account. I opened a savings account online as an add on to my normal bank account and I transfer the money across each month. Even though I have access to my savings, having it in a seperate account means I don’t really see it as my spending money so there’s less temptation to touch it.
Shop on the cheap
Aldi and Lidl are great for saving on food shopping; their own brand food tastes really nice and works out up to half price off normally. Buying chicken and vegetables frozen stops food from going off or being wasted, which used to be a huge thing for us, and discount stores like Home Bargains often have branded sauces, condiments, jars and cereals for cheaper than supermarkets. We also go to supermarkets really late when things like bread are reduced to 5p and then freeze them.
Plan your meals
I can’t tell you how many times I’ve come home hungry and had no food to eat so I’ve bought something. Or I’ve forgotten to make food for work so I buy something. It is so expensive to get food as and when you need it, so meal planning (even slightly) helps a lot. The night before, get out whatever ingredients you’ll need so that you’re not having to buy fresh chicken the next day because yours is still frozen! My favourite thrifty but filling lunch to take to work is a jacket potato and a small can of Tesco beans with a handful of spinach. The whole meal costs around 40p, can be cooked in the microwave and fills me up for ages.
Use up leftovers
Leftover food is often wasted but really doesn’t need to be. We freeze any meals leftover that we don’t want, and then if one of us is away or we have no food in the house, we can heat it up and have basically a free meal. Overripe avocados can be mashed and frozen for the next time you want guacamole, overripe bananas can be made into banana bread, leftover chicken can be popped into stir fries, curries, pasta, whatever. Wasting leftovers is essnetially the same as buying food and binning it as soon as you leave the shop.
Use bonus schemes
Sites like Top Cash Back are amazing for earning money back on purchases you make; click on the site through your account and you can earn around 10% of the money you spend back! Boots points, Nectar points, Clubcard points etc all seem pointless but over the year really add up and means you can treat yourself to something you would have to spend money on otherwise.
Find deals
Before buying anything online, I always google “shop name voucher code” to see if there are any vouchers or discounts available. Websites like Hot UK Deals have really good deals on in stores and online, including some amazing holiday deals! Always check to see if there are places offering the same thing but cheaper, it’s just an easy way to save money.
Start a pound jar
This doesn’t have to be a pound jar, it can just be a spare change jar, but pounds certainly add up more. When I have change in my purse, I tend to spend it on crap. I hate buying small things on my card, and I’d never get a tenner out just to buy a KitKat, but if I have £1 hanging around my brain is like oooh, get one. Having a money tin (the ones you have to hack open) that I can put my spare £££s in is a good way of stopping me wasting my money. Scott and I bought one and in eight months we’d saved £300. No way in hell would I thought that would be possible, but it shows how much money you waste on crap you don’t need!
Don’t impulse buy
“Oh my god I need that RIGHT NOW”. No you don’t. Psychologically (I love busting these out), the fear of loss if bigger the fear of gain, so when you’re fretting because you need to buy something, it’s not that you want it that bad, it’s that you’re scared if you don’t get it you’ll lose out. If you resist buying something for a day or even a few hours, that urge shouldn’t be as strong and you can decide whether you need something, or can live without.
I’m not going to lie to you, saving money on a low income isn’t perfect; I’ve planned winning the lottery out a lot of times and I’d love if someone would hand me some money for just being me, but I’m a 22 year old new graduate and really, I don’t have anything to spend on right now. I am fine being skint and budgeting for the next few years because that is just what life is as a graduate really. I’ve not come out of university halfway up the career ladder, and until I’ve climbed up there I’ll live like a student and save up.
What are your tips for saving?
