Blog post #2 coming right up!
Okay, this week is all about budgeting! You may all be thinking…URM EXCUSE ME it’s the FESTIVE PERIOD?! But please bear with me! This is great advice for January and saving for 2021!
Budgeting and saving money for me has been an absolute myth, and believe me I learnt the hard way! This time last year after living in London for 2 years, I had little to no savings. This was the result of some terrible budgeting. Poor spending habits; buying things
I was recommended The 50,30,20 method by a friend and thought I’d give it a go. It was fairly simple and once I had put away my first little saving, I felt far more motivated to continue doing it and make my balance look healthy.
The 50 30 20 method is all about allocating funds to your needs, wants and saving. As a general rule of thumb 50% of your monthly salary (after tax) goes towards your needs, 30% goes towards your wants and 20% is tucked away into your savings.
Fast forward 1 year, I have tucked away just over £10,000. All fairly easily (COVID-19 did help out a little)
Here’s how I did it:
Step 1)
I identified all of my needs (yours may be slightly different)
Rent
Car Insurance
2 x Phone Contracts
Gas & Electricity
Water
Internet
Food Shopping
Council Tax
Step 2)
I identified all of my wants
‘Nice’ Shoes, Trainers & Clothes
Dining out
Going to the movies
Holidays and weekend getaways
Hobbies
Step 3)
Make repayments and savings. Ideally there should be 20% of your monthly income after tax that goes to this.
Everyone has different needs and wants, so start off with the absolute basics and work from there. When I started, I wasn’t hitting these figures at all! However, what it did allow me to do is cut back spending and amend my list of needs and wants to ensure I tucked away 20%.
Remember, if you still don’t hit that 20%, download our app, spend small on your wants and we will give you some cashback for you to tuck away!
Happy holidays!
