It’s safe to say me and my bank accounts have a rocky relationship. I’m definitely one of those people who have their fingers crossed praying a card transaction is going to go through and I 100% hide from looking at my internet banking and student overdraft because it isn’t a pretty sight. However, one of my new years resolutions is to change my mindset when it comes to money and actually SAVE (as well as paying off my overdraft).
I read a great thing on Easy as VAT which was that if you want to start being ‘good’ with money, you need to stop telling yourself that you’re bad with money. You need to get out of that negative mind set which you associate with money.
When I decided that 2019 was the year I was going to be good with money (at the beginning of December) this was the first thing I did and whilst it seems like a really simple thing, it’s helped so much going forward.
How am I changing my relationship with money?
The first thing I did was look at what I’m actually spending. I used the Spendee app on my phone and tracked everything I spent for a month. I’m actually continuing to do this for the next two months as well because December isn’t necessarily the best month to track because it’s an expensive one!
By actually looking at what I was spending, and being held accountable for it, it made me think about what I was buying (and also shocked me at how many amazon orders I make!!).
I also made sure that I looked at my bank accounts everyday. Is it just me who gets the fear when you know you need to look at your account. By doing it every day, you get into the habit of knowing how much money you actually have as well as not having that fear (as much…it takes a while but it will!).
My brain works best when I actually write things down so on a big piece of paper, I wrote down all my monthly incomings and outgoings. I didn’t have a clue when things were going out so by writing absolutely everything down I knew dates I needed money in my account. I also saw just how much I had coming out of my account which leads me on to my next tip…
Cancel subscriptions you don’t use. I had so many monthly outgoings from apps which, in reality, I didn’t really need. I took auto-renew off on yearly subscriptions so it would be a conscious decision to carry on using the app. I also canceled things I know I should use (like my social media scheduling service) but use very ad hoc. Instead I’m going to use the free one until I get into a proper routine with it.
The next thing I did was set up a high interest savings account (specifically a help to by ISA). So, at the end of last year I started working in a building society and actually started to understand what different accounts were and the perks of actually saving. I have a help to buy ISA which has a 2.75% interest rate which, especially at the moment, is really good. If you’re looking into getting a savings account, if you can find anything with an interest over 1%, that’d be good. However, just having another account which you can actually put money aside in is a good idea.
I have lots of different places I keep change and, when I counted it, found over £50. The pennies really do add up so when I have change, I put it into my money box rather than let it gather dust in my purse.
When it comes to actually spending money, I’ve started to ask myself do I really need this or am I just buying for the sake of buying? It’s how I’m trying to train myself to stop impulse buying which is something I do a lot. I’ve found a lot of the purchases I’ve gone to make are often for the latter reason and I’ll convince myself that it’ll look good on my instagram which, in reality, probably isn’t the greatest reason to buy something.
Some resources to help you with money
I seriously recommend going over to Easy as VAT as Julia has so many resources available to help you from spreadsheets to different websites and apps.
Another website which I go to all the time for money advice is Money Saving Expert which was set up by Martin Lewis. It has reliable advice and comparisons and is just great at explaining everything really.
My final resource is checking your credit score on ClearScore. I was actually pleasantly surprised when I saw my credit score wasn’t as horrendous as I thought it was. It also offers coaching and tips to help improve your credit score.
Don’t forget to leave your money saving tips in the comments below ??