Thursday, 18 May 2017

On Learning About Money

Money Lessons To Learn In Your 20s

For the longest time I've thought about money every single day. Do I have enough? Do I have too much? Can I buy this? Do I need to save for this? Etc etc. Now I'm the first to admit, despite what you've read, I've not always smart with my money. I've bought bags that were too expensive, booked holidays with no idea how I was going to afford them, splurged on far too many lipsticks and eaten out instead of in more times than I'd care to count. But I'm learning and I'm taking control and I'd like to share with you the money mistakes I've made and the lessons I'm learning in my twenties.

1. I'm learning not to say yes to things unless I know I can afford them. Whether it's gig tickets when I know there will be a hotel involved, a holiday, a clothes order, whatever. I'm trying to make sure that I budget for everything and not say 'Oh I'll just put it on my credit card '.

2. I've learnt that there's no point having savings if you have debt. What's the point in having £1000 in your bank and £1000 on a credit card. Even if the credit card is interest free it's better to pay it off and start your savings fresh. Use the money that you would be paying off your credit card to put into a savings account.

3. On the subject of credit, I've learnt that it's okay to have it, as long as you're in control. My credit score improved greatly when I first got my credit card because it showed potential lenders that I could borrow money and pay it back. I know it's easier said than done but it's important to keep everything in your own hands and not just be working to pay back endless Asos orders or that spontaneous night out. Take the credit where you need it and make regular payments.

4. I'd like to have ideally three months salary saved on top of my regular savings account. I say this because a few years back I was made redundant and during that time I had absolutely no income. It was a hard time and I know that if I would have had a few months salary in the bank, I wouldn't have had to stress so much about paying my rent, phone bill and other miscellaneous things with so little money.

5. Lastly, I'm learning to not buy for the sake of buying and I'm trying to implement this into all aspects of my life. I'm trying to not pick up food in the supermarket just because it's on offer or buy a bottle of wine in the pub when I only want a glass. I'm trying to not place clothes orders just because it's 20% off and I'm definitely becoming more conscious when there is offers like 3 for 2. Without sounding frugal, I'm just trying to not buy things that I don't absolutely need.

This is my third money related post on my blog and I really hope you enjoyed it. You can find the first two here and here which are tips on how to save money.

Let me know the lessons you've learnt and any tips you may have, I'd love to hear them!

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