Tips for saving 59% of your income.

[tiddlywinkles]

I am 24 years old. I rent a flat in a big city. I have received absolutely no financial help from my parents apart from a bit of Christmas and Birthday money each year. I have £20,000 in savings.

Since I was a teenager my parents would teach me money management. I am very frugal and I like to think I am super smart with my money and I have a few tips.

1. Have two bank accounts. A saving account and a spending account.

I use Santander for all my savings and Monzo for my spending. The day my wages come in I transfer 30% of my wages into my Monzo account for spending. This spending includes my fuel money.

1. Have a daily limit. I know how much I can spend daily to avoid running out of money. At the weekends I hardly spend any money so, I continuously do maths to work out how much I have left.
2. Remove money in cash which you definitely can't spend. After I move my spending money into my second account I withdraw my fuel money and keep it in my car. I know roughly how much money I use monthly so, there is no risk it will be spent accidently and I walk more if I start to run light on fuel money at the end of the month. I also take advantage of low prices where possible.
3. Don't be afraid to wear and return clothes. This one is very controversial but, with my job I have to go to a lot of events. I have never been afraid to buy a dress and tuck the tag in but, return it the next day. Of course I ensure the dress is kept in pristine condition. Clothes companies make a lot more money than I do so, I have no worries about this one.
4. Save your pennies. On my second account my pennies up to the nearest pound are saved in an account and I have locked it until December 31st 2019. It means even on my little purchases I save money. I also manually skim my accounts every night to save even more. I don't even see the pennies go and they add up quickly.
5. Bulk buy and freeze. A lot of people my age don't freeze food. I buy foods I can freeze in bulk and do 'Pantry Challenges' to ensure everything is eaten and I don't be tempted to buy take out.
6. Buy items that have multiple uses. ie soap
7. Buy an eyebrow dye kit, boxed hair dye and gel nail sets. I am an average 24 year old girl and I am very much into self care. I tan at home and I do all my own waxing and hair dying. Of course some things are worth going to the hairdressers for (cuts) but, this one works for me and saves me £50 every 6 weeks.
8. Be critical about what you are spending your money on. This one is very hard for me because I of course like spending money on things I like. I'm not afraid to complain about quality of items. If I am spending my hard earned money on anything I want it too be worth it. In some cases I have received voucher codes or full refunds for items where they are genuinely horrible instead of taking the financial hit.

10. Challenge yourself. I set myself challenges when I am out and about. Such as making sure I don't pick up anything else I don't need when I go out shopping and walking more places.

I have a few more things I do but, I see a lot of people looking for tops and these are things which have helped me save so much money. Probably nothing that nobody else knows but, hope it helps someone.

4. Don't be afraid to wear and return clothes.

What a tittish thing to do.

Your tips are great apart from no 4. I wouldn’t do this myself.

My top tip is to never spend more than 40% of income.
Voila - at least 59% saved.

Yes , no 4 is horrible. And how much do you earn that you can afford to save that much?

I'm all for being sensible and frugal but it sounds like a joyless existence. Still, each to their own

Number 4 is skanky and dishonest. I hope you get caught out one day.

The others are blindingly obvious.

Couldn’t do 4. How can you be so dishonest?

Surely it depends on how much you earn? If you were on minimum wage with children you couldn't do that. If you were a high earner without dependents you could.

And it's disgraceful that you're wearing clothes and taking them back.

@frusteratedashell I'm just smart about it. I have a lot of outdoor hobbies including cycling and horse riding (I rent a horse). The apartment I rent comes with a gym. I don't drink or smoke. I still eat out and go clubbing. I am perfectly happy. I just think a little more about if it's worth it and of course I spend what I want when I want too.

24, no dependants and a good start in life with a good job? Of course you can do well to save. Except number4!!

I think a lot of people don’t have money common sense, me included, and having electronic bank accounts doesn’t help matters at all. It’s all out of sight and mind.

@hollowtalk yes well it depends on a whole host of external factors but, this is what I can save monthly.

@iggly I know a few people who withdraw all their wages at the start of the month and use the envelope method. It's kind of what I do with my fuel money. You should look it up!

I would also recommend setting up some personalised excel spreadsheets. I could send you one of mine if you like. Add in your financial details and fill it in weekly and it might be helpful?

Any other shoplifting tips OP?

Do you also do a runner when you go out for a meal? Shoplift your food? Use your neighbour's wifi?

Hey @ThroughThickAndThin01 how about you look up what shoplifting is before you make yourself look silly. Any other tips you need feel free to ask :)

Thanks!

How about you don’t take things from a shop and use them, without paying for them?

I like to ensure I save a good amount each month plus make some mortgage overpayments. However I also feel strongly that life is for living - I couldn't stand the thought of limiting what I do each week simply to save a couple more £s. As a FT working mum to a toddler my "me time" is sacred and so I happily spend on having hair professionally highlighted and cut etc. A box kit just wouldn't suffice for me (when I had all over colour I would use home kit but now not feasible for highlights). There's being money-sensible and then there's just being rather obsessive!

4. Don't be afraid to wear and return clothes. This one is very controversial but, with my job I have to go to a lot of events. I have never been afraid to buy a dress and tuck the tag in but, return it the next day. Of course I ensure the dress is kept in pristine condition. Clothes companies make a lot more money than I do so, I have no worries about this one.

You can hire clothing instead of the above practice - it’s not free but a lot cheaper than purchasing

Well, it's easy to save money if you are dishonest.
your ideas are ok, but nothing revealing in there. You are just being frugal at a time in your life when you only have yourself to think about.
another story when you have dependants.
My dc saved by only spending what was necessary, it's not rocket science ds1 27 three houses, one he owns outright, other two have small mortgages. They have a baby too, now.
ds2 almost paid for his first house by doing the same.
Maybe they could give you some tips, I'll ak them .

Tesco earn more than I do - Should I steal food?
VW earn more than I do - does that entitle me to a free car?

So basically I am able to rip off anyone who earns more than me? As a wise man once said 'This country'...

Your whole 'article' is over shadowed by the the shameful nature of number 4.

@HappyAndYouKnowItGlugTheWine I completely agree.

I don't have children or a mortgage yet but, I hope all this saving whilst I can will set me up with a good deposit.

I have a lot of activities I take part in and maybe as I grow older I won't think about the spending so critically but, at this age having a deposit (and more) sorted is a real weight off my shoulders.

www.hirestreetuk.com/

Most of us pay 41% of our salary just on income tax and NI. So what are we supposed to live on? Fresh air?
You have £20k savings but you rent? You steal clothes?
Why do hold yourself up as some sort of paragon?
FWIW, I'm mid-forties and I've never spent a penny on dye or wax.
You're wasting your money, because people will shag you anyway...

Thing is, it's not the shops you're ripping off with #4, it's the poor sod who has the misfortune to then buy your returns when they've been put back on the rail.

You have some good ideas but please, stop doing 4. It's immoral.

@bsc well yes I do actually. Maybe a forty year old doesn't realise that many people my age aren't in the same situation as you and we need to save more. Not many my age know anything about money management and even the most 'obvious' tips. I was 18 once reading this board looking for money advice.

p.s Glad you're getting shagged!

@helpmedecide123 I didn't think of it as somebody else buying it after me. I thought the clothes went back to the store and were reused in another piece after being refurbished. Definitely an oversight on my part. I completely agree w/ you.