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.

What’s the deal with no 4? Who does that?!

You sound like you've got a pretty good income OP, which I've found over the years is the real difference between spending and saving. You do realise that renting a flat with a gym isn't an option for most, and renting a horse if you're trying to save is not exactly 'roughing it'.

And yes, you do seem rather privileged, you have a car, bike, rent a horse, eat out, go to the hairdresser and go clubbing. Also two parents who advise you, or did I get that wrong? There are people on here who can barely afford to feed their families. So putting yourself up as some kind of paragon of money saving is not wise.

I continuously do maths to work out how much I have left.

Sounds fun.

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 are a skanky theif

Why not just buy second hand clothe and resell?

OP, ffs point people to where you said you appreciate that no4 is not the right thing to do, or it will haunt you.

Your post was a bit annoying BUT I'm really pleased you're so good with money at your age. I was RUBBISH with money, really truly TERRIBLE, right from my first cash card, aged 16. Luckily I got a CCJ when I was 22 that stopped me being able to get credit for many years. It was a pain at the time but probably stopped me racking up thousands.

One thing though - you don't mention a pension (unless I missed it). Please max out your pension now, while you're young. I didn't (because I'm crap) and now I'm screwed.

I think you've seriously misjudged the type of audience you will typically find on this site. Lone parent here with 2 children and 4 jobs. Ability to save even 10% of my income based on your tips=0. Feelings of irritation at your thread= really quite high.

You lost me at returning clothes you've worn. That's theft really.

I've spoken to the OP, I think she realises that she might have come across as a bit smug, it wasn't the intention.
I also think she misjudged the audience.

I suppose if she is looking around and seeing she is further developed than her peers she thought that most her age were the same as her peers. This might not be the case, but what I summarised after our contact.

Keep up the good work OP, and don't do no4 anymore, it's not nice.

Did I misread or do you keep cash in your car?
Don't you worry about cars being broken into if people think this is a common practice?

I'm 24, no dependents, currently buying my second house in the South just outside of London. Never had help from parents.

DO NOT RETURN CLOTHES I HAVE EVER WORN. woah.

Also I actually think you're missing out on a lot of savvy things: spending expenses on an AMEX is far better, helps your credit score and gains airmiles, you get 9000 for joining and it's a free card. Costs about 15,000 for a peak return flight to a european city.
Monzo does all the maths for you, you can also use apps such as Yolt to help categorise your spending.

It's just simple budgeting and helps a hell of a lot if you just earn more.

This is all very sage advice if you actually have any income left after your bills have been paid and you've bought food and necessities. Not many people I know do have anything left, certainly not 59%. I know I don't.

I had a mortgage at 18! 24 is very late to still be renting and shows poor money management tbh

Like others I think you’ve just misjudged your audience. You’d be better off on some of the money saving expert forums.You have made a great start but at your life stage, you’re in a totally different position to most on mumsnet (in that you don’t have dependents to worry about).

The best thing you can do financially for your future at your age is build your experience and career before you have children and to make sure you’re in your workplace pension. Carry on with your spreadsheets and saving mentality as that will serve you well but you don’t need to tip into being tight unnecessarily (point 4). You have a choice as to your spending/saving and no-one wants to live with people that delight in being super stingy. There is a balance to be had. Have a look at online articles about FIRE- I think you’d like the approach and philosophy and there would be tips on investment and financial management that might serve you better.

You only save 59% of your salary 😱 That’s a shockingly low and amount, and you should be ashamed of your budgeting skills.

I save a minimum or 99% of my income, and manage to live very well on that! I’ve kitted out my cardboard box with stuff from shop bins, and it looks great! And, not only is my diet of tap water and bread from the duck pond seriously cheap, I don’t have to waste money on the gym as I weigh nothing!! Win win!!

You are some cookie OP, smug to the max and a thief into the bargain, where is your respect, you have some brass neck and that's not a compliment either!

I'm glad you can save, but your tips do not work with children. I earn around £1k a month, childcare around £1.2k. If I do more hours childcare will rise to £2.4k and income will rise to £1.7k. It will be this way until January. There is no physical way to save money when your essential outgoings are non negotiable.

#4 is offensive
you lost me there

Getting involved in the FIRE movement is a good idea suggested by a previous poster

I keep looking at FIRE stuff and being like "it seems like such a good plan... but ooooh HOLIDAY"

Mummylife genuine question, how did you get a mortgage at 18 including a deposit?

4 is appalling. Where is your moral compass?

The OP has done a 180 turn on #4 so maybe she can be cut some slack.

I'm a Dave Ramsey fan. It makes sense to me and is honest even though not religious.

Surely Tip #1 should be:

Get a job which pays 243% of your necessary spending.

You sound sensible and good for you saving so much. It will set you up well. I think you misjudged your audience though, I budget to within an inch if my life and don't have 'spends' as such, but at least 2/3 of my income goes on putting a roof over our heads and bills. It's a lot easier to save when you're younger, in a flat and have no dependants, although good for you giving it a go. I wish I had saved more at your age, although I had a mortgage rather than renting by then so saved money in the long run.

Ah, was it you who returned the dress I ordered on line that arrived with the BO from the person who obviously used it and returned it? Thanks for that.