Whether its often or not, we all save money at various points across the year. We change utility suppliers, find the hoover we want with 20% off or find ASDA have pringles at £1 a tube (I buy at least 3 when this happens).
But what do you do with the money you save? A question I, fortunately, asked myself a long time when I moved out at the tender age of 17. Money was tight and I would look for every bargain I could and with enough determination, I would find them.
But why did my savings account remain empty with my current account down to the last pound? Didn’t I just save £2.50 on my shopping? I also made my gas last 2 weeks so that should be £10.
£12.50 has just vanished as quickly as I saved it!
This was only one answer to this question and it was fraud.
No I’m joking it wasn’t fraud, I was just simple retributing any money saved from it’s original designated place of expenditure into a new/different expenditure. Looking back, I would often buy DVDs at HMV on their ‘2 for £10’ offer without much second thought. That was never in my budget but something I did regularly.
You can see were my first blog post is leading to – when saving money, we need to actually save it and not just put it elsewhere. There will be exceptions of course, you may be saving money deliberately so you can treat yourself or it may take you by surprise and you feel this money can be used to give your child a better birthday party than originally planned.
As long as you’re accountable and purposeful with the money you save and not just letting it dwindle elsewhere unnecessarily then the effort you put in to make the saving will be well rewarded.
Now I put money I save straight into my savings account (you can do this by standing order). I always make my present-self responsible for my financial situation in the future. “Future me might need this £2.50, winter is coming” (I said it first, not that overrated HBO program)
So tell me in the comments – what do you do with your savings? Do you immediate have an appropriate place for it such as a savings account, debt clearance or a special treat? Or do you allow yourself to spend it freely, without second thought leading to regret later?
The Budget Baby is a married couple’s approach to sharing their experienced budget-driven lives (so far) as we take on the most expensive venture of all; starting a family.
Any advice offered is unqualified and should not replace qualified independent financial advice
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