It would be a myth to think that I could explain how I feel its best to Live & Maintain all in one post. So therefore this is the first instalment of the 3 S' Trilogy- (Saving, Spending & Stunting). Saving- by far the most important yet most overlooked aspect of this topic.Good financial management and young people seem to be as familiar with each other as an overweight person and a vegetable salad. The problem with this is that like it or not, money moves the world whilst a lack of it moves nothing.
Look at the financial crisis for instance- the mismanagement of money had global ramifications that have affected us in ways many of us are yet to understand. What seems even harder to grasp though is how much money we are literally squandering away each and every day.
In my other post, Y.O.L.O. (apparently) I described an increasingly worrying epidemic- one of which I feel is directly responsible for how we view money currently. Too often we are living for the moment and not giving a rat's ass about the future. Life is for living, but a life with low financial security? I cant imagine that being a very pleasurable existence.
I remember my first job in JD Sports in West End *smiles reminiscently*. I was so excited about the prospect of not only working for the same company I'd spent hundreds of pounds with but more importantly having a regular source of income from them. To sweeten the deal (or make matters worse) I was getting paid weekly. So naturally, as any responsible, young 17 year old would have done at the time I set up a savings account and moved most of my income to my savings account each month.
YEAH RIGHT !
I saved absolutely nada for like half of my time there. Being surrounded by the latest trainers & sportswear was a constant source of temptation that I couldn't resist, especially not when I would receive 25% off. I mean it's not like I was spending someone else's money? This wasn't money I'd robbed or inherited, this was my own money from my own hard work- what I did with it was my perogative... Or so I thought.
It wasn't until my mum walked into my room one day and saw her worst nightmare. No I am not referring to alcohol, drugs or even a weapon, I'm talking about boxes upon boxes of brand new trainers stacked on top of each other. She was fuming and didn't hesistate to verbally rip me apart about how I had handled my money.
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| No this wasn't an actual photo but you get the point! |
"Don't save what is left after spending, spend what is left after saving"- Warren Buffet
I wish my mum would have said this as eloquantly as Warren Buffet and avoided making me feel stupid but the overall message was the same. She pointed out that instead of me putting money aside for a rainy day, I had decided that today was more important. Having the latest footwear made me look good and feel even better so why not spend the money on myself after all, that's Self-Investment right? Wrong! (Click here for my blog post on this).
In these troubling times, prices are at an all time high and are only set to rise further. I remember the day when finding a £1 coin meant you could get a packet of crisps, chocolate bar, can drink and some sweets whereas now you'd be lucky to get any two of these without haggling with the shop keeper (which can be quite time-consuming and embarrassing).
In order to live just a decent life you need to have a small amount in savings so how do we get off expecting million pound lifestyles when our bank accounts are currently in overdraft? It just isn't happening I'm afraid.
Thinking ahead.
So recently me and Lacey went our separate ways. It was an emotional experience to see the girl you've become so attached to going off with some random bloke she just met but it had to be done... I had to sell my first car.
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| And bye bye to my J. Cole album I left inside the CD player |
It all came down to me being realistic with myself. Yes driving is a great convenience, but when that benefit becomes more expensive than helpful it's time to call it a day. MOT renewal, insurance renewal, parking fines, miscellaneous costs and not to mention the increase of petrol prices were all indicators that it would be a much wiser idea to sell my car, cut off all related expenses and save that money up. Going from an employed man on placement back to a broke ass student again next year won't be a smooth journey but I believe these type of decisions cushion the ride.
Setting money aside.
Each time I get paid, I aim to put around 70% of this into my savings where I will not be tempted to touch it. Although very painful, I'm motivated by the fact that I know it will only help me further on down the line. Also, it's good to see extra digits in your bank account instead of seeing minuses.
Try to agree with yourself a realistic amount that you can save each month and start that rainy day fund because you honestly never know what tomorrow holds. Having a healthy amount of savings is like always having at hand; an umbrella, wellies, sun shades, 3/4 shorts, wooly hat & a jacket for whatever type of weather tomorrow brings, rainy day or not- you'll be prepared.
Every little does help.
Similarly, have a piggy bank. I used to honestly hate brown coins and would do anything to get rid of them (even throwing them away at times) until I realised that if I stored all my lower value coins away, after a year or so I'd have a decent amount to do with what I please so this is another simple way we can all save. Every now and again why not throw a couple of silver coins in there too, in fact go on, throw in a £1 coin into the mix- you know you want to.
"Yeah man, I'm not even trying to spend right now, I'm saving up for a mortgage"
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| My actual face when this statement's said |
A mortgage is a type of loan and you can't 'buy' loans. What you can do though is save up for a deposit that you will have to surrender to get a mortgage and this starts from £10K+ depending on the value of the property so no time better than the present.
Get your credit game up.
We've been taught that credit cards are bad, they cause debts blah, blah, blah. This is false. The cards themselves do nothing, rather it is how we use them that does everything else. One thing they're good for is boosting our credit rating which banks look at when deciding on whether or not to give us a loan. So do not think that just because you have a deposit it's in the bag- far from, your credit rating plays a big role. For those still cautious about credit cards, either read a great article on moneysavingexpert.com (click here) or try other methods of credit boosting such as taking out mobile phone line rentals, paying back overdrafts on time and a few others.
It doesn't end there...
This is only 1 of 3 parts of the 'Live & Maintain: 3 S'. Trilogy. Our purchasing decisions and what we do with our purchases go hand in hand with how we save so be sure to check out the next posts on the second and third 'S'- Spending & Stunting.
- Mr. Adz -
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