It was revealed recently that you can become a millionaire by the time you retire just by saving £18 a week from the age of 22. And actually, it’s entirely true. Compound interest is being branded as ‘the intelligent way of saving’ and is making it’s prominence into the financial world as time goes on. But what is compound interest, and more importantly – how can you make use of it?
It’s Fresher’s Week, and the merry-go-round of student unions, halls of residence, making friends, late nights and Freshers’ Fair is in full swing. It’s exciting, it’s raucous and for most of you, it’s your first taste of proper independence.
But with this freedom, is some hefty responsibility. You are now in charge of your own finances, the food in your cupboard and your bank balance.
The plastic might be getting swiped left, right and centre right now, but you’ll need to learn to live within your means very quickly. Here’s a few tips on how to get through the next few years without ending up ringing up the Bank of Mum and Dad.
- Don’t get excited when your loan/grant comes in
It may look like a sizeable amount in your bank account, but this has got to get you through the next few months. While it may be tempting to go on a celebratory bender or a massive extravagant food shop at Waitrose, it’s all about pacing yourself. Work out a weekly budget and stick to it.
- Reward yourself
There are ways to reward yourself while living frugally, though. If you’re saving up for festival tickets, or a trip to Europe, you can put aside a little money every week. By not buying Starbucks, or not going to the Student Union every night, you’ll feel better because your good behaviour is being rewarded. While you miss out on a night out, it’s all good, because you’ll be going on holiday while will be a hundred times more fun than drinking cheap cider from a plastic pint pot at the same place you go every week!
- Separate budgets
That money in your bank account will be spent on different things, so work out how much you’re going to put aside for food/entertainment/bills/savings each week. There are some brilliant apps which are available to download for free, like DailyBudget, which can help you divide your money up to give more order to your finances.
- Come to terms with your balance
Checking your balance can terrify people who haven’t got control over their finances. While nights out and shopping sprees are fun, the fear of checking your balance the next day and trying to budget around it, is not. Make it a habit to check your balance everyday, that way you get to see the impact of buying those trainers on a whim, or stopping off at that deli for a nice lunch.
- Get a job during the holidays
Make sure you get a job at half term and holidays, the wages will come in very handy. Check in at pubs and cafes, anywhere that can takes on casual staff. And don’t think that because you’re earning, you can be frivolous. This is the real world now – all that money has to be put aside for when you will really need it!
Ever wondered how the richest people got to where they are? Of course it helps to be incredibly good at something, whether that’s playing music, making people laugh or creating an important piece of tech. But a lot of their long term wealth has to do with their attitude to money. In this post, we reveal how some of the richest people in the world view money in a completely different way to a lot of us…Continue Reading…
It’s Glasto weekend! And everyone’s favourite Somerset farm-based blowout normally heralds the beginning of a string of festival happening across the UK. Festivals aren’t cheap, and if you’re not careful, your budget could soon go completely off-course.
So to help all of you who are currently packing for a weekend of music and fun with mates, here’s a couple of helpful money saving reminders.Continue Reading…
We all know the drill: you leave the house for work in the morning, hop on the bus, grab your coffee-to-go and maybe some breakfast, then arrive at the office feeling ready to take on the day. But while these little treats make you feel good, they’re bad for your wallet – just think about how much you could save without forking out for your morning pickmeup?Continue Reading…