Mastering Your Finances: A Guide to Budgeting, Saving and Spending

Uh oh.. the F Word. Finances.

The subject that some people want to talk about, some people don’t, and no one gets taught about in school! This is a major subject for people in their 20s: should I be buying a house and saving or spending money and traveling??

The answer is...

Well, there is no answer. There is no rulebook on how to spend, save, or even invest your money in your 20s, which does make it even harder because it is completely your own decision and varies depending on your situation. There is no right or wrong, so it’s all about (and this applies to many aspects of your 20s) what YOU want. If you have an idea of your goals, you can align financially to support them, and if you have no idea what the future looks like, that’s totally fine too. But being in control of your finances can open doors for you and take an element of stress away!

I wanted to write this blog post to share some insight as a 24-year-old girl managing her finances. I LOVE talking salaries and budgets with my friends because I think it’s so interesting to hear what other people do, and you can learn so, so much. So here are some of the secrets I’ve learned along the way (apologies in advance as I am a rambler, so this could be a long one!😂).

Everyone’s earnings and situations are different, and that is OK! If you aren’t earning a certain amount - FINE. If you aren’t or are a homeowner - FINE. If you are self-employed, a corporate girlie, or looking for a job - ALSO FINE. Comparison is the thief of joy. What is most important is that you are in control of your finances because that’s the key that’s going to allow you to do the things you want to do now and in the future.

My personal budget is so important to me. It makes it so much easier to allocate my earnings so I can have the perfect balance of saving for my future goals but also enjoy things short term. I have a Google Sheets doc (you can easily create your own or find something similar online) where I list my earnings for the month and separate them out into my priorities. Naturally, bills are listed first as these are non-negotiable things I have to pay every month, like your rent or your phone bill, etc. The rest is split into savings and spending. One key thing I do is that I will view my savings for certain things like they are bills to keep me focused. For context, I live at home but will probably like to move out at some point (in no major rush), so I have a set amount every month that I save into a high-interest house fund.

Having this mindset makes you more likely to save money toward certain goals as you see it as something you have to take out of your monthly salary. I also have short-term goals such as traveling to see certain places or things I want to buy. I will add these to my budget so I know I can put something towards them.

I review my budget every month before I get paid and tweak it based on what I have coming up/my goals. Before I get paid, on the day I get paid, I transfer money into the relevant places such as my savings, into my Monzo, etc. One of my saving graces is Monzo (shout out to my friend Phoebe who introduced it to me years ago!). I know it’s not everyone's cup of tea, and there are other great alternatives out there, but I just love Monzo pots so much. For anyone who doesn’t know, Monzo allows you to create ‘pots’ which you can customize with a goal and even a little image to keep you on track! You can even earn interest on some, which is super handy.

People always say to me;

"Em, you do so much, how do you afford it?"

My budgeting is how.

The more savvy you get with your finances, the more you can do. I have pots for EVERYTHING. Here are some examples of my current ones:

• Security Fund (a lil pot for any emergency spending e.g. in case my car broke down or I had an unexpected bill)
  

• Petrol Pot (I put an estimate of how much I need to fill up my car away for the month so I don’t get stuck)

• Amalfi Coast Pot (me and my boyfriend are going to explore here at the end of the year, so it helps ahead of time to squirrel away some spending money!)

One key thing is I know not everyone is in the position to save a lot or has different priorities, so it’s about making it work for you.

The key thing is you work hard for the money you earn, so you should be able to enjoy it, and sometimes you have to get a bit savvy with it. If I wanted to, I could spend more money on clothes or meals out or a Starbucks every day, but I know those things won’t bring me joy longer term, so I have to be strategic with how I plan and think. I am not saying I don’t do all of those things (Starbucks and Wagamama have my heart), but there’s a point where you have to decide if you want that instant gratification or longer-term goals.

Another thing I do is look for a bargain everywhere! If I see something I want and really can’t stop thinking about it, I will get it but always look for a deal/discount on everything. See if you can get things on Vinted to help the planet, and TikTok Shop is always great for deals too. Just evaluate what you actually need and want short term in line with your goals. This kind of links with my next point.

DO. YOUR. RESEARCH.

There are sooooooo many different kinds of benefits to all sorts out there - sign-up bonuses, high-interest rates, loyalty schemes. Educate yourself by having a quick Google or even listen to a podcast (Grace Beverly recently did a great one on finances!). There are lots of ways you can save or earn extra money, and some of them are a no-brainer! If you are saving for something longer term like a house or a new car, it pays off to research the best interest rates available so you can maximize the money that is just sitting there. I know bank accounts, insurance companies, all kinds of businesses offer things like free £20 just for signing up (Revolut does this sometimes!) or referrals (Monzo offers £5 for referring a friend), so take advantage of these.

Also, loyalty schemes are your friend! If you are always popping into your local Tesco - sign up for a club card or if you are getting that daily coffee, get a Pret subscription or get the Starbucks app! These little things can seem really small, but these things add up, and you’ll be thanking me when you go to pay and realize you have racked up a free reward.

The last thing I want to talk about is adapting your finances and lifestyle. If you are saving for something big or maybe money is tight at the moment, it doesn’t have to turn everything upside down or negative. Keep yourself content and fulfill your basic needs by inviting friends over for nights in or spending time outside if summer is coming. I think we all know you don’t have to spend lots or anything at all to have a great time, so don’t let money be the factor to get you down!

Let me leave you with a quote I heard that stayed with me:

You can’t save your way to financial freedom.

If you want those little treats that make every day just a bit better, then do it. No one is judging you; you are in control, and if you work hard for your money, then treat yourself! A huge part of managing your finances in your 20s is maturing and figuring out what you want from life, but making yourself miserable by canceling those plans or not getting a sweet treat at the weekend will only harm your mindset. Be sensible and savvy but still have fun!

In summary, to round up this brain dump of information:

• Use a budget to help you keep track of your money.

• Talk openly about your finances and ask for advice, but most importantly, stop comparing your financial situation to others.

• Change your mindset around money; it shouldn’t be stressful - it is yours and what you make of it!

• Always shop around and do your research so you can either save money or maximize it.

• Think about your long-term and short-term goals to guide how you spend your money.
  

I hope this was useful for you to read and hope it gets you talking/thinking about all things finance, savings, and money for the better! At the end of the day, we are just all girls in our 20s trying to enjoy life however we can!

Love Em x