These days women are more financially independent than ever, whilst retaining a unique set of challenges to managing their cash. Like it or not women still earn less than men (although this gap is closing) and are therefore less likely to save for the future. With that in mind I thought I’d share some of the ways in which I manage my personal finances, allowing me to save up for big events like moving, a holiday or even a designer handbag whilst still stashing some pennies for a rainy day (or, err things like my pension!)
1. Pocket Money: At the start of every month when I’ve been paid I withdraw a set amount of cash as my pocket money for the month and once that’s gone, it’s gone. At the moment it works out about £30 per week which has to cover everything from a coffee with a friend, lunch at work or a naughty packet of cigarettes. Having this makes sure I think twice about frittering money on takeaway lattes, posh sandwiches and all the magazines ever each week. I also give myself £50 per month for a random shopping trip with my best friend, it’s our ritual and means I still feel like I’m getting the odd treat- £50 goes a long way in hitting up Primark!
2. More is More: When it comes to my bank account it’s complicated to anyone but me. I have my main current account and off of that branches several instant access saving accounts and a cash ISA. Each pay day I transfer a set amount in to each- one is a fund for when I move out with Ben, another is a fund to pay for a holiday with Mum and another covers anything I’m going to owe on store/credit card that month. This way I can’t fritter the money away and become stuck at the end of the month, but the money is easily accessible in an emergency. I also keep what I call a “fun fund” to cover birthdays, days out and weddings. When it gets to Autumn time this gets replaced with a Christmas fund which I pay a set amount in to each month.
3. Discounts Galore: Ben and I love going out for dinner and would do so at least once a week if we could afford it. It gets pricey though and has become a rare treat whilst we both try to save. When we do go out we scour through various apps and websites (I love the voucher codes app) to get a deal on some of our favourite places. The last time we went out we found a deal for Bella Italia where you bought one main course and got another for £1. In the end two mains, a shared starter and a couple of soft drinks cost under £20!
These are just the examples I can think of off the top of my head. I’m known to be a bit obsessive over my finances (I prefer to say careful and organised!) and sometimes I do wish I could throw caution to the wind and have a splurge in Topshop! I tend to use cash for everything so I can keep track of my spends and when it came to purchasing my Mulberry bag last year it was with money I had carefully saved for goodness knows how long! I always think if the money isn’t there, don’t spend it on the basis of “but I’ll have it soon”, there’s something very satisfying about making a big purchase albeit a few months after you initially planned but knowing you saved hard and aren’t getting in to debt for it.
I’d love to know if you have any tips you’d like to share, or any insight in to how you manage your money, it can be a bit of a taboo subject but there’s no shame in talking finances. Not really.
