When it comes to saving and spending our money, we’re never quite sure if we’re doing it ‘right’.
That’s a big part of why we started How I Save, a weekly series in which we take a look at the nitty-gritty of someone’s personal finances, tracking what they spend for a week, looking at their budget plans, and then getting some expert advice that they – and the rest of us – can learn from.
Plus we reckon it’s quite important to open up the conversation around money, considering financial education isn’t yet on the curriculum and many of us are struggling.
Last week we followed Lily, a 30-year-old charity worker who managed to save up £13,200.
This time around we’re chatting to Hadiya*, a 28-year-old teacher living in London.
How Hadiya saves:
I earn £38,230 a year and in my savings account right now I have £5,000.
I’ve saved this much money by budgeting, shopping in Lidl and setting a weekly budget.
I’m saving for a sense of security more than anything else.
I have always been incredibly frivolous with money. Last year, I came to the realisation that most people my age have assets, investments in various forms and generally some savings… yes, I started asking around! So my New Year’s resolution from January 2019 was to start saving consistently.
The main way I save is by being disciplined, frugal, budgeting and spending consciously.
I struggle with saving because temptation is everywhere. I love travelling but this year, it has really hit me how expensive it is when you’re trying to save – not to mention the exorbitant costs of travelling during half term. That said, this year I have been to Denmark, Germany, France, Wales and Portugal. I also have Australia booked early in the New Year.
How Hadiya spends:
Monthly expenses:
- £700 rent, including bills
- £500 straight into my Cash ISA
- £200 in a ‘fun fund’
- £100 in an emergency fund
- £105.20 on my travel card
- £10 on a sim only phone plan
Accounting for all my expenses, I’m usually left with around £600 a month. Each week I give myself a £100 budget; I usually have one meal out a week with my partner, we pay in turns. I use an app called Fudget to set weekly budgets and track spending.
Any money left over (if ever) goes into my fun fund, which I use to fund holidays, trips away etc.
A week of spending:
Friday: I pack last night’s spag bol for lunch and take a slice of bread for toast and coffee later.
On my way home I go to Lidl for my weekly shop. I spend £21.10 on fresh fruit and veg, rice, salmon, chicken potatoes, croutons, pitta bread and a few more basic essentials. This should last me for the week. Occasionally, I’ll pop into the shops for dinner bits.
Saturday: This weekend I’m taking my nephews out for a play date. We go to an indoor soft play centre, which costs £12 for both boys. I spend £6 on two snack boxes for their lunch and £4 on lunch for myself. On our way home I treat them to two lolly toys for £2.
Sunday: I meet a friend for a late brunch in Morrisons café, £5 for the big breakfast meal. I spend the evening doing life admin, Netflixing and getting on to making dinner.
Monday: Spend £26.30 on my weekly travel card (I don’t count this as part of my weekly budget as it’s a monthly expense). I eat my lunch – dinner leftovers – and get on with an unusually busy afternoon.
Tuesday: No money spent today. I had overnight oats for breakfast at work and salmon, mashed potatoes and veg for lunch, which I brought from home as I cooked this last night.
Wednesday: On my way in I put £5 on my Oyster as I’m heading into central London after work for dinner. I spend £10 in Longchamp (the discrepancy) as I’ve exchanged a bag.
Pop into Superdrug for beauty ‘essentials’: makeup brushes and a decorative piece totalling £15.12 I feel a little guilty about this but remind myself that my other New Year’s resolution this year was to learn how to apply makeup – so a worthwhile investment despite poorly timed.
I suggest we split dinner prompted by the purchases of the evening. £23.15 for my half.
Thursday: Given last night’s late night and spending, I pop into Sainsbury’s for soup, fruit and a baguette which will be today and tomorrow’s lunch at work for £5.75.
Total spent this week: £135.42
How Hadiya could save:
We spoke to the experts over at money tracking app Cleo to find out how Lily can save better (and what we can learn from her spending).
Note: the advice featured is specific to one individual and doesn’t constitute financial advice, especially for a London budget.
Here’s what Cleo said:
We’re not sure which subject you teach but your spending makes for a great lesson: shop at Lidl during the week so you can fly to five different countries during the year.
Main vice:
If we had to be picky, we’d say tighten up the weekly spend. You said you usually budget for £100, but this week clocked in at £135.52. We’ve heard Cleo is pretty good at helping people stick to weekly budgets…
Where you’re going right:
We could write an essay on this.
The spending balance you strike between boring everyday things (groceries and transport) and fun stuff (treating your nephews, travelling, dinner out with your partner) is great.
At Cleo, we believe candid conversations about money are really important, so we love that you’ve been having these. It sounds like they gave you the motivation to go on and make some great changes to your saving habits too. Nice work.
For anyone reading: Sharing saving goals and strategies with your friends is a good way to keep one another accountable. It also means you can support each other and choose activities with a lower risk of big social spending. We think every friendship group has at least one person who has been saving since they could walk – keep them close and learn their ways!
Spending plan:
We think you’ve smashed this so we’ve basically copied and pasted yours:
- £700 rent including bills
- £500 Cash ISA
- £200 in a ‘fun fund’
- £100 emergency fund
- £105.20 travel card
- £10 sim only plan
- £130 for food and things
For anyone reading: Having an emergency fund can reduce that annoying habit of dipping into any long-term savings.
Bottom line:
If your spending resolution is anything to go by, we think you’re probably applying makeup like a beauty vlogger by now.
If you want more tips and tricks on saving money, as well as chat about cash and alarms on deals and discounts, join Money Pot, our new Facebook group.
How I Save is a weekly series about how people spend and save, out every Thursday. If you’d like to anonymously share how you spend and save – and get some expert advice on how to sort out your finances – get in touch by emailing ellen.scott@metro.co.uk.
*Name has been changed.
MORE: How I Save: The 24-year-old earning £24,000 with £11,016 saved
MORE: How I Save: The 24-year-old in St Albans with £50.78 saved
MORE: How I Save: The 24-year-old in Birmingham earning £21,000 a year with £9,450 saved
source https://metro.co.uk/2019/12/12/save-28-year-old-teacher-london-earning-38k-5000-saved-11771715/
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