Make Your Paycheck last ALL Month
A new month, a new paycheque, a new opportunity to stick to your financial resolutions. But if you feel like your good intentions to stay in the black until your next paycheque tend to fizzle out somewhere around the 20th of each month, it may be time to take a look at how you can cut corners to ensure that you're not digging at the back of the sofa to find the money to buy a tin of beans for dinner by the 30th. Here are our top ten tips for making sure you still have money in your bank account at the end of the month. Have tips to add? Let us know #glamourmoney @glamourmaguk
Make A Budget
A realistic budget. Write down all of your fixed costs – and we mean ALL of them, so everything from your rent or mortgage payments, gym membership and utility bills to the cost of any debt repayments that you’re responsible for. “It’s making sure you’re clear on exactly what income you’ve got coming in – which I guess primarily will be salary – versus what your outgoings are,” says Richard Brand, the head of savings at First Direct. Subtract your fixed costs from your income and you’ve got the amount of money that you have to spend (or save) for the rest of the month. “It’s about being quite hard on yourself,”says Brand.
WENNShop At The End Of The Month
Yes, the first thing you want to do when you get paid is go on a shopping spree. And why not? You’ve been coveting those new boots/that new coat/this spectacular dress for weeks. But here’s an idea: earmark the money now (pop it in your savings account) and go shopping at the end of the month. You’ll reap the rewards of your restraint at the end of the month, whether you have to dip in to your dress fund to cover your basic costs when the rest of your cash runs low, or you simply get to enjoy the distinct satisfaction of having budgeted accordingly to be able to pay for your fashionable reward.
WENNSave On Transport
Transportation is expensive – and though it’s necessary, you’re probably not getting much enjoyment out of the money you’re shelling out to get yourself to work or college. If you live somewhere cycle-able, now’s the time to invest in a bike. The upfront fixed costs of your bike and equipment will quickly be paid off in the savings that you make on tickets (and you may even find that the benefit of the exercise means you can pack in your gym membership, too). If you drive to work, now’s the time to consider taking the bus – or if that’s not possible, look in to carpooling schemes or car clubs like Streetcar, which means you can have the convenience of driving without the inconvenience of paying expenses like maintenance, insurance, and parking.
Get A Flatmate
Research published earlier this year put the cost of living alone, as opposed to with a partner or friend, at as much as £250,000 over the course of a lifetime. Ouch! While we’re big fans of the benefits of living by yourself, if you’re having trouble meeting your living costs each month, it might be time to consider the short-term benefits of having a flatmate. Monica and Rachel did it for years, after all – it might be more fun than you think.
Pay In Cash
A simple, but effective little trick – when you pay for everything on your debit card it’s easy to lose track of how much is coming out of your account...until you look at your bank statement and have a little heart attack. Pay in cash whenever you can, and the act of actually handing over your hard-earned cash (and having to withdraw more of it from the cash machine) may just serve as an apt reminder of when it’s helpful for you to rein it in a bit.
Shop Your Closet
The search for the perfect boots, the little black dress that makes you feel like Audrey Hepburn, the ideal cardigan – these are epic, lifetime challenges. But they can also cost you a lot of money. Our favourite fashion bloggers in the US refers to it as ‘shopping your closet’ – digging out those old pieces which have fallen out of your cycle and reviving them. And with this in mind, next time you’re about to drop some serious cash on a new trend, it’s worth considering whether you can ever imagine dragging it out again five years from now to give it a second round. If not, get it cheap.
Mend And Make Do
Odds are your grandmother or another elderly relative has told you about how things were way back in the mid-twentieth century when fixing, rather than replacing, broken or worn-out things was the order of the day. Today we have the pleasure of being able to get new stuff easily and cheaply, but all those small purchases here and there can really add up...not to mention that throwing things away is bad for the environment. Sew on missing buttons, get your shoes resoled instead of getting new ones, get to the bottom of your drycleaning bin and polish up those battered pots and pans. Being handy = extremely satisfying. And you’re more than allowed to use some of the money you save to treat your slightly calloused hands to a manicure.
Freelance
If your income is not meeting your needs, now’s the time to look for ways to make a bit of extra cash. Think outside the box: you may be surprised to realise how many opportunities there are out there for you either to freelance using your existing skills, or to convert one of your hobbies into a money-maker. Kathleen, 28, was making chutney and infused vodkas in her spare time as gifts for friends when she realised that she could cast her net a bit wider. “I decided to have a go selling them at a local market,” she says, “and made £200 profit in a day! Now I’m taking orders for Christmas – it’s never going to be my central focus, but it’s a nice little side earner, and I really enjoy it.”
RexSet Savings Goals
‘I think it’s fair to say that often...saving can be difficult,’ Richard Brand says. ‘And trying to make your salary spread around is a challenge. As well as sensible budgeting, always make sure that you are realistic [about savings].’ If you’re early on in your career, the first thing to aim for is a financial cushion to help you out if something goes wrong. ‘You should always try to have in the first instance some emergency savings put away,’ Brand say. ‘The first place to start would be an instant access savings account – so that means you can get your cash as and when you need it.’ Once you are putting away a bit more, Brand recommends a cash ISA. ‘They pay interest on your savings to allow you to avoid tax.’ Get down to a branch of your bank ASAP – they’ll talk you through the intricacies and help you work out the best accounts for your needs.
