A [Working Class] Millennial's Guide to Saving Money
Money saving expert, I am not. I did however - through some luck and hard work - manage to buy my first house before the age of 25 and still do a fair bit of traveling in the process. A lot of "money saving" tips I see come from a really middle class way of thinking and they aren't always relatable to those of us from a working class persuasion (like the assumption I buy £5 coffee or eat out for lunch on a daily basis) so I thought I would throw this post together in an attempt to bridge that gap!
Some self-call outs before I start:
- I'm Scottish and therefore don't need to worry about paying for healthcare, prescriptions, per-use water charges, education, and generally enjoy a lower cost of living than rUK.
- I have been privileged enough to have a stable and fairly decent source of income since I graduated university.
- I am generally healthy and non-disabled.
- This post makes some assumptions about having regular or semi-regular source of income and the ability to shop/cook independently and therefore not all of the suggestions are accessible to all.
But in general, I don't think my tips make too many assumptions about income so without further ado...
1. Treat Savings Like a Bill
So the first step to saving money is, unsurprisingly, actually saving money. Decide on how much you can afford to save every week/month and stick to it; as soon as you are paid, put your savings into a separate account (if you're really savvy go for a good interest rate one) and then act like that money is gone. When you budget, do not count that money in the budget, treat it like a bill that's been taken from your account. Do not fall into the trap of "I'll just dip into my savings this once..." because it is rarely just once, and if you need to keep accessing your savings then you haven't budgeted or you're not taking it seriously. Try a fixed-access account that limits the number of withdrawals you can make in a year (see later in this post).
2. Learn to Cook
I can already sense some of you checking out at this point, but this cannot be stressed enough in my opinion.
I don't mean that you need to become an acclaimed chef overnight - start small, basic, and figure out which flavours you like and build from there. Good food doesn't need to be complex.
The most fundamental part of being human is food - it's how we celebrate, socialise and comfort ourselves - and as such it's a huge source of financial waste. Learning how to cook is generally associated with healthy eating and makes you less likely to:
I don't mean that you need to become an acclaimed chef overnight - start small, basic, and figure out which flavours you like and build from there. Good food doesn't need to be complex.
The most fundamental part of being human is food - it's how we celebrate, socialise and comfort ourselves - and as such it's a huge source of financial waste. Learning how to cook is generally associated with healthy eating and makes you less likely to:
- Spend money on takeaways regularly
- Go out for meals regularly
- Waste money on more expensive (often less tasty) pre-made sauces or meals regularly.
I say "regularly" because if you work full time and have other hobbies or commitments then you're not going to be able to cook meals from scratch every night of the week, it's just not realistic and even though I love cooking I certainly don't.
Anyone* can learn to cook; having a basic understanding of cooking means you can suss out quick and easy to make meals and buy cheaper fresh or tinned alternatives to pre-prepared sauces and ready meals (e.g. chopped tomatoes and spices vs jars of pasta or curry sauce). It also means that you find more enjoyment in food you've created than in dining out frequently, and if you master the "fakeaway" makes you less likely to splurge on takeaways.
Additionally, if you make extra for dinner then it means you can avoid buying supermarket meal deals or eating out for lunch the next day.
*Availability of equipment, energy (gas & electricity), and general level of physical and mental health are aspects that may limit an individual's ability to cook.
3. Eat Less Meat
Ah, and you thought you'd get through this post without any references to vegetarianism or veganism. Sorry to disappoint but contrary to the opinion that vegan food is inherently expensive, meat free dishes are typically cheaper than those with meat in them. Even if being vegetarian or vegan is not something you're willing to entertain you should normalise having meals that don't revolve around meat if you want to save money. Chilli made from beans (extra super saver points if it's canned supermarket basics range) costs very little to make per portion, and lentil or vegetable curries are as similarly cheap (using frozen veg - again, extra points if it's supermarket basic/saver range).
Long life foods with lots of nutritional value like tinned beans and vegetables, dried pulses (e.g. lentils), and frozen vegetables are often available at low cost and make great low-cost meals. A lot of this goes back to learning how to cook, as a lot of working class cooking (in my experience) is based around cooking what you know to avoid the potential for food waste which sometimes isn't actually the most cost-effective overall.
4. Keep an Eye On and Switch Energy Tariffs
Remember when I said I was not a money saving expert? Well, I learned the hard way that you need to constantly keep an eye on what energy tariff you're on or you might be overpaying. Even if (like me) switching energy companies leaves you a little uncertain, you should keep an eye on the available tariffs within your existing supplier. I recently switched and saved over £20 a month and I should have done it way sooner than I did.
Keep an eye on those cancellation or switching fees on the tariffs you choose too or you might get hit with a big charge if you want to change supplier or tariff later on.
5. Look out for Rewards and Loyalty Schemes
Comparison websites offering 2-for-1 meals or cinema tickets for purchasing insurance (including travel insurance within the UK for £5) or free to sign up loyalty schemes are obvious ways to get discounts or save money on items or events you'd be purchasing anyway. Be mindful not to spend money on things you wouldn't normally though, it's not "15% off" if you're spending money you didn't intend to in the first place. If buying online, have a quick search about for valid voucher codes before you confirm your purchase. Say "yes" to the free points or loyalty cards, and remember to use them when you make a purchase, and use cash back sites (only use trustworthy ones that are well documented and reviewed online). You can also make money from taking part in survey sites like YouGov - have a look at all the options like this that take relatively little effort on your part.
6. Use Websites like Freecycle or Gumtree
There are lots of sites out there dedicated to reducing waste and saving money - consider these if you're looking for furniture or to look for discounted food from restaurants etc. Consider clothes swaps instead of buying new, or using sites like Depop or Ebay to sell old clothes before buying new items of clothing. These options are also eco-friendly so it's another win.
Remember to stay safe when corresponding and meeting up with people online, especially if money is involved.
7. Stay Organised and Disciplined*
It goes without saying that to save money you need to stay on top of your incoming and outgoing finances. Regularly update and re-evaluate your budget and adopt a "worst case" way of looking at things. Plan for unforeseen costs, don't count on bonuses or extra income or use it as an excuse to overspend unless you're sure you can afford it.I don't say this to foster an anxiety-inducing way of looking at money or to say you should never treat yourself - you've worked hard for that money and you should enjoy it where you can- but you know what your boundaries are and how much you can reasonably spend and it's about setting and sticking to said boundaries.
*Those who experience mania or impulsivity may not always have total control over their attitudes to money. It might be worthwhile looking at fixed or limited access ISAs to prevent you from accessing and spending savings if this is something you struggle with. Always consult an expert before making big financial decisions or changes.
Anything you disagree with or would add that you think I've missed? Let me know in the comments!
0 comments