As much as I crave at times a simpler, slower way of life (and often have to take myself off for hours for long walks, away from noise and crowds, so there is time to think and truly enjoy my surroundings without being disturbed) I’m also a lover of modern technology and am genuinely excited about new ways to do things all from my phone.
I’m a member of a number of ‘frugal living and money saving’ type groups. I look to these for inspiration and for new ideas on how to spend less and save more. I’ve never been in a safe place financially for most of my grown-up life, but I’ve worked really hard in changing that around the last 18 months or so and am at a stage where I feel a lot safer than I’ve ever done before. Am a big believer in a rainy day fund and food and basic necessity stockpiles! Call me a bit of a prepper if you like! Being prepared alleviates so much stress from my life that I really want to share with you the 5 things that are really helping me move towards my goal…
Number 1. Automated savings
Automated savings have been the single most successful thing I’ve done to start changing my life around so I’m going to talk about them first. By having money deducted from my wages it takes away the money I have available to spend and focuses me on changing my spending habits.. Numbers 2-5 (to be discussed in future blog posts) are the things I do to ensure I can survive on my income after I’ve put money into savings every month.
a) TransaveUK: I can’t recommend automated savings enough. It’s incredibly hard to stay disciplined enough to move money from one account to another and leave it alone so 18 months ago I started my first foray into automated savings through my workplace with a credit union called http://www.transaveuk.co.uk. My workplace works with TransaveUK to offer employee’s small loans to buy company shares (we are a 100% employee owned company at PMS Diecasting where I work). But via our payroll we also have an automated Christmas Club savings scheme and the option of also having an additional savings account. I opted for automated savings from my monthly paycheck into my ‘Christmas Club’ savings account AND into a regular savings account. Basically this money goes straight into savings and NEVER hits my normal bank account. For me it’s much easier to make do and go without if it isn’t there to spend than have it sitting there instantly accessible. YES it’s a struggle every month to do without a lot of things but every month I feel safer financially.
b) PLUM automated savings: Via Facebook for Android and via an app for iPhone is something I’ve signed up to recently. CLICK HERE FOR MORE INFO. PLUM analyses your regular bank account and through artificial intelligence makes choices for you to save small amounts of money throughout the month where it feels you can afford it (you can decline – it always asks you). Additionally it now has introduced an option to round up all your transactions to save even more small amounts of money. For instance a purchase of £5.79 would be rounded up to £6 and the 21p deposited in either your PLUM savings account or straight into your investment accounts if you decide to set these up. And that IS something I’ve done. I’ve deposited £200 in a Stocks and Shares ISA via the Facebook app, 1/2 in a balanced fund and 1/2 in a growth fund. I’m just curious to see if there are alternative ways to build small amounts of wealth. TO BE HONEST I’M SCARED ABOUT RETIRING DUE TO LACK OF PENSION!
In parts 2-5 I will talk about the things I do every month to get by on my income after I’ve put aside my savings.