Ways to save money

This year for me is a year to maximise my savings (I pray). Money is important for a lot of useful things so any way to save more money sounds like music to my ears. As such I’ve decided to share some of the tips I’ve tried (and will be trying) to stack up my money.

1. Do NOT buy on impulse – we all know that impulse shopping is a bad idea. We end up buying things we don’t need and will never use on impulse. Give it a few minutes (or longer) consideration before you drop the money. 

2. Consider if you really need the item you are purchasing – is it a NECESSITY at this time to get red shoes if you have 2 pairs already? I am guilty of this, especially going to the supermarket and buy food that has appealed to my eyes but was not on my list to buy.

3. Can you get it for a cheaper price somewhere else? Price comparison websites are especially good for this. 

4. Consider saving up towards the item you really want – this makes big purchases less impactful. For example you want to buy a £200 bag, it will be easier (or won’t affect your money as much) to save £50 a month for four months rather than take out £200 at one go. It may be when you come to buy the item, it may even be on sale 🙌

5. ​Cut your coat according to your size – if you are living on a student loan, it likely isn’t wise to spend like a celebrity😂 just stop. If you like the finer things you may need to save or get good looking duplicates.

6. Review your trolley/basket before you pay – when I go shopping (both online and in store) I often pick things without always thinking. Reviewing at the till means you can get rid of the extra stuff you don’t really need. Extra tip – I learnt recently that certain websites may give you an extra discount if they see you have an item in your basket and have not yet paid for it.

7. Remember the store/website you are shopping with are trying to extract as much as they can from your pocket, don’t give it away without a fight! The area around the till is lined with sweets and chocolate you never planned to buy. Always remember the big supermarket bosses don’t care about your budget, it’s your job to.

8. Check out Topcashback – I only just recently found out about this but it is such a great idea. If you are shopping online, all you need to do is to go on the Topcashback website first, then go to your website through them. You earn a percentage back of whatever you purchased. The best part is it doesn’t cost you any extra.🙌

9. Pack a lunch instead of buying one – this is one everyone already knows but when you look at the amount of money you can save, making lunch at home quickly becomes the more economical option.

10. Have a BUGDET- budgets are amazing simply because they allow you to see what money you have coming in and going out.  However much you intend to save should be decided at the time you budget, to ensure you can actually afford it. I actually blogged about it here

11. Lock your savings away – this makes them harder to get to which means you’re less likely to spend them in an “emergency”.

Hope you find these tips helpful 

Until next time 

Memoirs Of A Yoruba Girl 

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Book of the month: January 2017

As you may or may not know, I am an avid reader though I haven’t read as much as I would have liked to over the last few months. With that being said, I’ve decided to start reading more and sharing with you what I’ve read in case in turns out you are looking for a good book too.
The book of the month for the month of January is “The Smart Money Woman: by Arese Ugwu

This was such a great book. It gives very practical financial tips in a way that is easy to relate to. It is a book I envision I will read over more than once though the first time I read it, the story was so interesting, I just wanted to find out what would happen.

SYNOPSIS 

It is a fictional story about a lady called Zuri who finds herself in a precarious financial position after a bit too much enjoying and not enough budgeting. We follow her story alongside a few of her friends as they learn valuable financial lessons that in turn improve their financial status. 

The book’s description;

Meet Zuri. She’s living a fabulous life. Great car, gorgeous apartment, well paid job. 

Meet Zuri. Broken down car, an apartment she cant afford, a job she’s about to lose. 

What’s a broke girl to do?

With her best friends Tami (the flighty fashion designer), Lara (the tough oil and gas executive), Adesuwa (the conservative lawyer), and Ladun (the fabulous housewife), Zuri grows a little, learns a lot and navigates her way to making better financial decisions and building wealth. 

This book tackles, debt, spending, the consumerist culture of the African middle class, the fear and misconceptions surrounding money and the lack of it, love, friendships, cultural and societal pressures and the roles they play in success. With each chapter comes a Smart Money Lesson, there to help you work your way up the financial ladder.

POSITIVES

I liked that the author used a fictional (and quite interesting) story to help paint her picture and I also liked how the author has used the fiction to weave in key financial lessons which makes the book interesting and educational without being boring.

I think it does a great job of articulating key financial principles and is a great book for anyone who is taking an interest in financial education.

CONSTRUCTIVE CRITICISM / IDEAS

My only criticism is the way the story ends, which I felt was a bit sad. But given that I am a sucker for happy endings, this is probably why I think I felt this way.

I would have also liked more practical information on the investing portion, especially as a newbie investor. Some of information did seem geared to people who live and work in Nigeria which is fine, only that those of us across the pond want to invest too!

I think an accompanying workbook to go along with the story would be great.*UPDATE * An accompanying workbook is actually in the pipelines.

KEY LESSON(S)

1. Just because you have a well paid job, doesn’t mean you will automatically be wealthy. That takes some planning and money management 

MARKS OUT OF TEN – 7.5/10

Until next time 

Memoirs Of A Yoruba Girl 

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The type of bank accounts everyone should have

Finances are an important (very important) part our lives and bank accounts are how we deal with them. Financial health is determined by how we balance our money.  Below I have listed about 5 different accounts that I feel are useful. You can always modify them to better fit how your mind works but this what I have at present.

1. A current account – for everyday banking e.g the spend at Mcdonalds, the cheeky Nandos or to pay for the cinema. Basically for miscellaneous spending.
2. An expenses account – for regular expenses e.g direct debits, the phone bill, standing orders, etc. I feel expenses should all go out from one account. That way you can easily keep an eye on your regular expenses without the confusion of other random purchases. It will also make it easier to pick up any abnormal expenses or if your bill has cost you more than usual.

3. An emergency bank account – there should be money saved for the rainy days (because they will definitely come). Various sources I have read recommend having 3 months worth of your expenses saved e.g the rent for 3 months, bills for 3 months etc. Having an emergency account will mean you don’t go into your savings when you are in need of cash desperately (your savings will never grow otherwise). If you do take out of your emergency account, make sure to top it back up.

4. Saving accounts (my favourite 🙌) – you can have more than one of these accounts. These can be life savings or saving towards an event e.g buying a house, buying a car, going on holiday etc. The best tip with savings accounts is to deposit regularly and withdraw very very infrequently (I like regular saver accounts for this because I commit to an amount every month which is effectively locked away for a year). 

5. Investments – This one I am still a newbie at so I am still learning but some type of investment seems advisable. This money is meant to work for you and yield you a profit. However, this is money that you plan to lock away and you are happy to not see for a few years.

What do you think? Would you recommend a different account? 

Comment below

Until next time

Memoirs Of A Yoruba Girl 

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Budgeting 101

This has quickly become one of my favourite topics and passtimes. 

An interesting thing about money I have found is if you don’t plan for your money, it will develop its own mind and you won’t be able to account for where it all went. Given the early wake ups and long commutes home we make to get this money, I think it makes sense to look after it. I’ve also found there are alot of things calling out for the attention of the money you have worked for e.g optional insurance after purchasing an item, the three for two offer at Tescos when you only wanted one item, the biscuits you shouldn’t even be eating.

Budgeting helps to ensure you don’t run out of money before your next paycheck and don’t have to live off your overdraft. It also means you get to stack up your savings 🙌 (another of my new favourite topics).

This is the way I have decided to tackle budgeting at the moment (I am still tweaking it).

1. I write down somewhere ALL my monthly expenses i.e what I spend my money on everyday, no matter how small. I write this on my phone and later in a book but you might do better using an excel spreadsheet. This way you can identify any bad spending habits you have and get rid of them.

2. When I get paid, I make sure I remove all my expenses first!! Doing it first helps to ensure you don’t run out of money to cover your bills and other important necessities.  If this section is taking a lot out of your expenses, consider a review of what you are spending on.

3. After I have removed the money to cover my expenses, I remove some to save – unintentionally I save roughly  a third of what I get. I think the key is to save as much as you can. A penny saved is a penny earned. This third may be further split depending on what I’m saving for so I may put some money away for my holiday and some into savings I don’t touch.

4. From the remainder, I remove money for petrol, food shoping and personal care products – I separate this from expenses because this may fluctuate, but putting money aside for it helps me keep myself in check. 

5. From the rest of the money (which by this point is not all that much) I keep some money to play with. So money for Nandos, cinema, getting a massage and other leisurely activities come from here. All work and no play makes Jack a dull boy and that is especially true with your money.

6. At the end of the month I sit with my receipts (which I advise you to keep) and “balance my books” 🙌 – I look at any money I have left over and save that, look at any bad/wasteful habits and where I could have saved more etc 

What are your budgeting tips to help you save that money? Share below 

Until next time 

Memoirs Of A Yoruba Girl