Massive thank you to the lovely Sophia Patel for writing this amazing guest post today! This post will give you some amazing advice on how to save your first £1000! It seems like an impossible task but this amazing post will give you the advice and tips you need to move forward.
Wondering how to save your first £1000? Trust me, it is not as difficult a task as you would expect. Some simple habit changes will be all you need to start saving, and you will not even feel the pinch. And what is better – the more you do it the easier it gets! So here we have it – a simple guide to saving the pennies and becoming financially savvy!
How To Save Your First £1000
Do not do anything without a plan
Without a plan, it is going to be difficult to consider what to do with excess cash. Have an end goal, whether it be in a month or a year, and know what you want to achieve. What is the money for? Are you saving for a larger goal or is £1000 enough? Having even just the simplest of outlines will make it so much clearer when you are at the point of saving – and where you need to be. Use the plan as a goal tracker.
Literally Save The Pennies
It honestly sounds silly, I know. But this is one of the easiest ways to save money without even realizing. Break out the piggy bank you had as a kid and save all your shrapnel. Depending on how much you use them – you can just save the coppers or choose to save silver coins too. When wondering how to save your first £1000, this is usually the best place to start. Usually, every month I can save up to £25-40 every month without even realizing. The best thing, you are not really tempted to dip into the pot because it is only pennies.
Buy Everything in Cash
It would be silly to assume that you are not going to buy anything nice. And that does not have to be the case. You have the right to still spend freely. It may be more difficult to give in to temptation if you aim to spend more in cash. From a psychological point of view, parting with your bank balance never feels the same as physical cash. For this reason, if you are buying anything, hand over cash. Not only is it a great way to track where your money is going, but you are more likely to spend less.
Consider Using Credit
Now, you will have to listen to this with caution, because using credit can be dangerous. For some, it is a great way of building your credit rating, and for others, it is a downward spiral. Credit cards could give you access to free money, yet it is far from free. You will be paying interest on everything you borrow. So why do people get credit? Showing you can own a credit card and not misusing it is a great way of boosting your credit rating. Credit ratings are important when it comes to purchasing items through finance or getting a mortgage. If you need some extra cash, a credit card may be the way forward – but only buy what you can afford. I rely on Money Saving Expert to know when a decision like this is the right choice.
Have a Side Hustle
There are many unconventional ways to make money, and they can be an easy way to save cash you were not expecting. You can complete surveys online, dabble in gambling (responsibly of course) or start your own online business. The world is your oyster, and if you have a talent, utilize it. Many side hustles do not need a massive internal investment, so do not be turned away by that. Most of the time, the effort is all your project will need to do well.
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Cut Corners Wherever You Can
We all buy things we do not need – and the cost of this can add up. Did we really need that new jacket? Are we just being lazy by going out for food when we can cook it ourselves? I am not saying to avoid all things fun but find different ways to spend less. Appreciate park walks and cooking takeout food at home – just whatever you can to save the pennies. I am sure that you will feel better knowing that the activities cost less than other ideas.
Know When You Are Spending Too Much
This is the primary reason for tracking your spending. You need to note when you have gone too far. Sometimes, especially around birthdays and Christmas, things can get so pricey. It is wise to pre-empt when spending is getting a tad too much and cut it back a little. Be open in your household about finances – it makes it so much easier to discuss when you are spending too much. I learned this the hard way when trying to save money as a student. Have an ideal figure of where you want your bank balance to be and try and stay around that figure.
Account for Rainy Days
Things can break and need replacing. Trust me, it is a normal part of life. Always have a buffer (aside from this £1000) that you never touch unless you need to. Put aside anything from a couple of pounds a week to something more significant, for “just in case” reasons. This way, when problems arise, you have a pot of cash you can turn to which will not hurt you financially, or worse, damage your saving progress.
Don’t Be So Hard on Yourself
It is so easy to think what-ifs – “I could have saved more”, “I’ve wasted my money here and there”. Do not constantly question how to save your first £1000, just let it come naturally. It is simple to look at your actions retrospectively, but it does little for well-being. Focus on making improvements and what you can do better in the future. Saving money is a life skill, and trust me, it is one that will get better as time goes on.
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Set Mini Targets and Goals
Know what is going well – this is the best way to track your progress. Celebrate each £100 as an achievement, because it is! Saving can be so tough, especially during economic times like these – so be proud of yourself when it is going well!
And there we have it! I really do hope this helps with how to save your first £1000!
About the author
I am Sophia, I am 21 and I am a town girl. I started this blog in 2015 as a new year’s resolution and an outlet for a rough few years. 6 years on, the rough years have disappeared and yet I am still typing. My main calling is blogging help for beginners, and all things home, finance and well-being!