I started this on a 25k salary
£500 depending on who you are, it might be a lot or below what you consider to be the norm to save. I have always wanted to save but had zero self-control to putting down the sum of money and not touching or even looking at it. From my weekend jobs when I was 17, I would say I am too young and have plenty of time, whilst a university student, I would say I was too broke; I always had an excuse and terrible money.
I started saving, to be exact, September 2019 Life before Covid. As I look back now, I’m not sure how I did it. I was on a lower salary, saving almost a 1/3 of my earnings, and I had more expenses than I do now. (commuting to work, socializing and networking it’s all costly).
Pay Your Savings Account First. Without negotiation. This was the first place where my salary went. I felt better and more in control and understood the value of money by doing this. My mindset changed with money. There were times where I would dip into my savings (as mentioned, it was 1/3, so a big chunk at the time). I felt guilty as if I was on an overdraft or debt with myself. I quickly learned to stop this habit a few months into savings if I wanted to move forward. I failed too many times with the method of saving at the end of the month. I wouldn’t reach that far ahead without spending.
Savings Vs. Salary I believe in small wins, and you should, too; it keeps you humble yet hungry for more. When my savings account had more money than my monthly earnings, it was the first time I felt financially free. My brain started to bubble as I knew that I could quit the job I hated and be ok for 1 month, or I could invest my savings in passion project (which I eventually did both)
I Became More Frugal. I know the irony, surely if I would have more money, I would spend more. However, I started to care more about my future and be invested in maintaining my savings. I will go shopping and see items I wish I could afford only 6 months prior and feel different. Now I can afford it, and the thrill is no longer there — materialistic things were no longer a priority, long-term investments are now my aims. Growing my income has made me more grown-up.
Healthier Mindset I have become a more optimistic person, really looking forward to setting short-long terms goals for myself. As a result, I learned to take care of my physical and mental state to be the best version of myself.
My Earnings Increased, but I Won’t Increase My Savings Limit £500 was a significant amount of money at the time and still is, to be honest, but I am thankful I am in a position whereby I earn more now but want to maintain this amount. I became obsessed with saving, and I thought about it a lot, but now it’s an automatic part of my monthly routine. I think this saving sum is healthy enough to progress with my plans but minimal enough to not think about it or be led to spend any by the end of 2021 and reach my first savings milestone.
Sustainable Shopping As I became more conscious of purchases, I left my immature mindset of more is best. I started to invest in quality; I looked at my clothing’s clothes’ fabrics to see if it was man-made fibers or organic as I could predict life expectancy and decide if it was worth the purchase.
I decluttered my wardrobe by 50% and only kept what I loved. If I haven’t worn an item in at least 1 year, chances are I will not wear it again, and it needed to go to a better home. If I wanted to buy a new item, I told myself I needed to give away a similar item in my wardrobe. I don’t need 25 pairs of jeans and jumpers.
A 25k salary in London is considered fairly low income considering how expensive this city is. Still, I managed to do so without changing my lifestyle, so it possible for many people to achieve this with no excuses.