lifestyle

    Saving When You Financially Frittered Away Your Twenties

    Your twenties might have been the best times of your life, but, despite a bad job or an unhealthy relationship, you had a lot of fun! Spending time with your friends, traversing bars and clubs is great, but what happens is that, when we hit our thirties, the financial repercussions come to bite us in the proverbial rear. If you have a family, outgoings, and other expenses like a mortgage, you might find that saving money is an impossible task. When the time comes that we have to start saving, how do we do this when we have essentially financially frittered away our halcyon days?

    Is A Loan The Answer?

    It all depends on how much you want to borrow. There’s a lot of secured loans out there that means you have to put up your house or your car as collateral. But there are plenty of secured loan examples out there to see if it’s the right thing for you. Loans can dig you out of a hole in the short-term, but it all depends on the interest rates. Ultimately, it depends on what you need to save for right now. If you are savvy with a calculator, you might find the right way to get a lot of money quickly. For example, if you have two different credit cards, and one is 0%, and if you have another with 29.9% APR, if you can shift a portion of that outstanding balance on to the 0% card, your monthly outgoings will decrease exponentially!

    On the other hand, if you get a loan to get you out of a hole in the short-term, you have to remember that it’s not a way to bail you out every single time. Get yourself out of the hole, but then stay out! How can you do this?

    The 50/20/30 Rule

    There are many ways of saving money, but this is, arguably, one of the most sensible. After-tax, spend 50% on your needs, such as bills, minimum debt payments, and so forth. 20% goes to savings. 30% goes on your wants, like holidays, meals out, and Netflix. But to achieve this, we’ve got to look at our outgoings. This is all done after-tax, and in theory, if we stick to this rule, we won’t feel out-of-pocket. Saving once you’ve got out of a financial hole is, to an extent, about sacrifice. It’s also about ensuring you don’t feel that you are going without.

    Is There Help Available?

    Some people feel the allure of declaring bankruptcy. In theory, this is great, because it potentially wipes all your debts clean. But if you are looking in the next few years to buy something like a car, or a house, banks won’t touch you. Look at help, either from Citizens Advice, or other debt agencies, and see what the best approach for you is. There are some fantastic resources on saving money as well, and you need to find the right one for your lifestyle. But at the same time, you have to make changes. A lot of people don’t like to make drastic alterations to their lifestyle, but this is why a goal is crucial.

    Look At The End Result

    Saving isn’t just about putting away every penny, but it’s about motivation to keep going. You might feel that temptation to splurge every now and again, and as annoying as it is to have yet another tin of beans, or trying to make things stretch a little bit further, if you are doing it for a tangible reason, this can help keep you on track. It’s all about that bigger picture. And while there are people that subscribe to the idea that you can’t take money with you when you depart this planet, if you want to have a nice retirement, or you have children to provide for, there’s got to be a little bit of sacrifice involved. A lot of us feel that we are making the necessary sacrifices, but this is because we feel we are going without. The trick is not to feel like you’re going without the essentials in life. Some of us think that we need money to do anything and everything. But to those people, perhaps it’s worth looking beyond. There are plenty of things that we can do for free, but it’s just about looking for them.

    That’s not to say that saving money is easy, it requires a lot of dedication, perseverance, and minimising certain parts of your life, but when you have a goal in mind, this makes it a lot easier. But also, you need to make sure you have the tools at your disposal. Put very simply, a lot of us aren’t savvy with our money, and think that what we are presented with is what we have to get by on. And for those people, consider investing, saving in other ways, but also, just opening your eyes and enjoying life in different ways.