Martin Lewis advises savers on using money saving apps
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Financial habits are crucial to master in order to achieve financial ambitions, but it may not be as hard as people may think. On the Save Spend Invest podcast, Laura Moore, a money and mindset coach and blogger, explained how she was able to save over £15,000 in five years.
At age 22, she had saved £15,000 and was able to go travelling with her friends around the world.
It was when she got back, and she had £0 in her account, that she realised she had to start the journey all over again.
This was a “wake-up call” for her as she had to start implementing the financial habits she used to live by after not using them whilst away.
At 27, she has now managed to resave over £20,000 and shared some tips that helped her get there.
“Learn what option is better for you – do you like to see your money growing, or do you need to put it somewhere you can’t see it, and can’t touch it?”
Additionally, she suggested that beginners should start small.
She said: “Start small. Don’t think that if you’ve gone from saving nothing don’t just think this year, I can save £20,000.
“You’re potentially setting yourself up for failure. You’ll look at the goal and think that’s really far away.
“You literally need to be like – this month I can save £50 and label the savings something that is your motivation – whether it’s a holiday or a new phone.”
The money coach explained that when people feel the urge to make impulse purchases, they should wait 24 hours before buying the item.
They should be able to rationally understand why they need this purchase, over putting that money towards their long-term savings goal.
She continued: “Each time you save £10, £20 or even £50, and not dipping into that pot, you’re reaffirming to yourself that you can do it, you can save and work your way up.
“It won’t happen overnight, but when you start to make these little changes, you can see much of a big difference it makes.
“Sitting down and assessing your financial situations and your habits will really help.
“Educate yourself! Whether that’s reading books or listening to podcasts. There’s so much free content out there.”
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