1. Not Having a Savings Goal
I’m not sure I could be preaching the importance of having a savings goal any bloody harder. If you don’t have a goal, it is going to be downright impossible for you to have any motivation to save. Your goal can be as crazy as buying your own private island (seriously did you know that there is a website that sells islands in Australia?!?) or it can be as small as saving up for a new Nintendo Switch so that you can spend your social isolation growing peaches and oranges in Animal Crossing.
To read more about the importance of having a savings goal, click here.
2. Not Separating Your Money
I don’t know about you, but I have absolutely no self-control. Put a block of chocolate in front of me and I will demolish the whole thing in a couple of minutes. Seriously, ask my boyfriend how many squares of chocolate he gets if we share a block. I can guarantee you it’s not many.
What does this have to do with your savings though? Well, just like I have no self-control to stop myself eating a whole block of chocolate, you are likely to have no self-control to stop spending your money if it is all sitting in one place. If you separate your money into different accounts, it removes the temptation to spend it.
I separate my money 3 different ways so that I can save more successfully. Read about the 3 ways you need to separate your money here.
3. Not Living Within Your Means
To put it simply, the concept of living within your means just means that you spend less money than you earn. It sounds so bloody obvious but it honestly blows my mind how many people don’t follow this simple principle. This is the first and last time in this blog that I am actually going to nag you about something so I want you to read this and then go and stand in front of a mirror and repeat this out loud to yourself until it is engrained into your memory forever:
“I will not spend more money than I earn.”
This means that you need to say goodbye to just chucking stuff on your credit card when you can’t afford it. It also means that you need to say goodbye to your After Pay and Zip Pay accounts. Sorry to be the bearer of bad news, but these accounts are not your friend. If you can’t afford to buy something right now, then don’t bloody buy it. The only thing that credit cards and pay later companies are doing is adding to your debt, and debt is the major thing that stops most of us from being able to save.
4. Spending Money On Shit You Don’t Need
- Do you really NEED to get McDonalds delivered at 2am from Deliveroo?
- Do you really NEED to buy a brand-new quilt cover set every change of season?
- Do you really NEED to buy that new bikini even though you already own 25 sets?
- Do you really NEED to catch an Uber to the pub when it’s only a 20-minute walk away?
Seriously, just stop buying shit you don’t need. So many of us throw away our money on things that don’t really bring any value into our lives, and this needs to change if you ever want to save money.
I know, I know I’ve said that you can treat yourself to whatever the hell you want with the money that you have allocated to your spendings and that is absolutely true. If you’ve separated your money accordingly, then you can absolutely spend whatever money you have in your spendings on whatever the hell you want BUUUUT as soon as you stop wasting your money on shit you don’t need, you will really start to see just how much more you’ll be able to save.
5. Not Investing
The one thing that all twenty-somethings have on their side is TIME. Investing your money in solid long-term investments is absolutely fundamental to growing your wealth and there are so many investment opportunities available to you. You have the option of investing in properties, or shares, or that sketchy pyramid scheme that keeps popping up in your Instagram DMs (seriously guys, DO NOT invest in a pyramid scheme)!
One of my favourite ways to invest my money is in exchange traded funds (ETFs) which sounds confusing as hell, but The Barefoot Investor explains them so clearly here. ETFs are shares, which again sounds confusing as hell, but I’m going to dedicate a blog post soon to explaining what the hell shares are and how you even go about buying them.
Another really great investment option that you have is to invest in yourself. Got an exciting idea for a podcast but not sure if it’s worth the time and money to start it up? Really good at pottery but afraid that no-one will buy your work? Want to a start a vlog showing people how to take the perfect x-ray but scared everyone will think you’re weird? Believe in yourself and DO IT. Investing in yourself is pretty bloody terrifying, but it’s the people that take the leap and invest in themselves that often do the best in life.
The Stingy Bitch
Based in Sydney, Australia.
Created in 2020.
This site and all of it’s contents are provided for entertainment purposes only and do not constitute personal financial advice. All products that are mentioned are general product advice only, not personal product advice. Not all options are presented and my opinions are subject to change. All content and posts have been prepared as a general summary only and is not intended to be financial advice with respect to any particular matter. This post should not be relied on with respect to any particular matter. If you have questions about any aspect of the content or this site or otherwise require personal financial advice, you ought to seek financial advice. The author disclaims liability to any person who relies on this post.
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