Welcome to the Money Confidence podcast where your hosts Sarah and Georgia aim to educate you about money in a fun, simple way, to increase your confidence with money and the decisions you make around money. On this episode Sarah and Georgia talk about the basics of saving, and how you can start building habits.

KEY TAKEAWAYS

There's not a lot of financial education in schools and as a result a lot of people are unsure about their finances and finances can be viewed as complicated and scary.

You could split your salary this way: 50% goes into your bills, 20% into savings and 30% is money to spend on yourself – seeing friends, family, buying presents for people, etc. Or, the envelope method is good for people who are disciplined: You take cash out, put it in an envelope and that's your spending money for the month, though it doesn't work for everyone. Some people put money in an envelope with their Christmas tree or Christmas decorations, so that the following year when they get their decorations back out, they have that extra cash to spend at a time which is usually quite expensive.

Automating a payment into your savings each month could be a good way to save because you don't even have to think about doing it. It's better to start low rather than high so you don't get into the habit of taking money back out of your savings if you find your bank account is low at the end of the month.

BEST MOMENTS

‘It's important to set up the habit, once that's done everything becomes so much easier and less complicated.'

‘I didn't have a savings goal, I just knew I wanted the money for a deposit on a house (£30,000-£40,000), and you just keep pushing yourself to save. Every time my salary increased, I didn't see that as a personal increase, I saw it as an increase in my savings.'

‘Don't label your savings as an “emergency reserve”, because you won't want to touch it. Instead have different pots for different purposes.'

‘The important thing with savings is to be flexible, put away more some months when you can to make up for other months when you can't or something comes up unexpectedly.'

ABOUT THE HOSTS

Sarah is a Chartered Financial Adviser and Certified Financial Coach and Georgia is a Senior Paraplanner. Together, they have over 20 years experience in financial services and are on a mission to educate others about money in a fun and non-jargon way. They will help you master your finances and money mindset so that you feel more confident with money and the decisions you make around money. They talk all things money from investments, pensions and benefits to your mindset around money and steps you can take to improve your relationship with money. They aim to make it fun, educational and are with you every step of the way. Together, you've got this!

The information given in this podcast is for your entertainment and should not be construed as financial advice. No liability can be accepted for any individuals relying on this information without seeking specific advice and guidance. As always, take independent financial advice before making any investment decisions. Our discussions are based on tax and legislation in England which may change.

CONTACT METHOD

E: [email protected]

IG: https://www.instagram.com/sarah_talks_money/ 

LI: https://www.linkedin.com/in/sarah-blyth-chartered-financial-planner-and-coach/ 

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