How I Learned to Start Saving for my First Flat with Spend It Like Beckham

Being an adult is hard work. It’s the financial responsibilities of being an adult that I find hardest to deal with and if this sounds familiar, you’re not alone. According to a recent survey conducted by Nationwide, the cost of living, rising rents and soaring house prices are seeing young people staying at home until they’re at least 26.

A few years ago I made the bold move to leave the nest and start renting a flat with a friend of mine. Eventually I’d like to get a place of my own, but after my rent and other bills for the month have come out there isn’t a lot left to put aside. It’s all made worse of course by the parental questioning every time you retreat home for a free dinner of, “How are you doing for money?” It’s an important issue of course, and if you get defensive it’s only because their questioning hits home the nagging guilt that you’re spending too much on Playstation games and trainers. However, there is hope for us all if we just learn to change some of those bad spending habits!

Here’s how I got on track towards what will one day become the biggest purchase of my young life:

Daily spending habits

First things first, trim the fat. We all have expenses we could probably do without. Get that bank statement out of whichever drawer you hide it in and take a look. Got a subscription to a magazine you don’t even read? Cut it. Get healthy snacks delivered to your door you don’t eat? Cut it.

Check out your daily and weekly expenses too. You might be surprised about how much you spend on lunch every day if you eat out. My own personal vice was smoking, cutting that out completely has given me an extra £40 to save every month. Drop the frivolous expenses you have each month and you will begin to notice that little bit more cash left in your bank balance at the end of it.

Break the shopping habit

There is something to be said for retail therapy. Shopping really does make you feel good. You can sometimes have too much of a good thing however, and if you constantly want to be seen in the latest styles you will begin to find it to be a drain on your finances. Try instead moving to a ‘capsule wardrobe’. It’s a simple idea really, get rid of everything in your wardrobe that you don’t love, and create a three-month wardrobe consisting of 37 pieces or less. When those three months are up, rotate seasonally inappropriate clothing out and bring a few new items in. You can’t shop during those three months, and if you’ve got a talent for putting an outfit together you could find yourself saving money this way.

Serious budgeting

One simple rule that I try to stick to is the 50/30/20 rule. It is a guideline for setting up the optimal income allocation based on percentages: 50% of your income would go to mandatory bills (rent, phone, car insurance, student loans), 30% would be fun money (movies, food, vacations), and 20% would be savings. This only works if you start with your rent, though. All of your recurring monthly bills should not exceed half your take-home pay, meaning that your rent should sit somewhere around 30%. If yours is way higher right now, don’t worry – that’s true for many young renters. If you can move to a safe area at a reduced rent next year, however, it’s certainly something to consider.

The savings account

After I started to curb some of my worse spending habits I started to put what I had left over each month into a savings account. There are plenty out there to choose from, but as I have made the commitment to save for my first home I chose a Help to Buy: ISA. A lot of the high street banks are offering Help to Buy: ISAs right now, and there’s very little between them. Essentially it is a government backed scheme to help first time buyers like myself into a new home. The government boost your total savings by 25%, so for every £200 you save, you receive a government bonus of £50. Through this process I’ve also always kept an eye on my handy mortgage calculator as well, if only to work out how much I’d need for my dream home.

Outlined here are just a few tips and tricks that I’ve found to work and get my savings in order. There are plenty more out there, it just depends on what works best for you. Happy saving!

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Chris has written 3 other posts for Scot Bloggers. You can see Credit Cards are bad, right? 5 Simple Steps to Scaling Down Debt & 5 Ways for Students to Save Money.

Credit Cards are bad, right? with Spend It Like Beckham

Mid-twenties, first ‘real’ job and first ‘real’ flat: my transition into the financially self-sustainable adult I always told myself I was going to be is almost complete.

However, until recently, there was one financial obstacle I had yet to overcome: the credit card.

The fear was not plastic itself – I, alongside 50% of millennials today , have no qualms about using my debit card for next to every purchase I make; from extortionate flight tickets to a modest packet of chewing gum.

So, the question is; why aren’t we as relaxed with credit?

For the most part, front-row seats to the economic recession have instilled in Generation Y a fear of financial instability in the form of unemployment and thus an inability to pay off debt – the latter being a strongly-associated stigma of credit cards.

In light of this, millennials tend to choose debit cards as they operate effectively as cash, providing us with the security of using money we actually have in our bank accounts.

With our recovering economy in mind, it can be argued that we millennials are being financially savvy in our bid to stay out of debt by avoiding credit cards and other similar products. However, we have to ask ourselves; could this actually be at the expense of our own long term goals?

Using a credit card responsibly is one of the easiest and most reliable ways to build a strong credit history which, in turn, can be the catalyst of getting financial backing in the future. You need a strong credit rating to be approved for a mortgage, and further to this, a lot of providers won’t supply you with a secured personal loan if you’re not a homeowner.

Having a bad credit rating or not having one at all can limit you financially more than you might imagine.

Credit scoring, for those who are not familiar with the process, is where future lenders assess the manner in which you have borrowed and repaid money in the past in order to establish your creditworthiness. Without a credit history to evaluate, you will fall far short of being offered the better terms that are available.

Further to this, 15% of your credit rating will be based on the length of your credit history – therefore, if securing finance on a house or a car is a future goal, the optimum time for millennials to be choosing to use credit is now.

Recent Euromillions raffle winner Matt Myles learned this the hard way when he attempted to delve into the property market after returning from a six-figure ‘round-the-world pub crawl’. Despite winning a £1 million fortune, it has been impossible for Mr. Myles to obtain a mortgage due to his poor credit rating.

Using a credit card need not be daunting - by spending only small amounts and continuing to clear the balance on time you are able to avoid interest charges whilst establishing a formidable credit history of responsible borrowing. If you’re still feeling tentative about the prospect, some credit cards offer interest-free introductory phases, usually lasting a number of months while others honour their users with cash back rewards.

Our twenties are absolutely for living in the moment however, if you’re serious about your dream property or car at some point in the future then think credit before debit next time you swipe.

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5 Simple Steps to Scaling Down Debt with Spend It Like Beckham

Everyone has probably had some sort of debt in their lives. It might have been small and insignificant; it might have been massive and terrifying. Hopefully, you’ve never had to deal with the latter, I haven’t and I’m thankful for that, although I have had and still have debt to my name, albeit not massive and terrifying. It is however, debt, and no debt, no matter the size, should be ignored and pushed to the side. Throughout my adult life, mainly while I was at University, I have accumulated ways and methods on how to save money, make money and to cut down on debt. In this post, I am going to share with you 5 simple pieces of advice that have helped and are still helping my scale down my debt one step at a time.

Look at what you’re spending

Not everyone will admit it, but we all spend frivolously at times. We buy things that we don’t need, but really want. We buy something that we think we will use in the future, but is ultimately put in a cupboard and never sees the light of day again. Everyone will find ways that they can cut down on spending if they look hard enough. Something that I use to help me recognise where I’m spending more than I should be is using an app on my smartphone called Toshl. This free app allows you to enter you expenditure as you spend it and gives you an overview of what you are spending on what. It really did help me cut out unnecessary purchases and trim down my overall outgoings. Sometimes, it’s not until you see it laid out in front of you that you realise you have unhealthy spending habits. Of course, if you don’t have a smartphone, you can just write your spending out and have the same outcome.

Look at what you owe

While it is always a good idea to look at your outgoings and trim the fat that way, it can also be really useful to look at what you already owe and who you owe it to. For example, I’ve had a credit card, with a reasonably large balance on it since I was at University. A credit card was something I needed while I was studying and unlike a lot of people, I don’t regret getting one. I do however regret my choice of credit card. I took out my then bank’s student credit card because, well, it made sense. I was a student; I should get the student credit card right? Wrong. That particular card had a really high purchase and interest rate and it wasn’t until fairly recently that I realised this. I shopped around and found one with a different bank that was much, much better for me. The thing is, it wasn’t even a student card. It was just a plain old credit card.

From not paying these ridiculously high interest and purchase rates, I was able to take a sizable chunk off of my monthly outgoings. There is a plethora of credit cards out there that could be giving you a better deal, and this rule doesn’t only apply to credit cards. Mortgages, insurance, savings accounts, anything you can think of that you pay a fee for really. Shop around, there is a good chance that you will be able to get the same service, for a lesser price, you just have to look for it.

Look for opportunities to make extra cash

You might think it is difficult to make extra money in today’s economy, but it is easier than you think. There are a number of ways in which you can bring in extra income, especially through the internet, on a regular basis. Firstly, there is money to be made in nearly everyone’s home. Have a clean out of everything you don’t need; electronics, furniture, DVDs etc. All these things can be sold for money, and there will almost always be a willing buyer. You might not get a lot for them individually, but the amount can tally up, giving you a tidy sum for your troubles. I’d start off with the usual suspects for selling these types of things, with eBay and Gumtree providing ample platforms for doing this.

Secondly, do you have a hobby? A talent? A set of skills? If you do, there is again a chance that you can use these to your advantage and make some money for yourself. I dabble in digital design and photography and my friend recommended a site called Fiverr to me. Fiverr allows you to promote your talents or expertise online to a huge consumer database and set your stipulations as to what you do for, you guessed it, a fiver (£5/$5) Yes, this doesn’t sound like much but I found myself making logos, that take me literally minutes, on a regular basis and it gives me a decent sum at the end of each month. The site obviously isn’t limited to just digital design, there are people who offer content review, singing lessons, voiceovers...anything you can think of really, and there are people willing to pay you for providing these services.

Save while you’re paying off debt

I know this might sound odd and you could ask the question of instead of saving why don’t you just put this money towards paying off your debt? It is a valid question, but I will still stress that you should always be putting money away for a rainy day, even if it is just a small amount of your income. Having these ‘emergency funds’ as I call them is always a good idea, as you never know what is going to happen. Burst pipes, blown tyres, broken boilers. All these things, among many others, can come right out of the blue and they can cost a pretty penny to fix. If you have an emergency fund at all times, then this will save you from using your credit card or borrowing more in order to fix or repair them. Have your own back and make sure you always have money put away for emergencies.

Reward yourself

Saving and cutting back can be gruelling and disheartening, but it is something that needs to be done if you want to gain financial security or independence. So, to make it less of a chore, treat yourself for reaching a goal per se. If I manage to cut back costs on a certain thing or save x amount for my emergency fund, then I reward myself accordingly. I don’t go out and buy myself a car or something, but I’ll take my girlfriend through to Edinburgh for dinner, or we’ll go bowling or something. Something we wouldn’t normally do. It’s important to maintain an active social life regardless of what you’re trying to pay off. If you don’t, then you can fall into a funk that’s hard to get out of. If you’re like myself and will be treating yourself to a nice dinner as your reward then I suggest using 5pm.co.uk. You will be able to get a great meal for you and a companion on there for a great price, and, it accumulates points that can be redeemed in the future.

Know of any other tips or tricks that can help you cut down your debt? Let us know in the comments below.

My name is Chris and I’m a 26 year old guy who’s not long out of University. I love football and through my time at Uni I had to be quite frugal, so I decided to mesh these together to create my blog, Spend It Like Beckham. I write about financially related football (and other sports) stories while giving out money saving advice to the best of my ability.

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5 Ways for Students to Save Money with Spend It Like Beckham

As a survivor of 4 long, long years at University, there are many things that I could complain about. The main one would have to be money. For a good while, I didn’t have any, so I had to learn how to save money and stretch out what I did have.

1. Take advantage of being a student

Along with the usual student discounts in bars or restaurants for example, there are some places where you can get really good deals on essential studenty things. The best one that I’ve noticed is an apparent oversight by Microsoft. Their Office Home & Student, for 1 computer, with Word, Excel, OneNote & PowerPoint is available for £109.99 at the time of writing this. Also available is Office 365 University, for 2 computers and multiple tablets and includes Word, Excel, PowerPoint, OneDrive, Publisher, Access, OneNote and Outlook all for the mighty fine price of £59.99. Why? I don’t know. All you need to be to get this deal, is a valid student, which you probably are if you’re reading this article. It’s important to take advantage of such offers; you just have to look for them. Another good thing to keep an eye out for is the NUS Extra card. It only costs £12 and will get you discounts and special offers on a whole bunch of stuff and is definitely worth investing in.

2. Get the correct bank accounts

Yes, that is purposely meant to be plural. A lot of people will tell you that having a student bank account is the best way to go, and for the most part they are right due to the interest free overdrafts and what not. What I will also suggest to do is have another current account, a paid one. “Wait...” you ask, “I thought we were trying to save money, not spend more of it!” we are. We definitely are trying to save here. With these paid for accounts, you get all sorts of perks. This one that I used (and still use) from Clydesdale Bank is a perfect example. It gives me mobile phone insurance, travel insurance and discounts & cash back at my local Asda (and other supermarkets) as well as many other perks. It was ideal for a student, and it is still very relevant for me. Although you are paying money for the account, you would have to pay for the perks that come with it. This way is a lot cheaper, and they have bailed me out many times, especially the mobile phone insurance. There are many accounts like this, so shop around and find one that suits you, but they are definitely worth it.

3. Plan ahead

This is just generally good advice, for anyone. But in this instance, I’m talking about food! Food is part of the three things that we need to survive; food, water and caffeine (obviously), so it’s important that you think about it properly. Some people do a weekly shop, others take a monthly trip to the grocers, whatever your preference is, make sure you plan and budget accordingly. It’s very easy to go into a super market, all guns blazing, and just to make random impulse buys, buying stuff you don’t need and wasting money. If you know what you’re going in for and stick to your plan/list, then you will most likely stick to your food budget and you’ll just see the savings mount up. Also, very importantly, never shop on an empty stomach!

4. Packed Lunches

Packed Lunches, remember them? Traditionally, a wee sandwich, carton of juice a bit of fruit and a biscuit. Your mother gave you it every day in school (or at least mines did) and do you know why? Because mothers are very wise people, whether you want to believe it or not. They are the masters of saving, and we should take a leaf out of their book. Think about it, you’re going to be in your place of study for at least 30 weeks out of the year, and if you go out to lunch or even to the cafes on campus, it’s easy to spend a lot of money. Think about it; “Do you want to go to lunch?” “Yeah, sure! Let me just lift some money.” So, you lift £10 because that’s the minimum, buy your lunch, then you’ve got all this change. This change then goes to buying Red Bulls or Starbucks. Don’t lie, you know it does. Maybe not every time, but a lot of the time it does, and if you did do this every day, that’s £1500 right there! £1500! Packed lunches are a lot more economical, more nutritious, and the best thing about them is that they are completely personalised.

5. Don’t Buy Textbooks from the Institution

Seriously, don’t do it! The markup is ridiculous. One of the best pieces of advice I ever got during University, which surprisingly came from a lecturer, was to use this website when I had to buy a textbook for a module. It’s essentially the Compare the Market for used text books. Type in the Author, Title & any other details you have, and it searches several platforms to find you the best prices for used copies of the book you need. I used it several times, and each time the book, although not pristine, was more than readable, a few times there was actually some quite handy notes scribbled on pages. I’d definitely recommend this site. It can save you a lot of money. AND if the book is in fact in decent condition, you can always sell it on again. I wouldn’t sell them online though, what to do is put up flyers/notices outside the bookshop advertising the book for less than the store price, but more than you paid for it. This could be seen as by some people as a real easy way of getting their textbooks for that year (most institutions tend to stick to the same books) and they will be getting a bargain, but you might also manage to make a small profit off the books. Everyone is happy!

Know of any other money saving tips for students? Let us know in the comments!

My name is Chris and I’m a 25 year old guy who’s not long out of University. I love football and through my time at Uni I had to be quite frugal, so I decided to mesh these together to create my blog, Spend It Like Beckham. I write about financially related football (and other sports) stories while giving out money saving advice to the best of my ability.

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