Three mistakes people make when trying to save money – like comparing yourself
Budgeting and managing your money is one of the most important skills any adult learns, but not everyone has someone to teach them.
This means it’s not surprising that some people struggle to end up with cash at the end of the month or end up overspending and using overdrafts.
We could all have done with some budgeting classes when at school, to be honest.
But, a savings expert has explained that there are some mistakes that women make specifically that negatively affect their bank balance.
Paridhi Jainriting, the founder of financial education platform SkilledSmart, told Mama Mia three things women in their 20s should stop doing to get on top of their money.
Here’s what she said:
Putting off saving
Paridhi claimed that so long as you have a job and can afford your bills you should be saving money every month.
Even if you see it as a temporary job and not your “real” career.
She explained: "Your job as a cleaner or dog-walker or babysitter is just as valid as whatever career you’re working towards in the future.
"You think 'it’s fine' to spend the money now because you’ll 'make it back when I get my real job.' You’ll “get serious” later, when you’re earning 'real money'."
But, she said that this kind of thought process stops you from saving money and can hinder you from getting your dream career in the first place.
If your friends are spending all of their money, racking up credit and have all the latest gear then you might think it’s normal to do the same and give yourself permission to overspend.
But, your pals shouldn’t be your bench mark.
Set yourself your own goals and follow them, don’t allow yourself to be tempted.
You can even make mood boards or incentives to motivate yourself to hit your saving targets.
Paridhi said: "If you want different financial results to what your friends and family have, if they’re not working towards the same financial goals as you… you might need to look outside your immediate circle for financial guidance."
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Not making it fun
Apparently, women in their 20s see these years as a time for having lots of fun – and they’re not wrong.
But, many also want to have their life somewhat on track by 30 and so spending all of your money exploring the fun side of life could leave you worried when you hit the next milestone without any cash.
But, if you think of saving as a game then you can have fun while also setting yourself up with a healthy nest egg.
Savings habits like cash stuffing – where you use plastic wallets to lay out your budgeting – or money challenges can make it more enjoyable.
Lots of women find they really get stuck into saving every last penny when they start to enjoy finding deals too.
Paridhi said: "Both life and wealth are long-term games.
"If you focus on growing as a person, developing new skills, challenging your view of the world, trying new things, not being scared of making mistakes and taking risks… you're bound to reach 30 with a much wealthier experience of life."
Paridhi Jain is the founder of SkilledSmart, an independent financial education platform helping adults learn to save and invest their money. For more money tips, you can grab a free e-book on “5 Money Mistakes Costing You Thousands” via theirwebsite, and follow them onInstagram.
What’s your favourite way to save money? Tell us in the comments…
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