Saving Your Pennies for That Rainy Day
Updated: Dec 15, 2019
After financially struggling to bring up four children (twins included), on a mean old budget, and constantly wondering how I could have financial peace of mind, I mean, real peace of mind, I decided to follow some of the best pieces of simple advice on saving I had come across.
Too simple I thought, but the advice was part of a course which I received for free.
The course cost well over £200.00 and booked solid for two months. At the time I was a volunteer Radio Presenter, and I gave the Lecturer some airtime to advertise her course. A ‘quid pro quo’ if you will.
Well, I filtered out most of what the lecturer had said during the course, simply because in my case, I already was aware of a lot of it. Things like a positive attitude to money and so on. But the part that jumped out at me-for me, was.....
Have more than one bank account! Sounds simple doesn’t it? But I had never thought of it before.
The Lecturer suggested having one main account where your wages or pension was paid into, another account for utility bills, such as rent, mortgage, gas, and electricity, a separate one for little treats, perhaps the odd holiday, and one for a rainy day. She explained that everything going into and coming out of one account was simply not good financial strategy.
It was almost as if that one account took on all the burden of our financial life.
Things became untidy, and sometimes one bill suffered to pay the next, I know some of you have been through this yourselves.
Creating more than one bank account gives you perspective. It was like a magic formula for me. People were paying close to £300.00 for this 3 hour course. Not to belittle the course material, but the part I took away was said by the Lecturer in two minutes. Sometimes, it’s that simple; the little changes we need to make in order to see a big difference.
The other valuable piece of advice offered, was to pay your essentials like rent and utility bills on a direct Debit or Transfer via your bank. I find Transfers best as you have more control. Set up a Transfer to pay a certain amount weekly or monthly out of your main account for your various bills, and whatever is left from this main account, you have to play with. Instant peace of mind. At least in my case.
I did not come into a windfall where I suddenly had so much more extra money in an instant. I simply took control and made a few simple changes like having the various bank accounts as separate homes for all my bills and other expenses. In this way, using this method, I was able to see where I could make savings; small savings, which grow steadily, giving me that breather, that peace of mind I so longed for before. I have followed this procedure for some years now, and I cannot believe the difference it has made in my life.