Three Scary Stats
- One third of us go over budget more often than not.
- 42% of Londoners have less than £100 in savings.
- And one out of ten confesses to being terrible with money.
Last week we dealt with the first of the above Three Scary Stats. Feedback was great so thanks for that. Glad the spreadsheet was helpful for those of you that downloaded it.
This week, in episode 2, we look at the second scary stat around Londoners and their saving habits - or lack of.
My isn't this exciting... who needs Game of Thrones?
To save or not to save, that is the question.
- 42% of Londoners have less than £100 in savings
That basically means that £4.2 million of us living in this great city, have no savings at all. I don’t wish to shame or out anyone in that position, I have been part of that number way more than my profession would suggest. But I do want to see if I can help anyone who finds themselves in this unfortunate situation, find their way out of it.
What changed for me? Well, in my experience, you need something to save for. You are unlikely to start saving for saving’s sake. You gotta feel something. Something that excites you. A want, a holiday, a house deposit, a dream, a hope, whatever it is. Without that endgame in sight, it makes it difficult to get behind it.
Otherwise, like me, you will just siphon any savings you made with good intentions at the start of the month, back across to your FUN account at the back end of the month when you can’t say no to a friend’s invite.
Of course, you need to save for your unknown future, but if you’re struggling to get started saving, try and associate the saving to a particular goal. Not something abstract or boring, something that excites you and means something.
As last week’s blog indicated, you need to make saving as consistent as any other fixed monthly expenditure. You wouldn’t miss your rent, gym or your Netflix membership, so don’t miss your savings. How do you do that? Adopt the budgeting strategy we shared last week. Be disciplined. Put the savings into something that you cannot access straight away (Premium Bonds are good for this).
Reward yourself for saving. Each £1,000 you bank, give yourself £50 to buy something new. Start small savings and then increase. Don’t put yourself out there to start saving half your earnings. Start small and increase as time goes by. You’ll usually find that the more you have saved, the more you will feel inclined to add to that sum.
I promise you, I am yet to meet someone who regrets building a savings nest egg. It gives you more options and more freedom than living month to month.
Alfie Mullan, September 2018