Everything I have learned about money has come from me teaching myself and learned from other people online. I never learned about budgeting, savings, debt or anything to do with finances at school and I really wish I did.
It would have enabled me to understand more about my money and how I can make every penny count.
So this post is for anyone who is unsure how to budget, save and so much more!
I wish when I was at school I was taught about savings accounts and how they work. When I left school and started earning money I had no idea which bank to go with and what interest rates are. This meant that I wasted money and when I started my budgeting journey I had no savings.
Everything I have learned about savings is from the internet and the wonderful people over on Instagram.
I have now learned that it is important to save at least 10% of your wage, this will help with any unexpected expenses and emergencies!
I was not taught anything about debt, I had no idea that you could use credit cards and spend money that wasn’t yours. One thing I do remember is hearing my parents talking about debt and how bad it is but everyone has some form of debt so its completely normal.
I was so confused by this because at the time all the adverts on TV was telling me to get credit cards, and payday loans great for your credit score etc.
It wasn’t until I started my journey that having debt is not a good thing, and it is not something I should have.
Debt can not only effect you financially it can effect your mental health, the stress of worrying about being able to pay of thousands of pounds worth of debt!
The best way to avoid debt is by having an emergency fund so you are prepared for any unexpected expenses.
Budgeting is so crucial to your financial freedom and again I had no idea how to do this and how effective it is.
Having a budget no matter what your method allows you to be in control of your money, increase your savings and work hard towards your goals.
I use the zero based budget method and for me it has helped massively.
Buying a house:
I did not realise how expensive buying a house was in my head it was something that all ‘adults’ could afford as everyone was buying houses. It wasn’t until I started looking into how much it costs to move I was shocked.
You need at least a 5% deposit of the value of the house you are buying. But with the global pandemic this figure is changing all the time. My boyfriend and I have nearly £30,000 saved which is roughly 15%. But there is also other fees that you need to account for. So please do your research before you start this process.
Not only does it cost a lot of money it takes a long time to move , sometimes it can take 6 months and other times over 12 months.
I thought you didn’t need to start saving for your pension until your ‘older’ but since companies auto enroll people into their pension scheme at the age of 21 it has got me thinking.
I remember learning about pensions at school, but I didn’t learn a lot. Just that when you get old you are giving a pension that helps you live.
I pay into my company pension but I am also considering paying into a private pension as this money will not be enough.
I have learned that it is never to early to start saving for a pension and this is on my to do list for next year!
There is so much more I wished we were taught at school about money and fiances but this post would be hundreds of pages long!
Is there something you wish you were taught at school?
Let me know!