Four Ways To Improve Your Bank Balance
Again.
Let me take you to the beginning of my journey of money troubles. I was eighteen years old, just started university and I felt invincible. I had the most money I had ever seen and I could do whatever I wanted with it. Wrong. For some reason, I forgot my money wasn't only for recreation. I was spending way more than my bank balance would allow and ended up completely maxing out my overdraft. I got to the point where I couldn't even afford to top up my oyster card to get on a bus, which was a necessity. I had hit rock bottom financially and I felt terrible. Never did I think I'd be stupid enough to lose all of my money. I was upset and angry at myself. Before reaching out for help, I didn't know how to get out of the hole I'd dug for myself.
Then my sister (AKA my hero) bailed me out; she gave me a bit of money so I could pick myself back up and buy the things I needed. It was embarrassing and she still talks about it now, but it saved me from having to admit to my parents how bad my spending had gotten. It was hard admitting it to my sister, let alone my parents. I swore I would never get to that financial state again, but here I am heading down that road.
Looking back, I realised I wasn't stupid, I was just really bad with money but apparently I haven't changed much. I've been working so much recently and I thought I was doing okay with money until I checked my bank account. I don't know how it's so low! I know I shop way beyond my means but I didn't realise just how much money I've been spending in total. All of the small purchases really add up and buying lunch everyday at work isn't the smartest thing to do on a budget. I really need to adapt to living frugally, at least whilst my income is small. Earning more is not always an adequate way to improve your bank balance, trust me.
I need to make sure I stop myself from delving into my overdraft again so here's how I'm going to do it:
1. Make a budget and stick to it
I've been saying for the past year I'm going to make a budget and record all of my spending but have I done it? Well kind of. I made a budget last September where I forecasted all of my incomes and expenses and it resulted in a summer full of ￡￡￡ (like every finance section of a business plan. No one ever projects a loss beyond the first year, even if it's a strong possibility). However, the actual result for summer is not so great. I didn't continue to write down my expenses, I just worked more hours and assumed my income was still higher, which sadly it wasn't. I kept treating myself for working long hours and took three too many holidays considering I have a small salary. Probably not my finest decisions, but I've had an awesome year so no regrets! Okay, no regrets for the holidays, plenty of regrets on the other useless stuff I've brought.
Back to budgeting, I'm going to download an app to help me manage my finances and I'm going to be strict with myself. I will stop eating out so often and getting takeaways; I will cook instead. No giving into clothes sales because I have enough clothes to open a boutique! No Ubers unless I really NEED to book one (I still get way too many taxis due to laziness). Each month my money will roughly go on 80% necessities, 20% luxuries. This time next year, I will be able to say I stuck to a budget for a year and I won't have any money concerns from next month.
2. Monitor your bank account
Make sure you know how much money is in your account so you don't encounter any surprises. I didn't check my account for nearly two months and it turned out I overestimated how much money I had. Again, I assumed I had a lot of money because of work and didn't feel the need to check it. It is really important to keep updated with the changes in your account for your own piece of mind. Knowledge is power. Had I not checked my account recently, I wouldn't know my money is so low. I hate knowing because I get stressed but it means I can make changes before it's too late. Keep an eye out for anything suspicious as well. The rise of cyber crimes is scary to say the least.
One major tip I can give you is to open a savings account and do not touch it unless you HAVE to. Savings accounts are good because you get monthly interest as long as you don't withdraw any money. They are essentially safety nets. You have money stored elsewhere for emergencies or until you are ready to use it. I transfer money into my savings account monthly for not only the future, but also for piece of mind. If I need it, it's there.
3. Stop spending so much money
It sounds obvious but it's such an important thing I ignore. If I stop spending unnecessarily, there will be more money in my bank account, meaning I don't have to work as much. I live by the philosophy that money is there to spend (as well as Live, Laugh, Love and YOLO!) but there is such a thing as too much spending. I love the feeling that shopping, and recreational things like dining out, gives me. I guess you can say I'm a spendaholic, a shopaholic and addicted to money. It's terrible. Living the A-list life on a D-list budget is not as glamorous when you realise it's becoming a Z-list budget. I am going to start only buying the things I need and stick to spending a maximum amount of money per month. Budgeting is essential! I will find joy in other things. Eventually. I'm moving closer to university in August so my travel expenses will be cut down drastically. I'm already saving money!
4. Earn more money online
Second year at university wasn't a walk in the park but I've heard third year is far from a joke. I will be serious and working hard because I want more than just a good grade. That means I might not be able to work as much, which opens the door to online opportunities. I tried forex trading but I never got the hang of it and lost the majority of my investment. I found it very confusing and it was too unpredictable. However, if you are interested in it, try it out for free to see if it's for you before investing any money. There are apps where you can try it for free and introduction offers on trading websites. A lot of money can be made by trading, if done right. In contrast, matched betting is much easier but you will not end up rich. I earnt a decent amount of money from it but not as much as the testimonials claim. The longer you do it, the riskier it gets because you're using more of your own money. I ended up losing quite a lot of my bets towards the end of doing this and the counterbets didn't fully cover the loss. It's good for the first month but the second month was a drag for me. There are also free trials of Matched Betting online as well. Scan Google for the best current deals.
One of the best ways to get wealthier is by creating a passive income. A passive income is a regular income which is earned with minimum to no effort after the initial launch. It can take years to start but once it has been launched you won't be actively working on it anymore. Think of it as a second income. Who wouldn't want that? I am aiming to build a passive income as soon as possible by self-publishing my next fiction book on Amazon, selling downloadable online courses on websites like Skillshare and Udemy and eventually having a property buy-to-let portfolio. Whilst I work on those, I want to start tutoring online and earn a little money testing and reviewing products and websites. As Tesco say, every little helps.
So these are the four main things I'm going to be focusing on this year to improve my bank balance. I want to be in a good financial position during the Christmas period and I want to have the summer of my life next year.
Wish me luck!
TTFN
Shanice x
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