My Saving Money Red Flags 🚩

Read Time: 3 minutes

👋 Hey guys - Noah here, welcome back to the newsletter that aims to teach more than School taught you in just 3 minutes.

🚩 Red Flags When Saving Money

Several of you voted on wanting to see more content around saving money… This may seem boring, but don’t worry, today’s newsletter will be so fun! 😆

🚩 They don’t follow a system when saving money

How will you ever know how much to save or when, if you don’t follow a system? Several great money-saving methods are easy to understand and effective - why not consider one of these?

• Implement the 50/30/20 Rule: Allocate 50% of your income to necessities, 30% to wants, and 20% to savings and debt repayment.

• Round-up payments: Lots of banking apps have a feature where they will automatically round up every payment to the nearest pound and save the difference.

• Buy an item twice: This is a method, where whenever you buy yourself something non-essential, you invest an equal amount into your savings. This method is also great in helping to stop you from making unnecessary purchases!

🚩 They have a low-interest savings account

Nowadays, there are so many easy-access accounts out there with fairly high-interest rates - some nearly 5%! Yet so many people have their money sat in accounts paying barely any interest.

Do your research and look for accounts suitable to you. Some are easy to access and you can withdraw anytime. Others lock in your money. Depending on the person + situation you might want to pick different ones. I like the fact that any uninvested money in your Trading 212 account earns 5.2% automatically.

*You can get a free bonus when you join Trading 212 with my link!

🚩 They don’t have an emergency fund

An emergency fund is a pot of money with 3-6 months’ worth of living expenses. Now I don’t think everyone needs one. If you live at home with very few living expenses, it might not be so needed. But having a stash of money in cash, always accessible will allow you to go about your life with that extra level of confidence and safety.

Ensure your emergency fund is in a high-yield savings account that is easily accessible in case of emergencies!

How thinking outside the box saved me money… 💡

Instead of thinking about “how can I reduce my spending?”, think about the big areas of your life you can be creative in to allow you more room to spend more money…

In my situation, I realised I have recently been able to make a decent income to live off dog sitting at people’s homes whilst I work. This means I can live off the income from the dog sitting whilst investing/ saving more of the money I earn through my business.

The other day, I also called up and threatened to leave my mobile phone provider because they were charging me way too much - £30/month for 40GBs of Data! After some haggling, I managed to get a new contract for £15/month for 125 GB of Data. That’s now an extra £15/month I can afford to save. (plus tons of extra data!)

For you, you might want to switch to a cheaper supermarket and save the difference. Or find ways to save money on things you were going to buy anyway, and then invest the difference.

For example, the average person in the UK overpays their car insurance by quite a few hundred pounds every year. This can be avoided by being more prepared and buying it a month before it’s needed (as insurers charge less to more organised people lol).

👀 Things I’m Liking Right Now:

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Important Links 🔗

1. If you haven’t yet, join the “Teaching What School Doesn’t” Skool community. It’s free and has tons of extra value on managing, investing and making money. 💸

2. LOADS of you have been using my free Budget Calculator.

3. I reply to every email, so send any questions through! I’d love to help you.

See you next time!

Disclaimer: None of the above is financial advice. This newsletter is strictly education and should not be taken as investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and always do your own research.