She Strengthens

My Journey to Financial Awareness

After graduating from university in 2014, I realized the importance of being mindful of my finances. Until then, I only checked my bank account to avoid overdrafts, but I didn’t have a savings plan in place. I told myself that saving would be something I’d get around to once I landed a job. Looking back, I wish I had started saving earlier.

The Struggle is Real

In my first year after graduation, I earned very little as a teacher on a temporary contract. I had to save every penny to prepare for the unpaid two-week holiday, when I’d still be responsible for rent and necessities. It was incredibly stressful. Despite these challenges, I managed to save a little each month – sometimes £100, but often less. I considered it a first step towards financial responsibility.

A New Chapter

In September 2015, I landed a new job with a permanent contract, which meant no more unpaid gaps during holidays. This marked the beginning of my serious effort to manage my money better. I had a lot to learn, but I approached it like studying – there were rules to learn, and by following them, I could finally achieve financial security and enjoy my life without stress.

Tracking My Spending

I started by tracking every penny I spent, keeping receipts and recording every transaction. After three months, I was shocked to discover that my smoking habit was not only bad for my health but also expensive – nearly twice as much as I had estimated. This revelation made me realize that cutting down on smoking would make a significant impact on my finances.

Budgeting Blues

Next, I created a budget, which initially worked but eventually became stressful. I’d see something I wanted to buy and justify it by adjusting my budget accordingly. This led to a cycle of guilt and recalibration, ultimately rendering my budget useless. I realized that I needed a different approach.

Reassessing My Objectives

I refocused on my primary goal: building an emergency fund. I wanted to save three months’ worth of expenses, which would give me a cushion in case of unexpected events. I set up a direct deposit to transfer funds to my savings account, making it easier to save without having to think about it.

A New System

Instead of budgeting, I developed a system that works for me. Each month, I pay my rent, bills, and savings first. Then, I withdraw £50 for the week, using it to cover expenses like groceries, eating out, and shopping. If I want to buy something that costs more than £50, I pay for it with my card and adjust my withdrawals accordingly. This system helps me resist impulse buys and makes me more mindful of my spending.

Sticking to My Rules

I’ve found that my new system allows me to save the same amount as before, but with much less stress. I’ve simplified my approach to saving, investing in emergency funds and retirement accounts, and enjoying my life without worrying about money. My rules are straightforward: I pay fixed expenses digitally, track my automated savings, and spend no more than £50 a week in cash.

Financial Security at Last

It took time and effort to figure out a system that works for me, but I’ve finally achieved financial security. I’ve saved two months’ worth of my emergency fund and can enjoy my life without constant money worries. I’m proud of myself for taking control of my finances and making progress towards my goals.