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Six ways to be more frugal with your funds
February 28th 2015
Having trouble managing your money? Life Coach Anna Percy-Davis gives her top tips on how to make financial goals and stick to them
Each month we all start out with the same level-headed, laudable plans of being frugal with our funds, shuffling bits away into spare banks accounts and sticking to the reduced section in Tesco’s. However, Friday night rolls around and the call to restaurants, bars and clubs is oh so tempting - not to mention the reams of new fashion lines that seem to be substantially updated week on week - and just like that, before we know it, we’ve scuppered our saving plans and are right back to square one.
So, how do we progress forward out of this cycle of careless spending and into a position of setting up our funds up for the future?
To help us tackle this question we sat down with Executive and Life-Coach Anna Percy-Davis, who's given us her top tips for sorting out our savings and taking control of our money management.
1. Assess your situation
“In order to set financial goals you need to start by understanding your current financial position, “ says Anna. “Having a vague idea that you aren't in great shape financially won't necessarily help you come up with specific goals. So, start with working out how much you earn and how much you spend each month. If need be note down everything you spend over the next couple of months so you can start analysing where your money goes and what you might want to cut back on in order to save.”
2. Be pragmatic
“Get into the specifics and be pragmatic not emotional about how you spend your money, says Anna. “Be mindful of how easy it is to fritter money away and work out if this is what’s been holding you back. Be mindful of the emotions here too - if no longer frittering your money feels like a hardship or punishment, work on changing your mindset.”
3. Have a goal
“You need to be very clear here - not only about what your goals are but why you have them. Saving money just because you feel you should will not be as powerful as saving money for something specific, or because you feel like you are honouring yourself and looking after your future self.”
4. Have some self belief
“You need a large dose of self believe if you are ever going to implement successful financial goals. Believing that you can do it and that you are worth being financially strong will help you create and stick to viable financial goals.”
5. Be strong
“Setting and keeping sound financial goals is a day by day process - work to ‘chunk’ the process - it's about saving a pound or two a day, a tenner or two a week, a hundred or two a month etc,” says Anna. “Setting yourself a goal to save thousands might just feel like too big a task and far too easy to sabotage on the first day/week/month of the process.
Going through this also requires you to be strong and in order to stay strong you need to celebrate every little success.” So even if you safe just £25 this month - it’s still money that wasn’t sent down the drain!
6. Get help
“Enrol the help of someone you like and trust to create these goals - but make sure they are financially sound themselves! Alternatively a financial or life coach could be a good person to turn to if you don't feel comfortable about turning to someone you know…”