Save Money

How To Be Good With Money- Millennial Money Management

March 9, 2020 Some posts on thriftylondoner.com may contain affiliate links

Millennials. The generation that is hounded for having no money left at the end of the month, no idea about how to be good with money, and an ever increasing appetite for avocados.

But as you and I know- this is a pretty lazy typecast. One generation does not share the same financial values, and many kids of the 90s now have savings accounts and are trying to make their way in the world. I should know, I’m one of them!

It’s taken many years for me to learn how to be better with money. Some people might even go as far to say that I am now ‘good with money.’ But that all comes with time, patience, and a lot of trial and error.

This post is everything I’ve learnt about how to good with money. The things that really count for something when you are trying to make a change to your financial habits.

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Zero Based Budgeting- How Can It Help You?

February 21, 2020 Some posts on thriftylondoner.com may contain affiliate links

At its core, budgeting is simple- to spend less than you earn, and ideally have something left over. But as we already know, that is much harder said than done if your costs are sky high already.

Personal finance is different for everyone, because it’s just that- personal. One budgeting method won’t fit all which is why there have been a crazy number of budgeting rules and methods and schools of thought that have been founded over the years.

There are several budgeting methods which are hailed for their success- from the 50 30 20 rule which is very simplistic in its approach, to a zero based budget which requires a little more effort to maintain.

In this post we are asking: what is a zero based budget? And how could you implement it?

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What Is The 50 30 20 Rule Of Budgeting?

February 17, 2020 Some posts on thriftylondoner.com may contain affiliate links

Once you have made the decision to start managing your money better, it can be tough to know where to start, and how to allocate your money to different areas of spending. How much is enough to save? How much is too much to spend on fun?

Before you drill down into exactly what you want to spend your money on each month, it can be helpful to use the 50 30 20 rule to get an overall view of where to spend your money.

It’s a simple rule that anyone can follow, to help gain better control of their finances in an easy and uncomplicated way.

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The Best Charity Shops in Chelsea, London

February 12, 2020 Some posts on thriftylondoner.com may contain affiliate links

As you are probably already aware, Chelsea is one of London’s most wealthy neighborhoods. Steeped in fashion history, The King’s Road was the birthplace of many a brand including the iconic Mary Quant- inventor of the miniskirt.

Today, this infamous street is still somewhat of a fashion mecca, and the good news is that alongside boutiques and designer stores, there are also a large number of charity shops. I’d even suggest that this route is possibly one of the best charity shop crawls in London.

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The Best Money Saving Apps for Millennials

February 6, 2020 Some posts on thriftylondoner.com may contain affiliate links

We can all do with a little help with tracking our expenses and saving money for the future. It’s supposedly the millennial condition- we’re all useless and can’t save enough money for a house deposit.

Except, we all know that’s just not true.

Yes, saving money is harder than ever, with wages stagnating whilst the cost of living rises higher than we can ever imagine. BUT, saving money is not impossible.

If you find saving money difficult, what better way to help you than with a money saving app on your phone? Many of us spend more time looking at our phones than we do looking at anything else, and so why not use that to our advantage?

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What is an emergency fund? And how can I save one?

January 18, 2020 Some posts on thriftylondoner.com may contain affiliate links

At some point or another, all of us will have faced an unexpected bill or expense in our adult lives. For me and my partner, a big one was our 92 year old land lady deciding that she no longer wanted to rent out her flat.

This left us quickly having to pull some money together to put down a deposit, a month’s rent, and associated fees before we got the deposit back from the previous flat- all before pay day.

It was a tough and unexpected change, but we were fortunate enough to have some money stowed away for this eventuality- our emergency fund.

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Easy Vegan Meal Ideas- all under £1 per portion!

January 6, 2020 Some posts on thriftylondoner.com may contain affiliate links

It’s January. We have our resolutions all set out for the year ahead. One of them might be to eat more veg, another might be to reduce your spending, and one might be to live a more eco-friendly lifestyle.

What’s one thing that could incorporate all of these things? Cooking cheap vegan meals for family (and yourself of course!).

Fresh fruits and veg often have a reputation for being expensive, and therefore a vegan diet can also be considered an expensive lifestyle choice by some. In fact, eating some vegan meals as a family each week is actually likely to reduce your weekly grocery bill.

These recipes will be gobbled down by adults and kids alike, and are perfect twists on a couple of traditionally meat-based meals. You can be sure that the whole family will get on board with these simple but delicious vegan meal ideas.

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Stash cash away for the future with the Chip auto-saving app

January 1, 2020 Some posts on thriftylondoner.com may contain affiliate links

AD- this is a paid post in partnership with Chip

Wow, all of sudden we are in 2020- not only a new year but a brand new decade! No doubt lots of people will be making resolutions this year… go to the gym more often, drink more water, read more. We all know that we go into the new year with the best of intentions, but come January 31^st, we are fed up with our resolutions and often slide back into old habits.

Instead of making an insignificant resolution this year, you could instead come up with a powerful money goal that you would like to achieve by the end of the year. Something that could be truly life changing. This could be finally putting enough money together to make that dream trip to the US, putting down a deposit on your first home, or finally paying off your credit card.

But what if you’ve always struggled to put aside any sum of money? You’re not the only one. Enter Chip…

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When to Start Investing for a Child – Junior ISAs

December 15, 2019 Some posts on thriftylondoner.com may contain affiliate links

Investing can often seem a little daunting, but earlier this year, I started investing for the first time in a stocks and shares ISA. So far, I have found it an excellent way to see a return on my money that I would not otherwise receive from a savings account with a bank.

But did you know, that if you have a child, you can also open a junior ISA account for them? Opening a junior ISA allows you to invest in your child’s future over a long period of time, tax-free. The Junior ISA allowance is £4,368 in the 2019-20 tax year.

I don’t have a child myself, but fortunately Jim from Money Blog Scotland has kindly written this guest post about when to start investing for a child. Jim has fantastic knowledge on everything financial- and even worked in financial services for four years.

Read on to find out more, and even use his dedicated Junior ISA Calculator to help you see how charges could effect your child’s Junior ISA.

Over to you Jim…

A little can go a long way if you start sooner

It can be tough starting up a savings plan for a kid when they’re newly born. But even starting from £10 per month could set you on the right track towards building a nest egg for your child.

I’ve been there. The arrival of a new baby brings with it a whole new world. It’s the best thing ever, but you’re also busier than you’ve ever been and wondering what you did with all that spare time you had before.

Getting Into the Habit

And sometimes the last thing that a parent wants to do is start researching investment funds and deciphering financial jargon when they’re knee-deep in dirty nappies.

However, simply getting into the habit of putting away even £10 per month for a child can reap rewards when the child turns 18.

Compound Returns

The power of compound returns means your monthly premiums, whatever they are will do the hard work in the background.

A stocks and shares Junior ISA plan could allow you to invest money in the stock market with the aim of growing your child’s fund over the long term.

Try calculating potential outcomes using this JISA calculator.

Take a look at these examples. The numbers below are for illustration only and are not guaranteed figures for any investment plan. Provider charges have not been factored in for the purposes of this illustration and bear in mind that stock market investments can go up as well as down and you could get back less than you pay in.

£10 Per Month

Think you could manage to put away £10 per month? What’s that? The price of a couple of drinks in your local pub? Investing just £10 per month for a child starting when they are born could build up to a sum of £3,507 when they turn 18 (based on 5% growth). But delay starting a plan until the child is 5 years old and the same growth rate could return only £2,200.

Start plan at a child’s birth – invest for 18 years. £10 Per month

2% growth over 18 years	£2,602
5% growth over 18 years	£3,507
8% growth over 18 years	£4,833

Start plan when child is 5 – invest for 13 years. £10 Per month

2% growth over 13 years	£1,783
5% growth over 13 years	£2,200
8% growth over 13 years	£2,747

Start plan when child is 10 – invest for 8 years. £10 Per month

2% growth over 8 years	£1,042
5% growth over 8 years	£1,182
8% growth over 8 years	£1,348

So you can see how the effects of delaying investing for your child can impact on their final sum when they turn 18.

£50 Per Month

But what if you were to invest £50 per month?

Of course the more you invest the more you get back, but your £50 per month (a night out in the pub with mates) could really go to work on the stock market.

Start plan at a child’s birth – invest for 18 years. £50 Per month

2% growth over 18 years	£13,009
5% growth over 18 years	£17,533
8% growth over 18 years	£24,164

Start plan when the child is 5 – invest for 13 years. £50 Per month

2% growth over 13 years	£8,914
5% growth over 13 years	£11,001
8% growth over 13 years	£13,737

Start plan when the child is 10 – invest for 8 years. £50 Per month

2% growth over 8 years	£5,209
5% growth over 8 years	£5,912
8% growth over 8 years	£6,738

£250 per month

Investing £250 per month world could yield a serious nest egg for a child. Perhaps enough for a solid deposit on a house.

Start plan at a child’s birth – invest for 18 years. £250 Per month

2% growth over 18 years	£65,043
5% growth over 18 years	£87,664
8% growth over 18 years	£120,822

Start plan when the child is 5 – invest for 13 years. £250 Per month

2% growth over 13 years	£44,572
5% growth over 13 years	£55,006
8% growth over 13 years	£68,685

Start plan when the child is 10 – invest for 8 years. £250 Per month

2% growth over 8 years	£26,047
5% growth over 8 years	£29,558
8% growth over 8 years	£33,690

So as you can see, the power of compound returns means your money can be working hard for you while you’re getting on with the serious business of raising a child.

Of course, any decision should be researched beforehand. I am not a financial adviser and this article does not constitute advice. If you require a financial adviser, visit unbiased.co.uk for a list of qualified advisers local to you.

What happens when my child turns 18

The JISA becomes the property of the child when they turn 16. However, they can’t manage the account and access the money until their 18th birthday.

At this point, the JISA converts to an adult ISA and they can manage it as an adult would.

I hope this has given a good overview of the power of putting money away for your child sooner rather than later. For more articles like this, please check out Money Blog Scotland.

Thank you Jim for this post all about when to start investing for a child!

How to start investing: what I learnt after 6 months of investing in the stock market

November 23, 2019 Some posts on thriftylondoner.com may contain affiliate links

Investing is something that I put off doing for SO long. Even when I knew that I wanted to start investing in the stock market, I held back for a further year. Why? Because I just didn’t know how to get started. I was overwhelmed with information, but eventually found out that investing doesn’t have to be overwhelming. It can be quite the opposite.

Gone are the days where those who invest are rich, privileged and male. You can be a woman in your 20s, a single parent, a freelancer- you can be just about anyone and still invest your money in stocks and shares.

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