Unless you’ve been living under a rock, you will have been bombarded with screenshots of Monzo money pots named ‘June 21st’ – the iconic day chosen by Boris Johnson to set the nation free.
Whilst there should be absolutely zero pressure to have saved during lockdown (especially as so many of us faced furlough and redundancy), lockdown made us realise how important is to balance our finances moving forward.
Yes, it’s all well and good saving for the first two weeks of freedom (hello, magaritas), but beyond those two weeks there is a house to buy, debts to be paid off, a business to start, generational wealth to build and ultimately a whole life to live.
In 2016, the Money Advice Service published an economic study suggesting that “people across the UK could be better off by around £108 billion over the next 30 years if they were better able to manage their money.” Of course, this was a theoretical model and was explicitly not linked to individual governmental policies that would quite obviously drive specific financial capability outcomes. That is a whole other beast… The message here is that we need to do our part.
Millennials and Gen Z may not agree on many things but one thing this generational beef can’t discriminate against is our collective desire and urgency to be financially literate. It even seems that the trading and bitcoin market audience is getting younger by the minute.
However, finances can be such an overwhelming, complex and at times soul-destroying conversation, there is nothing that we love more than easily digestible, bitesize info. That’s where #moneyTok comes in, this trending TikTok hashtag has 6.1B views, and then there is #financeTikTok and #financialfreedom amongst others. We have sieved through to find five super clever and useful pieces of money advice to help us change the simplest of habits that can ultimately lead us to financial freedom.
1. Becoming financially independent in your 20s:
@inherbagg shared four ways she used to become financially independent.
- Internship programs: This one is easily forgetful yet almost imperative and can save you a lot of time and money in the long run. Interning as a student will really set you ten steps ahead when you graduate as you will obviously be a more attractive candidate once you’re ready to hit the job market.
- Pay down debts and save for emergency funds: Seems obvious but prioritising this over nights out will have you thanking yourself for sacrificing a couple weeks/months of fun for a lifetime of financial freedom.
- Invest in stock markets: do your homework, but investing your money is on the unwritten constitution of building wealth.
- Credit card to build your credit score: An obvious one but will only work if done responsibly.
2. Fun way of saving money in 100 days:
This is in dollars but applicable to any currency. Set a cash goal e.g. £3000, and a timeline e.g. June 21st and gather together 100 envelopes, a cardboard box and get started today!
3. Five Financial Books we should all be reading:
Here are the financial books on everybody’s lips to change your mindset and your pockets that everyone wishes they’d read sooner:
- ‘Rich Dad Poor Dad’ by Robert T. Kiyosaki : This book advocates the importance of financial literacy, financial independence and building wealth through investing in assets, real estate investing, starting and owning businesses.
- ‘Total Money Makeover’ by Dave Ramsey: This book is a simple and straightforward step by step guide for people to achieve financial freedom, written by financial guru Dave Ramsey.
- ‘Debt Cures’ by Kevin Trudeau: In this book Kevin Trudeau spells out just what the credit card companies and the banking pals don’t want you to know about.
- ‘Money Hack$’ by Lisa Rowan: This book provides you with 300 easy solutions to all your personal finance questions, from paying off credit card debts to managing investments.
- ‘Money and The Law Attraction’ by Esther Hicks: The mantra of the book is to visualise your wealth as if you’ve already achieved it. If the multi-millionaires tell us that is a big secret to their success, who are we to argue?
Gen Z start setting money aside from your part/full-time jobs.. now:
Julia at Genzconnet creates content around Gen Z woes, and has lots of financial tips to share. Some of her top tips are:
- Set aside 20% of your paycheck for your savings… eekkk.
- Take having a credit card very seriously, i.e spend responsibly for the main purpose of building your credit score.
- Set smaller financial goals, but often.
- Prioritise paying off debt over the ‘turn-up’.
- Set aside spending money into a separate account, so that you’re tempted to overspend.
Multiple Streams of Income:
Ok, so this particular method may not be the perfect solution for every one of us, but here are some of our favorite takeaways:
- Create multiple streams of income: If you have a 9-5 and a bit of spare time, consider getting a side-job or side-hussle if that is conducive to your lifestyle
- Live below your means: buying a bit less designer goods right now can give you a lifetime worth of experiences with much higher monetary value.
- Get into the property ladder: only if it was that easy…
- Read, read, read: investment books, business books, all of the books…
- Investments: with a bit of research set aside a good percentage of your income every month to invest
For financial advice, look at Money Matters and join our GLAMOUR Money Matters Facebook group. Love our Money Matters column? Feel worried about your finances? Or just want some expert help on how to achieve your financial goals? Get in touch with us at moneymatters@condenast.co.uk to submit your own money diary to gain access to our expert-led advice, tailored to your finances! These submissions can be anonymous