How to get financially savvy in 2018 with Squirrel

When you're looking to save money, it can be really difficult to get started, especially when you're so used to having easy access to your debit or credit cards and there's peer pressure from the people around you to spend, spend, spend. It takes so much determination to fight back and say 'I can do this', but believe me, you can do it. A year and a half ago, I was a completely different person to who I am today financially. I would spend hundreds of pounds on clothes I would only wear once, I only cared about labels and going more than a week without a meal out or a night out would seem like an enternity. I was given a considerable amount on my 18th birthday from inheritance and although parts of it went towards university and my car, a huge amount of it was wasted on frivilous items.

One day it just dawned on me that I really needed to get my financial act together - I was surrounded by friends who were suddenly getting mortgages and I had £1 in my savings account. Together with my husband, we have saved harder than ever over the last twelve months and our determination has paid off so much that we have enough savings to potentially purchase our first new home. It has been easier than both of us expected and we were still able to buy clothes and eat out on a regular basis, we just learnt that everything is about moderation.

Squirrel is an easy to use bank app that keeps your savings safe so that you don't dip into them when you feel like impulsive spending and today I've teamed up with them to create this guide on how to get financially savvy in 2018. Below are just a few tips that will hope inspire you to start saving and show you that it really isn't that difficult once you get into the swing of things.

Set a goal

Firstly set your goal. Although you don't necessarily need to be saving up for something particular, it does help when you have a goal in mind. Maybe you need to start driving lessons or fancy a holiday? Or it could be something bigger like a house deposit. When you're saving for something that is potentially life changing, it's so exciting watching your savings account going up.

Make small changes each month

You don't need to rush head first into saving and cancel all your plans for the next month, making small changes such as cutting back on your weekly coffee will soon add up. Have a look at all your outgoings each month and pick a few things that you could possibly live without and try to cut back on a few of them, gradually building up as each month goes by.

Set up a direct debit on payday to your savings account

To stop yourself from immediately spending all your wages, set up a recourring direct debit on payday to your savings account. You can always start small and gradually increase the payments when you feel like you are getting used to saving. Alternatively, if you have a Squirrel account, their app will automatically deduct your savings for you, saving you the hassle. All you need to do is get your employer to send your wages to your squirrel account, input your incomings and outgoings and then Squirrel will release your spending money and keep back your allocated saving money.

Set a realistic deadline

Set yourself a realistic deadline for your savings by evaluating how much money you need, when you need it by and consider how much stress you would be putting yourself under saving the money.  Trying to save money too fast could put a lot of financial pressure on yourself and saving money too slow can distract you and make you more tempted to spend.

Give yourself monthly challenges

To give yourself the best chance of succeeding in your savings goals, regularly check your account and set yourself monthly goals and challenges. If you account is at £50, try and encourage yourself to make it up to £100 by the end of the month. It will make saving fun and test your money saving skills.

Reward yourself

Life is too short to not allow yourself to go out once in awhile or buy the odd dress. If you don't allow treats when you're saving, it will make it feel like a chore. Consider treating yourself when you get to certain milestones so that you are actively trying to save, but you can  have the pleasure of shopping too.

What are you financial goals next year?

*Collaborative post