This year the AOL team are feeling inspired and empowered to take control of our personal finances and educate ourselves on the industry to better our financial positioning; and we would love to empower you too. We spoke to The Curve co-founder Victoria Harris on how you should allocate your income and the common unexpected expenses to prepare for.
At The Curve, we educate people about investing and growing their wealth. However, in order to even have spare money to invest, you need to have your finances sorted.
One of the best ways is through a budget. When most people hear the word ‘budget’ they associate it with a strict financial diet. A budget shouldn't feel like a punishment! We like to view a budget as something that empowers you to get control of your money and create the financial future YOU want.
Your bank account should look like a pyramid. At the top, smallest part of the pyramid should be your Checking Account where you keep a small amount of money for day-to-day expenses. The middle should be your savings. This includes your Emergency fund which is for actual emergencies - things like car insurance, vet bills, dentist etc. Not things like new clothes or a holiday! The bottom, the biggest part, should house your investments. These can be a combination of short-term (e.g term deposits) and long-term (e.g funds, stocks) investments.
Most peoples bank account pyramids look the opposite - make sure yours is the right way up!
Some of my savings tips to ensure a large base of your pyramid are;
1. Never use Buy Now Pay Later platforms. It’s a form of debt. If you can’t afford it, don’t buy it.
2. Never put a holiday on a credit card. You shouldn’t use debt to fund your lifestyle. It will only put you two-steps back to achieving your financial goals.
3. Better yet, don’t have a credit card at all.
4. Check what you are paying in bank fees. Fees can eat into your savings, especially if they’re high.
5. Your emergency fund should have enough to pay for emergencies only! Not a holiday or new car. It should be used for things like car insurance, vet bills, dentist etc.
One of my biggest issues with savings has always been my addiction to online shopping. I am terrible at impulse buying. So I taught myself that whenever I wanted to buy something, I had to wait 24 hours and literally ‘sleep on it’. This cut back my spending dramatically, as 90% of the time, I forgot about the item or realised I didn’t actually need it!
Saving money shouldn't be about depriving yourself. It's about deciding you love Future You as much as you love Today You.
The Curve is an educational platform that offers advice through podcasts, workshops and online tutorials, arming women with the knowledge and confidence to achieve wealth and financial freedom. Ready to take your finances to the next level? We collaborated with The Curve on a Finance & Investment Planner, get yours HERE & follow The Curve at @the_curvenz.
Photography by @hsburg
Disclaimer: The Curve has been prepared solely for informational and educational purposes. Any information provided and serviced described are intended to be of general nature and provide general information only. The opinions expressed by The Curve do not constitute investment advice and are not to be viewed as investment or financial advice. It does not take into account your investment needs or personal circumstances.