Welcome to Money Matters: GLAMOUR’s weekly dive into the world of finance. We’re chatting all things personal finance, from contracting rights in the workplace to expert mortgage advice and saving for your first home, to ISAs and dealing with debt, to help empower you to make better choices. Now more than ever, it's important to understand our money, but so many of us feel as if we don't have a handle on it – or worse, feel anxious and scared about money.
So, each week, a woman in a unique situation will give us an honest breakdown of her finances, and our expert will give her easy tips on how to tackle it.
To submit your own anonymous money diary and get top expert tips tailored to you, simply submit your entry here. And don’t forget to join GLAMOUR’s Facebook group, Money Matters, for more exclusive finance content.
MY ACCOUNTS
Current account: £3000
Savings account: £10,000
MY INCOMINGS
Annual salary pre-tax: £27,000
Annual salary post-tax: £23,000
Monthly wage pre-tax: £2,250
Monthly wage post-tax: £1,900
Other incoming payments: £0
MY OUTGOINGS
Rent/mortgage: £700
Bills: £150
Splurges: £200
Other: £0
Any student loans/credit cards/overdrafts: Student loan.
MY MONEY THOUGHTS
My worst money habit: Buying new food instead of eating what's in the fridge!
My biggest money worry: That I won't have enough to afford a house – let alone kids.
My financial hopes for the future: That I get a pay rise.
Current money mood (three emojis which sum up your feelings towards money): 🙄👽😿
Let's talk money.
WHAT MONEY EXPERT MAKALA GREEN SAYS:
Makala Green is a multi-award-winning Chartered Financial Adviser at Schroders Personal Wealth and has over 18 years of experience in the financial industry. She understands managing money can be complicated and confusing, which is why she is passionate about making financial planning more accessible for all. She is also the Author of The Money Edit; a no shame no blame guide to taking control of your money.
Focus on your spending
Understanding how you spend your money can help you better control your finances. By analysing your spending habits, you can identify areas where you might be overspending and find ways to cut back. Simple strategies like making a shopping list before heading to the supermarket or limiting takeout to a few nights per week can make a big difference.
Remember, putting together a budget is really helpful for setting spending limits and figuring out how much you can save each month. Plus, most banks have tools to show you exactly where your money is going and how much you're spending so you can better manage your money.
Make saving as easy as spending
Supercharge your savings by letting your bank do the heavy lifting! Imagine effortlessly boosting your savings with every swipe of your debit card. Each purchase automatically rounds up to the nearest pound, and the spare change zips straight into your savings account. It's a seamless way to turn your everyday spending into growing your savings!
Creating a dedicated savings account for your home deposit can help you keep your funds separate from your day-to-day spending account and other savings accounts. The most suitable savings account for you will be determined by the amount you intend to save, your savings frequency, and the time you need to access the funds.
Should we really be “gamifying” our savings?
Get support!
Great news! You could qualify for fantastic financial support from the government to make your dream of owning your own property a reality. You might be eligible for options like Shared Ownership, a loan to Help to Build a home, the Right to Buy (council tenants) or the Right to Acquire (housing association tenants). Take advantage of these amazing opportunities!
Consider the Lifetime ISA (LISA) a useful savings option when buying a property. You can save up to £4,000 a year for your first home or retirement, and the government adds a 25% bonus of up to £1,000. If you're buying a house with another first-time buyer with a LISA, you can use both accounts to buy the house.
Do some freelance work
Are you considering other ways to earn extra money? Imagine boosting your income by taking on freelance projects or selling unwanted items on places like Facebook Marketplace, eBay, or Vinted! With the right skills, freelancing provides a much-needed backup and could increase your career opportunities. Just make sure it's allowed by your current job and take charge of any tax-related stuff, but it's a fantastic opportunity to make some extra money!
Increase your income
Asking for a pay rise can feel daunting, but it's a necessary step to recognise your worth. If your company doesn't have regular annual salary increases, or if you're not in line for a promotion, asking for a raise might be your best option. Begin by highlighting your achievements and contributions to the company, including specific numbers and stats. Know the competitive salary for your role using sites such as Indeed or LinkedIn. Be open to the possibility of hearing a "no;" If that happens, ask what you can do to be considered for a raise in the future.
Let's talk about money.
