Saving money

Saving money

Money matters are at the forefront of everyone’s minds at the moment, with the current financial climate placing a heavy burden on society.

To help women tackle their money worries and plan sensibly for the year ahead, financial expert Laura Howard, author of A Girl’s Guide to Money, offers her top tips on holidays, nights out and budgeting.

When confronting the issue of how much money women can afford to spend each month, Howard warns that people tend to forget about their larger one-off expenses, such as holidays, weddings and birthdays.

“If women save the money each month in a separate account, it’s all the better,” says Howard. “And they will be earning interest on it too”.

To do this, she advises that women work out how much money these special occasions will cost, and divide that amount by the number of months leading up to them, so that the money can be saved in equal measures and more gradually.

Secondly, Howard urges people to be realistic when working out a budget for each month, as this will make the spending limit more easily achievable.

“A budget is rather like an exercise plan,” she says. “It’s easy to draw up, but sometimes a lot more difficult to carry out”.

Women should also remember that a monthly budget is not a limit, in other words: “If they find that they have spent under their monthly allowance, women shouldn’t make up the difference by finding things to spend the extra on”.

If people find that they have some money left over, it’s ideal to put the spare cash in a safe place, and use it in the future for any unexpected ‘emergencies’.

Such ‘emergencies’, however, do not involve going out with friends at a minute’s notice, and people should try not to feel pressurised by their friends into go out if they cannot afford to.

Howard says: “When women are young, a large proportion of their money is spent on things that they have nothing to show for, such as drinks and taxis on nights out.

“If some women find it hard to say no to their friends, they could invite them round to the house for a girly night in. People can take it in turns to provide the snacks or a bottle of wine”.

Lastly, Howard advises that women withdraw their allocated amount of money each week and use cash, rather than credit or debit cards, to buy things with.

This helps people to monitor the amount they are spending, and as Howard says: “Debit card transactions can take three days to show on statements, which can cause confusion about what money is left there.

“By using cash, women know that once their purse is empty, it’s time to stay at home”.

Laura Howard teamed up with the Financial Services Authority and its website ‘What About Money?’ to devise these tips for a financially stable 2009.