Saving money is tough.
What makes it harder is our unwillingness to chat openly about money – what we earn, the help we receive, and how we manage to budget so we can save as much as possible.
Our weekly series, How I Save, aims to open up the conversation and make it entirely normal to talk about your finances.
We all struggle with money sometimes, and there shouldn’t be any shame in it. Being honest and open about the reality of personal finances could help people knock bad habits and get back on their feet.
Each week we take a look at how a different person spends and saves their money – so we can either learn from their wisdom or their mistakes.
Last week we followed a PR executive earning £23,000 a year with £1,443 saved towards a house deposit.
This time we’re with Mike (name has been changed to protect his privacy and his DMs), a 28-year-old entertainment publicist living in Hertfordshire.
How Mike saves:
I earn approximately £85,000 a year.
In my savings account right now I have £22,500 after just under two years of saving and investing.
I’ve saved this much money by streamlining my monthly outgoings and being savvy with my spending rather than indulging. I also use someone else’s Netflix account. Very important.
I’m saving for a house deposit… or maybe a brand new car… No, no a house deposit.
The main way I save is making my money untouchable and almost forgettable. Seeing it grow also plays a large factor. Talk to a financial or investment consultant and they will give you invaluable advice. I have a percentage of my money in a very low risk fund (using Charles Stanley Platform) but I can see it grow every week which motivates me to save more.
As an entrepreneur it was incredibly difficult for me to budget appropriately while saving and had a really rocky 12 months before. I furiously networked with professionals who specialise in wealth finance to learn more. I was never good at saving money and there was always something I had to buy.
I ended up streamlining my monthly outgoings and then analysing what was a necessity and what was just pure indulgence. I started doing online shops as I found they did better deals and I was never tempted by picking up random things I walked by. The seasonal aisle was always a killer. This resulted in me saving an extra £30 a month.
Simple things such as having one takeaway a month rather than two added an extra £20 to my account and actually walking (yes, walking) to shops and friends’ houses saved money in the long run on fuel costs.
I got a British Airways Amex card which allowed me to travel to Australia and America in the last 6 months for a fraction of the cost as all the money I spend I use my Amex and pay it off each month. It is a really good deal if you use it properly and don’t abuse it.
I had an iPhone which I paid £65 a month for, which is just ludicrous when you think about it. When my contract ran out rather than getting the new phone that has just been released I moved over to a sim only contract and pay £15 a month for exactly the same tariff.
This was approximately two years ago and when I started saving I put half of it into a saving account and the other half into a funds investment account. Very low risk so I wouldn’t see my money disappear. When I started to see it grow I got addicted to saving and as I earned more money through my job I would save more without thinking about it.
Due to the nature of my job, socialising plays a big part and not spending when you are surrounded by people who have a lot more money than you is hard as they expect you to keep up with their pace. However stick to your guns and you will be laughing in no time.
I used to struggle with saving because I would constantly try to live other people’s lives by indulging in the newest shiniest thing, going to places that I actually didn’t have much interest in.
The perks of running my own business has allowed me to work from home most days which helps when wanting to save. But if you’re doing the same, don’t underestimate the power of communication! Even if it’s just for one drink.
No matter what your salary is there are always deals and opportunities out there that can benefit you and help you save in the long run. Think long term not short term.
How Mike spends:
Monthly expenses:
- Rent: £1350
- Car: £400
- Phone: £15 (Sim Only)
- Shopping: £100
- Social Activities: £200
A week of spending:
Monday: I prepare myself every week so there are days that I don’t spend anything (especially when I’m working at home).
I went into London for a meeting which meant a return ticket cost £12.50. Rather than getting an underground ticket I normally walk as most places are within 20-30 minutes of walking distance.
I have my meeting and buy a drink which costs £4.20. Head back home and don’t spend anything for the rest of the day. I always try to organise my meetings to fit into one or two days so I don’t spend a fortune on train fares.
Tuesday: No money spent as I was at home all day and the shopping arrived the weekend before.
Wednesday: I meet a few friends for a drink in the evening and spend £22.50 on drinks. I bought the first round and then everyone else had my back for the evening!
I then spent £6.20 on a taxi because my bed was calling me. I would normally walk.
Thursday: No money was spent! I did browse a few Amazon deals and got tempted but I actually forgot about them.
Friday: My partner and I grab our monthly takeaway. We decided on a curry this time and it cost in total £19.80. I paid £10 towards this.
Saturday: My single friends are heading into town to see where the night takes them. I join them for one drink as it’s next to where I live, and this cost me £3.80.
Sunday: We saw my parents for lunch and they very kindly footed the bill.
Total spent this week: £59.20
How Mike could save:
We spoke to the experts over at money tracking app Cleo to find out how Mike can save better (and what we can learn from his spending).
Note: the advice featured is specific to one individual and doesn’t constitute financial advice, especially for a London budget.
Disciplined. Sage. Wise. Probably known to leave a party slightly too early.
We might not all have £22k in savings yet, but it’s good to know that the key to financial success is something we’re all already doing (Netflix thievery).
Main vice:
Pshhhh, at a push… that one drunk taxi? At just 6 purchases in one week, you’re not giving me much to work with. You’re a finance angel babe.
Where you’re going right:
You’ve hit some excellent money habits that anyone can copy. Hiding money from yourself is a really good one.
For anyone reading: replicate by shifting money immediately out your account, putting a lock on it and pretending it never happened.
Setting a limit for splurgy purchases is also a great tool to curb impulse spending (though with an £85k salary to play with, you could probably sneak in a second takeout).
The bit where you stay home to avoid spending money is pretty extreme, but hey, if it works!
Spending plan:
You don’t really need us, Mike. Unless it’s for some extra cashback.
If your income (after tax, pensions etc) is around the £4-4.5k a month mark, then your spending is an absolutely ridiculously low 5% of your income. Carry on.
Maybe make one reckless purchase a week. Just to make everyone else feel better about themselves.
How I Save is a weekly series about how people spend and save, out every Thursday. If you’d like to anonymously share how you spend and save – and get some expert advice on how to sort out your finances – get in touch by emailing ellen.scott@metro.co.uk.
MORE: How I Save: The 27-year-old copywriter with £500 saved after paying a deposit on a home
MORE: How I Save: The 40-year-old business consultant in Croydon with £143,000 saved
MORE: How I Save: The 21-year-old marketing manager in Nottingham earning £22k with £4,500 saved
