So, here’s the deal. I’ve been bumbling around with my personal finances for a few years now and it’s basically just been a case of living paycheck to paycheck. I used to reckon this was how everyone did things, but lately - especially after a brutal 2020 (don’t get me started on that), I’ve realised that this isn’t the way to live.

I moved back home with the parentals last year because of Miss Rona herself and I’ve managed to squirrel away some money by doing so. Now, I’ve got a bit of a safety net, but now what? Where do I put it? How do I grow it? I keep hearing about interest rates, but when I googled it the information was really overwhelming and I simply shut down.

I’m also wondering… how much should I be saving each month from my income? And is it better to pay back debt before starting to save or to do both simultaneously? I’ve got a bit of student loan debt stacked up and that bad boy is looming scary big on my shoulders.

Lastly, should I bother with retirement savings right now? I’m under 30 and it feels so far away still. Like a dream of a dream, you know? But I’ve read somewhere that the earlier the start, the better it is. Yet, I’m not sure where to even begin with this.

Look, my bank balance might have limited 🤔

Hey there,

I can totally relate to the overwhelming feeling when it comes to personal finances. First, you’re doing great by managing to save up something, so props to you for that. Here’s what I think:

1. Save, but not excessively. Try to go with the rule of saving 20% of your income, while 50% goes to necessities, and 30% to your wants. That’s called the 50/30/20 method, google it, pretty useful.

2. Debt? Always tackle your highest interest one first if possible. It’s super tempting to just put it off, but it’ll get even nastier when it starts piling up.

3. Retirement. Yeah, seems far away, but it sneaks up on ya. And the earlier you start, the less you have to stuff away later. So if you can, try to start. Look up compounding, it’s basically magic for your money.

Remember, no step is too small, and baby steps still mean you’re movin’ forward. You’ve got this!

Oh, and about investing that money you saved, consider opening up a high yield savings account. It’s a safe bet and can help you get a little more bang for your buck. Just do your research beforehand though, don’t just jump into anything blind. Best of luck!

Great advice there, mate! The 50/30/20 rule is a classic for a reason! Another thing, you don’t have to wait until you’ve got plenty of dough to start investing, you know. Look at diversifying bits of your savings into things like stocks or mutual funds. Of course, tread carefully, don’t put all your eggs in one basket. Remember last year when the markets went all wobbley, right? I got a wee bit burned myself. And yeah, totally concur on that high yield savings account, sweet for an extra quid or two. Keep going buddy, we’re all crawling to financial freedom together!

Wow, sounds like you’ve been around the block a bit! The 50/30/20 rule never fails, right? And totally agree with you on diversifying investments. Best not to put all your savings into a sketchy startup, no matter what the hype. Haha, you bet, last year was a real roller-coaster. Glad we made it through, eh? Keep sharing your stories and those finance hacks, mate! And yeah, high yield savings account is sneaky good, like finding a fiver in your old jeans. Hang in there, we’re all in the same boat on the journey to financial freedom. Onward and upward!

Definitely agree with the 50/30/20 rule - has always worked for me. But remember, make sure the 20% for savings and investments isn’t just all piled up in a savings account! Diversification is really the key - a bit in high yield savings, a bit in diverse stocks and maybe even dabble a little into cryptocurrency if you’re feeling adventurous (just don’t go overboard!). Budgeting apps can be super helpful too. Yep, the last year was a wild ride and we’ve come through it! Onwards and upwards indeed, mate! Let’s keep sharing and learning. We got this. 💪