How To Go From Spender To Saver

*This is a collaborative post about how to go from a spender to a saver

If you had to label yourself as a spender or a saver which would you be? I’ve been at all positions on the spectrum from being an all-out spender when I was at university and never even thinking about saving. Right through to being a total saver who didn’t want to spend anything that wasn’t essential. Although the latter didn’t last as long as the former! Moving from a spender to a saver can be tough, but it’s healthy to be somewhere in between the two. You don’t want to deprive yourself of things, but you also want to be able to reach your end goals.

We’ve managed to find a middle ground that works for us whereby we have weekly disposable money. So I can buy all the cute homeware and cosy loungewear, but we also save. We have Monzo pots splitting out every single thing and generally, we meet all of our savings goals. But if you’re looking to move from a spender to a saver, or you just want to find a better balance and save more here are some tips and things to think about.

How to go from spender to saver

Really think about why you want to save

This is probably the single most important thing to think about before trying to become a saver. Why are you deciding to save money? Is it because you have a specific goal or goals in mind, or are you just saving because you feel you should? Having concrete goals in mind will give you clarity and something to push towards. For example, you may want to start saving so you can buy a house, retire early, take 6 months out to go traveling, or buy a motorbike. Or it might be more than one savings goal.

Don’t save just because you feel you have to, because you’re more likely to fall off the bandwagon and become a spender again. The transition from spender to save needs to be a conscious decision you make.

Start the transition from spender to saver small

Most of us don’t deal with big changes easily. So going all out right at the start is likely to cause you to go off course or question your decisions. So start with small changes. If your spending is worst on clothing then it might begin with setting a weekly or monthly clothing budget you have to stick to. Or it might be putting £50 into an ISA as soon as you get paid. Start small and overtime work up to your ultimate savings goals. If you’re a full-on spender, the transition from spender to saver might take a while but it will be worth it in the end.

Checking comparison sites for your monthly bills can be a great way to reduce your monthly outgoings. Broadband is one of the main offenders for rising tariff prices each time your contract renews. You can see how to easily switch broadband providers if you’re thinking about getting a better deal. Any money you’ve shaved off your monthly bills should be put right into savings!

Automate your savings

I say this all the time but automate your savings as soon as you get paid. If you’re self-employed or freelance this might be tougher but I did a whole post on budgeting if you’re self-employed. As soon as you get paid, automate any savings to come out and go into their relevant places (savings accounts/ ISA/ bond, etc). Over time you won’t even miss the money and you’ll learn to live on what’s leftover. But your savings accounts will thank you!

Set up a budget and give yourself an allowance

The important thing to remember is that it’s okay to spend. But we should spend within our means and consider our purchases before making them. Once you’ve settled into the idea of saving money set yourself up with a budget. This way you can assess how much money you have coming in and realistically where you want to spend it. You’ll have your fixed expenses that come out every month (bills/ rent or mortgage/ subscriptions etc) then you’ll have your leftover money. Consider in that how much you want to automate and save (see above), and how much you want to spend. This way you’ll be left with an allowance for yourself which you can have monthly, or split and have weekly. Whatever works best for you.

Track your progress

In your move from spender to save it’s important to track your progress to see how far you’ve come. If you’re saving through Monzo you can set goals for each pot so you’ll see your savings as a % of your goal. But I’d suggest doing something more visual so you can celebrate your success. Print off a savings tracker like this one and mark off every time you hit a percentage of your goal.

For example, you may be looking to save £20,000 for a house deposit so split it into 20 markers of £1,o00. Each time you look at your tracker you’ll see how far you’ve come and it’s likely to spur you on. I’m quite competitive so I tend to be in competition with myself. So if I saved £500 last month I think about how I can save £600 this month, just to beat myself!

Are you a spender or a saver?

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