What is an Emergency Fund, and how can you build one?

What is an Emergency Fund, and how can you build one?

Let me tell you a story about a girl and her broken car, the girl being my 24-year-old younger self and the car being my 2002 Golf, AKA Silver Sally.

It was a sunny Sunday Auckland afternoon, I was driving Silver Sally to the supermarket – the windows were down, the music was up and life in this moment was pretty good.

I pull up to the traffic lights. Somewhere in between the lines of “ohhhhh, we’re halfway there” and “ohhh ohhh, living on a prayer!”a beat chimes in – it went something like “thud, thud, thud, errrrk” then silence.

Sally was broken.

Literally the only phrase to describe this moment was “Oh fuck”.

Toots were blaring out as I sat stagnant in the middle lane, but I get her started again and head to the nearest mechanics… panic sets in.

Like a fish out of water there I was, standing in my dress and sandals on the oil-slicked mechanic’s floor.

“You alright miss?” the mechanic asks. I explain the situation about my golf…”ok sounds like you’ve got a real problem here!”

“What could it be?” I say, as if just by looking at her he could tell, like some sort of mystical car-reading mechanic.

He lifts up the bonnet, a turn here, a knock there…

“Well it’s hard to say miss, it’s going to take some investigating”.

All these feelings were whirling in my head.

“Investigating? What does this mean?”

“Surely it won’t be that much, maybe she just needs some new oil”

“But what if it’s something bigger, what if she needs major surgery!?”

“I can’t afford this right now”…

My problem, I wasn’t prepared.

Living in Auckland is almost impossible without a car, I needed to get Sally fixed but I didn’t have the money.

I was naive in thinking these kind of situations wouldn’t happen to me, I thought any expense i’d know about ahead of time, but the reality is life happens – your phone breaks, you lose your job, you become unwell, or like me your car kicks the bucket.. it happens to all of us and we NEED to switch our thinking and plan for these emergencies.

After a day of mechanical investigating I heard the news, I needed multiple parts to get Sally going again. The cost, $920 NZD (1/3 of the cost of the car itself), the solution? Put it on the credit card which meant more debt, more hurdles and heading further away from financial stability.

I never wanted this to happen again.

The solution? Build and Emergency Fund.

What is an Emergency Fund?

An Emergency Fund is VERY important to personal finance, because of the very thing its name suggests. It helps you in an emergency.

It needs to be there to help you with life’s hurdles – you lose your job, you get sick, or like me your car kicks the bucket. Without it you cannot have financial stability, full-stop.

How much should an Emergency Fund be?

This varies depending on your living situation, but generally $1,000 – $2,000 is a good place to start.

There are two types of ‘Emergency Fund Buckets’ to aim for:

  1. Everyday fund: $1k-$2k amount for an everyday emergency.
  2. Long Term fund: 3-6 months of your expenses for those greater emergencies like job loss or an illness.

If you are paying off debt or have little savings, start with $1,000 and build from there.

How do you save for an Emergency Fund?

Here are 8 tips to help you save an Emergency Fund:

1. Set your goal:

  • Set a goal for how much you want to have in your Emergency Fund, and by when?
  • These could be daily, weekly or monthly-based goals.
  • In my personal experience it’s good to have an end date in mind for your total savings amount, and then break this down into smaller more manageable amounts to save each week or month.
  • Be realistic, start small to get yourself in the habit of saving. Then overtime once you’ve developed a good practise of saving you can increase your goal.

2. Keep it separate:

  • There’s no point saving for an Emergency Fund if you keep chipping into it for new clothing purchases, and coffees (I can’t deny caffeine is an emergency, but get yourself a good plunger and grinds and you’re cool).
  • Keep this fund separate from your checking account, this could either be in a separate savings or bank account.
  • Do not put your fund into an investment or Term Deposit that’s too hard to access, as in an emergency you’ll want to be able to access the money right away.
  • Remember your Emergency Fund should be hard to reach, but still liquid.

3. Treat it like a bill:

  • Treat your Emergency Fund like a bill, make it a non-negotiable.
  • Add it to your line items on your budget and stick to it.

4. Extra Income:

  • Any additional income you get put it into your Emergency Fund.
  • This could be a tax refund, bonus, or gifting money.
  • If you put this towards your Emergency Fund straight away you won’t be tempted to spend it on other things.

5. Celebrate key milestones:

  • Saving for an Emergency Fund is not easy, it’s a hard slog at times so it’s important to celebrate when you hit key milestones.
  • This could be with your favourite bottle of wine, a trip to the movies, or a new coat of nail polish… whatever you choose.
  • Having key milestones and celebrating these will keep you focussed and motivated to stay on track.

6. Budget category allocations:

  • Take a look at your budget categories and where you are spending your money, and define where you could make changes.
  • Think creatively, i.e. instead of going out to restaurants or getting take-out twice a week, try cooking at home.
  • By contributing $10 more to your supermarket spend each week and cooking at home, you could save yourself $40 a week on take-out and restaurants, meaning that money can go straight towards your Emergency Fund.
  • Then next month change it up. Use Uber a lot? Try taking public transport more often.
  • Be creative and have fun with these challenges!

7. Cull unnecessary expenses:

  • Additionally to moving money around within your budget categories, take a look at where you are spending your money and cull the unnecessary expenses.
  • These could be things like monthly subscriptions, a gym membership you don’t use or buying coffee everyday (tips on how to do this here).
  • These small amounts really do add up, and will help you get to your Emergency Fund goal sooner.

8. Create a side hustle:

  • Get creative, think about the skill sets you have that you could leverage to make more money.
  • Could you do babysitting? Sell items you no longer need? Are you good at crafts, cooking, or baking? Do you have a passion and knowledge for something you could teach others about?
  • Some of the side hustles I did to make extra money were making candles, up-cycling vintage clothing, and writing product reviews for an online magazine.
  • The options are literally endless if you keep an open mind and are motivated enough.
  • Who knows… your side hustle could even develop into a thriving business.

Remember setting up an Emergency Fund is fundamental to your personal finance journey. It’s a gift to yourself, to provide you with freedom and flexibility to do what you want and most importantly to give you that peace of mind to know that you are prepared for those unexpected expenses.

Now back to Silver Sally.

She’s doing well, she’s recovered and lives in my parent’s garage whilst i’m in the UK. I’m heading home this year for a visit, so i’ll take her for a drive, put some Jovi in her speakers, and if she does decide to have a mechanical moment this time i’ll be prepared, I won’t feel like a fish out of water anymore.

THE LADDER GIRL

7 Steps for styling a room on a minimal budget

7 Steps for styling a room on a minimal budget

Ever since I can remember i’ve had a love affair with interior design, which to a large extent I have my parents to thank for (thanks guys).

As a kid, they’d take me along on these epic DIY adventures – We’d go to paint shops, tile shops, plant nurseries, garden shows, furniture stores, building supply stores, kitchen expos, the list goes on. Basically, if it was DIY related in any shape or form we’d be there!

I’d find myself walking through the isles of these stores, imagining my home growing up, what it would look like, what it would feel like. I got so excited by what could be, I got hooked.

This early obsession wasn’t without it’s troubles however..

There was the time I dug up my friend’s mum’s perfectly good garden and ‘redecorated it’, the time I lost a friend to boredom as I played ‘changing rooms’ and spent the day tidying her room, or the time my 6-year-old self stole an ornament from an antique store because I thought it would look great in my bright purple bedroom… thankfully overtime i’ve learnt to hold myself back, well just.

Roll the clock forward to 2017, and I land in Europe. I’m moving around, going from Workaway to Housesit, to Airbnb and i’m missing that itch – the itch to make something, dress a room, and be in something I helped create.

So to help with the itch, instead of being my 6-year-old self and gunning ahead I asked the owners of these homes I was staying in “can I decorate one room in your house using the items you have?”, not expecting many people to abide, surprisingly they did!

A lot of these homes were beautiful but they lacked a little aesthetic attention, which I knew I could give them with a little time and freedom.

So off I went, digging into cupboards, attics, drawers, rearranging, moving and organising. The results I was pleasantly surprised with!

Above are some examples of spaces I decorated during this time, mostly with items either found in the homes themselves or that I made. It really goes to show it doesn’t take a lot of money to create something beautiful. To see more of the before & afters you can view on my Instagram here.

Taking learnings from my own experiences and to help you with your own interior adventures, here are my 7 steps for styling a space on a minimal budget:

1. Pick a room:

  • Pick one room in your house that you’d like to redecorate.
  • Take ‘before’ photos (Something I wish I’d done more of to demonstrate progress)
  • Now clear it out. Take items away and strip it back to its bare bones. You don’t have to remove all items (i.e. larger items like a couch or a bed) but removing smaller items will help to give you a neutral space.
  • Now that you’ve done this step, take a breath and sit in the space, give yourself a chance to connect with it again.
  • Move on to step number 2.

2. Define your vision for the space:

  • While you’re in the room get a pen and write down your answers to these questions:
  • What does the room feel like now, and why?
  • Why do you want to change it?
  • What do you want the room to feel like?
  • What will it be used for?
  • What style do you like? (You can use a Pinterest board to help with this – If you’re into a bit of boho style, here is an example of my own Pinterest vision board.

3. Write a list:

  • Review your vision for the room and channel this into a list of things you’d like to have in your room, such as a shelf for books, a desk for writing, or a cosy nook to read in.
  • As you’re writing your list think what things can you utilise that you already own? (point 4 will help with this).
  • Remember keep it simple, you don’t need 15 cushions or 20 candles and you can always build on it later.

4. Utilise what you have:

  • Now that you have a clear space, a vision, and a list of the things you’d like it’s time to refine your list.
  • Review everything on your list and have a look around your home to see if there’s anything you already own that you can utilise, instead of buying new.
  • These are the cushions, throws, candles, frames, lamps, books and artwork that you’ve placed into drawers, behind the couch and in the spare wardrobes over the years.
  • Can these be repurposed? Can these complement the look you’re going for?
  • You’d be amazed at how an old item can look completely new in a new space, or reinvigorated with a coat of paint.

5. Set a budget:

  • Now that you have a list, it’s time to create a budget.
  • For each item on your list put this into a spreadsheet, and give it an allocated amount. Doing this will give you an overall estimated cost, which you can refine if you find those 10 candles mean you’re going over your budget.
  • Think carefully about your budget, how much can you realistically afford? And If you do plan on buying any big-ticket items on credit, set yourself up a payment plan to make sure you can realistically pay it off before you swipe your card.
  • Have this number finalised before you go any further.  

6. Do your research:

  • For bigger-ticket items like electricals and furniture you want to do your research
  • Have a look online to see what’s out there, identify the products you like the look of and  take a look at the reviews, who’s selling it and at what price.
  • Update your budget for these line-items once you know the price, and you know where you’re going to get them from.
  • For more artful objects like paintings, candles, antiques, frames etc have a think about the stores you like, and check-in with your vision board  to ensure they align to the look you’re going for.

6. Go shopping:

  • Now that you have your budget and you know what items you’re going to buy, it’s time to go shop!
  • Big ticket items should be the first on your list, and more artful objects can be discovered as you go.
  • Second-hand artful objects can be great finds! Check out your local second-hand stores, or online stores like Ebay, Gumtree and Trademe.
  • For DIY supplies like paint, wood, and fabrics check out your local supply store and don’t be afraid to ask for a discount. 9 times out of 10 they’ll be more than happy to make you a discounted offer.
  • Be patient. You may want to buy everything all at once, but by having this mindset you’ll likely make rushed decisions, buy more than you can afford, and items you don’t love. Take it slow.

7. The fun part, putting it all together!

  • Now that you have your items, it’s time for the fun part.
  • Start with the big items – the furniture, the rugs, the shelves etc, and set up the room the way you want it to be.
  • Now have some fun, lay out all the smaller items in a space nearby and have a play. Dress the couch, set up the shelf, take photos, and experiment.
  • Refer back to your vision board, and have fun!
  • It’ll be trial and error but it’s all part of the experience, when you’re finished you’ll have a beautiful space to enjoy.

I hope you’ve enjoyed this post, and have found some useful tips to decorate your own space on a minimal budget.

THE LADDER GIRL

My top 10 budget-friendly places to eat out in London (that aren’t Pret)

My top 10 budget-friendly places to eat out in London (that aren’t Pret)

London is known for its wide range of cuisines from across the world, a melting pot of spiciness, freshness, bitterness, sourness, sweetness and saltiness… it’s lively and effervescent, but it’s not always cheap.

With its growing living costs not looking to slow down anytime soon, Londoners and tourists alike have been putting the breaks on going out.

But as much as we’re enjoying our homemade lasagnes and spag bols at home or in our hostels, to live or visit this city without exploring some of its culinary treasures would be like visiting London without seeing a red bus or Big Ben, pretty tragic.

So to help you enjoy a delicious meal on a minimal budget, here are my top 10 places to eat out in London. From the classic avo on toast, to the best Ramen in town, all less than £10 pounds per meal…it’s time to lap up the sauces, and savour your pennies.

1. Padella

Located in the heart of Borough Market, this Italian gem serves fresh hand-rolled pasta dishes to share. Get yourself on the waiting-list, then head into the market for a pint of Guinness and explore the market stalls.

Then, on to enjoying a buttery gnocchi dish with a £4.50 price-mark. I promise you it’s well worth the wait!

2. Broadway Market

This is hands-down one of my favourite food markets in London.

Located in trendy Hackney, what a lot of people don’t know about this market is it’s over 3,000 years old, and once a busy cart-track bringing food supplies to London. Turn the clock forward to 2019 and it’s still delivering food to Londoners.

Arrive on Saturday morning and enjoy tasty British treats like Scotch Eggs, mouth-watering Haggis and caramelised onion toasties, and finish off with a red velvet doughnut to share.

Walk off the indulgence by taking a stroll alongside the nearby canals, walk past the house-boats until you reach leafy Stoke Newington and check out the boutique shops, and another treat of course.

3. Dishoom

Located in various boroughs throughout London, Dishoom has earned its stripes as a must-visit culinary treasure.

It’s a Bombay restaurant serving delicious Indian brunches, lunches and dinners – think bacon naan rolls, spicy omelettes and bottomless Chai for breakfast, through to traditional samosas, grilled meats and hearty curries for dinner.

It has something for everyone’s spice (and price) level and my advice, go balsy! Pack on the spice.

4. Kanada Ya

This authentic Ramen house has 3 locations throughout London and is well worth the trip.

Come here if you love a good brothy bowl with lots of hearty toppings! From pork, chicken, vegetable and truffle toppings, I promise you if you love Ramen it won’t disappoint!

5. Honest Burgers

As the name suggests this joint does burgers, honestly. No frills, just good buns and good fillings.

It is home to the plant-based Beyond-Meat burger, so if you’re vege or keen to try a plant-based burger that feels, smells, and even bleeds like meat it’s well worth it.

Located throughout London, my personal pick is the Brixton location – they have the best service!

6. Brixton Village & Market Row

Number 5 leads us on nicely to this tucked-away South London gem, Brixton Village and Market Row.

Exit the Brixton tube station, take the first 2 rights and you’ll find yourself in a colourful culinary paradise.

It has something to offer for everyone’s taste buds. From Federation Coffee serving classic breakfast dishes and great coffee, to Japanese omelettes, French Crepes, Caribbean stews, and middle-eastern cuisine. It’s well worth the trip to the end of the Victoria line!

7. Lanzhou Lamian Noodle Bar

This is my go-to place for an after-work or late-night noodle fix!

No frills, just great food and yummy homemade noodle dishes! Walk in and watch the chefs at work as they pull, kneed, and cut their noodles to shape.

From thick and chewy, to light and slurp-able you’ll be lapping up the noodles and their sauces here. Be warned wearing white here (unless sauce on your shirt is your thing) is for the chefs only!

8. Grind Coffee

Great coffee, great breakfasts, and great late-night cocktails.

Grind in Covent Garden is my go-to for a guilty millennial flat-white and avocado toast fix.

Beautifully designed interiors and branding, Grind is guaranteed to get you positively caffeinated without paying a fortune for the pleasure.  

9. Carluccios

Simple Italian dishes, cooked the way Italians like them.

Carluccios is the real-deal, and I have my Italian colleague to thank for helping me discover this place – she goes here almost everyday for her fresh pasta fix.

Starting at £4, enjoy a daily takeaway spread of freshly cooked pasta dishes, meats, salads, and breads all topped with grated Parmesan.

Little tip, I find it better to eat takeaway, it’s cheaper and you can enjoy it outside admiring one of the great London sites!

10. Pizza Pilgrims

No big city would be complete without a pizza joint, and if you’re going to have one pizza in London make it a Pizza Pilgrims Pizza.

Located in various boroughs throughout London, expect a humble environment and classic flavours like Margarita, Gorgonzola, Olives, Mushroom and Salami, all supported by the freshest, softest and doughiest base. Starting at £5.50 a pizza, I think that means you can have two, right?

I hope you enjoy this list, and can make it to some of my favourite food spots in London. I promise you great flavours and saving on the pennies. Enjoy!

THE LADDER GIRL

The things I no longer buy to simplify my life

The things I no longer buy to simplify my life

Lately I seem to be focusing a lot on ‘things’. Reflecting on what they once meant to me, and how I clung onto these things as if I truly needed them to be better – A better person, more attractive, happier, more intelligent, more organised, entertained….you get the drift.

The reality is there’s not much in the world we actually need. We survived the caveman years living off what we could muster, and now turn the clock forward to 2019 and we’re ‘surviving’ off overindulgence/over everything…more, more, more!

We think we need the grams, the likes, the wiz-fix creams, trendy gadgets, and the latest and greatest. We don’t, we can live a simpler life and be happy, even happier.

I’ll admit, simplifying your life and the ‘things’ you let in isn’t easy, it takes time to retune your brain to turn these ‘needs’ off. It takes a plan and constant checking-in with yourself, but what you get back in return for sticking to it is more time, money, happiness and a chance to breathe!

After going through my own journey of simplifying my life I know longer need these things I once clung onto for ‘dear betterment’.

So here goes, below is a list of things I no longer buy to simplify my life:

Food & Drink:

  • Frozen ready-meals
  • Pre-prepared vegetables
  • Bottled water
  • Health bars
  • Energy drinks
  • ‘Trendy’ foods
  • Takeaways (Except the odd late-night Kebab shop visit)

Clothing & Accessories:

  • Fast-fashion
  • Anything ‘on trend’
  • More than enough socks
  • Costume clothing and jewellery
  • ‘Going out dresses’
  • Multiple handbags and purses

Beauty:

  • Sprays for this, that, and the other issue I didn’t realise I had?
  • Highlighter
  • Coloured eyeshadow (no one wants to see me with purple lids)
  • Body wash
  • At home hair dyes
  • Eye cream (I have one good quality moisturiser)
  • Nail polish
  • Makeup remover

Household & Other:

  • Room spray
  • Fabric softener
  • New technology (quality second-hand is just as good)
  • Subscription upgrades
  • Magazines

Intentional spending doesn’t mean depriving yourself of the things you love

Intentional spending doesn’t mean depriving yourself of the things you love

Last week I wrote this post, which talks about my own journey in becoming more intentional with my spending and buying less ‘things’.

But what I want to focus on today is how I go about bringing new things into my life, the principles I use when buying things, and how you too can apply these principles to ensure what ‘things’ you spend your money on are adding value to your life.

What do I mean by ‘things’?

I’m not talking about the kinds of things that at a human level, we need. I’m talking about the kinds of things that bring colour into your world, that light it up, and that make it a unique place, a place suited to you!

You might get your colour from..

A beautiful painting, classic leather jacket, a new novel, old-school record, paint brushes, plants, headphones, beautiful crockery, a guitar, bike, antique chair, camera, even someone else’s junk… the list of these ‘things’ is truly endless.

These ‘things’ are important.

Things help us express who we are, to be creative, learn, grow and enjoy life. A world without things is possible, sure, but damn it’d take the rainbow away.

So, how you can have these ‘things’ and still be intentional with your money?

There’s a common misconception that if you’re a frugal person then you’re cheap, you live without nice experiences or nice things and i’m here to tell you that’s simply not true…

You can have these things, if you have focus.

The above image captures the ‘things’ that I bought into my life over the past year. These are things that added value to my life, that were thought about and that I treasure. I applied a series of principles to my thinking to ensure there’s no throwaway fast-fashion trends, no impulses, no things gathering up dust in the drawer, and nothing gone to waste – And that to me is so important.

To help give you focus to be intentional with what ‘things’ you bring into your life, here are my top 4 tips:

1. Know your style:

  • It’s important to know what your personal style is, what you like and don’t like, as by doing so you’ll have a set of criteria to measure against when deciding on what new items to bring into your wardrobe or home.
  • To help you define your style this post has some helpful tips and tricks, or you could use a platform like Pinterest to create boards for different areas such as interiors, clothing, gardens, makeup etc, and pin what you like to give you an overview of your style across these areas.
  • By having clarity on your own personal style, instead of going into a store and seeing thousands of items and trends and buying something that you may not truly like, you’ll be able to focus on the items that align to your own personal style and make better purchasing decisions.

2. Quality over quantity:

  • When buying a new item, it’s better to lean towards the cheaper option right? Well not quite.
  • Sure, in the short-term you’ll have the item and had paid less for it, it’s a win-win, until that item wears out and you’re having to replace it a few months later.
  • By buying an item because it’s cheaper, it’s not being smart with your money, yourself, or the environment, and to help get the point across let me pull out 2 coats…
  • Let’s say you buy the first coat for £25, you use it all through Winter and at the end of the Season it starts to lose its shape and pull. You wore it a total of 40 times at 63p per wear and that’s the end of its life. Next Winter you’ll start again with a new £25 coat, and so on.
  • Now let’s say you buy the second coat for £100, you use it all through Winter and at the end of the Season it’s still standing strong, so you use it the next Winter, and the next, and so on. Over 4 Winters at 40 wears per season, that’s 160 wears and 63p per wear.
  • Now, you might think it’s the same cost-per-wear so there’s no difference between the two coats. But the coat that cost you £100 is delivering far more than just cost-per-wear. It’s made of a good quality fabric that is sustainably sourced, is a brand you love, that pays its employees a fair wage, fits you well and there’s one of them across 4 seasons.
  • Whenever you can, invest in an item, it’ll last you longer and you’ll get so much more than just the item out of it!

3. Know what brands and stores you love (and stick to them):

  • Much like knowing your style helps you to narrow your focus when making new purchases, so does knowing what brands and stores you love.
  • Make a list of the brands and stores you really love and buy 80% of the time within these. I keep a list on Google Docs and add to it each time I come across a new brand or store I love.
  • By doing this you’ll start to collate your own personal ‘mall’, and avoid going into stores that don’t align to your values or style.
  • It might sound simple, but it’ll save you a tone of time and almost always ensure what you buy you’ll love.

4. Give it time:

  • See an item you love and want it now? As much as you might want to buy it then and there, walk away (close the window if online) and give it 48 hours. If you still find in 48 hours you’re thinking about that item, if you can afford it and it fits within your budget allowance then buy it.
  • Most of the time however you’ll find after that period you won’t have it on your mind, which means you didn’t love it as much as you thought you did, and you can put your money into something else that you will.
  • Time is important, it gives us clarity and reduces those impulse and in-the-moment purchases we so often end up regretting, use it to your advantage.

I hope you find value in these 4 principles, and that they help you to buy more intentionally and to bring things into your life that you truly love. Remember being intentional and frugal with your money doesn’t mean restricting yourself of the things you love, but it gives you focus to bring in only the things that you truly do (and less of the stuff that you unintentionally don’t).

THE LADDER GIRL

Why I stopped mindlessly shopping and own less things

Why I stopped mindlessly shopping and own less things

I used to love to shop, and I mean shop! I’m talking about the kind of shopping where there’s no intention, no list, no vision other than to mindlessly wander around a mall spending. It was about that instant gratification of having new stuff, things, this-and-that to fill my home and for a brief moment, comfort me.

A new cushion for the couch (already overdressed with an array of textures and colours), or that beige Zara top, a colour I had never worn well with a skin tone as pale as an uncooked chicken (thankfully aided by Bondi Sands when Summer rolls around).

What I was doing wasn’t healthy, not for myself, my partner, my bank account or my mental health. I was buying things without a thought, and in return, they were giving me nothing back, and neither was I.

This needed to stop.

It wasn’t overnight that my habits changed – like many things it took time, many conversations, sifting through my things, analysing my spending, looking at photographs of myself. Who was I? What did I value? Where did I want to go? All these ‘things’ were a result of me not knowing these answers.

I needed to define my ‘why’.

Seeking change and a challenge, my partner and I decided to do what many Kiwi’s do in their 20’s and move to the UK. Why? Because we wanted to become more resilient, more confident, and to experience new cultures, people, and challenges that Auckland at the time didn’t offer us.

The change.

To get there we made many changes, which forced us to be more intentional – no longer could I walk through a mall mindlessly spending. The cushions and beige top needed to go.

We moved into a tiny house (7×3 metres) to save on rent, which meant downsizing – It meant researching and discovering new processes and ways-of-living I had never heard about before, all to get us to our goals and to minimize what we had…

I discovered these movements:

  • The Tiny House Movement
  • Minimalism
  • Capsule Wardrobes
  • The Fire Community
  • House Sitting
  • WWOOF

These new learnings aided and pushed me forward. Yes, they helped us save to go to the UK, and they stopped me going into malls, buying without intention and owning things for owning-things-sake. But they also taught me the beauty of less, and to value more what we so often take for granted. My friends, family, education, and opportunities – these are the things that gave back to me and in return, I can give back to.

Owning less will give you so much more.

Owning less is not about depriving yourself, it’s about being more mindful with the things you have and the things you buy.

Next time you go shopping, go with a plan, think what do I need? What do I like? What brings me joy? Does this purchase align with my goals? And if you keep this in mind I promise you there will never be a mall visit without intention or a rogue beige top finding its way into your closet.

THE LADDER GIRL

Want to save more? 4 steps to define your ‘why’

Want to save more? 4 steps to define your ‘why’

Let me take you on a little trip to Dalston.

Last weekend I met up with some friends at a newly opened café in Dalston. It’s the kind of cafe you’d expect in Dalston – so underground it’s not even signposted, a gig-venue come café come art-gallery, with a menu hosting ‘<insert hipster café name> fruitcakes’, which really just means blueberry pancakes. All the complex frills required to claim its place in the Dalston Directory of Hipster Approved Cafés.  

Now to the setting. All accounted and seated we began our pre-coffee ramblings – And in typical Antipodean fashion there’s no time for niceties, we’re straight into the deep and meaningfuls, quick.

We discussed an array of things (some things my pre-coffee self just couldn’t compute) – I’m not one for Brexit in the morning, but one thing that did spark up my brain was the subject of savings (my geekish self rejoiced).  

By fruitcakes-time we all collectively agreed we needed to get better at savings, but when asked why? No one had a clear answer. “It’s something we should be doing” seemed to be the general consensus.

Within this response lied the problem, you see by not knowing our ‘why’, we’d already set ourselves up to fail.

Why the Why?

Savings in itself is pointless if you don’t know why you’re saving in the first place. It’s like driving along a highway without an end destination in mind. Do this and you’ll very quickly find yourself off-course, without gas, and allured by other the attractions along the way – such as <insert hipster café here>.

Savings is not the why, eventually you’ll need to spend your money and that’s a good thing! The why is what your money will give you in return, that aligns to your own goals and values.

So to solve this problem of the millennial fruitcake “should be’s”, let’s look at how you define this thing we call why.

Here’s what you need to do:

1. Investigate yourself

  • Before you can begin to define your why you first need to investigate yourself. It might sound a little strange, but by doing this and asking yourself these questions you’ll create a clear picture of who you really are and what your ideal future looks like. Get a pen and paper and write down your answers…   
  1. What do I want my life to look like in the future?
  2. What do I enjoy, I mean really enjoy?
  3. When do I feel most myself and happiest?
  4. What kinds of people do I want to be around?
  5. What are my core values and how do I want to live according to these?
  6. What do I want my professional life to look like?
  7. What do I want to learn?

2. Define your core goals

  • Now that you’ve written down your answers, it’s time to identify the patterns within them to define your core goals
  • Examples are if you wrote you want to experience new places, learn a new language, and get enjoyment out of travel then your goal might be to go travelling in 1 years’ time
  • Or, if you wrote you want to be around family more often, value your freedom, and want more time for hobbies your goal might be to work more flexible or go part-time.

Identifying these patterns will give you your goals. 

3. Prioritise

  • It’s important at this point to put a reality check in place
  • We only have so much time on this earth and to have goals are great, but if you set too many goals you’re unlikely to make progress  
  • You need to prioritise what is most important to you
  • Analyse what you’ve written down and select your TOP 3 GOALS
  • These are the 3 ‘whys’ you’ll begin with, to plan to shape your future

4. Plan and save

  • Now that you’ve identified your top 3 goals (aka your whys), you can put a plan in place to reach them
  • Give yourself a realistic timeline for each goal and build in the pitstops (small saving milestones) to get you there along the way
  • Ask yourself “does this decision align with my long-term goal?”, by doing this regularly you’ll stay on the highway.

Remember no one else is going to drive to your goals for you. But it’s you that has the control of the wheel. You define your whys. No one else.