Money Diaries

She has a new baby…and a big family goal.

Megan knows there’s plenty of help out there to cut back on bills and save – but where to begin? 

The spending feature in the Barclays app¹ is a great place to start, says Money Mentor Grace.

“It’s a real eye-opener in terms of your spending each month – from this you may be able to see areas where you could cut down e.g. by reducing your clothes buying to once per month.”

It can help you discover your true purchasing patterns: are you buying something you really need – or is it an impulse buy?

“This kind of info can help Megan take time to think about whether what she’s buying is worthwhile.”

Another useful tool within the Barclays app¹ is the spending limit. Grace adds - your card won’t let you breach a limit you set yourself.

As well as spending, Money Mentor Fabio also recommends having a nosey around online on comparison sites for better deals such as for broadband and mobiles. 

Our printable budget planner [PDF, 576KB] is worth a look too. Then Megan can compare her spending now with how much she’d like to save.

Megan and her partner have already got £20,000 stashed away, but they want to save even more for a house deposit.

Both Money Mentors agree it’s a terrific goal – but a bit more planning could help. Grace says she should include fees like stamp duty and legal costs too. “Work out a rough amount for the whole sum and go backwards from this. Then you’ll have a timescale against which you can plan your saving.” 

Fabio adds that it’ll be useful to make the goal more specific. 

“For example, when would you like to buy the house? This will help you [to stay on top of your goal] if you keep saving the same amount.”

He also says it’ll be worth exploring different savings accounts such as the Lifetime ISA to see the financial help they offer.

After months in a baby bubble, Megan’s heading back to work soon – and it’s never easy for new parents to go back to the nine-to-five. 

To help, Fabio suggests she first visualise all the challenges – both financial and practical – she is set to face. “Make a proactive plan to tackle those challenges, so you don’t get caught by surprise,” he says.

Grace suggests researching local childcare costs to get a feel of what to expect. 

“Then look to fill out a budget planner including these numbers and see how your finances will change – then you can prepare in advance.”

In particular, the government tax-free childcare scheme could be a huge help to Megan. 

It lets you open a special account to save for the cost of looking after your kids. 

Put in 80p and the state adds 20p – it’ll contribute up to £2,000 per child a year if you meet the earnings criteria (or up to £4,000 if your child has a disability).

She’s saving money for her son’s future. But what about for her own? 

No prizes for guessing – the very first thing our Money Mentors say Talah needs to start is a budget. 

Fabio recommends using the Barclays app¹ to get a clear view of her spending over a couple of months. This way, the details will help her to figure out exactly where her money is going – where she’s spending too much or too little.

“Accuracy is key when budgeting, so the benefit of having around two or three months’ spending to compare is that some months may be different than others,” he says.

Grace adds that opening an extra current account could be a good next step to help her feel more in control.

“It can be very useful to have a second current account just for spending. Once the wages go into the main account, Talah can first pay the bills and then allocate a set amount (either weekly or monthly) to switch into the spending account.”

Talah reckons she’s got decades to plump up her pension pot. 

But Grace points out that, with the benefits of long-term investing, it can really pay off to get on top of it now.

With a workplace pension, both your employer and the Government pay into your pension pot with you. It’s also likely to be a low-cost scheme.

This all means that – especially as Talah is young - even putting away a small amount each month will help in the long run as it will have more time to grow into a bigger retirement pot.   

There's plenty of pension saving advice at the Government’s Money & Pensions Service.

Talah wants to get her son off to a great start in life, but she’s wary of investing his savings in stock markets – there’s always a risk of losing the money, she says. Fortunately, there are other ways to boost the cash. Grace and Fabio wonder if she’s using a specific children’s saving account for her son, which will help to keep the money separate from her own personal finances. That’s another way to save for his future.

Three kids, one business and a very expensive sports habit.

Between being a dad and running a business, Paul’s often very short on time. And – to be fair - spreadsheets aren’t a fun way for most to spend a spare hour. 

However, Fabio has a technique which could help make it more appealing.

“Start by allocating small amounts of spare time available to budget – no pressure! Just do a little bit, 30 mins to an hour every day or every other day.” This can help make it less overwhelming.

Another trick is to keep in mind why you’re doing it, Fabio adds. 

“Think of what budgeting would do for you. Perhaps write it down and visualise it so you remind yourself of why you want to do it.” 

Luckily for Paul, the Money Mentors say he doesn’t need to sacrifice his swing. As Fabio says: “It’s important to keep doing what makes you happy.”

Grace suggests a plan which will hopefully see him build a ‘new equipment’ fund without him noticing.

“Why not set up a savings account for a small amount each month – a small sum you wouldn’t miss - which will build up in an account over time?

“Then, if you need new equipment, the money will be there for you to use without having to go short that month.”

First, congratulations! If he hasn’t already, Paul should check out an online affordability calculator to figure out exactly how much he could borrow, and what size deposit he’ll need.

Grace emphasises how a larger deposit can make all the difference to getting an affordable mortgage rate.  

“Do plenty of research into how much of a deposit you would need based on the property values you are looking at.”  

And if Paul needs extra clarity for his goals, the Money Mentor Plan Builder [PDF, 507KB] could come in handy too.

Keen to set up his own business, he’s ready to save £5,000 a year.

A brilliant attitude - but easier said than done! Grace suggests Gajan treat the money like a bill – create a standing order, name it ‘rent’ and put it straight into a savings account each month.   

And to help him stay on track, adds Fabio, Gajan should try to focus on a solid reason to save, such as his plan for a business. “Write down and visualise it, so you feel motivated,” he says. For extra incentive, Gajan can also add a savings goal on the Barclays app¹¹.

Gajan’s already getting to grips with entrepreneurship but Grace has a few more pointers for him: “You can arrange an appointment with a Barclays business manager to talk it all through. Plus, research will be key – you’ll need to look at the legal steps involved.” And her last tip? “Why not find someone who’s already running their own design business and take them out for a drink and a chat?”

“Don’t be too hard on yourself,” says Grace. Budgeting shouldn’t be a huge chore – it’s there to make your life easier. 

Fabio adds: “After you’ve set aside money for your goals, you’ll know how much you have to enjoy yourself and have fun.” 

The key to a successful budget is framing it as something that’ll help you - not drag you down.