Do this once you save £1000 (7 Steps)

Welcome back to the Bayta Youtube channel! In this video, I talk about the 7 steps I would take once I saved my first £1000.

Step 0. Like and subscribe!... Just kidding, but it would be great if you stuck around.

Step 1. Create an emergency fund of 2-3 months of your expenses - Create a rainy day fund that gives you security in case of any unexpected life events like the boiler breaking down or being laid off! A great app for this is using Monzo to create separate pots so you can more clearly see your budget each month!

Step 2. Pay off any debt - Target debt and pay it down as quick as possible so you can decrease your monthly outgoings! And for budgeting, follow Jayz's rule "If you can’t pay for it twice you can't afford it"

Step 3. Pay all of your bills straight away and save regularly - Whenever you get paid, pay all of your bills straight away. Then, see how much Is leftover and budget for your expenses. For me, I set aside another specific standing order for my savings, but this depends on your goals!

Step 4. Understand your financial goals and the tools you need to get there - Do you want to get a house? It may make sense to apply for a credit card and start building your credit score to get access to better rates? You also may want to open the LISA account to get a 25% bonus towards your deposit savings? Or Do you want to build a more passive investment strategy where you can travel around the world and get paid dividends each month from your investments? Understanding your goals not only makes the plan you need to create clearer, but also makes you more committed when you believe in your WHY, and keeps you motivated.

Step 6. Focus on raising your income - Raise your income through pursuing existing positions in your company or developing a high demand low supply skill. Things such as software development, sales or a specific trade. The more narrow focus you have, the less competition there is, and thus you can command more for your time. Or perhaps it's doing side hobbies, like an Etsy store, youtube or something you enjoy doing!

Step 7. Don’t forget to have fun, life is too short to not enjoy the fruits of all your hard work :D

(Disclaimer none of this is financial advice and purely my own opinion. Always seek professional advice when investing/deciding what to do with your money!)