Taking control of your finances in 2020

Since we hit really tough financial times about 10 years ago when both myself and my husband got made redundant and I was pregnant, I’ve been really careful with our money. I know first hand how quickly things can spiral out of control where money is concerned. Being organised and actively taking control of your finances is so important. You really don’t know what’s around the corner!

The truth is though that many of us lead such busy lives that we don’t always have time to think about stashing money away just in case we need it one day down the line. I know that I always struggle to find time to fit everything in these days! With work, three children and running a business, there just aren’t enough hours in the day for me to do everything, no matter how good my intentions!

In an ideal world, we should all aim to save money every month. Whether it’s to build an emergency fund, save for the holiday of a lifetime or to fund repairs on your home. OK, so some people have more money to spare than others, I get that, but budgeting will help you to work out how much you can afford to put away so that you can start to build your stash.

How to save automatically

I first started using the Chip app around a year ago after hearing about it through some of the other UK money bloggers. It’s been a great way for me to put money aside without noticing and without giving it a second thought.

The Chip app uses artificial intelligence to work out exactly how much money you can afford to save without you feeling the pinch.

How does Chip work?

Chip connects to your bank account with read-only access to that account (meaning Chip can see your transactions but it can’t move your money other than to transfer into your Chip account).

Initially, Chip will monitor your spending for one week. You will then receive a notification telling you how much Chip will save for you. The notification gives you a few days warning, so if you know you can’t afford to save that day, then you can cancel the transaction in plenty of time. If you know you’re going to have some expenses to cover, for example, you can quickly cancel the save and not worry about it.

After the first week, Chip will automatically stash away some cash once every four days, never taking more than you can afford. It really is a great way to put money aside regularly without feeling it.

As well as the automatic saves, you can also manually move money into your Chip account. So if you’ve had a bit of a windfall or you’ve managed to underspend one week, then you can add that extra money to your Chip account manually.

Withdrawing your cash

If you’re using Chip to save an emergency fund, then the chances are that you might need to access your cash pretty quickly. If there is a financial emergency where the car needs fixing or the boiler breaks down, then you’ll need that cash sharpish.

One of the great things about Chip is the speed of withdrawals. If you withdraw before 5pm on a working day, your money will be back in your nominated bank account on the same day. Withdrawals made after 5pm or over the weekend will land in your bank account the next working day. So you never need to worry that you can’t access your pot of money if you need it in a hurry.

How to get an extra £10

***THIS OFFER HAS NOW ENDED***

I’ve used Chip to pay for holiday spending money and to cover the expense of Christmas this year, and I can honestly say I’ve not felt the pinch once. I’ve managed to do this without thinking about it whilst still adding money to our main savings account too – I’m pretty pleased about that!

I’m a huge fan of the Chip app and I’m really pleased to be able to offer My Money Cottage readers £10 cash when they join Chip using my unique code.

You will need to make sure to use my unique code in order to be eligible for the £10 welcome bonus. Then, connect your Chip account to your bank account, sit back and wait!

Chip will watch your spending habits for the first week before starting to make automatic saves for you. Once Chip has made two automatic saves, your £10 welcome bonus will be automatically added to your Chip account. This can take up to 30 days to credit and will give your pot of cash a lovely boost to get you started.

*This is a collaborative post.