Can’t resist a glistening rooftop strawberry daiquiri? Or a spontaneous sunny city break with a bestie? Me neither. Feeling warm sand between my toes when I should be at my desk working is why I became a freelance writer.

You’d think the totally unpredictable income and coffeeshop lifestyle would mean Armageddon for my bank account. I expected it to dry up into a zombie land of unpaid bills and festering final demands. But weirdly, it didn’t. I went from living month-to-month on my credit card to suddenly having savings. Like, real savings. A soft little cushion in an ISA account. From there, it was easy. Now, my only debt is a student loan and a mortgage. (Yep, after a year of freelancing I had enough money to put down a deposit on a flat!). After penning 300+ articles on money management, I finally started following my own advice … And if I can do it, anyone can!

So if you’re a latte-glugging, prosecco-on-tap, good-time-gal… I HEAR YOU! This guide is for us. (Also, connect with me, we should go out …)

1. Make a start on your emergency fund

Emergency fund = fun killer, right? Boring, boring, with extra boring on the side. So I’m going to keep this short. Create a standing order so that every payday £200 goes into a savings account. It will take you literally three minutes. I’ll wait.

…. Done? Brilliant. This time next year, you’ll have £2,400 in your savings account. Nice one! And if that doesn’t deserve a latte in the park, I don’t know what does!

2. Smash that emergency fund out of the park

Can afford a little more than £200 a month? Well hello big spender!

Experts suggest to have three to six months of living costs in your emergency fund. For me, I put aside £5,000, which was roughly three months’ worth. You should do whatever is right for you. As a vague guideline, I would aim to have at least a couple of months’ rent money, just in case!

3. Change the world with your investment choices

Now we’re talking! This is what financial independence is all about. This is what really changed me.

Financial independence isn’t just caring for yourself, it’s about driving change in the world too. Proactively putting your money into the companies you believe in. In the past, women haven’t had the same opportunities as men to invest. And – to my mind - this has led to some sketchy industries scaling-up exponentially. I’m talking fossil fuel companies, fast food corporations, fizzy drinks manufacturers, plastic polluters and more.

Studies show women and Millennials prefer to invest their money in a way which benefits the planet. We don’t just want profit, we want purpose too. Our financial independence is making the world better.

Once you’ve built your emergency fund, re-direct your automatic payments into an investment platform. If you invested £200 a month, in normal market conditions, you’d expect to have around £44,600 after 15 years. Make that £250 a month, and it’s closer to £55,750. Nice!

(Want more details? Read the 11 do's and don'ts of investing here).

4. Keep funding that party lifestyle into retirement

Does your employer match your workplace pension contributions? If yes, that is FREE MONEY. Take it, take it, take it. Ramp up your pension contributions to the maximum you can afford, and rake in that cash. Once you retire, you’ll be so grateful to yourself for the extra income. Some organised people like to increase their pension contributions after a pay rise, so that they don’t feel it in their pay cheque. I’ll leave that personal preference with you!

If, like me, you’re a freelancer or run your own business, then you’ll be in charge of your own pension contributions. Gahh. Try not to put it off. Even though it’s really tempting. What I’ve done is open a Self-Invested Personal Pension (SIPP) online. It took maybe 20 minutes… 25 if you include the tea break and victory dance.

I figured out that if I invest £1,500 a month, I’d have £1.5 million by the time I turn 67. Let’s just say that plan didn’t last. Nowadays, I just try to invest any amount of money. Some months it’s £50, others it’s £500. With a SIPP contribution, you’ll get your income tax back and added to your pension pot. So, for every £50 you put in, you’ll get £12.50 extra! Or for £10,000, you’ll get £2,500. Which is a nice perk. You can invest up to £40,000 each year. That’s a lot of future holidays on the beach!

The type of pension you chose to invest in can have a significant effect on the planet. It probably will be the most impactful decision you make, so be sure to pick your ethical pension provider carefully!

5. Be real with what you can afford

Before freelancing, I was in senior management roles at investment banks. And I wanted to look the part. I had this glittery gold credit card, which probably nobody noticed, but I thought it made me kind of a big deal. That sparkly card made an appearance every time a waiter came round with the bill. Before you could say, “Shall we split it?”, I’d paid up with that cheeky little beep. And we’d be off on the next adventure.

Becoming a freelancer liberated me from that. Because everyone expects you to be hard-up, you don’t feel the pressure to pretend otherwise. The truth is that my salary today is basically identical to what it was then. But the way I manage money is completely different. Within less than two years, I have a flat, savings, an investment portfolio and a pension. So my biggest and best tip is to be real with what you can and can’t afford. Spending money and having fun are not the same thing. I’m sure you knew that anyway, of course you did! But it’s always good to be reminded!

So party on good-time-gal! Financial liberation could be just a few tiny steps away.

Disclaimer

AllBright cannot guarantee that all of the information provided in this video or article is accurate. Use the information provided on our website at your own risk. If you wish to make an investment you should seek independent financial advice before doing so, and ensure that you have carried out your own research on the product or company that you are investing in. Any advice provided is not tailored to anyone’s individual situation, as each individual is in a different situation. AllBright does not accept any liability whatsoever for any action taken or losses incurred as a result of the information provided on our site.