A teacher has revealed how she managed to save £18,000 in just one year – after taking control of her finances and tracking her expenses.

Simran Kullar, 25, from London, an online English teacher, started tracking her expenses and realised budgeting would help her finally build up some savings and eventually purchase a house.

Before Simran began investing, she had always left her money to sit in her current account or a cash ISA – losing value due to inflation.

After learning about the advantages of investing, she learnt how to make her money work best for her and invested in Index Funds, such as S&P 500.

She started by investing the money she had earned working summer jobs throughout university, eventually adding more and more as she continued to budget and save.

Over the course of one year, she managed to save a whopping £18,000 thanks to her clever investments and taking full advantage of the £20,000 tax-free ISA limit.

From what Simran learnt, she began to share her tips with others through her social media account (@MissPersonalFinance) and her website.

Her aim is to increase awareness to others to start their money journey as well.

“I’m pretty pleased knowing that the [money from] summer jobs I had during uni have grown into something I can be proud of,” Simran told Jam Press.

“Thinking, very wrongly, that investing is just for rich, older men, I didn’t have the knowledge on how to make my money work better for me.

“Resources were pretty lengthy and dull to read – hence I began making my Instagram content.

“I had no clue about personal finances prior to this.

“I have always had a weekend and summer jobs before starting my full-time career, and after university and I have been pretty sensible with my money.

“However it was always sat in my current account or a Cash ISA – earning literally nothing and losing value due to inflation.

“When I learnt about investing it was the positive changing point for me and led me to taking a greater interest in how to make my money work better for me.

“I started to budget and track my expenses to see where exactly my money goes and to tell it where it goes.

“Budgeting isn’t as gruelling as it seems and has helped me to save up.

“By doing this also made me understand where I can cut back expenses such as one too many ASOS purchases!

“I think having a better grasp and gaining confidence with my finances will pay off later down the road.

“It has also taught me where exactly my money is going – as I had little idea beforehand and allowed me to cut back unnecessary expenditure, allowing me to save.

“[But] I also enjoy my life, and don’t just stay at home counting my pennies – I managed to continue to enjoy London and spend time with my family and friends this year.”

She now hopes to be able to make a house purchase later down the line – as well as planning ahead for her retirement.

Now, Simran has shared her top four tips on how to get started saving money.

BUDGET AND TRACK YOUR EXPENSES

Simran said: “Setting up a simple budget with categories covering all your expenditure will be a great starting point.

“Categories can include groceries, rent, bills, transport.

“Don’t forget a fun category to save towards enjoying your life such as meals out, travelling or birthdays.”

SET SMART GOALS

Simran said: “Establish achievable and realistic goals that you hope to achieve, and come back every so often to check your progression.”

OPEN AN EMERGENCY FUND

To make sure you are never caught short, Simran recommends opening an emergency fund.

This can be to cover any of life’s less-than-fun surprises – including new appliances or car repairs.

Simran explained: “An emergency fund is an easily accessible pot of money that you can rely on in case of an emergency.”

FIND WHERE YOU CAN MAKE CUT BACKS

Simran said: “Find where you can cut back – for example is there an unused subscription that you still pay for that you could cancel.”

She also recommends cutting back on restaurant visits and embracing homecooked meals, which can lead to substantial savings.