Budgeting tips...
Discussion
Anyone got any?
I'm 22 and earn a decent amount of money, my outgoings are very reasonable.
In theory I should have a good few hundred quid left at the end of the month but I never do.
My only real commitment is the car loan (Positive equity anyway.) which I'd like to make some extra payments on so I can pay off early.
I'm in no trouble, I'd just like to be a bit more frugal.
Too much money goes on chocolate, scratch-cards, expensive working lunches (e.g £5), gadgets I don't need.
I am by all accounts a spendaholic.
Has anyone managed to progress from a spendaholic into a frugal being?
I'm 22 and earn a decent amount of money, my outgoings are very reasonable.
In theory I should have a good few hundred quid left at the end of the month but I never do.
My only real commitment is the car loan (Positive equity anyway.) which I'd like to make some extra payments on so I can pay off early.
I'm in no trouble, I'd just like to be a bit more frugal.
Too much money goes on chocolate, scratch-cards, expensive working lunches (e.g £5), gadgets I don't need.
I am by all accounts a spendaholic.
Has anyone managed to progress from a spendaholic into a frugal being?
I was similar with the odd fiver and tenner going here and there. What I started doing was drawing out what I was happy to spend in a week on "odds and sods" and then leaving the debit cards etc at home. It is a lot more "real" when you are spending cash rather than popping your PIN in.
wolves_wanderer said:
I was similar with the odd fiver and tenner going here and there. What I started doing was drawing out what I was happy to spend in a week on "odds and sods" and then leaving the debit cards etc at home. It is a lot more "real" when you are spending cash rather than popping your PIN in.
Exactly this^^^^^It's the odd bits which add up.What we do know is draw out enough once a month for expenses (fuel,clothes ect),leave enough in the current account to cover DD's and other bits and the rest goes in the savings account.cannot remember last time we used the debit cards to make a purchase.
wolves_wanderer said:
I was similar with the odd fiver and tenner going here and there. What I started doing was drawing out what I was happy to spend in a week on "odds and sods" and then leaving the debit cards etc at home. It is a lot more "real" when you are spending cash rather than popping your PIN in.
Absolutely this. As soon as I get paid, everything gets plugged into a spreadsheet with all budgeted outgoings, one of which is the amount I want to save that month. Not having savings as an afterthought made a big difference to my spending, as it flips your thinking from "I'll save what I can" to "I'll spend to my target". Treat the balance after all the planned outgoings as your real cash position and work from that. As above, I tend to draw £x at the start of the week and spend from that. Makes you much more aware of how all the little things add up. Avoiding debit cards also makes you much more aware of your outgoings in my experience. As mentioned upthread, food "here and there" is the real killer, as you just don't notice it. Even without going mad, you're probably looking at £20/week (M&S, Pret etc), so making your own lunch can save you an absolute fortune in a small amount of time. A few well planned sandwich filling purchases, multipacks of nibbles and maybe even leftovers from dinner (pasta is great for this) can go a long way. Coffee was the other big one for me, as I got into the whole Nero/Costa/AMT station habit whenever I was out and about. Add in a flapjacky thing and you're easily looking at £4 a pop. All adds up.I've just changed jobs and have a different salary now, but also no use of a fuel-card anymore...
There are some things I'm happy with and can't influence much such as mobile bill, fuel usage (Though I do drive a bit more economically now!)
£80-120 per month on food in the working week
£100 per month on newsagent type shops where I'll get chocolate, magazines, scratch cards
£80 - 120 miscellaneous Internet orders (mostly pointless gadgets.)
£140 - £200 food shopping
£160 fuel
£340 rent inc util bills
£40 mobile phone
£25 health lottery
£60 national lottery on-line
£10 lovefilm
£70 car maint
£35 clothes
£10 Hair cut
Really, I know where I need to cut down. I just struggle with motivation (I/E I don't actually NEED to cut down, I could easily keep going like this.) and self discipline. Honestly speaking, a lot of purchases are through bordem and a lack of social activity. But, they cost money too!
Anyway, I think a good way forwards for me could be to quite using the debit cards so much and withdraw some cash every month and leave the cards at home.
I hate seeing 3 pages on my page statement with loads of different transactions anyway.
I've been playing around with the budgeting tool, and plan to save £600 from 25/04 to 25/04 (Paydays)
There are some things I'm happy with and can't influence much such as mobile bill, fuel usage (Though I do drive a bit more economically now!)
£80-120 per month on food in the working week
£100 per month on newsagent type shops where I'll get chocolate, magazines, scratch cards
£80 - 120 miscellaneous Internet orders (mostly pointless gadgets.)
£140 - £200 food shopping
£160 fuel
£340 rent inc util bills
£40 mobile phone
£25 health lottery
£60 national lottery on-line
£10 lovefilm
£70 car maint
£35 clothes
£10 Hair cut
Really, I know where I need to cut down. I just struggle with motivation (I/E I don't actually NEED to cut down, I could easily keep going like this.) and self discipline. Honestly speaking, a lot of purchases are through bordem and a lack of social activity. But, they cost money too!
Anyway, I think a good way forwards for me could be to quite using the debit cards so much and withdraw some cash every month and leave the cards at home.
I hate seeing 3 pages on my page statement with loads of different transactions anyway.
I've been playing around with the budgeting tool, and plan to save £600 from 25/04 to 25/04 (Paydays)
Thats a grand a year. Think how much you want to save each month, then stick that amount in with your list of expenditures.
And try transferring £500 (or whatever) to a second account as soon as you get paid and consider it "locked away". With me that psychologically stops me spending as much because my bank balance is tighter than before.
And try transferring £500 (or whatever) to a second account as soon as you get paid and consider it "locked away". With me that psychologically stops me spending as much because my bank balance is tighter than before.
Shay HTFC said:
Think how much you want to save each month, then stick that amount in with your list of expenditures.
And try transferring £500 (or whatever) to a second account as soon as you get paid and consider it "locked away". With me that psychologically stops me spending as much because my bank balance is tighter than before.
Handily, I do have two current debit accounts which have a card each, and two savings accounts all with HSBC and manageable in the same place.And try transferring £500 (or whatever) to a second account as soon as you get paid and consider it "locked away". With me that psychologically stops me spending as much because my bank balance is tighter than before.
So, the bills will come out of the account in which the salary is paid (All bills are within a few days of payday too.)
On payday, £600 will be transfered to the savings account.
Every Monday £x will transfer from the salary account into the spending one.
Sounds like a reasonable plan right?
Changedmyname said:
Maybe to much on the gambling side of things, Lotto,scratch-cards etc.
I mean if you cut one or two of these out.....?
I'm ditching the national lottery altogether, I will be keeping on with the health lottery at a fixed £25.I mean if you cut one or two of these out.....?
I do like a little bit of excitement. Current spending is beyond excessive though admittedly.
With the risk of opening up the "Premium bonds odds aren't great", why don't you put £100 into bonds each month. This is just a little more than your current lottery outgoings.
You're then have a "dog in the fight" regarding the potential of winning some life changing money, and saving at the same time.
You're then have a "dog in the fight" regarding the potential of winning some life changing money, and saving at the same time.
HBFS said:
scratch cards
£80 - 120 miscellaneous Internet orders (mostly pointless gadgets.)
£40 mobile phone
£25 health lottery
£60 national lottery on-line
£35 clothes
£10 Hair cut
Wow.£80 - 120 miscellaneous Internet orders (mostly pointless gadgets.)
£40 mobile phone
£25 health lottery
£60 national lottery on-line
£35 clothes
£10 Hair cut
Ok, the gambling has been dealt with. Get a cheaper "thrilling" hobby. Play free online games or something. Premium bonds certainly make more sense and at least you can get it back if you need the money.
Pointless gadgets - if you want to save money, stop buying that s
t. Look at the stuff you bought over the year. If I offered you 50% of what you paid, would you snatch the money out of my hand?£40 for a mobile phone? Get out. Sure, you get loads of minutes. Just use it less. Save it for emergencies and be tight with your texts. I have a personal rule of 5 a day unless organising something.
You spend £35 a month on clothing? Can't you wash your w
k socks rather than throw them away? Stop shopping at Top Man and start shopping at Asda. You can't afford to shop at Top Man.Haircut - get a £10 set of clippers. You can't afford a fashionable haircut.
(Of course, you can afford it all but it is a waste if you can put the money to better use - you know what I mean.)
marcusjames said:
With the risk of opening up the "Premium bonds odds aren't great", why don't you put £100 into bonds each month. This is just a little more than your current lottery outgoings.
You're then have a "dog in the fight" regarding the potential of winning some life changing money, and saving at the same time.
Good call.You're then have a "dog in the fight" regarding the potential of winning some life changing money, and saving at the same time.
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