Financial Good Habits

[chassis 33]

Yet again I call on the knowledge and experience of the PH collective to save me from a fate worse than death, well not quite.

Who's got any good tips to sort myself out financially.

By halfway through the month all my cash seems to have gone, and im not entirely sure how, despite looking at my bank statments etc., I'm not saving any money etc etc

This was really brought home to me when i caught up with an old friend last week, who despite earning less than half the cash I do (substantially under the threashold to pay back student loans), is living quite (financially) happily with his partner (who didnt/doesnt work since leaving uni), with a baby due end of July and about to get into their first mortgage.

Thanks in advance

Regards
Iain

[randlemarcus]

From your profile:

manwithnocash said:

My "fleet" includes 1980 Series 1 TVR Tasmin 280i, Rover SD1 2600 and a trusty Pug 405 oil burner. Also have silly numbers of engines lying about, mostly V8's, V6's and straight 6's

Different priorities in life. Rule of thumb is to try and ensure that your outgoings are less than your income, and all will be right with the world. You'll also spend less on Swarfega.

[chassis 33]

randlemarcus said:

Different priorities in life. Rule of thumb is to try and ensure that your outgoings are less than your income, and all will be right with the world. You'll also spend less on Swarfega.

Thats why the Pug is going up for sale!!! I think all the engines cost me £100 tops all in, they're not the problem, its the how did I manage to spend £? this weekend on seemingly nothing.

Do I stop using plastic, and have x-amount of cash every week and thats all i spend etc?

[shadowninja]

Post up your monthly expenses and we'll break you... include food, lunch spend, where you buy your weekly groceries...

>> Edited by shadowninja on Monday 6th June 09:37

[zcacogp]

Ask yourself "Do I really need it?" before you buy anything.

Put all spare cash at the end of the month in a savings account that has a 30-day notice period. (Deters impulse purchases.)


Oli.

[gh0st]

zcacogp said:

Ask yourself "Do I really need it?" before you buy anything. Put all spare cash at the end of the month in a savings account that has a 30-day notice period. (Deters impulse purchases.) Oli.

Do all banks do this?

[JagLover]

There are little things you can do that will save you thousands over the whole year.

Make your own sandwiches for lunch, eat out less often, and have more home cooked meals. That alone would save you at least a £1k over the year.

[rdhawkins]

One of the simplest things to do is set up a Direct Debit account.

Add up your direct debits/standing orders over a month, move this amount to your DD account at the start of th month or soon after you are paid, modify all your direct debits to come from this account instead.

It doesn't save you money but at least when you look at your 'main' account you see what you have to spend and you know all your future direct debits for that month are taken of.

We do this and also have an offset mortgage so the money sat in the DD account is still working for us.

If you are really organised you can pay in a little extra for things you know you are going to have to pay for (like road tax, insurance etc).

Been doing this for years now and it really made a difference seeing what you can actually spend. As a bonus some direct debits are 10 months (our council tax is) so you actually end up putting more in over the year, it builds a nice slush fund.

HTH

Rob

[stumartin]

JagLover said:

Make your own sandwiches for lunch,

I've tried this, lasted about a week before I got ed off with it, and forgot to buy any ham, or bread, or sandwich bags (a man should never be caught buying sandwich bags)

Beer really is the root of all monetary evil. If I could just stop drinking for a month or two...

[Rotaree]

I have two accounts one that has all my regular payments i.e. standing orders, direct debits, savings etc going out of it, I pay by standing order enough to cover this amount plus about ten pounds then everything left in my other account is 'mine' to do with as I will. It doesn't make you any more money but it does make it easier to track since you have effectively paid all of your bills at the start of the month so you always know how much fun money you have left!

[JagLover]

[quote=stumartin]
I've tried this, lasted about a week before I got ed off with it, and forgot to buy any ham, or bread, or sandwich bags (a man should never be caught buying sandwich bags) /[quote]

You can try using clingfilm instead if that makes you feel more masculine

If you are having sandwiches don't buy cr*p bread, buy fresh bread every two days. Also alternate sandwich fillings so you have some variety.

[Rotaree]

rdhawkins said:

One of the simplest things to do is set up a Direct Debit account. etc etc

Just what I was trying to say - presumably at the same time!

[Witchfinder]

stumartin said:

JagLover said: Make your own sandwiches for lunch, I've tried this, lasted about a week before I got ed off with it, and forgot to buy any ham, or bread, or sandwich bags (a man should never be caught buying sandwich bags)

Try buying cans of soup for the days you don't want to make sandwiches. At about 50p per tin, you can have your lunch for about a tenner a month.

[cotty]

JagLover said:

stumartin said: I've tried this, lasted about a week before I got ed off with it, and forgot to buy any ham, or bread, or sandwich bags (a man should never be caught buying sandwich bags) You can try using clingfilm instead if that makes you feel more masculine If you are having sandwiches don't buy cr*p bread, buy fresh bread every two days. Also alternate sandwich fillings so you have some variety.

Dont throw your money away on sandwich bags or clingfilm get some plastic sandwich boxes that you can use again and again.

I read somewhere that taking sandwiches to work can save you £1,000 a year. Working in London I think its more than that

[stumartin]

Witchfinder said:

stumartin said: JagLover said: Make your own sandwiches for lunch, I've tried this, lasted about a week before I got ed off with it, and forgot to buy any ham, or bread, or sandwich bags (a man should never be caught buying sandwich bags) Try buying cans of soup for the days you don't want to make sandwiches. At about 50p per tin, you can have your lunch for about a tenner a month.

But then I'd have to install a microwave at work But a quick alternative would be good, once you start only buying lunch on the days you can't be bothered to make it, suddenly you're back buying it every day. It shouldn't be a problem as our canteen is diabolical, but the coffee shop makes these lovely baps I do like a good bap.

[anonymous-user]

chassis 33 said:

By halfway through the month all my cash seems to have gone, and im not entirely sure how, despite looking at my bank statments etc., I'm not saving any money etc etc

The issue is simple. You need to be ENTIRELY SURE where all your money goes so that you can be in a position to change your expenditure. If you do not know where your money goes how can you possibly stop it going??

Build a spreadsheet or buy something like Microsoft Money and record every penny you spend for a month or two. Then you will be able to work out where your money goes and what you can do about it.

Hard fact of life...you need to put effort in to manage your finances correctly!!

>> Edited by anonymous-user on Monday 6th June 13:45

[simpo two]

You need to watch the Alvin Hall series!

Can't give advice without knowing all the details, but look at all those monthly DDs and see what you can do without/cut down on.

My tip for the day - don't use the mobile unless you really, really have to. Wait until you get home and use the landline or e-mail. Oh yes, and go to Matalan or Asda for clothes, and then only when you really need them

[B17NNS]

chassis 33 said:

Thats why the Pug is going up for sale!!!

spoken like a true petrolhead

[MilnerR]

I've simply set up a standing order of £60 per week that goes into a 30 day savings account. If you can't get at the money you don't miss it. If you look back over your career you'll see that you always spend 5% over your earnings, no matter how much you were on. i.e. you'd be just as skint on £15K a year as £25k year....
Making sandwiches is a good idea. Its easy to spend £5 a day on overprized sandwiches, coffee etc etc so don't. There's £25 per week to go in your 30 day account straight away.

Its also useful to have something to save for as well. Just saving money for the sake of it never feels as nice as saving for something. I've got my eye on a 1.9 205 GTi as a toy. When i've got a couple of grand spare i'll be straight in autotrader for a nosey around

[xxplod]

Tonker is right. Buy one of those small note books from WHSMITHs and cary it with you religiously. Then write down absolutely EVERYTHING you buy. And it has to be everything. Every pint, newspaper, bar of choc, EVERYTHING!
It becomes a psycological battle with yourself. You don't want to write things in the book, so you start becoming canny. And you start competing with youself to spend less each day. It really does work.

OK, I was cautioned for shoplifting from Pret-a-Manger and a bloke punched me on the train for turning the page on his newspaper, but I definately saved money!