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New Challenge - Details
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Queenie
Posts: 8,793 Forumite
Ready for the Challenge details? Here we go. The Challenge will begin at the start of the new financial year (this takes into account the annual increases to your Community Charge, water rates etc. plus any changes in the National Budget.) No point relying on your 2004-2005 budget when things are just about to increase for 2005/06!
Once you've set up your budgets (here's Martins article on the basics of budgeting for those who may not have done so yet) you'll know where you're at with your income/outgoings. Some of you will already have earmarked amounts to tackle your debt problems (if you have them. Here is Martins article on Problem Debts) and some of you may even have set up regular savings.(Martins article on Starting Saving)
I have been very impressed with the responses to the Now & Then threads recently and how you all manage to pare down your spending/budgets on a regular basis. I've even impressed myself with new ideas that I'm incorporating. The danger (for me) lies with those "savings" being swallowed up elsewhere and never really benefitting from them or knowing just how beneficial those nips and tucks have been in reality. Yet, this is my pin money and I should know how much I'm accumilating; I should be able to tap into that money and benefit from it; I've earned it by making cost cutting choices!
The old adage: "Take care of the pennies and the pounds will take care of themselves" is as true today as ever it's been and so has the old style idea of "Pin Money" (tucking away pennies to buy the odd luxury - in reality, that pin money literally saved the day when families lived payday to payday or the breadwinner was made redundant!)
First, we need a goal. You need to think about what you want to save for. Maybe it's something relatively small that would actually help you to save more money in the future.
Where is your pin money coming from? Lots of different ways.
Coupons: Put the same value of the coupon into your pin money. You can't bank on coupons when you draw up your household budget, so view them as bonus'. If you normally spent £50 per week on groceries and that week you have coupons which reduce your bill by x amount, that saving becomes your pin money savings.
Bogof's: If it's on your usual shopping list and you are able to get it on bogof - put the cash value of the saving into your pin money.
Freebies: I've put some of these into my gift box store; I can't bank on freebies to provide my gift needs (gift purchases are accounted for in my budget planning already) so they are also bonus' - so, the cash equivalent can go to your pin money.
The monthly food challenge: If you find your food bill reducing, put that extra into your pin money.
Tips from here: E.g. Vinegar as a fabric softener; if you stop buying fabric softener, work out the saving (you'll need to deduct the cost of the vinegar you are replacing it with) and put that amount into your pin money.
At the end of each month, you empty out your pin money and transfer that to a savings account (this way it can now begin to earn a bit of interest = more pin money!
)
The start of the next month, you will know how much you've shaved off your basic grocery bill (this applies to the food/fabric softener example, not those unbankable freebies/bogof's/coupons) so begin by putting that into your pin money.
Each month we can post what we have saved money on and added to our pin money.
It will be very encouraging to see how much you are "saving" by making small changes, even if you can't put away the actual cash.
Some of you have already absorbed these savings into your budget and recalculated accordingly, that's ok, this challenge still applies because any new ideas/tips that you pick up can now be utilised for your pin money.
We can use this thread to discuss any questions, ideas that you have.
Still interested
Once you've set up your budgets (here's Martins article on the basics of budgeting for those who may not have done so yet) you'll know where you're at with your income/outgoings. Some of you will already have earmarked amounts to tackle your debt problems (if you have them. Here is Martins article on Problem Debts) and some of you may even have set up regular savings.(Martins article on Starting Saving)
I have been very impressed with the responses to the Now & Then threads recently and how you all manage to pare down your spending/budgets on a regular basis. I've even impressed myself with new ideas that I'm incorporating. The danger (for me) lies with those "savings" being swallowed up elsewhere and never really benefitting from them or knowing just how beneficial those nips and tucks have been in reality. Yet, this is my pin money and I should know how much I'm accumilating; I should be able to tap into that money and benefit from it; I've earned it by making cost cutting choices!
This is going to be our "Pin Money Challenge" - a very old style way of money 'saving'.
The old adage: "Take care of the pennies and the pounds will take care of themselves" is as true today as ever it's been and so has the old style idea of "Pin Money" (tucking away pennies to buy the odd luxury - in reality, that pin money literally saved the day when families lived payday to payday or the breadwinner was made redundant!)
First, we need a goal. You need to think about what you want to save for. Maybe it's something relatively small that would actually help you to save more money in the future.
For example: I used some Tesco vouchers in January which saved me £28 on my monthly shopping bill - at the till I got that £28 via cashback and then I bought a breadmaker in another shop which was on sale. The breadmaker is saving me money as I don't go to the shops as often to pick up a loaf and end up tempted into buying extra's while I'm there plus it saves on petrol through less trips.
Maybe you wish for something larger - a family holiday? A dishwasher? A newer car? These items may take longer to save up for, but they are still attainable.Where is your pin money coming from? Lots of different ways.
Coupons: Put the same value of the coupon into your pin money. You can't bank on coupons when you draw up your household budget, so view them as bonus'. If you normally spent £50 per week on groceries and that week you have coupons which reduce your bill by x amount, that saving becomes your pin money savings.
Bogof's: If it's on your usual shopping list and you are able to get it on bogof - put the cash value of the saving into your pin money.
Freebies: I've put some of these into my gift box store; I can't bank on freebies to provide my gift needs (gift purchases are accounted for in my budget planning already) so they are also bonus' - so, the cash equivalent can go to your pin money.
The monthly food challenge: If you find your food bill reducing, put that extra into your pin money.
Tips from here: E.g. Vinegar as a fabric softener; if you stop buying fabric softener, work out the saving (you'll need to deduct the cost of the vinegar you are replacing it with) and put that amount into your pin money.
At the end of each month, you empty out your pin money and transfer that to a savings account (this way it can now begin to earn a bit of interest = more pin money!
)The start of the next month, you will know how much you've shaved off your basic grocery bill (this applies to the food/fabric softener example, not those unbankable freebies/bogof's/coupons) so begin by putting that into your pin money.
Each month we can post what we have saved money on and added to our pin money.
What if things are soooooo tight that every saving you make each week can't be put away because it's needed elsewhere?
Not a problem, you can still keep a record but instead of cash this will be your "virtual" savings.It will be very encouraging to see how much you are "saving" by making small changes, even if you can't put away the actual cash.
Some of you have already absorbed these savings into your budget and recalculated accordingly, that's ok, this challenge still applies because any new ideas/tips that you pick up can now be utilised for your pin money.
We can use this thread to discuss any questions, ideas that you have.
Still interested
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PMS Pot: £57.53 Pigsback Pot: £23.00
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PMS Pot: £57.53 Pigsback Pot: £23.00
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Comments
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I really like this idea - it's a very tangible way to measure exactly how much benefit there is from coupons etc, which you can't work out quite so easily as some of the other things we're doing Brilliant - Sign Me Up!
My pin money will be turning into a trip to N'hants to visit friends who I rarely see and who invite me down often. So I need about £100 (depending on cheapo flights!) :beer:Pre O/S: what's a vitamin? Does it begin with the letter e?Now: I'm not eating any of that pre-made rubbish...0 -
Sounds a great idea Queenie, count me in.0
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Fantastic idea Queenie :T
My original aim was to avoid adding to my credit card bill each month, which I've now done...so I'm certainly ready to start working towards a new challenge
Use words that are soft and sweet in case you have to eat them.0 -
Works for me too, I keep getting stuck when I have more money left thann I think I should because of using coupons etc, I think this is a great way to unconfuse me.Organised people are just too lazy to look for things
F U Fund currently at £2500 -
I've been doing this (in a round about way) for some time and can vouch that it works. I have a savings account which is dedicated to saving to replace Mrs MATH's and my cars every 6 yrs or so. Each month a set amount is paid in by DD, on top of that whenever I scrimp extra cash that too goes in as a bonus. Some moths I squirrel £200 or more extra away. You won't beleive it until you actually try it.
To add to Queenie's excellent tips here are a few of my own:
Any DD's that does not run 12 months of the year should be moved to your Pin Money account the months you're not paying it. For egample: Council Tax and Water only run for 10 months in our area.
Any windfalls such as tax rebates, overtime, etc and the like should be paid in automatically. If you were not banking on it in your monthly budget you don't need it for every day living.
At the end of the month prior to your salary bring paid in any credit balance in your current account should be transfered to your pin money account. You work your monthly budget to your income so don't need what you didn't use last month.
Be warned this gets very, very addictiveLife's a beach! Take your shoes off and feel the sand between your toes.0 -
Sounds good to me - like someone else said earlier - my main aim has been to not add to the credit card debt and i've not spent a penny on it in the last 3 weeks! (a real achievment belive me!) I'd really like to buy a new slow cooker as mine's on its way out (it's about 18 years old) I've put off buying one cos it would have meant putting it on the card but this way I can hope to buy a decent sized one by the end of next month.
Count me in!!!!
I'm off to work out my budget for the month and shall report back! "Start every day off with a smile and get it over with" - W. C. Field.0 -
Yep sounds good to me! Looking to save money for holidays next year and this would be an ideal way to do it!! Also I want to try and sell some stuff on ebay for this cause so I can work out my profits and add them all together... great idea Queenie!0
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Forgot to say. I paid off a £3,000 overdraft in 10 months after joining MSE using this system. It works and you can't imagine how well until you do it.Life's a beach! Take your shoes off and feel the sand between your toes.0
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Excellent idea - it's what I should have been doing years ago but never put it into action. I've just retired (this week!) and will have to watch my money very carefully. I'm still working but have cut down my hours. Really looking forward to the challenge!! Credit cards will be paid off this month :j and I'm determined to pay off the balance each month. Will still cards 'cos of shopping at Amazon etc is so much easier!! 0
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