Nervous of my own challenge - reduce or stop spending!

lizzyshep

As the title says, I'm looking for advice on how to cut my spending down.


I’m starting to get quite worried about my financial situation. I earn a decent wage and I'm lucky because my job is fairly secure (as much as it can be in the current climate), but I really want to try and save some money, just in case anything happens. Also, my partner has just found out that he's being made redundant, so things are going to be even tighter. Finally, I started counselling last November and it’s costing me £320 a month – it’s worth it but obviously this has made a huge dent in my wages.

I’ve always found it difficult to save money and have got myself into debt several times and had to take out loans to pay this off. I’ve nearly finished paying off my bank loan and student loans and should be debt free by this time next year. Having said that, my fixed rate mortgage expires in November, which worries me as I don’t know if it will go up, and me and my partner hope to buy somewhere together in the near future and start a family, so that will mean increased costs.

I think I’m generally quite good at seeking out good financial deals - I made £400 in the last 2 years just from switching bank accounts, and I’ve just taken out a Tesco credit card that gives me 0% on spending for 12 months – the plan is to spend on this as much as possible (only on essentials though), and put the money I save into my ISA (fixed at 3% until July, will look for a new deal when it runs out). Then at the end of the year, to pay off the credit card in full, and hopefully I will have made a bit of money in interest. I know I will need to be EXTREMELY disciplined and make sure that every time I spend on the credit card, I put the money from my bank account into the ISA. I’ve got a little notebook that I will use to help me with this. I’ve done it before (with a 0% overdraft) and it worked, I’ve now got nearly £2000 in the ISA and I even managed to pay off the overdraft without taking any money back out of the ISA. It earns me a nice little £5 a month, which all adds up.

My main problem is that I can’t seem to stop spending! It’s alnost like an addiction.
I’ve tried budgeting but find it very hard to stick to one. There’s no reason I need to spend all this money – I have plenty of entertainment in the form of books, computer games, friends, free days out at museums and galleries; I have a very full freezer and storecupboard; plenty of clothes; TONS of body lotion, moisturiser etc – yet I still find myself spending nearly £80 a month on food, when I’m trying to only spend £40, and my freezer and cupboards keep getting fuller! I also find new things I ‘need’, and don’t end up using or appreciating half of them – though I think my new breadmaker is actually a good investment (I KNOW I could make it by hand but it’s not as nice and I don’t have time!).

So far I've thought of the following (I already do some of these):


Leave all cards and cash at home, unless I specifically need to buy something (e.g. milk, transpost costs), this will stop me buying snacks at work
Not go into shops or onto Amazon ‘just to look’]
Download free classical music instead of buying CDs
Buy clothes from charity shop instead of new
Stop spending money on beauty treatments and do them myself
Involve my partner and ask him to help me stop spending
Take part in the Storecupboard challenge, Grocery challenge and Pin Money challenge
Allocate money at the start of each month for things like food (I buy most of this in cash from the local shops and market) and when it’s gone, it’s gone
Read through 'Sneaky Ways to Save the Pennies' and write down/carry out any useful tips

I also thought about putting £1 in a pot for every day I manage not to spend anything, and put this into my ISA – not sure if this will be a strong enough motivation though

Basically I know what I should do but have trouble doing it - I'm looking for motivation really, but any other tips would be great.


Sorry this has been so long, it helps to get it all down.

Ladyhawk

I defintitely find not going to the shopping centre helps me not spend (it's obvious really!). I used to go like clockwork whether I needed something or not. Now I try to save up reasons to go so what I buy is actually what I went for.

I am addicted to freecycle. If you really do need anything just pop a post on your local one and see if anyone has it going spare. I have got a slowcooker, breadmaker and kenwood chef (hopefully!) by doing this.

Have you tried the no toiletry challenge as well? That was a wake up call for me.

Oh - and if you find that you hav bought something that you don't need, then take it back for a refund!

HTH

L

lizzyshep

Thanks Ladyhawk. I did join Freecycle as I was looking for a yogurt maker, plus I had a few things to give away (couldn't believe how quickly these were snapped up!). I asked a couple of times but got impatient, so asked for one for my birthday instead (which hardly gets used :undecided), I probably should have tried a bit harder though.

I haven't heard of the toiletry challenge, where can I find this and other challenges? I've got this link but not sure if there's another one somewhere:

http://forums.moneysavingexpert.com/showthread.html?t=767513

missychrissy

I think you need to get a tight grip on yourself. You have answered your own question because you clearly know what to do.

About 2 years ago I realised that despite earning a decent living I always just scraped by and that if I could halve my expenditure I would have money (savings) to afford things such as helping my sons with weddings, cars etc. I therefore decided to apply the half rule. I had to spend half of my previous expenditure. This can be a combination of using less, finding a cheaper product or a combination of both. I grouped the utilities together, gas, electric and water as I was able to save more in certain areas. I now have my weekly supermarket shop down to an average of £10 per week (I live on my own), though I don't go shopping every week, probably once every 6 weeks and sometimes I see how far I can stretch it without hitting the supermarket.

I found the best way not to spend was to just not go shopping.

I used to be the same as you, however I discovered that it can be quite addictive money saving once you get into it.

lizzyshep

missychrissy wrote: »

I think you need to get a tight grip on yourself. You have answered your own question because you clearly know what to do.

About 2 years ago I realised that despite earning a decent living I always just scraped by and that if I could halve my expenditure I would have money (savings) to afford things such as helping my sons with weddings, cars etc.

Yes, this is exactly how I feel. I look around at all the things I have and think how much they cost, and that I could have spent that money on other things, or put it in the ISA. For example, I hardly ever go on holiday - I know this is a real luxury and something not everyone can afford, but I would love to see more of the world - and which will I remember more on my deathbed, a case full of books/DVDs/CDs, or the trip of a lifetime?

So, a tight grip is in order! Very hard to be disciplined, but I will do my best.

lizzyshep

Right, have just been on phone to partner and he is coming round in an hour. We were planning to go out to a museum but have decided to stay in instead - entry was only £5 but we would probably have had lunch too, so would have ended up being closer to a tenner. Instead we're going to cook and eat here (using up some of my stash!), play a board game and do some painting by numbers. He suggested meeting a friend for a coffee but I suggested inviting her round for one instead, so we'll save a couple of quid each there too. He said he is quite keen to start watching the pennies too, so hopefully that will make it all a bit easier.

Ladyhawk

This is the challenge I meant:

http://forums.moneysavingexpert.com/showthread.html?t=2245067

flutterbyuk25

As other's have said once you get into it, moneysaving can be quite addictive!

I get real pleasure from using something up from the cupboards/freezer rather than having spent £15 on a takeaway! I also like the satisfaction of using something up, be that an old bottle of moisturiser that's been sitting there for a year or a free sachet of shampoo.

I found about 18months ago that I had a fair few bottles of shampoo and conditioner that I had been sent as free samples or had free with maagzine subscriptions. And then I won a big box of shampoo/conditioners in a competition. I decided not to buy any until I had used up this stash! It took me about 15months to do, and now I appreciate what my hair likes and doesn't like.

I find it easier to save money when I have a goal in mind. Be that goal a holiday, new outfit, day trip away, etc.

If I don't buy lunch at work (or I get a free one) I put £3 a day in a savings account - all online so easy to do! By taking in lunch I save myself money, use up leftovers, and I'm not tempted to buy stuff I see in the shops at lunchtime cos I don't go! I empty my purse at the end of each day, and put coppers and small change in a big jar, and try to put £1/day (or £2 coins) in a giant piggy bank it's really sad but I enjoy doing this!

I'm no angel, I do have days where I think sod this and buy lunch even though I've got a salad made ready. Or when I spend too much in the supermarket, but I make myself rein in my spending after that for awhile.

I could probably easily live out of my storecupboards/freezer for a good 2 months without the need to buy anything other than fresh veg/fruit!. But I do feel secure knowing that I have this food here to keep me going should I need it!

Little changes is the way to go, and day by day they will turn into bigger monseysaving lifetime habits!

HTH and good luck

x

flutterbyuk25

lizzyshep wrote: »

For example, I hardly ever go on holiday - I know this is a real luxury and something not everyone can afford, but I would love to see more of the world - and which will I remember more on my deathbed, a case full of books/DVDs/CDs, or the trip of a lifetime?

So, a tight grip is in order! Very hard to be disciplined, but I will do my best.

This is exactly why I save money - to do things I will enjoy and remember, rather than spending £15 on a DVD that I'll watch once then will gather dust.

Use library for dvd/books/cds etc. I sold around half my DVD/CD/books 2 years ago to fund me to do Camp America and go travelling, and I've not bought a single one since!

In the last 2 years I've travelled extensively - US, Canada, New Zealand, Dublin, and all round UK - whilst one of my friends has been away just once. She earns more than me, and has a husband who earns too (whereas I'm single). She says they cannot afford to go on holidays, but she shops daily in Tesco, with no list/menu plan, buys books/DVD's weekly, never homecooks, just makes ready meals etc.....

x

mardatha

I can only tell you how I do things, and what works for one doesn't work for another . -
I never use credit cards at all, and only use the debit card to buy online.
I take a certain amount of cash from the bank every week and live on that - not a penny over!
And when I started cutting down, I always said to myself "just two weeks of this that's all".... then "ok just another two weeks, that's all ".. it made it easier if I had a goal in mind . Best of luck !