How can I do it? Any ideas???

Knowledge_is_Power_2

Hi All.

I'm a first timer here and am looking for some help.

This site is awesome and is the answer to alot of my problems... but not quite all.

I've wasted a fortune on books telling you how to save money and bank a fortune etc... But all I want as a first step is to spend less than I earn.

I know how I can do it. I've been through the fantastic budget planner, seen what I spend (£450 over my income...OUCH!!! :eek: ) And I've made some changes, seen where I can plan and save better and just by looking at prices of products in super markets etc I've seen I can save a tremendous amount and bring my spending down to save around £150 per month less than I spend.

My only problem is I like spending. I don't go out and buy toys etc... I just buy little things without even noticing (which add up to hundreds every month).

Is there a way anyone can suggest of me tracking my day to day spending??

I've thought about carrying a notebook around and jotting every penny spent in it. Is this a good method and does it work?

Any other ideas would be a great help.

I really do want to get on top of my money and make it work for me, but I've never been taught how to manage money. My parents are fantastic at it, but they never spoke about it around me so I never learnt.

The other reason I'm looking for a tried and trusted method is that alot of books provide a solution, but it's completely impracticle.

Any help would be greatly appreciated.

Lola.G_2

Why don't you just take the cash you will need each day, and leave your cheque book/debit/credit cards at home. Then you can't spend anything on these 'little things' you keep buying. I did this a few years back and it worked well for me. I always had an extra 'emergency £20' at the back of my purse just in case I needed it for unexpected taxi fare etc and because I'd labelled it in my mind as 'emergency money' I never spent it on anything else. Good luck.

Glad

you've chosen totally the right site to visit but probably MSA was the wrong board,

I'm not sure where was the perfect place to pose your questions really but I'm hoping that on this board people might point you in the right directions

welcome to MSE

valiant23

Knowledge_is_Power wrote:

Hi All.....

Is there a way anyone can suggest of me tracking my day to day spending??

I've thought about carrying a notebook around and jotting every penny spent in it. Is this a good method and does it work?

Any other ideas would be a great help.

I really do want to get on top of my money and make it work for me, but I've never been taught how to manage money. My parents are fantastic at it, but they never spoke about it around me so I never learnt.

The other reason I'm looking for a tried and trusted method is that alot of books provide a solution, but it's completely impracticle.

Any help would be greatly appreciated.

It seems to me that you have the answer in your question. As hard as it can sometimes be (especially when admitting to some kind of weakness), ask your parents. I'm quite sure they will be glad to help without getting too 'preachy'. I don't think people are born knowing how to manage their money, and the long-term consequences of bad money management can be more devastating than going to prison IMHO.

I also think carrying a notebook is a good idea-anything that can make you more aware IS good, as is the idea about carrying only the cash you need. The only problem with that is I think you probably keep your cashcard with you all the time 'just in case' (as many do) and it's almost like a security blanket.

Only other thing I can think of is perhaps get into the habit of carrying a very small wallet/purse.

Squidgy

spend a little bit more and get the money book. Once you've read it and started saving money it will make you want to save more. I love spending, but I now love saving more!

fazer6

If you've done the budge planner you'll know how much you've got to spend each month for each thing - ie how much on food, petrol, going out.... Take the cash out each month and put each budget into a different wallet. That way you can see at a glance how much you have to spend for each thing and once it's gone it's gone so you can't overspend just wait until payday. Before buying anything ask yourself, do I really need it this week. Go into money saving old style and start looking at food shopping advice. Plan your meals each week firstly using up your freezer and store cupboard stuff, and then only ever buy what you are going to use for meals that week.

elona

One money expert suggested to someone who said that he/she could not save because there was never any money left over "Pay yourself first" - if you set up an amount that gets transferred automatically into say a cash isa or a savings account then you really will not notice it.

Halifax have a plan where you can save between £25 to £250 per month for a year and at the end the interest rate is 7%.

I agree with the idea of Money saving old style as I have saved a lot of money using some of their tips. You do not have to suffer or do without -just adjust automatic habits a little bit.

Queenie

By all means take your notebook ... just use it slightly differently!!!

Write down in your notebook what you would have been TEMPTED to buy (do not take any money with you!). One week later, go back over those things you would have bought and then decide whether or not you still NEED them - if you do, you'll have a note of how much it's going to cost and IF you can still afford it.

Nile

I think using a notebook is a good idea.

I use a small (5" x 3") spiral notepad (only 9p from Asda) whenever I go shopping, it's small enough to fit in your pocket. I have my shopping list and then I can write prices next to the items as I move from shop to shop. Sticking to a shopping list will help you to overcome the impulse to buy.

I also use the notepad when I go on holiday. I write down prices in the high street at home, then prices in the airport duty free and compare with prices at my holiday destination.........to get the best bargains. I also make notes of free or cheapie things to do or best prices for eating out and opinions of the hotel etc. Even if I'm not intending to return to that resort, the info might help other MSE travellers.

I don't have a credit card and use cash. I stick to a budget and save up for luxury items. It's old fashioned but it works for me and I don't have sleepless nights worrying about credit card bills.

bridiej

I used to (and still should!) take out £200 in cash just after I got paid and that was my money for food, petrol and going out then leave my cards in a drawer and NEVER take them out until the next month.

The thing is you can still buy that CD you really can't live without, but it just means you have less for food, and because you are handing over cash rather than a card it feels like you are actually spending the money.

Also it will make you budget better for food and petrol because whatever you have left over at the month you can either put into a savings account or spend on a luxury!

littleangel

The idea about writing down things that you WANT to buy but don't is a great one that I've used before. If you put it off for a week, you can decide if you really want it or if it's just a momentary impluse. It also means that you're not denying yourself things, you're just putting it off for a week. I (try and) do this, and it does work.

I'm like you, I like spending! When I'm really broke, and I felt like shopping, I'd set myself limits - "you can spend five pounds in Boots / Superdrug but you can't spend 30 quid on a skirt that you don't really need" - which I find really works. I can get a mini-treat for myself that gives me that instant gratification, and I feel like I'm treating myself rather than denying myself.

It's a bit like dieting, I find - if I say that I'm not allowed to eat chocolate ever again, all I think about is eating chocolate, and find myself at home with a family size block of Cadburys Dairy Milk... (well, the empty wrapper actually) If I just try and cut down, I don't worry so much, and maybe have one or two Milky Ways a week and feel happy and in control.

When I'm trying to save money on particular areas of my life, I use Excel and put everything in there (the notebook is useful for jotting things down when you're out and about - Excel is great because it does all the adding up for you and you can see a summary of weekly / monthly spend at a glance). Keeping a proper record is the first step - if you know EXACTLY where your money is going, it's a lot easier to start cutting back on non-essentials.

Good luck!