November '06 PMS Challenge

Queenie

Here we go for November's PMS Challenge.

With Christmas looming large, don't forget to keep your eye on the New! Christmas & Winter Festivities Board loads of wonderful ideas!

Good luck for November. Remember: Pinch those pennies and squeeze those pounds

Queenie wrote:

This is 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!)

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)

There's a danger that those "savings" are being swallowed up elsewhere and never really knowing just how beneficial those nips and tucks have been in reality or benefitting from them. This is pin money and we should know how much we're accumilating; We should be able to tap into that money and benefit from it; we've earned it by making cost cutting choices!

First, choose a goal. 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? A variety of ways ...

Coupons/Vouchers: 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 x amount becomes your pin money savings. Put the same value of the coupons into your pin money.

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:
Take a look through the Storecupboard Challenge and/or the Monthly Grocery Challenge. If you find your food bill reducing, put that extra into your pin money.

Tips from here: Cleaning: 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.

Make it from Scratch: Look through the recipe collection and see if you can make it/bake it cheaper.

Research your purchases! - before you buy anything have a look through the Shop but Don't Dropand Quick Grabbit While You Canforums to see if you can get it cheaper (utilise the "search" facility within those forums too). If all else fails, try posting in I Wanna Buy-It, Do-It forum, someone else may know of the best deal on what you're looking for.

At the end of each month, 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.


Clarification of Virtual Savings

Let me give you an example:



Suppose I've worked out my budget and menu plan for the week and one of the items, I know, will cost me, say, £1.99. Off I go with my list. When I'm at the store, I find a pack of something else, reduced to £1.99 instead of the usual £2.99. So, I snap it up!

I have made a saving of £1


However, I didn't *have* £2.99 in the first place; therefore I would never have bought it. I could *only* buy it, because it was the same price that I had available to spend. (The original £1.99). In reality, I haven't saved any hard cash. But that doesn't mean I haven't saved. That is where *virtual* savings come into play.


By simply snapping up a bargain and not spending anymore than I usually do, I've bought something a little better that I couldn't normally afford.

I don't want to lose sight of the fact that I've saved that £1 by being more shopping savvy.

So, I record it as a *virtual* saving ...

... not *real hard cash* but a saving nonetheless.

The term, *virtual* saving, is a bit like "virtual reality" LOL

It can be quite demoralising if, week after week, some of our MSE'er are really working at pinching those pennies and squeezing those pounds - this way, at the end of the year, they can still see that - hey, it's working!

Now, should I find my budgeted £1.99 item reduced to 99p THEN I have £1 in cold hard cash that can be put away into the pin money savings.

I hope that makes it a bit clearer. If not, don't hesitate to ask any more questions.

scuzz

Over three hundred pounds in my on going pot now!!

No target, just looking to build on the flat fund

savingpennies

Fell off the wagon for the last two months and didn't monitor my pms. Need to get firmly back on track and try to hit my target. Got £5.75 worth of coupons to spend in Asda tomorrow so that should help.

EagerLearner

I failed miserably in the October Challenge and need knuckles rapped by Queenie... BUT... I have been on the grocery Challenge and been saving THAT (joint) money... on my personal account I have now properly done a budget (as I promised M'lady Queenie, last month) and today opened an extra savings account in honour of PMS. So my first challenge will be to put my 'clothes and going out money' into that account AND have some left over at end of month to save...

jaybee

I'll be doing this again for November - although I can see that I will be spending more as well with Christmas coming!

October was good for me with just over £100 saved!!! Mind you, £70 of that was from a payment from Mutual Pints as well as £8 of Pinecone Vouchers.

Good Luck everyone!

thunder_fairie

I am going to give this ago.... I already have been savin all year for christmas ... I tend to clear out the pennies from my purse and the bottom of my handbag every so often when it is gettin full. So far I have a biscut tin full ... I think if I empty it into one of the asdas penny change machines I will probably have enough to pay for the basic christmas dinner (starter/main/dessert) for the four of us this year.
I think I can do well on this one, just have to be more savvy in the shops.
Every penny I save helps me to pay off me lower debt of £1400.00, so it will not be frill money, but still pin money.

mrsmortenharket

the thread faries stole my post so shall try again.

Over the past 2 days I have saved a total of £2.52. One was a buy 2 for X amount offer & another was a bogof. One was a seasonal buy & the other is something I'd only buy on offer iyswim. So does the saving count towards my Pin money challenge?

I have never done a PMC before so I thought I'd start simple with bogofs but I can't even get the hang of that, lol!!!

Lisa x

squeaky

Hi everyone

Just a reminder that I'll be unsticking this thread some time late today - by which time it'll be the featured challenge in our Monthly Challenges sticky.

You can find the challenges via the link in my signature any time you see it or...

..you can use the Monthly Challenges link in the Blue Bar at the top of every page which looks something like this:-

thunder_fairie

Well I have managed to save £1.00 in pin money so far!! I went to poundland to get the kids cheap halloween outfits for £1.00 each, but waited untill the day and they were half price so I only paid 50p each...... hows that for savings and from a pound shop too, I never thought you could get any cheaper.... lol. I have put this money away towards my final savings, you can not miss what you never had so pin money is great ... its the money you never thought was there.

cashsaver

I'm in..... and certainly inspired!!!!

I'll have to "learn" as I go along...

Do you save your PM in a jar??? I would be interested to know what methods others have ? Good luck everyone!

Claire

EagerLearner

Welcome cashsaver - I tend to transfer my PIN money into savings as soon as it happens - then I know it's done. Mostly I do it with our shopping - if I come in under budget per week, or if at the end of the month there is any money left (ha ha ha)...