Best way to make money last

timhill3

Hi All,

This is my first post and while I have found some information very useful over the years, have never actually posted myself.

I was just looking for some help or advice to make my money last, with our income and outgoings (depending on overtime) we currently have anywhere between £700 and £1200 a month left. I know i sometimes waste money but with 2 children and a mortgage and the odd debt like everyone else, I do struggle to get to the end of the month and am in the cycle of living to each payday. The past few months it has really got me down and have to say I have curbed the "wasting" and rarely have a treat, both me and my partner want to change but are just looking for some friendly pointers?

What worries me the most is that I don't have an emergency fund, whats the best way of keeping one of these without dipping into it?

Thank you for taking the time to read this and look forward to any answers.

MrsBunny

Hi,
I too am no expert, but have you tried keeping a spending diary? I have done this for the last month and its a real shocker when you see how much you spend on nothing! Coffees, cake, sweets....all adds up...mine added up to over £30! That £30 could of been a weeks shop paid for, instead of putting it on credit. It really opened my eyes and now I have money left over with a week to go till payday (in the past i would be living on credit).

If you post your SOA (found on the DFW forum page -sticky at the top) I am sure others will be able to help you save and give you some tips. :-)

Good Luck xxx

MummyEm

My advise would be to sit down and work out a budget.

All the bill/mortgage etc are very easy to list but I find with kids its the other bits that add up. Clubs/activities/clothing/shoes etc. really add up.
I now have a yearly budget for these plus car tax, holidays, birthdays, gifts, christmas, insurances etc. After paying the DDs every month, I take out a set amount from our current account. This is all the other bills added together and divided by 12 (12 months!). I put this money into an esaver type account. Then when I spend money on these other items, I transfer them money back into or current account. I also include a set amount for DH and I which is our own spending money. The idea being that we each budget for own clothes/haircuts/nights out/ DH's football/ my sports. In theory this works well, except when DH spends a load of money on who knows what as he is terrible with budgeting !! Good job he isn't the appointed Financial Director in our household :rotfl:

I would also second the spending diary idea as this is great for analysing where the pennies are disapearing off to - if only I could convince DH to use one, we'd be rich!!

RAS

Start here http://www.makesenseofcards.com/soacalc.html

This encourages you to work out what you are spending stuff on and to budget better. Take you time as it pays to dig out the last year's statements and work out where it all goes. Share this with your OH.

And if the figures do not add up to what you know happens each month, you need to keep spending diaries. This identifies the latte habit - a tenner a week or £520 a year. And the little problems called Cashwithdrawal £10.

flippin36

The first thing I did was buy a really good notebook and I jot down everything. I have a page for income, page for outgoings, page for debts. I weekly budget for everything and jot down everything I plan to spend. I have a page for a wish list, I have a rule for unneccessary items in that I always wait a whole month or until the next payday, put each item into order of preference. More often than not by the time payday comes round I don't really want that CD I really neeeeeded! Or that mirror for the bathroom didn't look quite as nice as I thought when I visited the shop 4 weeks later.

My notebook acts as an inventory for my cupboards and fridge and cross things off the list daily so when I go shopping (with my notebook) I know just what I need to restock, rather than just buying stuff. I also jot down anything the kids are going to need in the near future so I can plan for that well in advance. I know in august I will have school shoes/uniforms to buy so I am being extra careful this month. I am writing a Christmas list now so I can plan ahead.

I also jot down meals for the week, any low cost recipes that were successful and cheap, and generally any thoughts and ideas about money saving. I've basically become a bit nerdy .

theoretica

In addition to the really good suggestions above, when you do come to open a savings account think about one which is a bit of a pain to get money out of. There are some which you pay a direct debit into monthly (I suggest as soon as your wages are paid) but lose all interest if you draw any money out before the end of the year. Or find an account where you have to go into the branch to make a withdrawal.

richyje

Well, I believe they only way to save is by being careful what you spend...

When buying something, I ask myself the following questions...
Do I really need it ?
Whats the cheapest I can get it ? Search Internet, Hidden Cashback ? What are the alternatives ?

Overhaul your finances... Have you got the cheapest credit cards ? Are you on the cheapest electricity and gas tarrifs ? etc.... Do i really need Sky TV ??

Nobody likes someone who is tight... But I believe you have to be careful to save. I have been totally broke before and it is not a nice thing to be . I vowed never to be in that situation again. I used to be like yourself, living from month to month... But now I save every month and have been able to save over £15k over the past year and a half.

Have a clear out of your house, any old junk you dont use that you can sell on ebay etc ? put it all in your saving pot... Saving is great, and you get a great buzz when you see it grow... just check that you are getting a good return on your savings.... if not ditch and move to another bank... afterall, it is your money and you are in control !

Best of Luck !

firionicable

Sometimes, you really can't help but to spend and spend on any kinds of things especially when you are just walking at the mall and saw something you like. It is really hard to admit in some point, but that is the nature of human with those who lack a lot of self-control. However, while spending, I will try to make it as an investment as much as I can. Like if you wish to buy this one, why not exchange it with other things that might be useful for you in the future or something you could always use. Like separating needs from wants.

timhill3

Thank you for taking the time to give me some good advice, I really appreciate it... Some of the suggestions mentioned i'm doing already like a budget planner, but I don't keep it up to date enough so need to be more disciplined on that one. Basically I know what wages are going in and the DD's or SO's coming out, but i don't really put the effort in to account for the other spending so I will make a concerted effort to try and improve on this.
As for finding cheaper alternatives i'm pretty good at this, I have two luxuries which i could scrap... Sky Sports & LoveFilm but at the moment these are ok, as i threatened to cancel the sports as I was fed up of not getting offered deals and they gave it me for half price for a year and as for lovefilm this is one of the lower packages which is £7 per month. This is our winding down help so am happy with that for now. Other stuff like insurances, energy etc i'm pretty savvy with and chop and change whenever i see a good deal and my one and only credit card is 14.9% and only £700 limit so happy with that as the limit is so little and the interest pretty good to get a better deal would be tricky and also not guaranteed.
I think my problem has been that I don't think hard enough before i buy... i'm not at the point where i've got an i-phone 4, an i-pad2 and a 50" 3D TV, so i'm not that self-indulged but i do like the odd CD, DVD or Game and the odd item of clothing now and again and do get a kick from treating others, but i'm a sucker for a deal.... HUKD and Quidco were the best and worst things ever invented... lol.
I need to be more tight, but i'm the nice guy who always gets the first round in, so i'll hold back on my generousity for a while at least.

I have definitely come to a point where change is needed. I have had some good discussions with the better half and we have both agreed on £150 per week to live on and a pact to lock away all our cards. We'll draw this out every Friday and MAKE it last. I've tried all sorts in the past, but never really committed to any of it, this time I am or should I say we are... very determined.

Thanks for all your help guys, i'm very appreciative you all took some time to help. Wish me Luck, hopefully in a few months i'll be better off.