No Money - but BIG ambitions

Weronika

Hi, I've been lurking for a while.
I always was good with money, never get any debts and after 2 years of owning £76000 such a huge (for me) amount of money I can't stand it any longer!


I meant to overpay my mortgage from beginning but never got around to actually doing it till now. Even than, I only set up tiny overpayment of £50 pcm. Not happy about it at all, though.

As a first step I have saved up 3 months of emergency fund, now that's out of the way I'll look for extra savings to put against mortgage.

When taking it on I thought I'll pay off 10% extra each year to reduce the term but it never happened as I stopped working for more than a year (I got wonderful little monkey though;)

As a second step I have just switched my dual fuel tariff so going to get those vouchers as extra and I'm in a process of switching to santander to get the £130 and 5% on my emergency fund as well - at the end of the year I should be nearly £500 better of with all above.

The third step is to find an extra £100 a month initially ...

I have tried to do the budget and what not - and started to write down all the grocery spends, coz I haven't a slightest idea. As long as I had money to pay for it I was just spending it;(

Next month I should know how much I spent this month on food, so I can start looking at reducing it.

All the big purchases are out of the way, luckily. Just need a very, very good double mattress for one of the bedrooms and that's it, everything else goes for the mortgage!;)

I just have to do it this time!

frugalfrog

Welcome to the MFW dream! I keep a tally of all the money which goes through my account on a spreadsheet, so it is easier to budget. Also a SOA is a good way to see where you can cut back on. Good Luck

laurel7172

Hi Weronika

Try the Old Style board for hints and tips on making your grocery money stretch further.

And good luck!

Weronika

I looked at the recipes from the old board already, thanks for suggestion Laurel!

I always thought of myself of as savvy shopper and I always stock up when things are half price - but since I become a mum - and that was a very hard transition for me from office to stay at home mum - I found out just how much of an effort is to plan 5 meals a day and snacks!

I'm simply not the type for cooking in batches and so on.

My biggest spend is probably on fresh fruit - and I don't know how to reduce that without compromising too much!

It would probably be easier If I just ate crisps or something as a treat, but I can't go a day without oranges or grapes or such. My 2 year old also when given a choice will eat £2 strawberry pack rather than cheap 30p crisps. As a mum I couldn't be happier that he loves fruits but it does make cutting food bill difficult!

Any ideas appreciated.

Weronika

Hi frugalfrog!
I did try doing SOA but I simply do not know the figures for even basic stuff like clothes and groceries!

I always just bought stuff if I liked it and it was reasonable price.
It's a miracle we didn't get in more debt!

I started counting yesterday, so next month should be easier;)

I know we spend around £2000 per month although we do not get that much income anymore since I'm not working;(

I applied for some benefits because using the calcs look like I'm actually entitled to more than 100pw. That would definitely help!

getmore4less

Weronika wrote: »

Hi frugalfrog!
I did try doing SOA but I simply do not know the figures for even basic stuff like clothes and groceries!

I always just bought stuff if I liked it and it was reasonable price.
It's a miracle we didn't get in more debt!

I started counting yesterday, so next month should be easier;)

I know we spend around £2000 per month although we do not get that much income anymore since I'm not working;(

I applied for some benefits because using the calcs look like I'm actually entitled to more than 100pw. That would definitely help!

go back to 2011 and do a SOA based on that full year

You know your Assets on the 1st Jan 2011 and 1 Jan 2012 and the total income.

Try to allocate where it has all gone(don't worry you won't, very few can)

Some will be easy, fixed DD etc. some harder but go back through bank statements and CC bills and try to remember where you spent stuff.

OK you may have some left over but it will give you an idea of how much you just can't remember.

As you go forward you can tighten up the numbers based on a more detailed reality.

Remember a budget is a plan of what you want to do with your money.

you might not remember how much you spent on say clothes but decide how much it will be this year and make sure thats all you spend.

SOA-1 2011-2012 where it went
SOA-2 2012-2013 where you want it to go

originalmiscellany

For what it's worth, can you go to a wholesalers and cook and freeze in batches? I do that with soup and what not and create a batch of food for several meals quickly.

But keep posting on here, I find that has kept my focus hugely!

Weronika

originalmiscellany wrote: »

For what it's worth, can you go to a wholesalers and cook and freeze in batches? I do that with soup and what not and create a batch of food for several meals quickly.

But keep posting on here, I find that has kept my focus hugely!

I'm just thinking if it's worth the effort? I mean, do I save a significant amount by cooking in batches? Does anybody have any examples how much it save them?

I am sooo not into cooking and spanding time doing household tasks - but at the same time I do not do takeaways as I am too picky.
I love Italian kitchen because most of the pasta dishes are prepared from fresh veg and meat in couple minutes.

I'm probably not making too much sense now, but I don't know how to explain it better.

We save money by very rarely going out - but we eat nice meals at home. I buy all my clothes on sales - I banned myself from buying anything for next 6 months at least after a shopping spree on boxing day. The shopping ban will probably last longer if I just could get back to my pre-baby weight as I got a whole wardrobe (ok, 3) of clothes I no longer fit in.


I am very happy with tips like switching the dual fuel and accounts - couple hours of research and form filling and I am up nearly £500!

So I think my question is how much can I save by doing something I hate - planning meals and cooking - as I am afraid it would discourage me in long term to the whole saving money idea?

I'm going back to work in Jan 2013 (hopefully) and it will get easier than, but I really feel I need to start saving/overpaying already even very small amount.
The £50 OP we just set up saves us 6 years/11k in interest so I'm very keen on increasing it further to see even bigger effects!

property.advert

Weronika wrote: »

I'm just thinking if it's worth the effort? I mean, do I save a significant amount by cooking in batches? Does anybody have any examples how much it save them?

I think this is indicative that you haven't had your light bulb moment yet. You think you have but you haven't.

All the things that thousands of others do and which are proven to save money somehow don't apply to you, largely because you can't be bothered or it is too difficult or it takes too much time. If you'd had your LBM you would understand that you are the odd one out, not everyone else.

Whilst you continue to spend money you don't have, increasing your debt to even higher levels, then you won't stop and change because you can still rob Peter to pay Paul.

If the truth hurts then good, it is supposed to as much as it is supportive. I've gone through my LBM and I too spent time fiddling whilst Rome burned. You don't have to. Change now.

Joeyjo

Weronika wrote: »

So I think my question is how much can I save by doing something I hate - planning meals and cooking - as I am afraid it would discourage me in long term to the whole saving money idea?

Just as an indication I buy big bags of value carrots & make carrot & coriander soup - less than £1 for 8-10 portions and as nice as any covent garden soup at £2+ a carton.

Joeyjo

Also wouldn't you do better paying off the credit card before tackling the mortgage?