May: Pin Money Savings Challenge

Queenie

Pin Money Savings Challenge Details

(PMS Challenge)

This is going to be 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)

I have been very impressed with the responses to the Now & Then threads recently and how you all manage to pare down your spending/budgets on a regular basis. I've even impressed myself with new ideas that I'm incorporating. The danger (for me) lies with those "savings" being swallowed up elsewhere and never really benefitting from them or knowing just how beneficial those nips and tucks have been in reality. Yet, this is my pin money and I should know how much I'm accumilating; I should be able to tap into that money and benefit from it; I've earned it by making cost cutting choices!

First, we need a goal. You need to 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? Lots of different ways.

Coupons: 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 coupon 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: If you find your food bill reducing, put that extra into your pin money.

Tips from here: 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.

At the end of each month, you 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.

Queenie

First month over already and time to kick start May

I've still got to count up my final figures (been very busy with other things so haven't got a closing balance for April yet) and go through yesterday's receipts to calculate the start of this month.

One thing I have been working on during April, it to pull back into line the family's way of thinking towards food/money Reintroducing foods long forgotten into the menu plans which are cheaper and healthier alternatives: the difference will be halved, one half into PMS the other half will be used as a permanent reduction in the overall shopping budget.

Boot Fair season is kicking off now, so I have my list of items to look around for (no rush!) and I've worked out how much I can budget on each item. If I can get it under budget the saving will go into PMS.

I plan to look into doing a "Judi" ... decluttering and finding ways to earn a sheckles to put back into the coffers

Good luck for May :beer:

jaybee

Thanks so much Queenie for startg all this off. I'm really fired up now as I managed to keep track of £104 savings last month. This was mostly on BOGOFs and coupons as well as counting out my piggy banks. I've always done the BOGOF and voucher thing but never kept track of how much I was actually saving. Wherever did all the 'saved' money go before? This time it's all going in my new savings account. Feeling quite smug now!:A

Queenie

:j That's brilliant jaybee!!!! :beer:
I know what you mean about:

Wherever did all the 'saved' money go before?

Isn't it just GREAT to be able to *see* the rewards!

Lucie_2

I'm going to do the PIN money challenge this month. So far this week I've saved over £10 on multi-buys & BOGOFs - doesn't it add up quicky?

I want a new office chair for home & have seen a pretty good one in Asda for about £40, so that will be my first PIN purchase. If I do really well I'm going to get an ice cream maker too.

Janeryan

Kicked May off to a flying start with a mega saving at Boots.Bought No7 Sun tan lotion and aftersun(as weather is beautiful) and it was on BOGOF so straight away saved £9.50-then earned 500 points for spending over £15.00 on No 7 products(which I didn't actually once the BOGOF was taken off-I did point this out to the cashier but she said it must be alright as the till did it automatically) then it was triple points and then I had a vougher from the Boots magazine for 200 extra points if you bought No7 sun tan stuff so I gained £12.00 points!!

Yippee!!!!

needmoney

I am trying to find the now and then thread but I can't remember anything specific enough for the search to throw it up can anybody please help?

needmoney

Found it now but thought it was bigger than two pages. Incase anyone else is looking for it I'll try and paste the link

http://forums.moneysavingexpert.com/showthread.html?t=36430

fab_at_forty

I am brand new to these forums but I've bin reading all your threads and you all seem so kind and caring so I decided to join in! I'm newly separated after 17yrs so becoming a single parent of 4 and down to one wage instead of two i desperatly need to save all my pennies. It seems so hard when my kids need and eat so much but with all your tips I have somewhere to start so no more wastage, I'm positive I can save some money somewhere :j Thanks to you all I feel inspired!

System

Welcome to the boards fabatforty (like the name by the way), its nice to have you aboard. Thanks for the nice things you posted about the boards and i hope you will be a regular contributor.

Queenie

:hello: fab at forty

needmoney - thanks for putting up that link. We have had 4 Now & Then threads ... here are the links:-

Now and Then:- 28 Feb - 6 March

Now and Then: 7 - 13 March

Now & Then - 14 - 20 Mar 05

Now & Then - April