How to save money within reason

Fusspot

Hi, I know this topic is covered quite a lot but I seem to be getting myself into a tangle. I work full time and I like to socialise, I certainly don't want to spend nothing and be miserable but need ideas on how to cut down within reason and also save money for yearly expenses.


My salary is usually £1,220 per month, my outgoings as regards bills and bus fares can be up to £700 per month. My current overdraft is £90, my credit card has £115 outstanding and I have £800 in a savings account which I am trying not to delve into.


I can guess that judging by how some people's debts are this may not seem a lot but I am someone who is not used to being in any debt and its bugging me.


My circumstances are, I live alone in a Council flat, I have two cats, I like to eat out and have coffees out, I am interested in family history so have an Ancestry membership which needs renewing yearly (approx. £100). I like clothes and make up but don't go overboard and only spend what is necessary. I have my hair done every six weeks which costs me £50 but as I am going grey I prefer to have it done at the hairdressers rather than attempt it myself. I know that colleges are cheaper but you need to spend a lot of time there and I am unable to fit that in right now.


I like meals out and I love going out for coffees and prefer places like Starbucks and Costas rather than cheaper than places as I love the coffee and the atmosphere in such as Starbucks. I have a partner who doesn't live with me and we go halves when we go out together so that works well.


I try to use my slow cooker and do batch meals but I am weak when it comes to ready meals as they are so handy. I have also been buying fish and chicken fillets from Birds Eye which are quicker but then again the cost adds up.


I am particularly struggling this time of year for Xmas which is why I am overdrawn.


What I need is a plan so that I can save throughout the year for things like - my Ancestry membership, Xmas, birthdays, possible vet bills, whilst also still putting money in my savings account.


Any ideas please?

Tink_04

Why don't you try changing one thing at a time and see how much you can save? maybe set a budget which you think is reasonable to spend on the things you enjoy and then try to cut back on one area pee month?

nursemaggie

The best way to start is keep a spending diary. You need to keep all your receipts. Put them in a exercise book or one of those A4 refills or in a spread sheet and see where your money goes. If you are horrified by what you spend cut it out one thing at a time. Baby steps it takes a long time.

You will save the interest if you pay off your credit card and overdraft. Credit card interest is very high. Put back what you are saving and you will surprised how quickly your savings add up.

You could try spending only cash it's a lot harder to spend cash than use a card. That way it makes you think about what you are spending.

SailorSam

Can't you drop paying for the Ancestry and use it for free at your local librabry.
I think if you have savings i'd pay off the Credit Card and overdraft 'cos you'll be paying interest on those.

calicocat

When I started looking at my budget I found cash pots very helpful.....and still use them now within reason.

I had / have...pots for food, petrol, going out, saving.

Then, I ended up with various different saving pots when I began to accumulate savings.....a pot for garden stuff/holiday....etc...

Then, I had a pot that was savings from all of the above which went into the bank as didn't and wouldn't need using that month.

Now I have a plan so have a SO for the bank savings.....but I always make sure I have a 'fun/going out pot'....so it keeps me thinking I have options for fun.

It's a balance isn't it.

Good luck....you sound quite organised


Oh...and I found that my going out pot often contributed to clothes and hair at one point, plus xmas spends. In the early days I had two food pots, one for the month, and one for extras like xmas or meals out. The whole 'cash' thing focused my mind on what I was spending and where.



It also gets quite addictive for a while.....lol.

dingdongsaving

I'd say be true to yourself & your financial limits.

If you can afford it & really love your treats/don't want to change them then just find other ways to save. As you mentioned, you don't want to be miserable by cutting these things out completely - perhaps just limit yourself to a certain number of coffee/eating out experiences a week/month so that you're left with enough to save too.

Maybe try & save a chunk on groceries each month by changing your kitchen habits instead of over-limiting treats. Do you eat out for the "experience" every single time? I really doubt it. Before we started meal planning & cooking things we really love at home we used to eat out multiple times as week...& the unplanned times were certainly NOT for the lovely experience...fast food/pizza/a local restaurant that we didn't necessarily love etc. etc.

We really do love to eat out, & we enjoy drinks/treats whenever we're in the city, but we plan when we'll do this & only do it in places we really think are the best (not just because we haven't been organised/there was nothing in the house we fancied/we forgot to get something out of the freezer & can't be bothered to sort anything!) We also don't like larger "chain" eating/drinking chains...we find the "experience" in a more select places is far more special/unique.

Before we had kids, got our 1st home, got a 2nd car etc. we just cruised along on a monthly basis spending here & there & always within our means & blindly thinking "it doesn't matter because we have enough money". Then, one day we decided we also wanted some savings & things to aim for. We sat down & planned how we'd spend, how we'd eat (at home & out) & how we'd save.

Honestly, it was so liberating & it's meant that we have a nice chunk of savings for emergencies such as if 1 of couldn't work or lost a job etc. & we have annual savings that go towards a holiday/extra Christmas treats each year too.

Perhaps pick your annual target(s) & work from there. How much would you like in saved? How much would you like for Christmas presents/extras by next November/December? Work around those figures & how much you need to save each month for it to happen.

You can always come back here with a figure to try & shave off your spending to get ideas or go to the grocery challenge board to help you stick to a set budget there too.

Good luck!

Dozey_crow

I think you have some quick wins here as obviously you realize that something needs to give in order to avoid debt. I would work on being organized. Ditch the ready meals, buy the ingredients and make your own, it's quite a simple way of saving money. Change from birds eye to supermarket own or even butchers perhaps for meat? (Sorry we are a vegetarian household.. Sure some meat eaters will be along to advise though). Perhaps think about how and where you shop see if there is anything you can do there (ie use Aldi\Lidl and meal plan).

As for going out... That's fine but look on voucher cloud or similar for deals when eating out. I am not a fan of the larger coffee shops at all and find the quality of coffee better in smaller and cheaper independents. If you really have no alternative can you invest in a coffee maker at home and take coffee with you sometimes? Just two a week will save around £10 per week which would be quite a bit towards Ancestry subscriptions and clothes.

Also try the save '£1 per day' thread on here it's quite good!!!
Hope this helps

trailingspouse

The Costa/Starbucks treats can mount up. How often do you do it? Every day? Once a week? It's actually more of a treat if you do it less often. Do it too often, and it's just a habit and stops being special. If you spend £3.00 a day, that's £30 every ten days, or £90 a month!! That would pay off your overdraft.

suicidebob

I always had suspicions Starbucks was full of poseurs drinking expensive coffee who really couldn't afford it!

Fusspot

Thanks for your replies which are very helpful. It is important to enjoy treats without going over the top as you say. Coffee shops are quite a salvation for me, when I am meeting friends that's where we go to catch up on chatter, I go to a coffee shop every lunchtime with my friend, I don't want to have a coffee at work as I like to get out of the building during my lunch hour and don't want to wander round so we go in Costas and have a natter. I also go in coffee shops when I am on my own as its a way of passing time, I take my tablet with me or something to do.


I used to go on Ancestry at the library but then it did restrict me and when I could use it. I like to browse on it at home and on my tablet when I am out and about, I don't want to be limited to using it at the library.


I am going to set out a better budget for myself. I do use a spreadsheet on Excel but I need to work it out differently I think.

Broomstick

Have you seen the Demotivator?
http://www.moneysavingexpert.com/shopping/demotivator/

I wondered if you could try saving money in a different way every week until Christmas. You'd be making savings and you won't get bored because it will be chopping and changing. You might discover that some things are way easier than others and you could instigate those properly once Christmas is over.

You could always make good coffee at home and play https://coffitivity.com/ I love this site when I'm working at home, need to be creative but don't want words or music and don't want silence either.

B x