Living below your means

Curry_Queen

Queenie wrote:

Pay yourself FIRST! If you wait to put those savings away each week/month they have a tendancy to be gobbled up; so be strict with yourself and once you've worked out your budget and *know* that you should theoretically have X amount left over - pay it by DD into a savings account.

That's excellent advice Queenie and something I actually started doing after xmas, before I found MSE as it 'appens, and it works for me!

Beforehand, I always used to say I'll save £x a week/month but by the end of the week/month the money had gone so I never got around to saving anything, but now I transfer £x straight into a high interest savings account before I spend anything and then stick to the budgets I've set for myself.

Another good tip for anyone paying off loans/credit cards etc is when they are paid off to keep stashing the payments into a savings account instead, because you won't miss what you didn't have already!

I guess I find it quite easy to live below my means, even on benefits, as I never go out anywhere, no car to run now, rarely buy clothes or make-up, hair gets cut once a year if I'm lucky! ... never buy cd's/papers/mags etc ... so apart from food (and wine ) there's very little to spend my money on!

I don't have any debts anymore and all bills are paid by DD and spread throughout the year, otherwise I'd forget to pay them!

squeaky

What a good thread!

Being one of the many on benefits, I've found that living within your means is a necessity. Not least because trying to pay interest on overdraft or credit card is an almost impossible task on just 4k a year.

Initally I just had to be ruthless in shaking down from a good living to a sensible one within my means.

I have to say - it was no fun at all. Gradually I learned how to be more econmical in what I bought, what I used, and what I (didn't) throw away.

And this left me room, even on a low budget, to allow myself a few treats here and there.

And THAT has allowed things to become much more easy and fun, along with the added bonus of hard earned habits of thrifty shopping.

I thought I was doing a pretty good job too!! Until I found Old Style In truth I have been doing well... and now I've got loads of new ideas from browsing the boards to help me do better still.

There's only one drawback... it's a 24/7 job trying to keep up with everything

Curry_Queen

squeaky wrote:

I thought I was doing a pretty good job too!! Until I found Old Style In truth I have been doing well... and now I've got loads of new ideas from browsing the boards to help me do better still.

There's only one drawback... it's a 24/7 job trying to keep up with everything

Yes, me too!!! I thought I was doing ok till I got here too but MSE has saved me much more than I could ever have managed on my own, and Old Style in particular is like a breath of fresh air with so many excellent tips and advice! :T

Queenie

If I were a Politician ... I would make it compulsory for everyone to have to live on benefits for a fixed amount of time so they can *really* learn the value of money and budgeting! When that MP did it years ago, he only experimented for 1 week (I think it was Portillo? I believe he did an update on that about a year ago too). A week isn't long enough to get a realistic view IMHO.

I've learned most of my knowledge through hard earned experience.

Bit harsh I know LOL, but it's a darn sight easier to adjust to going upwards and onwards than it is to take a crash financial dive. Besides, the canny will log on in here while they do their *stretch* and soon learn the tips and techniques of managing vs struggling.

Good job I wasn't standing for election then, I'd get no votes!!!! :rotfl:

Curry_Queen

Queenie wrote:

If I were a Politician ... I would make it compulsory for everyone to have to live on benefits for a fixed amount of time so they can *really* learn the value of money and budgeting! When that MP did it years ago, he only experimented for 1 week (I think it was Portillo? I believe he did an update on that about a year ago too). A week isn't long enough to get a realistic view IMHO.

Yes it was Portillo and I remember watching that, but I totally agree a week wasn't long enough, especially as he was going back to his cushy lifestyle afterwards :mad:

I didn't realise he'd done an update though, must have missed that!

moggins

I'd be okay, I've done my stint already

Having come within a whisker of losing my house I'm doing everything I can to ensure I never go back there again.

I've sorted out my spending, now I just have to convince the other half to sort out his.

squeaky

Portillo (I think it was him) didn't have to worry about the washing machine breaking down, or having to buy a new cooker, or replacing broken crockery or...... None of the things that we have to cover for and not just the usual food and treats for the kids type things which was pretty much all he did. Or save for a holiday or... it just wasn't realisitic to me.

Queenie

Precisely my point, Squeaky!

You didn't miss much CQ - if my memory serves me correctly ... I turned off after he made remarks about how the Govn't had improved the lot of those on benefits since his first programme :rolleyes: I just found that a) a self righteous political plug and b) incredibly patronising!!!!

apprentice_tycoon

lswwong wrote:

Jazzy - here's a suggestion:

1. At the end of each day, empty your purse of all coppers and 5p pieces and save them up in separate jars.

2. When you have saved up enough, pay the money into a savings account that is damned hard to draw money out from. You don't need to put in a big sum, just in case you need the cash later on. The idea here really is to save a little bit at a time but making sure that the saved money stay saved.

Hope this helps ;D

I put away 10 pences downwards but in the past as soon as there was the amount to fill the bank bags (£5.00 and £1.00) I would take them to the PO and they would just disappear from sight into general shopping cash. At Christmas we had a large jar of sweets and I decided that we would fill that instead so it's not yet halfway through the year and it's already 2/3 full. I accept that isn't earning interest but at say, £5.00 or £6.00 going in an account a month it wouldn't really earn that much in any case. Apart from that everyone chips in and can see it grow, if it was in a bank there wouldn't be the same visual motivation...this money is to be kept until Christmas!

Curry_Queen

squeaky wrote:

Portillo (I think it was him) didn't have to worry about the washing machine breaking down, or having to buy a new cooker, or replacing broken crockery or...... None of the things that we have to cover for and not just the usual food and treats for the kids type things which was pretty much all he did. Or save for a holiday or... it just wasn't realisitic to me.

Yes, this was exactly what I was thinking too but not had enough :coffee: yet to get brain in gear and put it into words LOL!

Anyone can slum it for a week or two knowing they can go back to comfort and luxury afterwards, but try living like that day in day out for months, or even years, with no light at the end of the tunnel. I bet not one of those politicians would survive!!!!