Saving pennies to make pounds

PipneyJane

A couple of moneysaving concepts for you:  micro-budgetting and quarantine.  

Micro-budgetting boils down to:  if there’s something you do every month/every couple of months/annually, set a proportion of money aside for it each month, in its own, separate savings account.  For example, prior to chemo, I got my hair cut every 6 weeks or so and used to set aside £22 a month for it, which was the price of one cut.  Any excess in the Hairdressing Account is spent on hair dye or makeup or my favourite perfume.  

I have accounts for everything, including my irregular nights out with the girls.  If you’re a crafter, you could set aside £5 or £10 a month, in order to build up a float for when you need it.

Quarantining your savings is just as important.  It’s the belief that if you’re saving for X, then it can’t be spent on anything else.   For example, if the money is in my Knitting Account, I don’t spend it on anything that isn’t knitting related.

HTH

- Pip

[Deleted User]

PipneyJane said:

A couple of moneysaving concepts for you:  micro-budgetting and quarantine.  

Micro-budgetting boils down to:  if there’s something you do every month/every couple of months/annually, set a proportion of money aside for it each month, in its own, separate savings account.  For example, prior to chemo, I got my hair cut every 6 weeks or so and used to set aside £22 a month for it, which was the price of one cut.  Any excess in the Hairdressing Account is spent on hair dye or makeup or my favourite perfume.  

I have accounts for everything, including my irregular nights out with the girls.  If you’re a crafter, you could set aside £5 or £10 a month, in order to build up a float for when you need it.

Quarantining your savings is just as important.  It’s the belief that if you’re saving for X, then it can’t be spent on anything else.   For example, if the money is in my Knitting Account, I don’t spend it on anything that isn’t knitting related.

HTH

- Pip

Good idea, thanks Pip

YoungBlueEyes

Nice to see you posting JackieO, I haven't seen you around for a bit  

I ditched fabric softener a while ago and use white vinegar now (having read it so often on here), and it works a treat. I also use half the amount - or less even - of wash powder and add a spoonful of soda crystals. If my clothes could speak they would thank me for it I think  

Bridlington1

PipneyJane said:

A couple of moneysaving concepts for you:  micro-budgetting and quarantine.  

Micro-budgetting boils down to:  if there’s something you do every month/every couple of months/annually, set a proportion of money aside for it each month, in its own, separate savings account.  For example, prior to chemo, I got my hair cut every 6 weeks or so and used to set aside £22 a month for it, which was the price of one cut.  Any excess in the Hairdressing Account is spent on hair dye or makeup or my favourite perfume.  

I have accounts for everything, including my irregular nights out with the girls.  If you’re a crafter, you could set aside £5 or £10 a month, in order to build up a float for when you need it.

Quarantining your savings is just as important.  It’s the belief that if you’re saving for X, then it can’t be spent on anything else.   For example, if the money is in my Knitting Account, I don’t spend it on anything that isn’t knitting related.

HTH

- Pip

This probably won't work for everyone but as an alternative to having different savings accounts for different things there is also the option of creating one pot and dividing things up on a spreadsheet.

I have over 100 savings accounts in total (most are on minimum balances admittedly) and have a total of my combined savings minus any debts (overdrafts that I'm stoozing, credit card balances etc) so I have multiple accounts but can treat it as one ``virtual pot", which I could divide up for whichever purposes I wish. 

I have a sheet on my spreadsheet in which I only record money entering and leaving this set of accounts with any movements of money between individual accounts being ignored as they make no difference to the overall balance of my accounts combined. E.g. I typically empty my lowest paying regular savers into higher paying ones on 1st of the month, these movements aren't recorded here as my overall savings balance remains the same but I do record interest being paid as these are ``net additions" to my savings etc.

I then list the total balances of all of my accounts individually on a different sheet once a month (usually a fairly quick job as most account balances either remain the same or increase by the same amount each month), mainly so I can know where everything is and as a cross-check.

The micro-budgeting and quarantining you mention could still be applied in the sense that you can allocate different amounts for different things but it doesn't have the restriction of £x has to be in such and such account and £x in another as it's all done on the spreadsheet so it allows you to put your savings in whichever savings account will earn the most interest at the time so that you can maximise the amount of interest you're receiving.

It likely takes a little more admin so probably won't work for everyone but if it works for you those extra bits of interest you're earning soon start to add up.

[Deleted User]

Bridlington1 said:

PipneyJane said:

A couple of moneysaving concepts for you:  micro-budgetting and quarantine.  

Micro-budgetting boils down to:  if there’s something you do every month/every couple of months/annually, set a proportion of money aside for it each month, in its own, separate savings account.  For example, prior to chemo, I got my hair cut every 6 weeks or so and used to set aside £22 a month for it, which was the price of one cut.  Any excess in the Hairdressing Account is spent on hair dye or makeup or my favourite perfume.  

I have accounts for everything, including my irregular nights out with the girls.  If you’re a crafter, you could set aside £5 or £10 a month, in order to build up a float for when you need it.

Quarantining your savings is just as important.  It’s the belief that if you’re saving for X, then it can’t be spent on anything else.   For example, if the money is in my Knitting Account, I don’t spend it on anything that isn’t knitting related.

HTH

- Pip

This probably won't work for everyone but as an alternative to having different savings accounts for different things there is also the option of creating one pot and dividing things up on a spreadsheet.

I have over 100 savings accounts in total (most are on minimum balances admittedly) and have a total of my combined savings minus any debts (overdrafts that I'm stoozing, credit card balances etc) so I have multiple accounts but can treat it as one ``virtual pot", which I could divide up for whichever purposes I wish. 

I have a sheet on my spreadsheet in which I only record money entering and leaving this set of accounts with any movements of money between individual accounts being ignored as they make no difference to the overall balance of my accounts combined. E.g. I typically empty my lowest paying regular savers into higher paying ones on 1st of the month, these movements aren't recorded here as my overall savings balance remains the same but I do record interest being paid as these are ``net additions" to my savings etc.

I then list the total balances of all of my accounts individually on a different sheet once a month (usually a fairly quick job as most account balances either remain the same or increase by the same amount each month), mainly so I can know where everything is and as a cross-check.

The micro-budgeting and quarantining you mention could still be applied in the sense that you can allocate different amounts for different things but it doesn't have the restriction of £x has to be in such and such account and £x in another as it's all done on the spreadsheet so it allows you to put your savings in whichever savings account will earn the most interest at the time so that you can maximise the amount of interest you're receiving.

It likely takes a little more admin so probably won't work for everyone but if it works for you those extra bits of interest you're earning soon start to add up.

Bridlington1 said:

PipneyJane said:

A couple of moneysaving concepts for you:  micro-budgetting and quarantine.  

Micro-budgetting boils down to:  if there’s something you do every month/every couple of months/annually, set a proportion of money aside for it each month, in its own, separate savings account.  For example, prior to chemo, I got my hair cut every 6 weeks or so and used to set aside £22 a month for it, which was the price of one cut.  Any excess in the Hairdressing Account is spent on hair dye or makeup or my favourite perfume.  

I have accounts for everything, including my irregular nights out with the girls.  If you’re a crafter, you could set aside £5 or £10 a month, in order to build up a float for when you need it.

Quarantining your savings is just as important.  It’s the belief that if you’re saving for X, then it can’t be spent on anything else.   For example, if the money is in my Knitting Account, I don’t spend it on anything that isn’t knitting related.

HTH

- Pip

This probably won't work for everyone but as an alternative to having different savings accounts for different things there is also the option of creating one pot and dividing things up on a spreadsheet.

I have over 100 savings accounts in total (most are on minimum balances admittedly) and have a total of my combined savings minus any debts (overdrafts that I'm stoozing, credit card balances etc) so I have multiple accounts but can treat it as one ``virtual pot", which I could divide up for whichever purposes I wish. 

I have a sheet on my spreadsheet in which I only record money entering and leaving this set of accounts with any movements of money between individual accounts being ignored as they make no difference to the overall balance of my accounts combined. E.g. I typically empty my lowest paying regular savers into higher paying ones on 1st of the month, these movements aren't recorded here as my overall savings balance remains the same but I do record interest being paid as these are ``net additions" to my savings etc.

I then list the total balances of all of my accounts individually on a different sheet once a month (usually a fairly quick job as most account balances either remain the same or increase by the same amount each month), mainly so I can know where everything is and as a cross-check.

The micro-budgeting and quarantining you mention could still be applied in the sense that you can allocate different amounts for different things but it doesn't have the restriction of £x has to be in such and such account and £x in another as it's all done on the spreadsheet so it allows you to put your savings in whichever savings account will earn the most interest at the time so that you can maximise the amount of interest you're receiving.

It likely takes a little more admin so probably won't work for everyone but if it works for you those extra bits of interest you're earning soon start to add up.

Bridlington1 you are super organised.
My brain couldn't get around that to be honest, but well done you.

Thrifty_Taylor

I get my hair cut every 8 weeks, so that's 6 or 7 times a year. It's now gone up to £20 a time, so £120/140 a year compared to every 6 weeks, 8 or 9 times a year £160/180.

When I was younger, mum used to cut up old brushed cotton PJ's to make cloth hankies, very soft on your nose.

A few years ago I taught a sewing class, one evening we made drawstring bags. One lady made loads that year & used them for wrapping all her Xmas presents.

Post any cards or letters 2nd class.

Line dry washing, only wash on a full load.

When I used to take apple juice in my packed lunch, I bought a large carton & poured some into a plastic bottle (reused from having water or juice in it), worked out cheaper than individual little cartons.

Growingold

PipneyJane said:

A couple of moneysaving concepts for you:  micro-budgetting and quarantine.  

Micro-budgetting boils down to:  if there’s something you do every month/every couple of months/annually, set a proportion of money aside for it each month, in its own, separate savings account.  For example, prior to chemo, I got my hair cut every 6 weeks or so and used to set aside £22 a month for it, which was the price of one cut.  Any excess in the Hairdressing Account is spent on hair dye or makeup or my favourite perfume.  

I have accounts for everything, including my irregular nights out with the girls.  If you’re a crafter, you could set aside £5 or £10 a month, in order to build up a float for when you need it.

Quarantining your savings is just as important.  It’s the belief that if you’re saving for X, then it can’t be spent on anything else.   For example, if the money is in my Knitting Account, I don’t spend it on anything that isn’t knitting related.

HTH

- Pip

With some savings providers you can create individual pots within your savings account..  Zopa and Tandem readily spring to mind.  Bridlington1 will probably know of others .  Zopa also allow pots within their ISA account.

Rosa_Damascena

Thrifty_Taylor said:

I get my hair cut every 8 weeks, so that's 6 or 7 times a year. It's now gone up to £20 a time, so £120/140 a year compared to every 6 weeks, 8 or 9 times a year £160/180.

When I was younger, mum used to cut up old brushed cotton PJ's to make cloth hankies, very soft on your nose.

A few years ago I taught a sewing class, one evening we made drawstring bags. One lady made loads that year & used them for wrapping all her Xmas presents.

Post any cards or letters 2nd class.

Line dry washing, only wash on a full load.

When I used to take apple juice in my packed lunch, I bought a large carton & poured some into a plastic bottle (reused from having water or juice in it), worked out cheaper than individual little cartons.

The price of a basic haircut has gone up, but I console myself that spending £10 instead of £5 every couple of months keeps my hair in good shape and makes a big difference to how groomed I feel.

My tip is to pause on impulse purchases online. Works best for me on Boots £10 Tuesdays. There will always be offers!

Bridlington1

Rosa_Damascena said:

Thrifty_Taylor said:

I get my hair cut every 8 weeks, so that's 6 or 7 times a year. It's now gone up to £20 a time, so £120/140 a year compared to every 6 weeks, 8 or 9 times a year £160/180.

When I was younger, mum used to cut up old brushed cotton PJ's to make cloth hankies, very soft on your nose.

A few years ago I taught a sewing class, one evening we made drawstring bags. One lady made loads that year & used them for wrapping all her Xmas presents.

Post any cards or letters 2nd class.

Line dry washing, only wash on a full load.

When I used to take apple juice in my packed lunch, I bought a large carton & poured some into a plastic bottle (reused from having water or juice in it), worked out cheaper than individual little cartons.

The price of a basic haircut has gone up, but I console myself that spending £10 instead of £5 every couple of months keeps my hair in good shape and makes a big difference to how groomed I feel.

My tip is to pause on impulse purchases online. Works best for me on Boots £10 Tuesdays. There will always be offers!

On the point about impulse purchases I'd say try to also be aware of the methods that companies are using to try to sell you things. 

Humans are by nature biased in many ways and businesses know this, e.g. if someone thinks that there is only a limited supply of something they are typically more likely to buy it as they think it will no longer be available so companies will often say there are x amount in stock at this price to push you into thinking ``I'd better get hold of this item quickly otherwise I won't be able to get it this cheaply again". This will sometimes be accompanied by ``x number of people are looking at this product" in an attempt to also make you think that the item is also popular and thus by implication either a great product or good value for money (another bias).

There's other biases they try to tap into such as authority bias, e.g. ``this toothpaste is recommended by leading dentists" can be effective as people are likely to trust dentists and will buy it as they think the brand is good quality (even though quite often a cheaper and almost identical version can be found elsewhere).

Once you are aware of the methods advertisers are using they become less effective.

PipneyJane

Growingold said:

PipneyJane said:

A couple of moneysaving concepts for you:  micro-budgetting and quarantine.  

Micro-budgetting boils down to:  if there’s something you do every month/every couple of months/annually, set a proportion of money aside for it each month, in its own, separate savings account.  For example, prior to chemo, I got my hair cut every 6 weeks or so and used to set aside £22 a month for it, which was the price of one cut.  Any excess in the Hairdressing Account is spent on hair dye or makeup or my favourite perfume.  

I have accounts for everything, including my irregular nights out with the girls.  If you’re a crafter, you could set aside £5 or £10 a month, in order to build up a float for when you need it.

Quarantining your savings is just as important.  It’s the belief that if you’re saving for X, then it can’t be spent on anything else.   For example, if the money is in my Knitting Account, I don’t spend it on anything that isn’t knitting related.

HTH

- Pip

With some savings providers you can create individual pots within your savings account..  Zopa and Tandem readily spring to mind.  Bridlington1 will probably know of others .  Zopa also allow pots within their ISA account.

True, but with Zopa you have to manually transfer the money to the individual pot.  With my method, upon which I forgot to elaborate, you set up a standing order to go out every payday and then forget about it.  

I guess you could also call it lazy budgeting.  Everything leaves my bank account on payday, so that the money that is left is mine to spend.  It makes things so much simpler.  We have a joint account for all the bills, (which has never had a debit card or cheque book, so there is no temptation to spend it).

- Pip