Save don't spend (much) (Saving tips)

Member Name: Lools_24

Product:	Saving tips
Date:	17/03/09 (150 review reads)
Rating:

Advantages: Greater financial security

Disadvantages: Less impulse purchases

I have never been a real saver but following some recent changes to my spending/ saving habits definite improvements have been made. Usually the most I have left at the end of a month is around £30 if I am lucky, usually I spend every last penny. Last month after changing my approach to spending, I managed to have £350 left in my bank the day before payday so the changes have worked, and I feel are sustainable enough to let me save a decent amount of money this year.

My tips wont be for everyone so more disciplined savers may disagree, but the changes I have made have worked so I thought I might just share


Budget/ Plan

When I first started my budget and planning seeing what I spent on non essentials was shocking; I never planned for the month/ year ahead. "Living for the moment" felt good at the time but now seeing how much I have saved and that I have achieved my goals and spending targets feels so much better. Writing down what is essential and non essential is the first step

Planning is essential, over a longer term. You need to set realistic amounts that you will spend each month and try to stick to them and break these down as far as possible. If I write down my budget it's a lot easier to stick to rather than making estimates in my head. Planning over the longer term is easier than on a month by month basis. Its easier to amend plans rather than completely start a new plan each month.

Social Calendar
Think about social commitments and any parties/ events you know about and you can plan and budget for these in advance amending your budget accordingly. I know I have a lot of birthdays this month so I probably will spend a bit more than I will next month. By keeping an updated calendar, it's easier to plan outgoings rather than incurring unexpected expenses which you could have planned and budgeted for as friends birthdays don't change.

I have a one page year calendar which I put in key dates including a social calendar and assigned spent. I also have a planned budget for each month, to reflect my fixed costs for the month (mortgage etc) and also variable spending (birthdays etc). Reviewing bank statements seems scary at first but it can be a real wake up call. To really keep track of spending have your own spreadsheet to input spending so you can identify if you are sticking to your budget and where your spending is going rather than waiting a few days for the transactions to show on your online statement or waiting until your paper statement comes through. Once you set up the formulas this can be a 5 minute task to input the days spending.

Meals
Write down a list of meals you plan on making for the next fortnight. This way when you go shopping you know exactly what you need and you can look for items on special offer that you will actually use rather than buying food items you think is good deal but won't actually use. Less food goes to waste and considerable savings can be made from less impulse purchases. I have probably saved around £100 per month by going shopping twice a week rather with a meal plan and shopping list rather than shopping every other day with a plan only for the next few days.

Switch to Own Brand
To save further some own brand products are actually just as good. When it comes to meat I always I ensure I buy decent quality but for some items Basic branded goods are just as good. Just take a bit longer to check the packets I actually found Asda Smart Price Rich tea are 35p cheaper than McVites , have less additives, less saturated fat and less calories per biscuit. Taking a bit more time to check purchases pays off not just financially but health wise too.


**Have a clear out**
I agree it's a pain and can be time consuming but you will find there are so many things that you do not use and could sell. With clothes be ruthless if you have not worn it for 6 months and you don not think you are going to wear it in the next two months. Get rid of it! It's amazing what people will buy on eBay, even high street clothes not just designer. From 3 (worn) River Island tops I never wore I made £25 on them.

Ask friends if they want to buy things before you sell on ebay. For example I sold a brand new food processor to a friend for £30 which was an unwanted Christmas gift. She got a bargain and I made money on something I never would or never have used.

Mobile phones can be sold too. Newer mobiles I find make more money on eBay but I was surprised that off 4 mobile phones (varying from 2-4 years old) selling them on envirofone/ Mazuma Mobile made me £55. The sooner you get rid of an old mobile the more money that you will get back.

The advantage of doing this as you can tidy/ clean as you go giving you a tidier house and cupboards. It may just be me but I feel my life is so much more organised when I can find things and know exactly where my things are in the cupboards rather than having to rifle through messy cupboards. Also some items can be donated to charity if you are not able to sell them.

You can then identify what actually you need to buy. For example after clearing out I found lots of clothes for work that I never wore but will wear which has saved me from buying new work clothes.


**Clothes Shopping**

Write down what you actually need
Males may not be able to relate to this but I would often go out shopping for a new pair of jeans and a new jacket and come back with three new dresses, four tops, a skirt and a new pair of shoes. Why?? Because I had become distracted by lots of new pretty clothes in the shops and got distracted from what I actually went shopping for in the first place. I now try to write a list of what I need and a list of shops I think I should go into. Having something tangible rather than a list in my head keeps me focused and stops me making so many random impulse purchases. I can then tick items off the list and that is that I don't need to go into more shops and be tempted to buy something else. Also focus on your monthly clothes budget, if you have already spent your allocated amount then don't buy.

If you are just going window shopping take a small amount of money but no debit/ credit cards
The thought of window shopping to some is not a way they like to spend time, whereas I enjoy looking around shops for something to do. There is the temptation though that "browsing" turns to impulse purchases.
Some hardened savers may not agree with taking any money, but for a recovering shopaholic there is a chance you will find an absolute bargain which may not be there if you come back with your cards. If you agree how much you can afford to set aside for a one off treat, set aside £20 and only spend if a) its something you will definitely use and b) if there is a significant chance it wont be there if you come back and look for it another day (and decide if you actually like it). But if you can manage without any money don't take any at all. That way you can simply browse and fill in time as you DON'T ACTUALLY NEED TO BUY ANYTHING.


**Spare Change**
Keep a jar/ money tin for loose change. Every few days empty your purse of everything under 20p into the jar and the money soon adds up.

After a night out I often find I have a huge amount of change, so I put all of this money into a spare change jar. I think at one time I put around £9 of change into the jar doing this. Its surprising how quickly the cash adds up.

I sellotape the lid on so that it can't be broken into easily and be tempted to take out pound coins or higher value coins if I am looking for money for parking.

And don't use a coin star machine to sort the change as these are expensive (8p per £1 f change)


**Nights out/ Socialising**

Previously most of my nights out revolved around going to bars and clubs. By going out to bars less I have saved so much money but this does not mean that I have to sacrifice going out with friends.


House parties/ drinks at friends house can be just as fun as long as you don't have rowdy friends. We actually bought some children's games and its actually very entertaining. If everyone brings a bottle, you can actually spend around £10 a night rather than £60 plus which some nights out to bars end up costing.

Nights out do not have to stop. If you can agree with friends that you can have a night out where one person in the group drives and gives lifts home to the others as long as they buy soft drinks for the driver you can save a lot of money as a group. This isn't for everyone and its only fair if everyone in the group makes sure they have an alcohol free night and drive. This works well for me and my friends as we live within 15 miles of each other and all don't mind not drinking when the others in the group are. Between my friends we probably now save each around £20 per night out we have as we do not have to pay for taxi fares (which sometimes we got separate taxis) and the dedicated driver saves money as they do not have to buy alcoholic drinks.


To summarise, saving and spending wisely is all about planning and thinking with a more long term mind set rather than over the short term. Impulse purchases and bargains feel good at the time but often these can leave you out of pocket. Being flexible is key and putting some form of contingency in your budget is essential as un expected events do happen, and being on a budget doesn't mean that you cant deal with them

Summary: Thinking long term is essential for saving