To find saving really hard?

[Sidalee7]

I am trying to follow the 50/30/20 principle where 50% is bills, 30% is necessities (groceries ect) and 20% is saved.

I am in month 2 and I am finding it really hard! I have gone ultra frugal and have given up daily coffee, lunches out ect but what else do you cut out when you are saving? I need some tips....

[Ellisandra]

What’s with the weird principle?
That makes no sense to me at all, and is probably part of your problem!
The same %s can’t apply to all people.

Start with a review of your bills, anywhere you could be saving money there - e.g, heating on lower and for less time.

Then review what you really consider a necessity. Instead of just accepting that 30% on groceries is OK because of someone’s random formula look at how you could reduce your grocery bill (where you shop, the brands you buy).

Good luck with your savings!

[QforCucumber]

Oh I don't like that formula, never heard of it before but where are your allowances for yourself. Reduce the saving to 10% and allow yourself to have a life. what if your bills come to more than 50%? or less?

[LaDameAuxLicornes]

Cancel all subscriptions (magazines, gym, Netflix, Spotify, Amazon Prime....) unless you get a huge amount of use out of them.
Stop buying pretty much any and all convenience food. This includes takeaways, coffees when out, pre-packaged sandwiches, food "to go", ready meals, jarred sauces or pre-chopped veg you could do yourself, etc etc. Cook from scratch and either eat at home or take a packed lunch.
Stop buying brands unless you are 100% convinced that you dislike all the cheaper alternatives. Pay for genuine quality but not for marketing.
Turn down the heating, switch off the lights, make use of the clothes line on warmer days instead of the tumble dryer.
Before you buy anything, ask yourself what you might have in the cupboard. This might go for anything from a new shower gel or foundation (do you have one kicking around from your last birthday?) to food (what tins are lurking at the back of the cupboard waiting to be used?) to a new outfit for a wedding (couldn't you re-wear something already in the wardrobe)?
Look for free or low-cost family activities before booking an expensive day out. Invite friends round for coffee or drinks instead of going out to expensive cafes and bars.
Spend all your loyalty card points, gift cards, vouchers etc when you need something rather than letting them sit around.
Before binning something and replacing it, ask whether it could be fixed or repurposed.

But also, plan the odd treat! You'll become miserable if life is nothing but a slog of penny-pinching.

[AJPTaylor]

Reminds me of a friend on a tight budget. She decided to save any 2 pound coins she got. This was after another friend told her she did this and saved it for Xmas. After 3 months friend emptied the jar and counted it. It was almost exactly the amount of her overdraft!
Work out how much you can save. Dd it into an account you can't get to easily.

[OatsBeansBarley]

Look again at the bills.

Be proactive in chipping them down.

Are you a,wise food buyer? Do you have a baseline price for your normal shopping staples so you know to buy when you see it cheaper?

[onceandneveragain]

Agree that formula seems very arbitrary and also needlessly hard if it leaves you with 0% for any luxuries. No wonder you are finding it hard! Why don't you commit to saving the 20% if you can afford it and then compare what you are spending now on bills and necessities. Then challenged yourself to cut down on these- by trying cheaper groceries, cutting out non essential necessities (I.e walk if poss to use less petrol, no daily coffees, gumym membership if not using), switching elec/gas/internet suppliers and bank accounts , using cashback for purchases, etc. Then in a few months work out what savings you've made an you can treat yourself with some of them while keeping your 20% savings.

Coming up to Christmas might not be the easiest time to start savings btw though....

[OatsBeansBarley]

Savings can be made over time by stretching out the gaps between regular but discretionary expenses like haircuts, nights out.

[MogThoughtDarkThoughts]

What works for me is having a standing order to put x amount into a savings account as soon as I've been paid. If I'm really struggling, or if there's an emergency, I can transfer some back. There's something comforting about knowing I can do that - but usually I don't have to.

Shop around for all your banking, utilities etc - if you can get points back or whatever that can help during the last lean week of the month. You might get some cash or other bonuses just by switching your bank account.

Get stuff from Freecycle/charity shops/second hand if you can.

Batch cooking if you have the time and freezer space.

A friend of mine went cash-only - she took out her budget each week in cash and then left her cards at home, to prevent herself from impulse shopping. I'm not sure I could do that but it worked for her.

Good luck!

[ineedtostopbeingsolazy]

Why don't you spend only what you need to and save the remainder?

[KanielOutis]

Do you get tax credits? You can open a 'help to save' account, put £50 per month in there and if you leave the money there for two years they give you a 50% bonus. I found the £50 per month so hard to find at first, and even harder to leave there, but I'm six months in now and don't even notice the money go out. It's a standing order and treated like any other bill. If you get into the habit of saving, it becomes normal.

[OatsBeansBarley]

I find using cash helps me not spend. It's a psychological trick I play on myself! It may not work for you op. But it is worth looking at how you can put your own barriers up if you are prone to buyer's regret.

Anotger one: Tidying and decluttering help me realise I dislike having to look after "stuff" so I'm happier with fewer clothes and I can't justify another book or kitchen utensil as I have limited space. In the bathroom I'm likely to find unused stuff too so I might buy less in the near future.

[HotInWinter]

That sounds like a very harsh regime. Absolutly no spending other than bills and necessities makes for a dull life! Obviously some people have to live like this, but to do it by choice... its not for me.

Why don't you start off with 10% savings, and 10% spending? If that is sustainable, maintain or increase the savings slightly. If it's really tough still, reduce it further.

The other thing we do us put half any pay rise into savings - so if pay goes up 20/month, we keep 10 for us, and add 10 to the savings standing order.

[Orangecake123]

I've had a direct debit to an account each month I can't touch, it slowly adds up .

I'm allowed to eat out once a month.
£10 phone credit can last me a good 3 months, because I use mainly skype or whatsapp.
Christmas presents just for my siblings this year.

[Sidalee7]

Thanks all - some good advice!

No, I don't get tax credits and CB goes straight into my kids savings accounts.

I do cook from scratch mainly and but own brands on most things, but should probably look at switching energy providers ect...