Ideas for reducing my monthly spend long term please?

[Carrotsandcelery]

I have just had my card declined at the supermarket again. I used to be good at this but seem to be struggling lately.

I need to cut the monthly budget long term.

What are your tips?

I realise I need to use up everything in the freezer and can cupboard and meal plan very strictly.

We are already vegetarian so I can't cut out meat.

We already have a tiny, high efficiency car for dh's commute.

I have a bigger but efficient car for our running around (rural area with expensive and very irregular bus service so no car is not a realistic option).

Dh's phone contract is £15 a month.

My phone is pay as you go. (ancient but functional handset)

The main problems seem to be the supermarket and Amazon really.

What do you suggest/have found works well?

I have started hedgrow picking this year. I am planning to make sloe gin/vodka, blackberry chutney and "hedgerow" jelly as christmas presents this year. DS wants a Wii (he has been patiently waiting for over 2 years), so I am saving as much as I can before the event, so I don't have to take out debt. He will be the only big expense this year. I will also ask DP and DB and SIL to contribute only to his gift, and not to get anything else for DS or expensive for me.

As for the day to day, month to month, I have to admit it is an ever increasing struggle. In fact, I woke up in the early hours and couldn't sleep for worry. Month on month I go a little more overdrawn each time. I have already consolidated my old overdraft and credit card bills into a loan, over 6 months ago, and cut up said credit cards. But I can't break even.

I don't earn much. I am eligible for the highest payout from tax credits as my income is so low. I work 30 hours a week, but in my job there is no scope for promotion or more hours and if there were, would it really be worth it when childcare costs are increasing and the tax credit payment has reduced to 70%? XH pays nothing. He is out of reach in another country.

Like the OP, we are also in a rural area, so my car is essential. It is small and old. It gets me to work and saves money on taxis from the supermarket.

I think the idea of taking a set amount of cash out each week is a good idea. I will have to try that.

Otherwise, who knows where it will end. There are moments where I wish for oblivion-and end to it all.

missymarmite have you looked at moneysavingexpert.com? It is fantastic for getting budgetting tips etc. Regarding the Wii could you get a 2nd hand one from "Cex" or "Game", they come with a warranty and are a robust console - unlike xbox 360!!!

Hang on for the day when your childcare costs reduce I guess. Presumably too rural to cycle some places? Also look at the hidden costs of running your car - insurance, road tax, repairs, MOT in additional to extorniate fuel. Your car probably costs you £10 per week minimum before you've even used it.

Also think positive in 6 months your loan will be finished! Anything you can sell, toys and gifts tend to sell quite well before Christmas plus winter clothing possibly?

Yes, I think a second hand wii is probably a good idea! Thanks for the advice. I have been poor so long that I really don't have anything to sell on ebay. All my clothes get worn until they are in tatters, and DS doesn't look after his (mostly cheap) toys, the majority get thrown out when they are broken. Likewise his clothes are rarely in a state to pass on.

Good point about the car. I wish I could get rid of it. I am fortunate that my DF gave me the car in the first place, and he pays for maintainance and MOT. I pay the tax, insurance and petrol. However, I work 13 miles away from home in a very hilly part of Devon. The road is windy, narrow, and very, very busy with huge lorries and cars travelling at speeds of up to 60 mph. Even if I were fit enough and had the time to ride a bike so far, up and down very steep inclines, it would be very dangerous. So, no, it really isn't possible in many parts of the uk to live without a car. Even though I love my job, I keep looking locally for work, with no luck. Most jobs I am un qualified for pay significantly less than my current job, many are dead end, unskilled, seasonal, part-time, or during hours when I can not work due to childcare responsibilities (ie bar work/waitressing/caring for the elderly).

My loan is a 5 year one. So still 4 and a half to go .

missymarmite that is a shame about having to keep the car and the loan are their penalties if you pay it off early? If not could you borrow the money from your Dad and pay him back at a lower interest rate over slightly longer?

Are you on your own with your ds? If so could you do something drastic like share a bedroom and rent the spare out, or if you're renting rent something cheaper? Not pleasant solutions but worth considering?

Carrots - have you looked at free downloads of recorded books? You can buy blanks CDs in Lidl/Aldi for not a lot.

We also use inter-library loans a lot - if there's a story (or ideally a whole series) DS would like, they will order it from another library in the county

We are in HA rented. I don't know the legalities in subletting, and I know for sure that private rentals will be almost double . For this reason most of my friends from school no longer live in Devon. The cost of living vs salaries is unsustainable. The only young families left in town are those in Housing Association, like us, or who have sold out of the big city after costly ivf in late 30s, who can work from home.

The whole system is dysfunctional in our country.

Argh, could you get a transfer to a cheaper HA property? Move back home Have you checked that you are receiving all the benefits you are entitled to, we used to get a tiny bit of council tax benefit which made a huge difference. Long ago as single parent I got partial housing benefit too.

Carrots - what kind of stories does your DS like? We have loads saved onto the computer and I can happily burn some discs for you.

Christine I didn't know there was such a thing - I shall look into it. Thank you!

Scootergrrrl that is such a kind offer. He is very easily disturbed by stories so we have to be careful. We have Charlie and Lola ones, Johnny Morris, Paddington, The Dick King Smith Sophie series (his favourite) and The Giggler Treatment. Anything else we have borrowed has frightened him. The Amazon money we have spent recently is mostly on the Sophie series which we borrowed disc by disc from the library for months on end until they got a little about it.

missymarmite I really feel for you. I know it will seem a long way off but it is surprising how quickly the child care costs start to reduce. That makes a big difference to the budget. So hang in there. It will get better eventually and your dcs will appreciate your efforts in the long run.

A friend locally has started taking in ironing to help make ends meet. Is this something you could do? It is not appealing but it might bring in a little bit more and could be done in the evening when your dcs are in bed.

I also have friends who have worked out methods of sharing after school care, when you get to that stage. They both have an afternoon off on different days so look after the other's child that day to cut down on costs. Is there someone locally you could have a similar arrangement with?

My dh's dad ran off abroad when he was young and left his mum to pay for everything. It is very difficult when they can't be made to cough up their share. She ended up working 3 jobs - one full time and 2 part time as well as taking in ironing and tailoring to get by. I wouldn't suggest taking it to that extreme mind you. She never saw her children: they let themselves in after school, fed themselves and watched tv for a childhood.

The area we live in also has inflated house prices. We were lucky and bought before it went totally mad. It seemed ridiculous then but prices have more than doubled in the last ten years and the wages many incomers are being paid up here means they can afford it and makes it impossible for those not working in that industry to keep up. I imagine similar things have happened in Devon.

Hold your head up high. It sounds like you are nearly everything in your power to provide for your dc and yourself in challenging circumstances. Well done.

RE the Wii I heard from my DH that they are bringing out a new Wii so there should be some good deals on the old Wii either new or second hand as Wii fans will be waiting for the new one. Worth talking to your friends as well in case they are thinking of upgrading and you can buy their old one.
Me, I've started financial forecasting by this I mean I have a list of the months and under each month I list what we have to buy that month whether it's car insurance or someone's birthday or Brownies subs. Then as we reach the end of the month I will be able to see if we can afford a treat or two.

That sounds a good system Frog - I might adopt that system too. Is it depressing by the time you have added in all the birthdays and insurance payments etc or does it make your treats guilt free?

Well, have only just started my system so guilt hasn't come into it yet. Am hoping that I will feel more in control of the finances if I can see what to expect each month. Septembers list is already pretty full with a car repair, 4 birthdays and various clubs starting again. October looks pretty quiet atm BUT xmas is looming so if there's any spare I might buy some pressies.

frog I did FF for a whole year and divide by 12, then this amoutn comes out of my bank account on the same day as my wages go into it - it goes into my bills account.

I then take the money from this account to pay the car insurance in September but also have standing orders to Council tax, water, electric gas. I also put away 50 quid each month to cover MOT and car repairs in April. I also put x amount each month savings from the bills account into a savings account as another standing order so it is like a bill to myself for holidays and christmas .

What is left in my bank account the day after pay day is mine to spend on food, petrol for the month - once it has gone it is gone so I know I have to make it last the month.

sometimes my bill account will have a healthy balance but other months it will have just enough to pay the bills - over a few year though it seems to have worked well as I know exactly what is in my current account is mine and not waiting to pay a bill.

ivy that sounds a very good system.

How did you know what your bills would be? Did you guesstimate from previous years?

I can see that I could do this for the monthly direct debits and roughly for the car insurance, MOT etc.

It would certainly help a lot.

The idea of paying into a gift account also appeals to be used only for birthdays and Christmas.

I could end up managing an awful lot of accounts if I carry on this way.

How did you know what your bills would be? Did you guesstimate from previous years?

Use last years bills

So adding up council tax x 10, water x 8, electric and gas x 12, house insurance x 12, buildings insurance x 12, life insurance x 12, tv licence x12 (if you have a tv) pocket money for dd x 12, gym membership x 12, mobile phone, landline phone, car repairs, tax, insurance and MOT, savings, presents pot etc etc

Then total all the bills for the whole year - which is quite alarming. Then divide by 12.

Then set up two standing orders to your own savings accounts, one for savings an ISA is ideal for this one and one for presents. I you also want to save for holidays set up a third savings account.

If you get child benefit and tax credit have that paid directly into the bills account and then if it works out 50 quid a week in CB and TC then subtract 216.66 from the amount you need to take from your wages and put into the bills account. The weekly amounts need to be multiplied by 52 and then divided by 12.

If you start this in January you will have the advantage of two months without paying council tax or water rates and so your account will plump out with money for the first two months to get your started. As some months more money will be paid out than paid in but over all the months it will even out.

i don't have a cheque book or debit card fro the bills account - as that means I can not spend the money in there and I have to tranfer the money to my current account and then pay the MOT or car repairs, car tax. Everything else is set up as a direct debit and as a letter comes to tell me my life insurance or contents insurance or electric bill has gone up - then I add this amount to the first of the month payment from my wages to the bills account which at the moment is a lot and no pay rise so leaves me with less money each month.

missymarmite - how old is your son?

Hi Carrots

If you do need to shop for anything on Amazon have you got a nectar card? it isn't huge amounts that you get, but it adds up (useful for lots of online stuff as well), all you have to do is register your card and then everytime you buy go on nectar first.

Have a look at DH contract, I got mine reduced from £37 today to £13 per month because I'm not going to have a new phone, there may be a cheaper tariff than that.
If you have a house phone, never ever call mobiles off it, (I checked my bill, £20 per month average to just call mobiles, when we have free sodding unused minutes on mobile).

With branded food, always go down one brand at a time, if you go straight to value/basics or whatever it may be too big a jump, let me make figures up and explain:
Heinz Ketchup £2.50
Tesco finest £2.00 (Ok, like it)
Tesco cheaper £1.40 (hmm, still nice)
Tesco value (80p) Yukky, gross.
SO go back up to Tesco Cheaper, still saving £1.10 per bottle from heinz, but if you go straight to value and then hate it you are more likely to go back to heinz, as won't want to risk buying something you don't like.
By doing this, me and DH have vetoed 4 things we will not budge on (well three for us, and one stupidly finicky cat that was a stray and should be bloody grateful for any foodwho will not give up felix finest range) everything else is lower brand and quite a lot cheapest, chocs, biscuits, garlic bread, lasagne sheets, pasta etc.
HTH

should read:
that was a stray and should be bloody grateful for any food

OP, are your cars owned outright?

The cars are likely a big drain which will dwarf other things. I know you say that it is impractical to only have one car, but maybe there are ways of reducing what you currently spend on the two you have.

I was also going to suggest inter-library loans. We do this a lot and it is free for children. Definitely worth asking at your local library, especially if it is small as it was massively increase the resources available to you.

When I go shopping I try and work out that a meal for us all should come to no more than about £6. I do a lot of mental maths in the supermarket. I don't buy expensive fruit and veg - anything more than £1 a pack or punnet is probably out of season or overpriced. Juice has gone up a lot too. I keep an eye out for price hikes, and offers. Another thing I have found is that butter is now cheaper than spread so I've gone back to that, knowing that I won't use as much.

Trouble is I've always done this and now that times are really tough, I can't go any lower. Never had sky, never had mobile worth more than £100, never had expensive holidays. When inflation goes up (I assume it will) we will all be in trouble. My weakness is those impulse buys, where you think "sod it" - and buy. These are the silly things like a takeaway / coffee / new towels.

Work out how much your average trip to town costs, that makes you decide whether it's worth the trip.

I found careful meal planning was my biggest saver (I use an app on my iphone which has great, healthy recipes and creates a shopping list for me, so I don't get distracted by blocks of halloumi cheese beckoning me as I'm too busy concentrating)

Like the others said: whatever you can get for free (eg downloads, interlibrary loans etc).

I also have some days that I will not allow myself to spend any money at all. This is easier if I've shopped for the week and know I have everything I need to eat in the house.

I also cook extra at night and pack it for lunch the next day. Or make a big batch and freeze in it lunch-size portions for the week.

I can't afford the iphone in order to get the app in order to do my meal planning in order to save money!

oh sorry!

mine was on a contract, otherwise I wouldn't either.