Tips on cutting back

[Julieb85]

We've recent lost some money with a dodgy tradesman and had to pay out more than double the expected cost from our savings.

The result is now a fairly grim bank balance!! We're still out our house, living with family, and seem to be struggling to cut back. Any tips of how to cut back to help build up our balance again?!!

Go through your income vs expenditure - start off with direct debits and regular bills, then think about the one offs eg car insurance if you pay it annually. Then look at where everything else goes - school costs such as lunches? Food shopping? Meals out? shoe addiction clothes and toiletries? You would need a clear idea of what you're spending before anyone could realistically advise you where you can cut back.

I'd absolutely agree - you need to have a really clear picture of your expenditure, and then decide what is necessary, what is nice to have and what is really a luxury.You have to be very brutal - there may be things that you would really like to continue (such as a coffee at the station or whatever) but which are really luxuries. Also, kids will not suffer horribly if you cut back on swimming/music lessons for a few weeks or months while you get back on track - they will soon pick up again, and maybe appreciate it all the more once they start again.

ouch.

even if you aren't paying them, have a look at utility bills; use comparison sites by entering your actual unit consumption and standing charges

no shopping except food, essential household items, essential toiletries (Shower gel, soap, shampoo, conditioner, antiperspirant), clothes for kids. Adult clothes come from charity shops IF you actually need any. only exception is knickers and socks which come from supermarkets.

car use minimised. Combine errands. If you are driving to a town park once and do everything else on foot. Look at driving style, speeds, anticipation, loading. Don't fill the tank full, petrol costs petrol to carry around.

books; library!
meals out: no. Pack a picnic on a nice day.
extra lessons for kids (if applicable): no. doesn't hurt them to understand that sometimes money is tight.

Dont buy bottled water buy container & fill from tap

Car boot sales are great for getting bargains most things less than £1

Do your own car boot sale or sell things via Ebay or auction to make money

Shop at Aldi or Lidl or a small shop, therefore not tempted by things in larger shop, make a shopping list

Shop monday nights get food from the reduced section, freeze extra food

Buy own brands

Make packed lunch

Visit markets near to closing good time to buy cheaper fruit & veg

Do not auto renew any bills, check for cheaper options

Dont buy books, magazines, papers use internet, library, swap with people

Swap clothes or gifts with people

www.moneysavingexpert.com

Find free things to do for entertainment & discount vouchers

Use everything in cupboards & freezer

You and your OH should take the time now to work out where you're spending and then what you can afford to spend. There are some good spreadsheets on MN which can help shine a light on your money. Better still I think is using budgeting software (I love YNAB) which really puts you in control of your money. That way you'll know where you can cut back and where you have to spend. It really adjusts your whole mindset to money. For me it stopped that "it's only £2.50 for a coffee, what's the harm?"-style thinking. If there's two adults buying coffee on a daily basis, that's over £120 a month just walking out the door.