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Money matters

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Original poster

How do I stop spending and start saving?

22 replies

Sallycinnamum · 08/04/2019 08:32

I have always been terrible with money. If I have it I'll spend it and if I don't I'll put it on a credit card.

This has been happening for 20 years and I'm fed up with it. I earn a reasonable salary but I really want to pay off my CC and stop this constant cycle.

How do I change my mind set from being a spender to a saver? And how can I get my ccs paid off (they're all on 0% balance so do I increase the monthly payments but worried I'll end up still spending on them)?

OP posts:

BummyKnocker · 08/04/2019 08:46

Draw up a budget, direct debit to a savings account, cut up credit cards.

MrsMoastyToasty · 08/04/2019 08:59

Maximise your income.
1 Make sure that you are getting all your entitlements.

Make sure that you are making the best use of tax allowances.
Sell stuff
Earn more. All the time you are earning you can't be spending.

Make a budget.
Top of the list are
Rent or mortgage.
Then council tax
Followed by utilities.

Cancel old subscriptions.

Get better deals on phones, utilities etc.

Original poster

Sallycinnamum · 08/04/2019 09:03

I am.pretty good at looking for deals and I signed up to chip in Feb so I'm saving hear and there.

I'm just wondering if I would be better off getting a low interest personal loan to pa them all off or just up the payments each month.

I'm really ashamed of how shit I am with money tbh. I have a spreadsheet so that helps but it's just a constant cycle of credit card debt.

OP posts:

MrsMoastyToasty · 08/04/2019 09:06

... pressed too soon.

Cut up your cards.
Only take cash with you when shopping.
Think " do I NEED this?" rather than " Do I WANT this? Remember that you only have one pair of feet so can only wear one pair of shoes at a time. (Apply this reasoning to whatever your shopping weakness is.)
Unsubscribe from emails from retailers.

buzzbobbly · 08/04/2019 09:11

Depends on how you work best.

Are you a spreadsheet hawk?
Do you work well if you go completely cold turkey?
Would cold hard cash in your hand focus your mind better?
Is a save x, get reward y your best motivator?

Find the method that appeals most to your mindset and you are halfway there.

buzzbobbly · 08/04/2019 09:14

Don't just cut up your cards, call the lenders and close the accounts.
Cutting them up is meaningless. Close the accounts and all you can do is pay them down!

(Maybe keep one for absolute emergencies - leave it with a relative or trusted friend if needs be)

MilkTwoSugarsThanks · 08/04/2019 09:19

I use a spending tracker app on my phone. Every time I spend I put it in, DDs are set so they register automatically, so is income. Seeing that permanent negative balance there, in glorious technicolour, has reduced my spending massively.

BarbaraofSevillle · 08/04/2019 09:22

What are you spending the money on and where?

Maybe think about what else you can do so you're not in a position to spend money.

If you are buying things in shops, stop going to shops and do something else instead. Go for a walk/bike ride or visit attractions. Maybe National Trust or English Heritage - obviously costs money, but can be a cost effective day out.

If you are spending on food and drink out, arrange to see friends in each others houses, take pack up, eat before you go out.

If you are shopping online, do something else - watch box sets, read, do crafts, read up interesting things online, whatever.

BarbaraofSevillle · 08/04/2019 09:24

If your cards are on interest free deals, paying them off with a loan is a waste of money, as you'll pay interest on top.

Just set up a standing order to pay what you can afford, that is more than the minimum payment and preferably pays the card off before the end of the interest free payment and forget about it. Once set up, it makes no difference as to whether there is one payment a month or 3 coming out of your bank account.

Original poster

Sallycinnamum · 08/04/2019 13:00

All great advice, thanks.

I've just got all my balances and inputted them into a spreadsheet so I know exactly how much I owe. I can't busy my head in the sand about this anymore.

OP posts:

Numptysod · 09/04/2019 15:25

Plum or chip any good?

thecatsthecats · 11/04/2019 13:42

Stop thinking about 'affording' something being a case of money in the bank.

I could 'afford' to buy a designer handbag every month on my salary. I can't afford one AND decent pension contributions though - your finances are a whole ecosystem, feeding into long, medium and short term goals.

It's likely that you're feeding your short term goals handsomely whilst neglecting the long term ones! Always START with the longest term ones, then the medium, then what's left is for the short term.

Crude figures - £500 to pension (covers huge block of your life), £250 to savings (could be used any day, or build up to home improvements or holiday), £100 to making the everyday nice.

Erksum · 11/04/2019 14:22

Sorry MNHQ but I'm going to recommend another website -'Martin Lewis's MoneySavingExpert website. He might be annoying but the website has great advise. I think there is a forum called debt free wannabes or something.

Original poster

Sallycinnamum · 15/04/2019 17:22

I've been using chip for the past few months which is brilliant and I've looked at the Dave Ramsey stuff.

I need a total change of mind set though and that is the problem. If I've got money I spend it and I've been like this for as long as I've worked.

My aim is to pay my Next account off first and chip away at my credit cards.

OP posts:

moimichme · 17/04/2019 09:49

If the discipline not to spend is the issue, perhaps an app like Squirrel would be more helpful than one like Chip? Squirrel only keeps the amount you can spend into your current account, and keeps your bill money out so you can't accidentally spend it on other stuff. I haven't used it myself, but might be worth looking at?

BlackPrism · 17/04/2019 09:52

Figure out your actual necessary outgoings. From the expendable income save a set amount to save on payday. Run out of money? Then you have a difficult week.

notacooldad · 17/04/2019 10:06

As well as the good advice you have been given I would look at your incidental spending well, fr example stopping off at Starbucks or Costa, buying new make up on a whim and so on.stuff like that adds up over the month.
I have a direct debt that puts some of my wage straight into a savings account on pay day , when I had credit card debit years ago instead o going into savings it went straight off the card.
I know my weakness is seeing things I shop windows. Funny that I never need anything until I see it! I avoid walking through the certain parts of town and dont window shop.
I take my food to work and I am an essential car user so I dont really need cash during the week. So I set my self silly challenges to see how long a fiver can stay in my wallet for ( without being tight or avoiding paying for things of course!)

The best advice, as you know, is to get rid of the credit card debt. It really does free your mind.

ivykaty44 · 17/04/2019 20:02

Snowball debts on credit cards, so pay as much of on the highest interest debt first, then continue paying minimum on all other debts. As the largest interest debt is paid off move to the next highest and concentrate paying that debt, again as much as you can whilst paying minimum on other debts

Swap utility companies, look through all direct debits and see if you really need everything your paying for. Any savings made here set up a standing order to pay off debt.

To reduce spending, meal plan, put all credit and debit cards in freezer to stop temptation to spend. Just keep one on your purse.

Get banking app on phone to see exactly how much money you have.

Set up pocket money account for weekly amounts and use this for petrol, food and sundries - once it’s gone you wait till next pocket money day

fuzzyduck1 · 18/04/2019 17:34

Cut up the cards.
Only spend on what you need and not what you want.
Your already in dept so use this as a wake up call.
I was £40k in dept had 4 years of spending nothing making do and mending.
Now out the other side and much happier for it.

Wellandtrulyoutnumbered · 18/04/2019 17:42

Start replacing the hit you get from spending on non monetary things.

Exercise , walks, library etc

lljkk · 18/04/2019 17:52

Don't spend.
Seriously, every single possible expenditure, grill yourself to consider if you can possibly avoid it. Avoid if at all possible.

Sarcelle · 18/04/2019 17:53

Work out your salary hourly rate and every time you go to buy something work out how much time you have to be in work to earn that money to buy that object.

Also, ask yourself why do you want to buy pointless stuff to make others rich?

Stop watching bloggers etc.

Be less of a consumer more of a doer.

I used to be a spendaholic. The pleasure of being debt free, not frightened to look at my bank balance means more to me than any inanimate must buy item ever did. I regret the sheer waste of time and money spent on buying stuff. I feel free. Shopping is a chore to me these days.

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