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HELP - Shit with money - what's your tips?

56 replies

Ohwonderful · 21/03/2023 18:17

For context, family of 4 left with around £1500 disposable per month after essentials are paid for. At the moment we save nothing.
Not so long ago out disposable was about £500 per month and honestly I don't know that our life is any different but we seem to piss away 1k and I don't know where!
I want to sort that this year. We worked hard to get to this and I want us to enjoy it by spending what we have on meaningful things and investing in the future for us all.
I'm hoping you money savvy will share some tips to get me going!

OP posts:
Anotherturnipforthebooks · 21/03/2023 18:19

Record every single penny you spend for a couple of months and then review - you might find there are a lot of small purchases adding up to lot that you can cut back/ cut out.

LimeCheesecake · 21/03/2023 18:19

Does “all essentials” include food/travel /petrol?

Ohwonderful · 21/03/2023 18:40

Yes although doesn't include eating out or takeaway or extras I.e nipping into shop - which is actually probably adding up to more than I think!

OP posts:
TheFlis12345 · 21/03/2023 18:42

Put money in savings as soon as you get paid! Don’t rely on planning to save ‘what is left’.

BadgerFacedCoo · 21/03/2023 18:42

I take a lunch out to work.
No takeaway coffees etc.
No takeaways.
No wine.
Meal plan.

Mine all involve food and drink. I could waste thousands.

Ohwonderful · 21/03/2023 18:45

BadgerFacedCoo · 21/03/2023 18:42

I take a lunch out to work.
No takeaway coffees etc.
No takeaways.
No wine.
Meal plan.

Mine all involve food and drink. I could waste thousands.

I suspect I am wasting a lot on food, eating out and takeaways. A PP suggested taking note of expenditure - this would probably be a good starting point as I honestly don't know how much is lost on coffees, fast foods, top up shops.

OP posts:
MissLucyEyelesbarrow · 21/03/2023 18:46

How old are the DC? If they're at the, "Oh Mum, but it's only £20" stage, that can add up really fast.

gogohmm · 21/03/2023 18:50

Keep your receipts for a month, it's eye opening! I was going through £2k on food and drink at one point, mostly through laziness, impulsiveness etc. exh was a lot to blame spending £7 on the way to work each day.

Splitting up solved the latter problem and the pandemic kicked my cooking laziness habit plus I moved to where there's a pitiful choice of takeaways so I'm not tempted

TimeForMeToF1y · 21/03/2023 18:52

Ohwonderful · 21/03/2023 18:45

I suspect I am wasting a lot on food, eating out and takeaways. A PP suggested taking note of expenditure - this would probably be a good starting point as I honestly don't know how much is lost on coffees, fast foods, top up shops.

Are you paying for everything with cash then?

That's very unusual nowadays maybe start using a debut card and iif your bank doesn't automatically analyse your spending download it into a spreadsheet and analyse it yourself

Touty · 21/03/2023 18:54

Take cash out for spending money every week - it’s a game changer. It’s harder to hand over cash than a card.

gogohmm · 21/03/2023 18:54

More top tips are to take a flask of good homemade coffee out eg when dog walking/beach/park. Take lunches to work if applicable. Get the kids involved in making dinners, come up with "fun" dinners eg make your pizza, fajitas, sushi, everything in the middle.

Have economy nights eg we eat dal a fair bit, but also push the boat out and have restaurant at home night eg I make lamb steaks with redcurrant jus, cost's perhaps £20 for 4 including a bottle of wine, so much cheaper than eating out

BounceyB · 21/03/2023 18:58

I think the question is what are you saving for? If you need money aside for a pension/the future then the money has to go in a savings account before you do anything else. I would be like you if it wasn't for this. I'm terrible with money if I'm not focused on a plan.

maxelly · 21/03/2023 19:00

As per po, you really need to do a full financial audit to understand where your money is going, unless you do a lot of your day to day spending using cash this shouldn't be too difficult, just time consuming. Set yourself up a simple excel sheet with categories like 'takeaways', 'top up shops', 'kids activities' etc and download your last 3 months bank and credit card statements and go through line by line and assign it all to a category.

Once you have a good understanding of where the money's going, you can make yourself a monthly budget. You need to include in this items which are actually less frequent than monthly expenses like kids birthdays, holidays, Christmas, car servicing and MOT. A bank account that has a 'pots' function like Monzo is really really useful for this, I have about 10 different pots set up and as soon as I'm paid every month I transfer money into them that is 1/12th of the annual amount I want to spend, so when e.g. Christmas rolls around my money is there ready to spend (this also helps me not go mad and overspend, if you're putting something like that on a credit card to be paid off later the temptation can be to say fuck it and worry about the cost later whereas if you've saved all year you want to spend wisely). After my bills and essentials are out and my money to my annual pots is gone, plus a fixed % that goes to longer term/rainy day savings) what's left is for monthly disposable income. You might need/want to further sub divide this using a spreadsheet you monitor on a weekly basis or again a 'pots' function, or an app like 'you need a budget' into categories like takeaways, clothes, subscriptions, kids activities. Whatever method you use the crucial things is to understand what outgoings you have and keeping to within your income, so e.g. if you have £500 a month to spend but have £450 committed outgoings on kids clubs, gym membership, sky TV, phone contracts etc that's fine, but really only leaves enough for one takeaway and a couple of small top up shops a month, so it's no good going out for a big blow out meal on payday and then clothes shopping, then wonder why you've got nothing left by the end of the month. So if that's the issue you have, you need to have some realistic conversations as a family about what's important, can some of the subscriptions or activities go, or if not then that's fine but there's then no slack in the budget for other treats as well (or somehow you need to increase your income as a family is the other alternative). It's not about forbidding things or living a Spartan lifestyle but about prioritising what's really important and not wasting money on things that actually aren't like memberships or subscriptions you don't use or clothes you don't wear or food that doesn't get eaten...

DanceMonster · 21/03/2023 19:01

Touty · 21/03/2023 18:54

Take cash out for spending money every week - it’s a game changer. It’s harder to hand over cash than a card.

Not for me, once money has left my bank account I see it as already gone so I’m happy to spend cash with wild abandon! I hate seeing the total go down on my online banking though so am less likely to buy stuff if I only have my card.

WalkAwaySugarbear · 21/03/2023 19:02

Track every penny. Its long winded to start with but it's essential to start a budget.
Categorise your expenditure. Once you know what and where you spend, you can plan how to budget for long term plans.

I started with a 3 month breakdown then I could decide if I need to reduce it. It became a challenge to beat last months spend. Once the savings start to grow it becomes addictive and you'll want to see them rise every month.

takeawayandwine · 21/03/2023 19:04

I can be a fritterer too! I downloaded the 'Days since' app and created a counter/countdown for 'No spends'. So I stock up on food/petrol etc and then set the timer to see if I can go all week without buying anything non-essential....that includes takeaways/popping into the shop and random boredom Amazon purchases.

It's such a small thing but has actually helped me loads!

Ohwonderful · 21/03/2023 19:04

gogohmm · 21/03/2023 18:50

Keep your receipts for a month, it's eye opening! I was going through £2k on food and drink at one point, mostly through laziness, impulsiveness etc. exh was a lot to blame spending £7 on the way to work each day.

Splitting up solved the latter problem and the pandemic kicked my cooking laziness habit plus I moved to where there's a pitiful choice of takeaways so I'm not tempted

This made me chuckle, sack the OH and moving away from the takeaway shops! Cudos on the cooking, I admit I am very lazy with this these days.

OP posts:
Amboseli · 21/03/2023 19:04

Keep a record of every single penny you spend. Only then can you see where your money is disappearing.

We're the same. On paper we should have money left over each month but we never seem to. I know it's being frittered away. But we've cut back on discretionary spending as much as we can I think. But we prioritise maxing out our pensions so we are saving.

Ohwonderful · 21/03/2023 19:05

MissLucyEyelesbarrow · 21/03/2023 18:46

How old are the DC? If they're at the, "Oh Mum, but it's only £20" stage, that can add up really fast.

Both under 10, no expensive hobbies, couple of quid a week for clubs. But I'm probably guilty of over indulging at weekends with treats ( costly)

OP posts:
MissLucyEyelesbarrow · 21/03/2023 19:08

I moved to where there's a pitiful choice of takeaways so I'm not tempted

This worked for us too, but I admit it's a little extreme as a cost-saving measure 😉

Ohwonderful · 21/03/2023 19:08

Touty · 21/03/2023 18:54

Take cash out for spending money every week - it’s a game changer. It’s harder to hand over cash than a card.

I like this, pre covid I always used cash, I do think I'm probably more careful with cash.

OP posts:
Ohwonderful · 21/03/2023 19:10

gogohmm · 21/03/2023 18:54

More top tips are to take a flask of good homemade coffee out eg when dog walking/beach/park. Take lunches to work if applicable. Get the kids involved in making dinners, come up with "fun" dinners eg make your pizza, fajitas, sushi, everything in the middle.

Have economy nights eg we eat dal a fair bit, but also push the boat out and have restaurant at home night eg I make lamb steaks with redcurrant jus, cost's perhaps £20 for 4 including a bottle of wine, so much cheaper than eating out

Love the resteraunt at home idea and your right, definitely cheaper!

OP posts:
CombatBarbie · 21/03/2023 19:11

Savings are done same day as pay day.... I can still access if needed but try not too, makes me more mindful when spending the disposable stuff

Ohwonderful · 21/03/2023 19:12

BounceyB · 21/03/2023 18:58

I think the question is what are you saving for? If you need money aside for a pension/the future then the money has to go in a savings account before you do anything else. I would be like you if it wasn't for this. I'm terrible with money if I'm not focused on a plan.

Pensions are sorted thankfully. More of a big holidays/home renovations type savings and emergency type funds.
We literally have no savings which is quite ridiculous given what we are spending each month.
Yes I think setting aside at the beginning would be good as there's never anything left to save at the end.

OP posts:
monsterradeliciosa · 21/03/2023 19:12

Coming from someone who has never been good with money but now have to be as a single mother, spreadsheets are all you need, it's that simple, they are the best invention ever.

I have one for the year which I plot all income and outgoings including child benefit. I then calculate each change in bank balance with every transaction.

This way I can go down to next year and see exactly how much bank balance I'm going to have at any given moment. It stops me running out of money, shows me where I need to make more and where I need to defer payments and where direct debits can go.