How to change mindset from spending to saving/paying off debt?

[TOWGA]

We both need to change mindsets from spending to paying off debt/eventually saving? Any tips? Thank you

I budget carefully and then treat my savings as any other bill - on the 1st working day of the month I’ve got a standing order set up to transfer my half of our bills etc money into our joint account; and then I also have a standing order to take the budgeted savings money into my savings account - which I have chosen one to be accessible enough I can access the money if I urgently needed it; but just enough of a ballache to withdraw that I’m not tempted to dip into it. Once I had a decent whack saved I transferred it into premium bonds to act as an emergency fund, and carried on saving.

I did the same for my unsecured debt back when I had it - I budgeted how much I could spare to overpay each month, then faithfully paid that amount before I got tempted to do anything else with it.

What @Dyrne said - transfer the debt / savings first thing as soon as you get paid.

And log into any accounts daily. It's painful at first but as you watch the numbers change, it's hugely motivating. What's that saying... "what gets measured gets managed"?

We got fed up of not knowing if buying a coffee out would put us into overall draft so we started to put money that was spare in cash for the month.

Write down every bill, every tiny purchase or expense. Leave nothing out.

You can only spend every penny once.

Following!

Reading a book called Your Money or your Life changed my mindset completely www.amazon.co.uk/Transforming-Relationship-Achieving-Financial-Independence/dp/0143115766/ref=nodl_?dplnkId=f18a62c5-924b-4dfe-8a05-35c03fcf286d

Although it's American, the principles are very sound

Thanks all!

We are in about 8k of debt and not on massive salaries, I really want to get rid of the debt so we can save and buy a house and also give my girls a holiday, but we both really struggle with motivation and how to do, because the debt isn't falling quickly!

I don't know whether this is at all helpful, as it's a different situation but... in my struggle with obesity I have realised that I need a new definition of "treat" aside from always food.

Spending money often helps you get pleasant things for sure. So what alternatives are there? What would make you feel spoilt which doesn't cost, or doesn't cost very much? Can you remember some brilliant times you have had which were free? Little luxuries which don't involve money? Maybe build more of those into your lives.

The issue is around takeaways for a quick meal, we spend over £200 a month on them, and that's money we can pay off the debt, but i don't know how to stop this, as we both struggle with cooking when we get back from work with 2 young children

The takeaway issue is really about planning ahead so that you don’t have the mental effort / block of ‘what can we have for tea’ when you get back from work. Spend an afternoon at the weekend batch cooking a few meals for the freezer, write out meals for the week so you can get them out to defrost in the morning ready to heat up as soon as you get in. A few other quick options thrown in for variety too (jacket potatoes with different toppings, soups, occasional frozen chips/veg/protein). Basically make it quicker and less work to prepare tea than order a takeaway.

Even ready meals will be cheaper than takeaways, but investing time in batch cooking will make a big difference.

Yes, as above - have a look at batch cooking ideas. I'd also get a pizza from the supermarket and a bag of salad / box of tomatoes rather than waste twenty quid on a takeaway.

Choose your pain. It is painful yes, why can't we have more money etc BUT you CAN control this.

I have a spreadsheet where I know all my outgoings and the dates they come out and the dates the contracts expire.

It's a ball ache but it helps me. No one is going to help me aside from me, so I simply have to be on top of it.

Best tip I was given was to set aside a small amount each week as your fun money and then scrimp and save in all other areas and pay off as much debt as you can. But do keep the fun money. Even if it's just a tenner a week, it means you can choose to go to a Saturday morning cheap cinema viewing or buy a bottle of wine to go to friends for dinner, or some cheap flowers and a second hand novel to cheer you up.
the other tip I was given, if you are in serious debt, is to get a second job and put all of the income from it into paying off debts. Working in a restaurant means you also get fed which keeps food bills down. Not easy if you have small children, but even doing some work from home a few nights a week can help.

Have two bank accounts, one you get paid into and for bills, paying off debt, mortgage ect. Do not take that card out with you or have on Apple Pay.
Second bank account that you use for everyday spending, transfer X amount a month and that is it.

We did this years ago when money was tight and it helped massively as I didn't see the main bank account as spendable.

We just have one joint now are much better with money.

You need to meal plan before shopping. Sit down and decide what you will eat each night, buy the ingredients and stick to it. Limit takeaways to one cheaper one every two or four weeks and add it to the plan.

Meal planning but having contingencies in the freezer avoids takeaways.

I always have frozen pizza, burgers/chicken burgers and buns, ready meal curry/chinese in the freezer incase I can't be arsed cooking.

I spent a fortune on lunches at work and found buying a really nice loaf of bread has changed my mindset, and I'll take a nice sandwich to work instead.

Dave Ramsey was helpful for me.

We have a repertoire of meals that can be cooked in under 30 minutes (some under 15).

We meal plan so that you avoid the "what on earth do I cook" feeling when you get in from work.

Any leftovers get portioned and frozen (and we tend to overcook).

There is always quick to cook stuff like pizza or fish and chips in the freezer. Much cheaper than getting the equivalent food as a takeaway!

In terms of changing mindset, I think Martin Lewis' mantra about do you really need it is useful. Say it to yourself every time you think about buying.

Don't buy online straight away. Put the thing in your basket and then come back the following day and decide if you do really need it.

If you're going near shops and don't need anything, then physically don't take any means of paying with you.

Two things helped me:-

1. Seeing how much of my wages were going on minimum debt repayments each month and feeling very foolish.

1. I found debt repayment/personal finance blogs helpful to read. I learned a lot about savings and interest from them.

This. And pay for things in cash. You realise how much you're actually spending.

Do you have a monthly budget? Do you know how you're going to pAy for annual bills eg car tax?

I'd devote a Sat morning to sit with all your bills, statements etc and draw up a budget. Include a 1/12 of annual bills in the monthly budget. And an amount for clothes, haircuts, trips, Christmas, etc. These are your household costs.

Then deduct that amount from your household income and set up a standing order for the difference to go into a savings account or straight into debt repayment.

Check your bank account frequently (I do it on Sunday morning) and check that you're still within budget. Tweak if necessary eg if you've overspent in the food category you'll have to take that amount out if your trips allocation.

Once you're in the budgeting habit, it only takes a few mins a week and the joy of seeing your debt reduce or your savings grow is immense.

Meal planning is actually easier than you think. Just start by writing a list of meals you eat but list them under two columns, the first is meals that require the most fresh foods in terms of veg or salad, then a second column of what comes out of the pantry/freezer. A pantry/freezer meal in this house would be tuna pasta bake, it uses frozen peppers and onions, tinned toms and tuna, tortilla chips and cheese.

Have a look at Batch Lady on YouTube to see what you can prepare ahead of time. Also and I hate the term but dump dinners, things you can just chuck into a slow cooker first thing. If your slow cooker doesn't have a timer option plug it into a timer. I used to batch cook on a weekend when Dh was here to help and look after the children. There are again lots of videos on YouTube about meal prep and cooking for the week ahead.

I'd plan for one takeaway a month - make it into a fun night (movie, etc) and set aside the money for it. The rest, say £150, goes straight to the debt as soon as you get paid.

Think about what else you could cut down on o remove them that money goes to the debt too.

At the same time make sure you're putting a bit of money aside for unexpected expenses.

To get thing going and to get motivated, have a clear out and see what you can sell. That money goes straight to the debt to get you off to a good start.

Once you can see the debt start to reduce that becomes its own motivation!

Good luck OP!

I have a spreadsheet where I know all my outgoings and the dates they come out and the dates the contracts expire.

This is what I do too. What also helped me is changing as many as possible of the pay dates for my outgoings to the date I get paid. Also, I took Martin Lewis's advice about dividing up my outgoings on my spreadsheet into 'Needs, wants, debt/ savings'). The percentage you allocate depends on your circumstances etc but I divide up 60% into needs, 20% into wants, and 20% into debts. This adds to the feeling of being in control of my money and that although paying off my debt and paying my rent is important, just as important is having fun. I just copy and paste the template into a new sheet every month - wish I'd done this years ago!