Category: Saving Money

I’m Saving a Fortune By Eating In

~ Rob

The money you spend on takeaways, fast food and dining out mounts up. You can also shell out a lot of money for work dinners, breakfast and drinking from coffee shops.

I know it’s easier and more convenient to go out for a meal or order a takeaway but it’s far cheaper and quicker to cook at home. You can make the same meals at home for pennies compared to the price of expensive restaurants and retail snack shops.

Half the time we claim to be too busy, when in fact we are too lazy to cook our own food. The result is often spending money we could and should save. Calculate how much you spend on fast food and dining out each month? What is the total for the year?

Over paying for food, drink and bottled water will zap the money in your wallet. I’ve become a bit of a chef so I get family and friends together for a meal. During the summer it’s barbeques and as colder nights draw in its curries, chilli and stews.

Getting good wholesome food on the table doesn’t have to cost the Earth. I’m loving Lidl, Aldi, Wilkinsons and you can make great savings on groceries and household items by taking the time to shop around.

While there is nothing wrong with eating out once in a while, you can make the same things at home that you buy at overpriced food outlets. In the end paying for convenience really costs us a fortune.

Saving for the Future

~ Rob

Now my debts are back under control and I’m making a steady income it’s time to look at my saving goals in the short and long term. If I can pay debt back quickly then surely I can save money just as quick.

Here are My Saving Targets:

Regular Saving: Save £250 per month in a Savings Account.

Emergency Fund: £6,000 – Just in case of any financial emergencies to give me some breathing room. I call this my Kitty and I will put any extra leftovers in each month. People change, change jobs, lose jobs, circumstances and situation change so my Kitty will be money to fall back on just in case.

Travel Savings: £3,500 – Set aside for holidays and seeing the world with my girlfriend.

House Deposit: £25,000 – This is the big one. Buying land in nice areas is expensive so a large deposit will be needed to get a foot on the property ladder. I’ve been renting for several years since my student days. I love the property but it lacks something, I have come to the conclusion I want a place that I can own. The problem with renting is it always feels insecure and temporary. You can’t add your own personality to the property or breathe any life into the rooms because of the rules of the tenancy agreement.

Retirement/Pension Fund: At least 20% of monthly income.

Your saving potential will depend on your monthly expenses, outstanding debt and the amount of income you bring in each month. Could you live off less? Do you actually need all the money you earn each month? If you can live off less you can save more money.

These are big saving goals I’ve set for us. I thing the first saving goal should always be an emergency fund. It’s important to have a cushion of money to fall back on, just in case. Saving for the future and life’s little setbacks is vital, so build up your kitty.

The aim is to save around 20-30% of my income but it will depend on how the business side of things go. Getting into the habit of saving will provide for your future.

I Have Money In My Old Savings Account

~ Rob

Today I checked a savings account from my old bank and was surprised to find it has nearly £278 pounds sitting in there untouched and unfunded for years. It was going to be my emergency fund but I opened a new savings account and forgot about it.

After some careful thought I’ve decided to empty my savings account. Why I’m getting rid of my emergency fund goes against what I’ve read about personal finance however I think putting this money into my debt will make me bigger savings than leaving it in the bank earning a pittance.

Leaving that money there earning next to no interest doesn’t make any sense, especially since I’m paying higher interest on my debts and the UK inflation rate is higher than my saving interest.

Some people many think it’s not a smart move, yet for people in credit card debt it makes logical sense to spend any savings on your debt. Therefore today I will withdraw all of my savings and pay it into my credit card that is costing me the most.

We are taught and recommended to open a savings account to earn interest yet in these economic conditions it’s hardly worth it. While saving money in the bank is nice my purchasing power is fading away. Every day that money is worth less and rots away a little. Compared to my debt having a savings account is actually losing me money.

The best course of action is to closed the account and put the money into my credit card debt. I’ve analysed the risk and hopefully I won’t get the sack, get made redundant or experience any unexpected emergency like anything breaking down or needing replacing.

The plan will then be to rebuild my emergency savings fund after I’ve wiped out the debt on both my credit cards. Let’s hope am not given my P45 on Monday :-/

Budget Strip Club

~ Rob

No, this post isn’t about how to get lower strip club prices or where you can get hold of discount lap dancing coupons. Sorry to disappoint you.

Over the last few months I’ve cut costs and stripped down my budget which has lead me to wonder if I could reduce it even further. Is it possible to bring my outgoings down to frugal fractions.

What is the bare minimum you could survive on in areas like food, travel, entertainment? By going frugal and been more financially reserved would it be possible to shave even more off my budget.

You can have fun without spending much on entertainment and going to the club. Going out drinking costs a bomb and isn’t economically when you can party cheaper at home for 75% less dosh.

When I explained to friends that I didn’t what go out partying and drinking because I was on a tight budget they laughed and mocked me for using discount stores and going shopping in cheap shops and labelled me a bore.

It’s funny when people look down at you for doing something they don’t understand? It may seem like madness when I have a workable budget but I want to push the budget limit and see how frugal I can you go to pay off my debt faster.

Of course I would like to go out for a drink but I knew one thing would lead to another and the night would end up costing a fortune and they would try and drag me to a strip club somewhere so I said “no I can’t afford it”.

They offered to buy me drinks and sub me yet I still declined. The last thing I want is to get into debt with my mates again. I know that saying “no thanks” was the right thing to do.

While my friends are out partying drinking pitchers, spending their money and partying I’ll be saving money and keeping to my budget. I’m still figuring it all out and at times I feel a money mentor would help keep me on track and hold myself accountable.

If you want to get ahead you need to hold yourself accountable and if you can’t afford something then say “no”. Saying no is a good budgeting habit.

Let’s see them make fun and mock me for being a loser when my debt is paid off and I’m financially free. Once your debt is gone you can work towards early retirement and that’s when the fun really starts. The fun of doing what you want every day without any financial pressures or stress.

Many of my friends don’t seem that interested in their personal finances or dealing with their debt or pensions. I’ve tried to tell them that if they’re not careful they’ll be The Leftovers. While it’s important to live in the moment you never know what fate and misfortune may bring you. So live for today and plan for tomorrow which may include sacrificing nights out, staying in days and cutting back on things.