Why are you always broke? How to change your spending habits

Why are you always broke?

‘I don’t know, I hardly buy anything!’ Some people are broke because they genuinely have very little money coming in each month. Maybe they live on benefits or have to support a large family on the minimum wage. However, in my experience there are many people out there who claim they have no money and can’t save who have decent jobs and salaries. Perhaps you have the cash, but need to change your spending habits to get you on track?

I knew a woman who lived in a large house with two family cars and sent her children to private school. She told me she never had any money and they were struggling. The pleas of poverty did not ring true, even when she once had the debt collectors at her door. It doesn’t take a genius to see that her lifestyle was too extravagant for what would to many of have been a fantastic income! Her spending habits weren’t in line with the money she had coming in. She was more concerned about keeping up appearances than she was about the state of her bank balance.

Ask yourself some tough questions about your spending habits

So, before you say your money never lasts and you have no savings ask yourself these questions to identify your spending habits:

Could your accommodation be cheaper? This is likely to be your biggest monthly expense. If you have over extended yourself buying or renting it will hurt. Could you move to more modest accommodation or rent a room out?

Can you travel more cheaply? Cars are a huge expense. If you have more than one car consider whether at least one of you could take public transport instead. Could you downgrade to a motor scooter or cycle? If you need your car you can find out about cheaper motoring here.

Could you holiday more cheaply? I hesitate to say give up on holidays, although many people do enjoy the odd ‘staycation’. However, if you go skiiing every winter and to Disneyland each summer you will need a very full wallet.  Could you invest in a tent for some cheaper camping holidays instead? Some of our most enjoyable family vacations have been under canvas.

Do you have money to burn?

Do you smoke? I have little sympathy for people who literally burn money whilst putting their good health at risk. Nuff said!

Do you insist on buying everything new? From clothes to furniture, whatever you need you can almost certainly buy secondhand if you really want to save money. And reusing can help save the planet!

How much do you spend in pubs/restaurants/cinemas/theatres each month? If you are in the pub three times a week your bank balance will feel the strain.

Do you enjoy a regular takeaway? How much would you save if you knocked this habit on the head and cooked from scratch instead? Even if you don’t waste money on take outs, do you use a lot of convenience food?

A passion for fashion?

Do you love a brand name? If you can wean yourself off designer clothing (or at least buy it secondhand) you will save yourself a packet. When you are in the supermarket, try some supermarket own brands – the big names make you pay for all of their advertising and fancy packaging.

Do you have too many clothes? If you buy a new outfit every time you go out the answer will be yes. Take the wardrobe challenge and then see how else you can save money on clothes.

How much does it cost you to look that great? There are so many ways to waste money on hair care and beauty products and treatments, but if you are short of cash you probably don’t need to get hair extensions or your nails done every month and could knock the designer perfumes and makeup on the head in favour of some cheaper versions. See here how you can be beautiful on a budget.

How often do you use your expensive gym membership? If you don’t use it then cancel it ASAP! If you are a gym bunny and there every night then good for you, but could you get it cheaper elsewhere?

Do you have hundreds of TV channels you never watch? You could save a lot by switching to a cheaper package or cancelling it altogether and investing in a Freeview box.

Time to change your spending habits

They are obvious questions really but people are very good at sticking their heads in the sand. Don’t be an ostrich. If you live from pay cheque to pay cheque and have no savings but you walk around in designer gear then you know why you are always broke! Have a good look around the site to see how you can change your spending habits. Start here, which gives lots of tips on how to save money.

(First published February 2017)

Keeping up with the cost of living

I heard on the news today that the cost of living in the uk has risen by 2.3% in the past year. Food itself has gone up by 1%. This is ok if your salary keeps up with it, but I have had a paltry 1% increase this year. Heaven knows how larger families manage.

So, what can you do? How about a side hustle? There are some ideas for making extra money here.

You can save money on your grocery bill with a bit of careful planning and savvy shopping.

Then we have your energy bills. Some ideas that I have tried can be found here. You can also haggle down the cost of your utilities.

Running a car can be a huge expense but it is possible to be frugal here too. This is how I save money on motoring.

Do you spend too much on clothes? You can slash costs if you embrace the idea of buying second hand. I am a happy second-hand Rose.

Days out also don’t have to cost the earth. My tips are here.

This is just a quick compilation of ideas. I hope they help! And don’t forget to check out my frugal recipes.

Back tomorrow hopefully if I have time between work and hospital visits!

What’s your best money saving idea?

I belong to a few Facebook groups whose focus is frugality and the question that comes up time and again when people join is ‘How can I save money? Where do I start?’ It seems many people are still struggling to get from pay day to pay day and looking for money saving advice and inspiration.

My first piece of advice is to have a long, hard look at your outgoings. Go through your bank statements and see what you can cut. Have you an insurance policy on an item you no longer own? Are you paying too much for your utilities? Shop around. Can you save money on your mobile phone or your tv and internet package? You need to check if there is a penalty for early cancellation but sometimes it is worth paying, or you could stay with the same provider but downgrade your package. Do you have a gym membership you barely use?

Make a budget and stick to it. I use Budget Brain from Money Saving Expert. Check your bank balance regularly so you know how much is in the account and when you need to rein in your spending.  

It is interesting to see how much cash can drip out of your account in the form of small purchases on lunch, coffees, newspapers, etc. £10 withdrawals here and there can soon add up to hundreds of pounds. You can save a lot of money by anticipating these small expenses in advance and organising yourself. For example, take your own coffee, teabags and milk to work rather than buying it. Take your own packed lunch. 

Avoid temptation. If you know you are prone to impulse purchases, window shopping is not the pastime for you!

Food shopping is often a great place to save money. You can save loads if you stop buying branded goods and use cheaper supermarket own brands, buy your fruit and veg at a local market, minimise convenience foods, plan your menus, make a shopping list before you hit the supermarket, eat less meat…I could go on. There are so many money saving ideas.

Look at your heating and hot water costs. There are plenty of ways to insulate your home cheaply, you could turn the thermostat down a notch, get the family to wear more layers of clothing, etc. More ideas here.

What about transport? Could you car share? Leave the car at home and walk or cycle?

Do you have a garden? If so, how about growing some of your own food. Digging is as good as a gym session 😀.

What are your top money saving tips for the newbie?

Should you ever buy branded groceries?

I quite enjoy the adverts on TV for Aldi, where they compare an expensive brand of coffee, tea or whatever with their own version. The message is that theirs is just as good, but cheaper!

When I initially started trying to save money on my grocery shopping the first thing I did was dump the brands wherever I could. I tried all of the supermarket basics first. Some we liked and some we didn’t. Value/Smart Price baked beans were a definite no-no, unless included in a veggie stew. Loo rolls didn’t last as long but were worth buying as they were so much cheaper. Value bacon may not look as good but it tastes pretty similar. The kids ate the biscuits even if they didn’t arrive in fancy packaging. I now wouldn’t dream of buying anything other than a basic fruit juice either.

Where we didn’t enjoy the basic products, I moved up to supermarket own brand. Most we liked, but occasionally we still resorted to a branded product.

With the advent of the discount supermarkets such as Aldi and Lidl, the situation has improved even more. Most of their own products are very good quality and as cheap or even cheaper than the old style shop own brands. I have found them to be better overall. 

I might consider something from a range such as a Tesco Finest if it is on offer but I have found some of these are disappointing. I think they are a marketing ploy and another way to squeeze a bit more money out of their customers. 

Generally speaking if I buy a brand it is because 1. I really like it more than the alternatives (such as my Millicano coffee mentioned in yesterday’s blog post) or 2. It is a really good price. I don’t need to pay for a company’s expensive branding – they pay marketing people a lot of money to work out how to make us spend our wages. I bet at least half the time if people did a blind test to decide which product was branded and which was a supermarket’s own brand they wouldn’t be able to tell the difference. So, if you really want to save money on your groceries chuck out the brands and try some supermarket own labels!

Another Goode Book

Reader Rosemary reminded me of this one for my frugal bookshelf.  The Goode Kitchen was written by the late Shirley Goode to accompany her BBC series of the same name in 1986.

Shirley had a precise and logical approach to saving money in the kitchen, which has barely dated. In fact her approach to her kitchen decor (open shelves and a mix of charity shopped mixed crockery) seems positively on trend . Think shabby chic! She believed in spending more on the essentials, such as some quality knives and pans.

I first read the Goode Kitchen years ago and clearly absorbed this approach to cooking. Shirley can take a lot of the credit for much of my kitchen behaviour now – reusing yogurt pots and margarine pots to freeze soup or store leftovers, keeping old bread bags and making stock from bones and chicken carcasses.

She takes an interesting approach to budgeting that makes me think she was an influence on Jack Monroe, carefully costing her ingredients to easily calculate the price of any meal and adjusting ingredients to always get the best possible value.

The recipes are straightforward, nutritious and tasty. They use ingredients likely to be in most cook’s store cupboards or easy to find in a supermarket. For example, you will find recipes for fish chowder, Somerset rabbit casserole, poor man’s jugged hare (actually made with beef) and pauper’s pottage (a healthy vegetable stew) – great, no frills family food.

It is sadly out of print now but you can still find the odd copy secondhand on Amazon, as I did. If you see it at a reasonable price, grab it! There is a link below but you may have to go through and do a search.
goode kitchen

 

Cheaper groceries? I Approve!

Every now and again I have a look on Approved Food and get a few mega bargains. Last night, since I have my new bank card (the other one was used and abused by some scumbag and it was blocked), I decided to take a look and see if there was enough to tempt me to justify the £30 minimum order charge plus £5.99 delivery. As soon as I saw that there was the Felix cat food that my cats like (only £2 for 12 sachets), I knew it would be. I avoided all of the yummy looking sweets and chocolates, as I have given up sugar for the month, and focussed on purchases that would really save me money – items I either need now or soon would.

In case you haven’t come across them, Approved Food sells goods that are past their best before dates at huge discounts. The items are still perfectly good to use. The company doesn’t just sell food; as well as the groceries, they have alcohol (I took advantage and ordered some wine), pet supplies, toiletries, household goods and gifts.

You can’t do the week’s shop on there. There are some staples (I bought orange juice, teabags and Marigold vegetable stock), but no bread, milk or eggs. If you like branded goods such as washing powder and fabric softener you will really make massive savings. I bought a big tin of Vanish carpet spray (constantly clearing up cat sick in my house!) for £2 instead of £4 for example. There are often very cheap cook-in sauces as well for quick and convenient after work meals.

If you want to try Approved Food and you place an order using my link, I will earn a small commission. Thanks!

Try Approved Food

No spend January – how did I do?

Regular readers will be aware that, like many people in the new year, Christmas had left my bank account feeling rather depleted. I resolved to make January a no spend month, buying nothing except essentials. I paid the bills, planned our meals to use up what we already had and then kept grocery spending as low as I could. I bought petrol but tried to minimise how much I used the car and drove like a granny so I didn’t use so much fuel. I didn’t need any cleaning products and won’t do for a few months. I bought no clothes, books or makeup. Even the cats have had to get used to a cheaper brand of food!

Did I have any slips? Well, yes, I caved and bought hair dye as I had a grey stripe on my head, I bought popcorn and snacks for my daughters from Lidl when we went to the cinema (they treated us as they had vouchers). On Friday at work I was a bit hormonal and gave in to a bar of chocolate from the vending machine (80p! Could have got a pack of 4 for £1 elsewhere). 

Other than that I have done really well – so well I am extending this into a no spend February. None of this is really a stretch for me as I am frugal nearly all the time anyway, but declaring a no spend month keeps me hyper aware of my every purchase. If I am going to create a healthy emergency fund I need to do this.

I really need a haircut at some point so that might be an allowed exception. It is also Valentine’s Day. We never go over the top with this but will have a nice meal in and I plan to make Mr S a present. (Not sure what yet but it is likely to be edible!). Because it actually IS the thought that counts.

We will need every spare penny over the next couple of months as Mr S is installing a woodburner. This was my birthday present a year and a half ago but for various reasons other things have taken priority and it has been sitting in its box waiting to be fitted. He will do everything himself except line the chimney so it shouldn’t be too expensive, but we will redecorate and freshen up the whole room. He has damaged the wallpaper, adding to the damage already inflicted by the kitten! I don’t intend to use any savings for this project, it will mean being super frugal and cutting back elsewhere.

It’s been an interesting month for my blog. I made a new year resolution to write a decent post every day and the number of views I get has doubled. I am chuffed, so thanks to those of you who have read my whitterings!

How about you? Did anyone else do a no spend month or are you planning to?

Haggling down the cost of your utilities 

I was listening to Chris Evans on the radio recently and he was relating the story of a woman who spent two hours on the phone to her utility companies threatening to leave and negotiating a better price with each. She eventually saved herself £2000! That is a good use of two hours of anybody’s time 😀.

I have never actually done them all in one go but I do shop around every time something is due for renewal, such as car and house insurance, to get a good price. However, I read reviews and if people are complaining about them I look elsewhere.

One thing I don’t intend to change is my energy provider, Good Energy. I switched to them after a horrific experience with First Utility, who tried to overcharge me by thousands. Their levels of customer service when I tried to get it sorted were appalling. Never again! Good Energy charges reasonable prices, produces all its energy from renewable sources and its customer service is the best I have ever experienced. I’m going nowhere! Sometimes the cheapest sounding deal isn’t worth it. I really recommend this company and, no, they haven’t paid me to say that! 

A year ago my water company offered me a great deal on emergency plumbing insurance, £6.50 for the whole year. At that price, why not? Last week I got a renewal letter and the price was £96.48 for the year, £8.04 a month. I didn’t think I needed this, so rang to cancel. I was then offered a reduced price of £75 for the year. When I refused again this went down to £55 for the year, or £45 if I had a £50 excess. The poor salesman had his work cut out with me and finally accepted I was cancelling. It did make me think though! Never accept the first price you are given!

Have you saved money by haggling down the price of your bills? 

Making a financial plan

A colleague at work told me today that she and her husband have been saving for seven years for a house deposit. They have now saved £25,000 and are about to exchange contracts on their first house. They only got married a few months ago and had a beautiful wedding so were saving for that at the same time. I think this is a real achievement as they were also paying rent and have fairly average  salaries. This is the way it is now if you want your own place – it requires discipline and determination. 

In the same spirit, we are trying to save more and spend less. Now that we have a lodger giving us a bit of extra income this is suddenly so much more achievable.

First each month, we do of course pay the bills. The mortgage, council tax and utilities are all set to go out within a few days of being paid. We pay our bills monthly where we can.  I know we would pay slightly less on things like insurance and road tax if we paid in one go, but we don’t want to purchase on a credit card unless essential and a monthly direct debit for these things helps us budget. I know all the bills will be paid shortly after we do and we can relax. We are working towards having the money in advance to pay for these kind of things, but we’re not there yet.

Next we put money aside for birthdays, holidays, car expenses, Christmas and a contingency fund. We are aiming to save 10% of our income. We have one account for the contingency fund and one for all the other things we are saving towards.

If we continue to live as frugally as possible and make extra money where we can, we should be able to put more away sometimes.

So that is the plan. The contingency fund got used on, well, contingencies last year. I hope this doesn’t happen again but in the end that is what it is for!

Do you have a financial plan for 2017, and have you an emergency fund set up?

The power of curtains

Brrr, it’s cold out there! Well, it is by my standards…we only have a light snowfall and I know it’s much worse in other areas so I’m not really complaining. However it does feel much colder.

A cheap but thick pair of curtains can help keep in the heat


Last year the little room we used as a dining room (now our lodger lounge) was so cold we simply stopped going in there until the spring. For a small room there is a lot of glass: some old French doors that need replacing, a front door, a back door and a small window too. It got so cold and damp in the room there was mould around the windows and behind furniture. 

This morning it was really cosy. The curtains have made a huge difference. I bought quite cheap ones, £20 a pair, but they are a heavy cotton with thick linings. I had intended to buy some additional thermal linings but they aren’t really necessary.

The other measures we have taken to warm things up have helped too. Regular readers may remember the blood, sweat and tears that went into thermal lining the walls! We also put some insulated foil behind the radiator. But it is the curtains that make the biggest difference. I feel it if I forget to draw them each evening.

So if you can afford nothing else, a decent pair of thick curtains or even a blanket up at a chilly window could make you feel much cosier and maybe even lower your heating bills. 

I hope you aren’t under 3 feet of snow and keeping warm and cosy!