Money😩😩

[ChuckaBuckaBingBong]

You're 26 and you own your own place, you're smashing it

 

[justheretoread99]

Don’t assume your friends who spend a lot of money have a lot of cash spare. They could be in debt. Use credit cards or loans. The girl that paid cash could have had it gifted or inheritance. Don’t compare yours and your partners situation to anyone else, as that will just get you down.

Every month, as tedious as it may seem, do a spreadsheet and list every outgoing compared to your income. Then you can track your finances and compare month by month.

Shop around for different broadband, gas, electric, etc. There could be some cheaper deals out there.

When you do the food shop do you buy branded items? I tend to shop at lidl and Aldi and their own branded stuff like sauces, toiletries are a fraction of the price of stuff you would get at Tesco and Asda.

Follow Martin Lewis’ blog and socials. (Moneysavingexpert)

 

[silentbeauty]

Hi everyone.

Im 26 and own a house with my partner. Its a lovely house and we got it for a good price. We both earn a good enough wage with me around £1600 and my partner £1300. (Doesnt seem alot but it is for all our outgoings etc) Realistically we should have plenty of money left over for social activities and even getting stuff done in the house but every month we are so so skint. We have basic cars, our food shop is low and so is our bills.
We have friends who have their own house too and theyve have just spent £10k on a new garden.. how? Another friend also got aome cosmetic work done that was in the thousands and she paid in cash. She has a similar job to me so similar wage.
How do people afford these things and I cant even afford to go out for a meal once a month? Not really a question but more of a rant.

any money management advice welcome x

 

[Ineedmorecoffee]

Write down your outgoings, and income. Then print off the last 3 months bank statements and compare what you should have to what to do have at the end of each month. It should be fairly easy to begin to spot where your excess spending is happening.

Hopefully then you can see where you can start to save for things you want to do. Couple of other things...

1. The website moneysavingexpert is amazing for tips and advice.

2. Don’t assume those around you can simply afford everything as easily as they seem to,

 

[Rockin' Robin]

My GrandMother had a obvious, but good peice of advice If you can't afford to pay for it, you can't have it. If more people were to take notice of this, there would be much less debt in our society.

 

[imnotarobot]

My biggest tip would be to do a budget each month and stick to it religiously. When I first got my house even a take away wasn't had if we'd gone over budget.

Another thing we did (may not work for you ofc) was we pooled all our incomings together for bills etc and then took an allowance for e.g. £100 each a month. The reason we started was because my partner would spend £5 ish a day on coffee where as I hate the stuff! But with the allowance he could buy what he wanted without me nagging about it also made our true household outgoings easier.

Good luck!

From an old married lady whose had more than her share of fights over money - the best thing to do is sit down with your partner, make a list of your income and outgo for at least three or four months. Be honest. Then work out what your goals are - short, medium and long. (short - watch a play or go out for a fancy meal....medium - holiday somewhere nice....long - house deposit. Whatever works for you). Work out how much you need to get to each goal, and put it aside each week (or paydate). Don't even let it touch your hand, get it put in the account by your employer if you can. If you're saving for a house deposit, have an account that is strictly for your house deposit. You will ALWAYS find a way to spend your savings otherwise (there will always be something to spend it on). I've got lots of accounts - christmas savings, kids savings, big bill savings, and they are there for that individual purpose only.

Pay your utility bills each week if you can, putting a fixed amount on it, even if it's only ten dollars a week towards the power bill or water bill it really adds up.

Meal plan, make a shopping list and go grocery shopping once a week or fortnight. Even if you eat well, and don't skimp, it's the impulse buys that will kill you in a grocery store. The less time you're in a shop, the less impulse buys you have. Make your own lunches. Boring but very effective.

Unsubscribe from all the emails that you get sent about sales etc. If you can't see them, you won't be tempted! Stick on your browser also.

Work out with your partner a reasonable 'allowance' amount for both of you. I would have no clue what my other half spends his money on, but that was our main source of conflict when we were first starting out together. I'd think his choices were ridiculous, and he'd question my need for new shoes or whatever. Once we worked out that we each had our own money to do with as we wished, that conflict cleared up substantially. Everything else was paid for as a couple, but that bit of mad money was our own to do with what we wished. No questions asked or answered

Make your money work smarter, not harder. My husband used to buy iced coffee from a petrol station that would cost $5 or $6 a bottle, when the supermarket was right next door and it would cost $3. He would literally not walk the five extra steps to go to the supermarket, so I'd end up buying him them in the groceries and he wouldn't need to get one from the petrol station himself. It sounds so boring but it does add up over time.

Finally, don't make your savings goals too onerous. Or maybe I mean too long, perhaps. If you're planning to save like lunatics for a year for a house deposit, that's great. Make a sacrifice for a year or so, but remember that life is short. It's so important to not let money be too much of a source of conflict between you.

Old lady lecture over.

 

[justheretoread99]

I don’t have any new advice on how to save more (the advice on here has been brilliant as usual anyway) but I do have a short story about someone who always paid in cash. Went on great luxury holidays, drove a nice car and was very generous with paying for drinks etc. He’s just a few years older then me, so I always felt a bit jealous and curious how he managed.
Well, turns out he had gotten himself a loan purely to have money to spend in his account and a few years later he’s in big trouble with the bank now as he spent it all but can’t even repay the interest as he switched jobs and now makes a lot less.

Similar-ish story, a neighbour of mine bought brand new flash cars, took holidays to Las Vegas and the Maldives, he and his wife and kids always had the latest designer stuff. He had a simple tradesman job.
I was so envious and confused at how he could afford it all.

Turned out he was was supplying Class A drugs and had tens of thousands in cash stashed in the floorboards. Looking at a lengthy stay in jail now

 

[standupsitdown]

Someone once said to me, don’t see a big house - see a big mortgage. Don’t see an expensive car - see an expensive loan. And it’s true.

 

[StrawberryCream]

Zero based budgeting! It has changed my life (sounds corny I know!) I use a free budgeting app called Fudget to work it all out

write down all of your income for each month, work out mortgage and bills and put that aside in one main account.

then with the rest of the money direct it all to different categories. You can use cash envelopes or open different accounts to divide the money

here’s an example of what I do after setting aside my rent and all household bills.

£140 food (£35 a week)
£40 petrol
£40 car maintenance
£60 miscellaneous spends
£40 my sons sinking fund ( just means money for future expenses)
£150 debt repayment
£150-200 holidays fund

The remainder gets divided into general savings or towards my private pension

every single penny gets sent somewhere specific. It’s helped me so much.
If you search the hashtags sinking funds or cash envelopes on Instagram there’s lots of inspiration

you could set money aside each money for a meal out and that money wouldn’t disappear somewhere else

£35 a week on food tell me your secret We shop at Aldi mostly and spend between £70-£100 a week on food, that’s for 2 adults a 4 year old

 

[hol20x]

Where does the remainder of your money go? Could you maybe start a savings account and put some away each time you’re paid?

 

[Youre a wizard Harry]

Go through your bank statements and work out your essential expenditure, budget some money for fun and decide on an amount that you can afford to put in savings as soon as you get paid, rather than putting leftover money in at the end of the month.

As another poster has said, please try not to compare your situation to others- they may look like they have loads of spare money but could be in debt. As an example, my mum has a friend who goes on several foreign holidays a year, has a nice house, 2 cars, sculptures in the garden and a hot tub- but has over £25k of debt.

 

[Belulah]

I recommend Plum and Chip. I’ve had them since the start of Lockdown 1 and saves enough for a laptop (around £900) and a holiday for me and my daughter (£1200) and I hardly notice it coming out.
I totally agree with you though. It’s so hard not to compare. I went to a friend’s house yesterday. Stunning new build, new cars in the drive, perfect garden, all kitted out in designer gear! My monthly income is decent and I live with my mum so hardly any outgoings but I could never afford that lifestyle. It seems like everyone else knows this secret way of making their money go further!

 

[Base2019]

Honestly so many people use credit cards, get help from mum and dad, take stuff out on finance etc. I’ve noticed lately aswell that a lot of smaller business owners have taken out the covid bounce back loans which are interest free for 2 years and can be up to £20k. I was wondering how they were all doing it after not working for so long, but that is apparently how

 

[Pixipoppy]

I ask myself this all the time I’m on a good wage (1,900 per month average) but still can barely save for a deposit. Have an old car that’s fully paid, hardly go on holiday, only shop at lidl etc…

What I’ve found is small stuff does add up. An Amazon order here, a takeaway there, basic home maintenance… even if it’s just £20/30 a time over the course of several months this really makes a dent. Have you thought of using Monzo or another account that lets you keep better track of your outgoings? I was shocked one month I’d spent over £100 on food (not shopping but fast food or getting a deliveroo).

Also never underestimate the bank of mum and dad, that’s how a lot of people end up with wads of cash. You’re still young so I’d say it’s very unusual for someone to just have £10k sitting in a savings account that they have earned themselves. Also people do use loans/credit cards for larger purchases and pay off gradually.

Finally, you own a house which is more than me at 32 so you must be doing something right

 

[StrawberryCream]

Is £70 just on food, or is that made up of other things (cleaning products, fizzy drinks, clothes you are tempted by?)

Cleaning / household too, I also buy formula milk for my newborn which over £8 a box, I don’t know if I could bring mine down, my husband eats a lot because he does weights at the gym, he can go through a loaf of bread in a day and he’s always buying steaks Mabye if he moved out I could bring my weekly shop down to £30 a week

 

[Paradisefalls]

I definitely agree with others saying please don’t compare yourself to others, however them probably being in debt / using finance etc is not always the case.

I’m in a similar situation as you, similar salaries with little left after bills are paid.

My best friend is on the same salary as me (we work together) and her and her husband in the last year have had a brand new kitchen, downstairs loo and both gardens have just had new fences, none of this was done on finance or with gifted money. All of it was paid for with savings and they still have a chunk! They save about £400 a month between them and have saved since they first got together about 13 years ago.

She is very frugal with spending money and they rarely have take aways or eat out. She shops mainly at Iceland and her husband works night shift at another supermarket so makes use of his staff discount.

She is definitely helping me be better with money!

I agree with this. While it is important not to compare yourself to others it’s also important not to feel like the only way to have a “nice” lifestyle is to be a drug dealer or be in loads of debt.

I know there are a lot of people out there like that but there are also plenty of people who do just budget their money well, live frugally in certain aspects to allow them to have more indulgences in the things that are important to them.

if there is something you really want it’s a matter of prioritising it within your budget And that may mean forgoing other things Or having to find another income source. For me travel is super important so I am happy to not spend a lot on going out for fancy meals in order to go on more holidays (pre pandemic). My husband and I do all our spending using a BA Amex card to get air miles (only spend within our budget allowances and pay off in full every month) and the air miles get us free companion tickets and upgrades to business class flights.

we had a very expensive honeymoon (approx £17k) but we had multiple side hustles outside of our day job for 2 years to save for it and worked 7 days a week. It was difficult and tiring at times but having a goal was so motivating and the trip was worth every penny and every late night and lost weekend!

I hope this doesn’t sound like a brag as we don’t have high incomes by any means but I just don’t want people to read this thread and think there’s no hope unless you have rich parents or are prepared to do something illegal. Your friends who just spent £10k to get their garden done may have made that their priority and cut back on other things to afford that and same for your friend that had the cosmetic surgery.

 

[Hendrix]

I definitely agree with others saying please don’t compare yourself to others, however them probably being in debt / using finance etc is not always the case.

I’m in a similar situation as you, similar salaries with little left after bills are paid.

My best friend is on the same salary as me (we work together) and her and her husband in the last year have had a brand new kitchen, downstairs loo and both gardens have just had new fences, none of this was done on finance or with gifted money. All of it was paid for with savings and they still have a chunk! They save about £400 a month between them and have saved since they first got together about 13 years ago.

She is very frugal with spending money and they rarely have take aways or eat out. She shops mainly at Iceland and her husband works night shift at another supermarket so makes use of his staff discount.

She is definitely helping me be better with money!

 

[Welshgal]

I don’t have any new advice on how to save more (the advice on here has been brilliant as usual anyway) but I do have a short story about someone who always paid in cash. Went on great luxury holidays, drove a nice car and was very generous with paying for drinks etc. He’s just a few years older then me, so I always felt a bit jealous and curious how he managed.
Well, turns out he had gotten himself a loan purely to have money to spend in his account and a few years later he’s in big trouble with the bank now as he spent it all but can’t even repay the interest as he switched jobs and now makes a lot less.

 

[Sunflower91]

I’d definitely say don’t compare yourselves to others- I know plenty of people that in the outside look like they have plenty of cash and are constantly buying new cars or flashy holidays or house renovations but it’s not as a result of their income- it’s things like loans, credit cards and bank of mum and dad. I’ve even known people that brag about buying something and it’s completely fictitious.
I’m a big fan of money saving expert and price comparison sites for bills, insurance etc. If I need to buy something I’ll use hotukdeals, price runner or camel camel camel to look at prices and make sure I’m not spending above the odds. I’m also a member of cash back sites such as Quidco and top cash back.

 

[Onecandream]

Zero based budgeting! It has changed my life (sounds corny I know!) I use a free budgeting app called Fudget to work it all out

write down all of your income for each month, work out mortgage and bills and put that aside in one main account.

then with the rest of the money direct it all to different categories. You can use cash envelopes or open different accounts to divide the money

here’s an example of what I do after setting aside my rent and all household bills.

£140 food (£35 a week)
£40 petrol
£40 car maintenance
£60 miscellaneous spends
£40 my sons sinking fund ( just means money for future expenses)
£150 debt repayment
£150-200 holidays fund

The remainder gets divided into general savings or towards my private pension

every single penny gets sent somewhere specific. It’s helped me so much.
If you search the hashtags sinking funds or cash envelopes on Instagram there’s lots of inspiration

you could set money aside each money for a meal out and that money wouldn’t disappear somewhere else