I’ve mentioned before how I’ve become a more considered purchaser. I usually make a list at the beginning of the season for a few wardrobe updates and glance ahead into my social calendar to see how many dresses I need to splash out on (and how many of the same guests will be at any given event so I can wear again). All make-up buys have to come with a recommendation to avoid costly mistakes and with my house not far from completion, the interiors purchases have also slowed down. So why oh why do I seem to be spending more money than ever?
I’ve always been a fairly good saver and always put aside a lump sum at the start of the month. For the last few years I have celebrated at a fair few hen parties and weddings hence I actually have an account dedicated to saving for my friend’s nuptials. I know, this is VERY organised but I don’t like being thrown in to a blind panic when an email lands in my inbox asking for a costly hen do deposit… by the end of the week.
My husband James has recently spent three weekends away so any recent purchases have been solely on my greedy self. I felt in order to keep track of my spending I would have to go old-school and keep a diary. Quite frankly reading the journal back has proved frightening and I’ve decided to make a few changes to my spending habits.
Glancing back at three consecutive weekends I have deduced that I am spending more than half of my disposable income on eating and drinking. The first weekend I spent in my hometown of Sheffield soaking up the spirit of the Tour de France (lunch, dinner and drinks), the second catching up with friends and family (that would be lunch, dinner and drinks, again), and the third at a truly terrific Sten Party toasting the Bride and Groom-to-be (followed by lunch and drinks the next day too). So there you have it, the majority of my money gained from my slotzo.com gambling has ended up in my mouth. All I have to show for it are some bloody good memories and a bit of a sore head the next day.
Then there’s my ‘accidental’ spending. Twice in one week I went to spend gift vouchers in store but when I reached the till realised I had left at home. And twice in one week I whipped out my debit card instead. I also had a £40 John Lewis voucher. As I learnt I was unable to physically pick up a voucher and take it to the shop I decided it would be safer to spend online. It was free delivery when you spend £50 so I found myself spending an extra tenner. All in all I accidentally spent about £80 with all the voucher blunders.
Throw in a few birthday presents, engagement gifts, house-warming goodies, a toiletry hoard and a few sale purchases and it’s easy to see how it all mounts up. As I mentioned before I already do my bit for my savings account so should I feel guilty about spending my hard earned moolah on feeding myself? Food after all is a necessity… Should I spend less on good grub and put the money towards something material such as the Oliver Bonas Bamboo Drinks Trolley that I really want?! Like Charlotte mentioned in her post about frivolous spending, I don’t want to never buy anything.
The truth is, it’s expensive being sociable. However I adore my family and friends and so you’re unlikely to see be turn down a chance to see them, whether thats for a good old gossip or to celebrate a milestone occasion. What I have done though is made a conscious effort to cut down on the spending; meeting friends for more low-key lunches with a good old Boots meal deal, trying to stay in with a bottle rather than head to the pub and I’m keen to arrange breakfast or brunch gatherings rather than a boozy evening meal. All vouchers are firmly tucked in my purse and I’m staying away from the sales.
Have you ever kept a spending diary? Were you surprised at where your money was going? Do you ever feel guilty for the way you spend your cash?
I used to do this when we first moved in together and were flat broke, because I had to. As we started earning a bit more I stopped keeping track but we realised recently that we are saving less than when we earnt considerably less. I went through a couple of months bank statements and realised that we also spend the majority of our money on food and drink. Buying food at lunch is a big one, and then a few after works drinks here and there, oh and we missed the last train so that would he a taxi home there… That’s not even getting on to the weekends! So I am going back to the start and budgeting for everything again, because whilst I do love socialising, I don’t like having an empty savings account!
I think internet banking is a fabulous thing but arguably I used to have a better handle on my finances when I used to get printed statements.
Don’t even get me started on taxi’s Anna- they cost a fortune!
We both enjoy eating out but a couple of months ago I went through our accounts and was shocked by how much we spent. We now have a dedicated budget for it and that’s it once it’s gone we don’t eat out til next month and invite friends over for food instead xx
Having a separate account for food (and fun) is a great idea Helen. I think it’s one I’m going to try x
When I was younger I was one of those people who would get paid and spend my money like someone would take it back from me for the first week. Then all of my bills money would come out and I’d go to the cash point two weeks after being paid only to discover I had £100 to last me over a fortnight. This happened A LOT! Because I hated that feeling so much, a few years ago I created a spreadsheet which would cover all of my outgoings and my wages. Each month I take out all of my bills and my savings and then I know what I have for the rest of the month. I then split this in to weeks and apportion it depending on social activities in those weeks. What a geek!
Like you, I have had a lot of weddings and hen weekends over the years and hate that feeling of something sneaking up on me. So I have two savings accounts. One for bigger stuff – currently the cost of moving house! And the other for upcoming social occasions. At the moment I am saving a small amount each month for my sister’s 30th birthday in December. She spoiled me rotten for my 30th last year and I want to do the same but if I don’t save for it now then I know I’ll be in a cash strapped panic when the day comes.
Also, like you, so much of my money goes on socialising. Which is essentially eating dinner out and drinking prosecco. Now I love these activities but every once in a while I do think it’s a bit of a waste of money..
The one way I do economise on food and drink is by bringing food to work for lunch and keeping nice coffee in my desk so I don’t have to buy coffee from a coffee shop every day. I know some people who spend over £10 a day on food and drink whilst at work and I think that’s a bit of a waste. My husband and I are also pretty good on planning our meals and doing a big food shop each week so we’re not running to the shop every night to buy something for dinner which can get pricey.
Shoes are still my weakness though and, since it’s payday today, I’m off to check out the world wide web for some pretty shoes! Happy Friday!
You’re not geeky Jennifer! It sounds like you have a great hold on your finances.
Enjoy your new shoes 🙂
I feel exactly the same Lauren – where do it all go?! But it’s so true, it’s the £13 on a bottle of wine here, £15 on a jug of Pimms there, £10 on that top in the sale that you end up wearing twice, £15 on breakfast out on a Saturday etc etc and it all adds up! But I am also the person that wants to see my friends, be social and not always be preoccupied with how much it costs (fun is SO expensive though!)
I have not done a spending diary in the past but it’s pay day today and I am determined to be good this month and track my spending. I have got the free Budget Planner app for my phone which will hopefully make it a bit easier….
As mentioned by other readers one way to save £££ is to plan meals and take lunch to work. It was actually thanks to following Weight Watchers that I started do this but sitting down at the start of the week, planning evening meals and making your lunches not only had a beneficial impact on my waist line but also my bank balance! I could not imagine just turning up at the supermarket now with no real plan of what to buy! Make a list and stick to it.
And ditch buying coffee – you can’t really buy a coffee for less than £2, usually about £2.50 – that’s £50 a month!
We’re so good at planning meals in the week but it all falls apart at weekends! I must get better at thinking ahead to Saturday and Sunday rather than being tempted to order a takeaway or go out if the cupboards are bare.
Luckily I’m not big on caffeine but James used to spend a fortune in Starbucks. Those loyalty cards are evil!
I also have felt the same way about this for quite some time now – mainly since I moved to another part of London and now have to pay to travel to get in to work (I used to be very fortunate and walk to work) – that is an additional £140 per month before I’ve even started!
Like you Lauren my fiance and I like to eat out as we are mad foodies, but I looked at our joint card statement the other month and it was astonishing how frequently we were doing it – almost once a week!!
I do put away savings every month so I’m not spending everything I earn, but I still have that guilty feeling when I buy myself a nice new coat or dress or other lovely item.
I have now come to the point where I have decided that I work hard and work long hours with my job so I should deserve to treat myself. Provided you are saving that is the main thing and not being completely mental with your spending I think its ok.
Its nice to know lots of people feel the same way. Sometimes I feel like I am the only one who feels broke.
Agree Emma, so nice to know that I’m not the only one who has felt the need to look at my spending habits. Also, you are so right. We all work hard and deserve to splurge on the things we enjoy x
Have you heard of the phone app ‘on trees’ Lauren? I discovered this a fortnight ago an it’s been a complete eye opener! It’s free to download and links to your bank account (but its secure) and it allows you to categorise all the money going out of your account and rename the transaction. So say if I were to buy something in debenhams it would just come up as ‘debenhams’ on the statement but I could rename it to say what it actually was such as “wedding gift” so when I look back over the month I can see exactly what I spent the money on. You can then categorise it and each category has a different colour so you can see where the most of your money goes. It sounds really geeky but I am exactly like you, most of my money goes on eating out and lunch everyday, and I learnt that I had spent £720 on eating out in three months!! Gulp! I nearly cried. So now I make sure I take my lunch to work everyday rather than spend £6 a day at the deli, and it’s saved me loads. Just thought it was worth a mention as it might save you a bit of time writing everything down in the diary if you can do it all on your phone! Xx
Kayleigh this is absolute genuis! Am going to download right away.
Colour coding actually makes me feel a bit giddy. I’m such a geek x
Me too. Plus colour coding on my phone prevents me from going and spending a fortune in paperchase on fancy diaries and pretty pens to do it by hand. Not that I have a paperchase problem. Ahem… 😉
I left a job in march to begin a new one in April. However by the end of April, I had developed a nasty case of flu, which turned out to be pneumonia with effusion (fluid around the lung). Add that to a hospital visit for IV antibiotics and an allergic reaction to penicillin! All of which meant that I couldn’t start my new job and am only just starting to feel human. My partner has supported us whilst I have been off and in the middle of a house renovation. Now I wonder what on earth I was spending all my money on previously. When I am earning again I intend to make every penny count (not that I was a big spender before and luckily had saved a lot of my wages). I feel guilty having spent money on things that were not needed and will think a lot more carefully from now on!!
Jo, your poor thing, your illness sounds horrible.
Glad you’re on the mend now x
I need that ‘on trees’ app – that sound great. I used to blog all my spends. It got me out of a tonne of debt but did mean my friends knew exactly how much I had and told me off about lots of my purchases so I lost the enthusiasm to carry on being so honest! We do have multiple accounts though and I do find that really helpful. All the bills come out of one, presents from another (I do that too), food from another, kids clothes etc. I find it helps me not to overspend on one area but also then not to feel guilty about splurging on something special if there is enough in that account. Ahh Lauren I didnt realise you were a fellow Sheffielder!
I didn’t realise you were a Sheffielder either! It’s a small world!
Confidence and knowledge around your money is never, ever a negative thing, whatever you choose to do with it. It is definitely not ‘geeky’. Would anyone call Karen Brady a geek?
I have a spreadsheet pro forma, which I replicate every month (it’s just a simplified version of double entry). It has the amounts and dates of all my regular outgoings (direct debits, along with petrol and food shopping, basically) in one column, my unplanned spending in another (clothes, gel nails, eating out, whatever) in another, and my incomes in another (if you only have one form of income, you might want to start looking at how to make your money make you more money?). About twice a month I go in and reconcile my bank balance to this spreadsheet, and the final cell on the sheet tells me how much money I’ll have at the end of the month. Depending on what I’m doing at the time, I will either just save that, or if I’m saving for something in particular, I’ll set up a DD to move the money straight into my regular saver before I can even see it!! That’s how I keep a handle on things.
That ‘on trees’ app sounds really helpful, great idea. When I’m really watching my money, I ‘go back to cash’ as I call it. I work out how much I want to spend that month for ‘food’ and ‘spends’. Then I take out those amounts in cash, keep them seperate in my purse in those little plastic coin bags from the bank, and only use that cash, not my cards. It’s real ballache, but that’s the point! It hurts so much more to hand over notes rather than bang in a pin number, so I end up really thinking about whether I really want/need/can afford whatever it is that I want. When the money is gone, it’s gone.
Lastly (I know I’m ranting here!), re social spending costs, I often think that everyone thinks the same thing, but is too scared to admit it for fear of looking tight/boring. If you feel this way, I guarantee in your family and friends, there is at least one other person who feels the same. Perhaps they are even in debt as a result, who knows? So, try fessing up a bit, suggest doing the rounds at peoples houses instead of the pub, they do the food, everyone else brigs the alcohol. I bet you’d have takers, once they got used to the idea. If not, I guess you have to just think about whether those friends will be there to pay your bills when your pension runs out, or the interests rates rise. I’d never suggest money over having a life, but living beyond your means is a definite no-no.
Please keep up the money discussions, it’s such an important topic, and seeing how everyone else ‘does’ theirs can only bring this hushed up topic out into the open where it should be x
Faye – this is genius! I never thought about the ‘back to cash’ suggestion, but i am going to do it now! With only one household income at the moment (meaning exactly HALF the money we used to have), I am trying to keep a real handle on things and I really like this idea. Also, just curious – but is there some secret/obvious way to make your money make you more money?
Haha, if I knew that I’d be well rich! There’s no secret or obvious way that I know of, sadly! Pay debts off first, then when you have a bit spare, do something with it instead of just saving it. I believe in bricks and mortar, but that’s fairly pricey to start with. Plus, you have to be comfortable with rising interest rates.
I guess, if you have something you’d like to put aside or try investing, get a good IFA and let them advise you once they’ve spoken with you and understand what you want to acheive and how comfortable you are with risk. Good luck, if you figure out that magic formula, please let me know!!
Lots of great tips here in the comments section. When I was at uni I didn’t have two pennies to rub together (as my Granny would say!) so I learnt my thrifty ways early on. My parents encouraged us to work from an early age on the farm, and then when we were a bit older we got jobs away from home (I did a gruelling paper round from the age of 12 – 16 for a grand total of £6 a weekend, and I don’t think my wage went up at all in those three years!). I saved away this paper round money, and by the time I was 21 it had accrued a wee bit of interest, and it was enough to buy me a round the world ticket to 14 countries! Kind of laughable that a paper round allowed me to buy such a huge thing, but it was worth all those early starts.
At uni I used to keep track of every penny I spent, but I am less good at that now that I am earning. Faye’s tips are great, and I’ll definitely be setting up a spreadsheet to keep track of spending now as I haven’t managed to save anything in the last few years due to big purchases like a car bought outright and new furniture for our new house (my 12 year old self would be appalled!). I don’t have a lot of frivoulous expenses (we don’t have sky or fancy phones, we don’t really go to the cinema preferring to buy it on DVD to save a few bob, we rarely download music, we eat nice food at home rather than going out, and we get our books from the library) but it’s worth it to treat yourself to big things like a nice car or holiday.
I don’t find my social life too expensive, as I do a lot of visiting friends at home – I guess that’s just the type of friends I have, but we rarely organise a dinner out, someone usually cooks.
Great post, keep them coming! x
Good discussion – since being on maternity leave and the forthcoming prospect of putting two twins through nursery I have been all over a spreadsheet of our income and spends, without it I wouldn’t have had a clue what we had to spend/save each month. (It was so much easier to do at Uni, now there are so many fixed outgoings!). Anyway, I’ve found that once I know our budget, the free Spending Tracker app is a good way of just keeping a list of spending – it was worth the £1.99 upgrade so it can sync with my husband’s phone and we can both add to it (yes, I even put the £1.99 spend down on the app).
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