Spend less, save more

Hello. While we are on the subject of money and budgeting, I'll continue along these lines. A question from one of our readers on yesterdays post.......

Sorry if this question is being nosey but I will be going into retirement with just the basic state pension and I was wondering how you have managed to build up savings to replace large items such as your car. I would like to have some savings as back up in case anything major needs replacing.

Hi, not nosey at all, it's a question everyone will be asking at some point in their lives. What happens when the wages stop and the pension starts? How will I manage? What I can't do is to advise on pensions. I happen to have a small private pension because the company I worked for at the time, around the mid 1980's, advised us all to pay into the company pension. I did so along with everyone else. I worked there for five years, and promptly forgot about it after I left, until about twenty odd years later. Luckily It was a large national transport company which was still in business, albeit under a different name. I must say, it was a nice surprise to find that out. 

It's inevitable that a persons income will be reduced on retirement, except for the very rich of course, but I am talking about ordinary working folk here. I don't know how far off your retirement is, but something you can do is to find out exactly how much pension you are likely to receive, and use that figure as a base line, and start living on that amount before you retire. Anything left over can be put away into a separate account to start your emergency fund. This will give you a head start and be a good challenge to prepare yourself for any changes you need to make. 

It would be a good idea to go through all your wants and needs, and to weed out anything that is in the wrong category. As I said before, wants and needs are subjective and exclusive to you. It stands to reason that you might have to modify your needs and shift some of them over to wants, because you will not be getting as much money coming into your bank account. 

Some of the things you have been used to buying might have to be dropped. Your lifestyle expectations, may have to be modified, you might have to lower your sights. Getting into a routine where you unconsciously open your purse, or click on an item that you want to buy from a web site, will be a hard habit to break. What you can do is delay buying something that you want, for 24 hours, then think again, and ask yourself do I really need it. 

I have collected a lot of stuff throughout my life, and I now find I don't need any more. What I already have will hopefully last me. There may be an instant where something packs up and will need replacing, but if it only looks a bit dated and it aint broke, I don't need a new one. 

Anyone who is coming up to retirement age needs to take stock of their lives. There will have to be some tightening of the belt, some deliberation on what they can do without. It's a bit like de cluttering, sorting out a cupboard or drawer. 

My goodness it sounds like a lot of doom and gloom, doesn't it. Can't afford this, can't afford that, have to stop going to dancing or gym, have to give up the weekly meal out, no more shopping trips to town. If you are in the mindset that you get pleasure out of spending money, you will struggle. You will be miserable, you will sit at home and feel sorry for yourself, skint, no money to spend. 

When you retire you will have less money, but you will be gaining a lot more time. Time is more precious, more valuable than money. Time lost will never be replaced. Look at this new chapter in your life as the time you start living, and a good life is not about how much money you have. You will have to modify your lifestyle choices, but you will have more time to enjoy life. 

Ooops, going away from the question here. How have I managed to build up savings to replace large items like a car? I keep a car for about 3 - 4 years. I will need to have around  £6,000 saved to buy the car I want. Over 3 - 4 years, that's doable. 

My thrifty and frugal living ensures that money builds up in the bank, because I don't spend it. Simple as that, I DON'T SPEND IT. I work out what I absolutely must pay for, then I work out if I can afford some treats, and what is left only gets spent when something needs replacing. I don't call it savings, it's an emergency fund. I don't have any long term savings. A year ago I needed a fridge freezer, I had the cash to pay for it. Coming up I have my car road tax and insurance to pay, the money is there waiting. 

Someone asked a question once on MSE, what do you do with any spare money? The answer is, no money is spare, it is all earmarked for something. 

I am disciplined enough to NOT SPEND any money left over. Another way of doing it would be to put aside money for emergencies as soon as it has been paid into your account. Squirrel it away somewhere, it is not for spending, save it for emergencies. 

I hope that has given you food for thought. Thanks for asking. Don't worry, you will manage. 

Thanks for popping in. We'll catch up soon.
Toodle pip

Life is good on a pension

Hello. Something someone said about not knowing all of my story which got me thinking. There must be newer readers who haven't read from the beginning, so will not know the background to my frugal journey. I've had a look through my bank statements and found some scribbled notes which will shed a bit of light about how skint I actually was. I can't put actual dates to some of the reasons why my income dropped very low, but it was round about my early to mid fifties when I started reducing my driving hours which reduced my paid income. I was not enjoying the job so I chose to work less hours. 

 Before that I was also running a small businesses, I bought in stock and sold at shows and events. It was a lot of work, making a little bit of money, but it didn't last very long. The recession kicked in and people stopped buying non essential items. I had to close it after three years, because I was starting to lose money.

After that, I started another business, an Introduction Agency/Singles Club. That was also a lot of work while still driving part time. Over three years it just about covered the expenses so I closed it, having made nothing.

A while later I took a short break from driving and bought a new catering trailer, got a pitch for it and started work on an industrial estate. I didn't last long. It was the wrong time to start, middle of winter, business was slow, and I hated the smell of the cooking. I sold the trailer and lost £1000 on it. My bank balance took a hit and was very low, so I had to go back to driving to earn some money. 

When I was 59 I had an operation and took 12 weeks off to recover. I wanted to go back to work, but they announced they were closing the depot so I didn't have a job to go back to. I was a job seeker for the last seven months until I could fully retire at 60. 

I have always meticulously checked my bank statements, keeping a beady eye on that bottom line. Sometimes it plunged perilously low so I had to do some calculations to make sure there was going to be enough to cover the standing orders, and pay the mortgage. If it dropped too low, there was only one thing to do, earn more money. 

Here are some of my scribbles. Note to myself  DON'T SPEND.

Only £547 left in the bank on this statement. I think that was two mortgage payments. There was a lot of juggling going on.

Here the balance didn't look too bad, but when I calculated everything that was going to come out during the month, it dropped dramatically.

This is low but not too bad. Got to get that money in money out balance a bit better though.

Going down again. all my business transactions were going through my current account. I cancelled the business bank account when they started making charges. My accountant advised it was ok to do this as long as the paperwork was all in order.

Oh my gawd, I think that was the lowest.

I was sailing a bit close to the wind at times, but strangely enough I wasn't too bothered. I never dropped below the bottom line, even though it was a challenge to stay afloat. My first state pension payment of £136 was paid on May 18th, I had a balance of £1,400. I felt safe then knowing that this amount would be arriving every week and would never stop. I was also receiving a small amount from a private pension which was £33 every four weeks. Both of these have increased over the years, and are my only income.

So there you are then. I've been down in the basement, now I'm on the way back up again. My mortgage is paid off and I have an emergency fund, so life is good on a pension.

Thanks for popping in. We'll catch up soon.
Toodle pip

A plan for 2017

Hello. Does anyone remember this book, for a while it was my bible, I studied it often, trying to absorb as much information as I could. It came out in 1982, I had been trucking for six years and I did have it all.   

Picture source Amazon 

Love, success, sex, yes, but money, not so sure. Yes, I had enough money, but not loads of it. I had enough to get on the housing ladder, but it was a struggle in the beginning when every penny I had went into the house. I thought I was the bees knees, the dream job, own house and car, plenty of opportunity to meet boyfriends, oh yes, life was good. 

It was quite early on that I realized that there was a difference between what I needed and what I wanted. I needed to have a roof over my head, but it didn't need to be modern and fashionable. I needed a car to get to work, but it didn't need to be flashy or new, anything with four wheels and an engine was ok. I needed clothes, some of them were new, but I made them last a long time, I didn't need to replace them until they wore out. I needed food to keep me alive and to nourish my body. I didn't need to buy expensive food, my mum taught me how to cook the basics. And so it went on, I was categorizing everything that came into my life, putting things into boxes, do I need it or want it? 

I have noticed from reading forums and suchlike that everyone's needs and wants are different. All well and good if you have the money to pay for it all. But if you have to make your money last from one pay check to the next, then it would be beneficial to constantly review your needs and wants list, because it changes over time. 

Some of my needs and wants are still the same, I still need a car because I value the freedom it gives me. So, for peace of mind I prefer not to drive an old banger which might break down. My car is now changed every so often and I save up for it. I still don't need a fancy house, new clothes and expensive food, so I decorate my house with second hand, and shop in charity shops and bargain hunt my food. 

I definitely have everything I need, and I seem to have pretty much what I want, or do I? Well, it's nice to have dreams isn't it. We can all aspire to a better lifestyle, to bigger treats, and a few luxuries. But what if we don't have the money to pay for it? This is where the needs and the wants come into play, not losing track and getting carried away by all the nice things around us which we see and want. 

For instance, I would like a campervan, wouldn't that be great, take off anywhere with my bed just behind the seat. The adventures I could have, wouldn't it be marvelous. But hang on a minute, have you seen how much they cost? Mega amounts of money which I haven't got. Spose I could save up for it, but it's going to take a long time. Spose I could sell my house and buy one, have thought about it, but what happens next. Time is getting on and I don't want to spend the rest of my life in a campervan, and once I have sold my house I will never get on the housing ladder again, it will have to be renting, and have you seen how much rents are these days? I did live in a small caravan for about a year and it wasn't very nice in the winter. No, my campervan will have to stay in the wants for now, and may never be bought.  

So, it is the end of the year, the point of this post is to encourage you to sort out your needs and wants for 2017. Make a list, you will find over time that your priorities will change. If you have money to spare each month you might find that you can afford some of those wants, but if money is tight, you might only be able to buy the needs. If you are always skint you should look at your lists and move things around. The wants will have to stay where they are for the time being until your financial position improves. If there are needs which you can't afford they will have to be parked in the wants for the time being. 

If you are living beyond your means you need to stop buying wants, you can't afford them, unless you do something to increase your income, take on extra work or change your job. Of course if you can write a book like Helen Gurley Brown, then you will be quids in. 

That's it folks, the end of the year. 2016 has been pretty good for me, I have no regrets. Let's all try and make 2017 the year we take control of our lives. Tomorrow we start afresh, what's gone is gone. We start  walking, we start looking after our bodies, we start prioritizing, we start enjoying the rest of our lives. This isn't a rehearsal, this is it. 

My very best wishes to you. Happy New Year.

No need to go mad just because it's Christmas

Hello and Good Morning. I've just had a good laugh. There is an article about me and how to save money at Christmas, in iNews, a budget daily newspaper. The journalist Katie Grant rang me yesterday for a chat. I usually get requests at this time of year asking for my money saving Christmas tips, but when I reply, I don't do Christmas, they usually give up and look elsewhere for their story. Katie stuck with it.

Click on this link and see the story yourself.  Britains stingiest woman offers her advice.

Anyway, let's press on. I did my Christmas shopping last night at Tesco. The yellow stickers cost me £6.21, and it's all good food. The total shop was £40.78, and with a voucher for £8 off this brought it down to £32.78.

There were only two of us waiting for the final reductions so we got the pick of the crop. Tons of veg as usual, broccoli and spinach my favourite. I will be cooking some of this up later today and putting portions of stew in the freezer. I might not have to go shopping again until after Christmas. In fact I could stretch what I have in my freezer and cupboards until the New Year.

I had it in mind to write something here about Christmas spending, or not spending, but Katie beat me to it, so I will add a few more thoughts on what she has already written.

Utility bills go up in winter, heating and cooking cost more, to budget for that savings have to be made elsewhere. Budgeting is an all the year round activity, there will be peaks and troughs throughout the seasons. Think about what you NEED, what you WANT, and what you will NEVER spend your money on. Compile your own lists on what is important to you, and what you can do without.

I can do without Christmas, not important, but I like a nice car, need to pay for my pets, and I like to go away on holidays and day trips. What I don't need is to shop at Sainsbury's Waitrose, and Marks and Sparks. I don't need a television set, don't need a licence. Don't need to eat out, don't need takeaways. I could list whole rafts of things I don't need, and my do need list will be very short.

If you have a partner, you should sit down together and do this exercise, you need to be singing from the same song sheet. No point in one person frugally saving pennies everywhere, when the other is squandering  it all away. That will only cause conflict.

If Christmas is important to you all well and good, go ahead, but do not go into DEBT for it. It is an annual event and there will be another one on the same date next year. It won't hurt to cut back on the spending for one year, or if you are like me, you might decide you can do away with it altogether.

I find it very liberating that I have chosen not to join in. My brain is not cluttered with the worry of getting the right presents, buying the right food, sending cards, and generally running around like a headless chicken trying to keep up. I can sit back and relax and watch everyone else getting their knickers in a twist. You will not see a furrowed brow on my face, you will see a wide grin from cheek to cheek.

No more lectures, do what you like, but don't come crying to me when the credit card bill lands on the door mat. I will just say, I told you so.

I had a lovely email from Amy of Hard up and Happy. She had difficulty commenting on my blog, so I will copy and paste it here.

 Hi Ilona,

I just want to say a huge thank you for your support and kind words on your blog - which is ace by the way. 

It means a lot when people are nice, as it's my philosophy to be as kind to others as I can, unfortunately this isn't always returned.

I won't concentrate on the negative Nellies though, as the positive comments are amazing. If I can help a few families be happy with what they have then that makes it worthwhile. I would have loved to have responded to each comment on your blog and my website, I'm afraid for some reason I can't? The comments plug in on mine is playing up. Anyway enough rambling I wanted to seek you out and say a great big thank you. You have made me very happy. From one thrfiter to another Merry Christmas!

Kind regards 

Amy 

Thank you Amy, lovely to hear from you. 

I'm beginning ramble now, it's lunch time, and I have things to do. An idea for another textile picture is creeping into my head, want to have a play with some fabric. Thanks for popping in, we'll catch up soon. 

Toodle pip. 

Well done, Carol. Happy retirement

Hello. This is a blast from the past, an oldie picture of me and my best friend Carol. Taken about 30 years ago, I think. Note the big hair, ha ha, we were always having perms. 

Carol wrote this on Facebook last week.

Well I think I can now say I'm officially retired. After only working half my hours in August it was time to hang up my boots. After working 51 years without a break, plus during this time the longest period out of work I had was one week. That's not bad for the amount of moves I had.
I am now just waiting to exchange contracts on my sale, and purchase, and up north I will return after moving away 42 years ago. 

Carol is two months older than me, we have remained friends almost all of our lives, living just down the road from each other when we were at junior and secondary school. We sat together on the school bus, hung out together, people thought we were sisters. Carol went to college when we left school at 15, and I got a job in Wooly's. Her family moved to Blackpool, and when I was 17 I went for a holiday, and moved there when I was 18. I stayed three and a half years, then moved on to Birmingham, then back home to Burton on Trent. Carol met someone and married, and moved around quite a bit after that. Carol didn't have any children and neither did I. 

We always kept in touch, by phone, letter, and visiting each other. Now we phone, email, and text each other, with the occasional visit.  

I am mighty proud of my best friend Carol, she is the sweetest nicest person you would ever wish to meet. She has been through a rough patch or two but has never shown any anger or hostility to anyone when in a difficult situation. Her family are absolutely thrilled that their sister, aunt, and great aunt is coming home. 

It's funny that we are totally different when it comes to lifestyle choices, yet can still remain friends. Carol chose a well paying career and likes to spend her money on nice things. I did the opposite, had a career with reasonable pay, and don't place any importance on nice things. It must be down to our upbringing that we have both lived within our means. We are from working class families, and both learnt to make do and mend from our mothers.

I have been nagging Carol to retire ever since I finished work at 60. She has carried on another seven years because she enjoyed what she was doing, and got used to earning extra money to fund her chosen lifestyle. Now at last she is free from work, and is about to make the move from Hampshire back up north to where the rest of her family are. After working for 51 years, an amazing achievement, I think she has done her whack, and deserves to enjoy her retirement. 

When she is settled in her new abode I can see a visit on the cards, I will be popping over to the west coast, and who knows, I may even take the train and walk back, ha ha. 

Thanks for popping in. We'll catch up soon.
Toodle pip.

Ten good reasons why I don't have contents insurance.

Hello. While pondering over a few topics for blog posts, I came up with the idea of  delving a little deeper into the whys and wherefores of  how I organize my life. My quirky ways of doing things or not doing things, and the reasons behind my way of thinking might not suit everybody. I tend not to go with the flow, I like to explore and find out what works for me, even if it goes against the grain and people might question my sanity. I might make a one sentence statement which does not give the whole picture, so I am going to do a series of posts called Ten Good Reasons Why.........and fill in the gaps. 

So the first statement is 

Ten good reasons why I don't have house contents insurance.  

Picture source The Story of Stuff.

1. There is very little stuff of value in my house. I could happily give it all away and start again. Most of it was acquired cheaply second hand or given to me free. The things I have bought from a shop are old and not worth very much. 

2. I have no jewelry, no collectors items worth a lot of money. My electrical gadgets are ancient. 

3. I have enough money in my emergency fund to replace anything broken, damaged, or stolen. 

4. I have no feelings for my stuff, I am not married to my stuff, I am not in love with it. It is just stuff. It doesn't belong to me, I am borrowing it while I am alive, I can't take it with me. 

5. I don't need a lot of stuff. I can manage with the basics. A bed, a chair, something to cook my food on, clothes to wear, bedding to keep warm. 

6. If I had to start again I would be happy to purchase second hand, ask for items I find in a skip, buy at a car boot sale or charity shop, accept donations from friends.  

7. I don't want to pay for contents insurance. The money I have saved over the years by not paying, more than covers the cost if I had to buy something. 

8. Insurance is all about risk, do I want to take the risk by not having it, or do I want parts of my  life to be cushioned against risks, and pay for the cost of it.  Peace of mind doesn't come cheap. I am happy to take the risk and not pay for contents insurance.  

9. I am not a worrier, I will not lose sleep thinking about what if all my stuff is lost.. I take each day as it comes, living for the now, and not worrying about how long my stuff will last, or if it will be stolen, or lost in a fire or broken in an accident. What will be will be. I prefer to live with the thought that it might never happen, rather than, oh dear, what if. 

10. Looking for the right policy can be very time consuming, playing one company off against another, trying to get the best deal. Small print baffles me, big numbers baffle me, the wording of policies baffles me. I don't want to be bothered with it. 

Everyone must assess their own needs for insurance, dependent on how much they value their possessions, the value of their possessions, and what it would cost to replace them. Personality comes into play as well, whether they are risk takers or risk averse. Whether losing their possessions would have a detrimental affect on their quality of life, or whether they are confident to move on and start again.   

No painting today, it's been raining. The Walking Group mileages are rolling in, the page is slowly filling up, and it's looking good. It's great that you are making a real effort. Thanks for popping in. We'll catch up later.

Toodle pip. 

Keeping track of where the money goes

Hello and good morning. It's Friday, and as Ready Steady Go used to say at the beginning of their Friday night music programme, the weekend starts here. Thank you all so much for your comments on the previous post, your words made very useful and enlightening contributions. It's great to get the views of others, adds meat to the bare bones if you like. It's a subject that needs to be aired on occasions, to highlight the good work of Women's Refuge, and to show that if anyone is suffering in silence there are places to get help. 

So, what's on the agenda today? My winter fuel bills, as expected were quite high, so this has prompted me to sort out my utility bill files, put them in order, and work out the figures for the past year. 

Most people prefer to pay monthly by direct debit which comes straight out of their bank account. I am a bit old fashioned, I like to use the utilities first, gas, electric, and water, then pay for them on a quarterly or half yearly bill. The direct debit system works ok for those who have multiple financial commitments and find it difficult to keep track. Not a good idea to miss paying essential bills, they need to be paid. My financial commitments are simple and I find it easy to budget on a monthly and yearly basis.

So what's the situation at Tightwad Towers. I have some figures in front of me.
Four gas bills from April 15 to April 16
£5.30  April to July. Cooking and baths.
£5.84  July to Sept. Cooking and baths.
£32.64  Sept to Dec. Also, bit chilly, some heating.
£98.13  Dec to April. Also, cold bit more heating.
Total £141.91 for the year. Average £11.82 per month.

Four electricity bills from April 15 to April 16.
£26.55  April to July. Longer days, spend time outside.
£38.41  July to Sept  Don't go out much in school holidays.
£23.40 Sept to Nov  Cutting down in readiness for winter.
£71.99  Nov to April  Lights on, staying in. Computer on.
Total £160.35. Average £13.36 per month.

I have two water bills a year from two companies. Water into the house and waste water out  from Anglian. I am on a meter. Surface water removal by Severn Trent.
Anglian
£35.67 Dec 14 to June 15
£32.55 June 15 to Dec 15
Total £68.22.
Severn Trent
£28.49 Oct 15
£28.49 April 16
Total £56.98
Total water charges for the year. £125.20.  Average £10.43 per month.

The other regular bill coming in is taken by direct debit, my broadband and land line is paid monthly. When I changed supplier this was the only option offered. I get an email every month from EE, which I don't bother reading because I know more or less what is in it. I can confirm the amounts when I get my bank statement. It is usually around £35 a month. I could probably get it cheaper if I shopped around, but I don't want to be tied into any contracts, and then after the one or two year period have to look for another deal. I count my computer as my hobby and entertainment. I don't go out hardly at all in the evenings, don't pay a TV licence, don't go to the pub, don't eat out. My unlimited broadband is as important to me as my gas and electric.

I won't go into detail on my other expenses, I have house insurance but not contents insurance. I have all the costs involved in running a nice car, road tax, insurance, MOT, recovery, and depreciation. For any new people who have started reading, I don't have a mortgage or pay rent.

So there you are. Financial review all done and dusted. Have you looked at your bills lately? Do you keep them in a file? Or are they all computerized? Maybe you do a spread sheet on the computer, I don't. Maybe you do internet banking, I don't. Do what's best for you.

Thanks for popping in. We'll catch up soon.
Toodle pip

It's all kicking off........again, ha ha.

Hello. Here we go again.

Another story out this morning.

I thought they might have dumped this as it's been over a week now since they interviewed me.

Off to Crafty Club now. Back later.
Toodle pip.

I do my own thing.

Hello. I've been reading a lot just lately on the different methods people use to save money, on web sites, newspaper articles, forums, and blogs. It strikes me that there are a myriad of different ways to approach this living frugally lark, and no one has all the answers, me included. As a single person pensioner with a small income and no savings my ways are going to be different to those who are younger with a family. There isn't a one size fits all.

I know quite a few people who have no need to watch the pennies. Although no one likes to talk about their financial status it is obvious that they have managed to plan for the future and live in houses a lot nicer, bigger, and newer, than mine. I am assuming that as they drive around in brand new Chelsea Tractors, they must have been in good jobs to be able to splash the cash. I bet you are thinking that there is a touch of jealousy creeping in here, you'd be wrong. Anyone who has the cash to buy what they want can do so. It's when people spend money they haven't got and go into debt for it when the trouble starts. It's a downward spiral from there.

Money saving among the well off is different to the way I do it. I see wealth as a ball and chain around my neck. Ok, imagine you have accumulated £50,000 throughout your working life. What do you do with it? If you have won it or been given it, you wouldn't look on it in the same way as if you had earned it by sweating your nuts off in a job that bored the pants off you. There are thousands of crooks out there who are waiting to get their grubby hands on your nest egg, and I don't just mean scamming individuals as if that isn't bad enough, I mean the legitimate financial institutions who aim to confuse the hell out of you with their predictions, offers, accounts, investments, and personal finance advice. They tell you to put it in this account, invest in that company, buy an ISA or bonds, shift it around several bank accounts. What a load of faff just to hold onto your cash. Phew, I couldn't get my head round that, maths was never my strong point, in fact I am chuffin useless at it. I'm glad I don't have to worry about all that, my personal finances are a lot easier to work out. Juggling money about is one kind of money saving I don't have to bother with.

Extreme couponing has been in the news again. I was asked the question by a journalist, 'Do I collect coupons? My reply, no. Those who have a family to look after and buy a far wider range of products than I do, might save a few bob, but you have to remember, the only reason that companies give out coupons, is to make you buy more. The pictures you see of coupon shoppers pushing trolley loads of stuff back to their cars, then stockpiling it in their garage, makes me wonder if it is more of an obsession rather than an effort to save money. What I want to know is once they have accumulated all this stuff, at what point do they then stop spending altogether, and use up what they have? How do they decide when they have enough? The amount of time and effort they put into searching for the coupons would possibly make it pay less than the minimum wage. Another kind of money saving I don't want to bother with.

Cash back sites seem quite popular, whenever you want to buy something if you go through one of these sites eg, Quidco, they give you money back when you make purchases through their web site. I don't want to sign up to any more sites, and I don't want to do internet shopping because I don't trust the security of it. And what about that Groupon thing, is it still going? Sign up and get all these special offers. If I wanted something I would go out and look for it, I don't need another marketing ploy to get me to part with my cash.

Comparison sites, well they confuse the hell out of me. I want an easy life, if I am happy with what I am paying for goods and services I leave well alone. If I want to change and look for a cheaper deal I will first read Money Saving Expert, then go to the web sites of possible companies, and choose one for myself. Don't tell me to go to a comparison site, I can't be bothered.

So, I have my own methods of managing my money, and although some may say I go to extreme lengths to save a few pennies here and there, I have proved that over a period of time, those pennies mount up and make £'s. My simple way of thinking means that I buy what I need, and if there is anything left over, I can then move on to spend what's left on what I want. I will continue to search out cheap shops to buy food. I will not switch the heating on until I am cold,  it's lucky that I spent years working outdoors which got me acclimatized to lower temperatures. I will continue taking food and drink out with me and not buy it out. When I want or need something I will first see if I can make it, recycled materials are best, or look in a charity shop, or go to a car boot sale, and look in skips. I don't care if people think I am odd, I don't have to keep up with anyone, I do my own thing.

Right, off out to do three miles. There is a howling wind, should be fun.
Thanks for popping in. Catch up soon. Toodle pip.

When does a simple routine become more complicated to the point of being obsessive?

Hi peeps.
From time to time I get emails asking for tips and advice. I try my best to come up with a constructive reply, but be aware that I don't know everything. I am not Superwoman, I just do my best with the life I have been given. An email dropped in my box this week.

Hi Ilona,
I hope you don't mind me asking for some advice.
I seem to complicate things with a lot of paperwork re. our finances and bank accounts, vouchers, shopping rewards cards etc., do you keep reward cards? We use credit cards for rewards and pay off every month so we don't pay interest. Its not budgeting I need help with, its just a simpler way of doing things. As we get older I'm so overwhelmed now with things. I use a budget software and categorize everything which I want to stop doing! Can you give me any tips please.
Thank you.

Hi Anon. I do have your name but I will not reveal, thanks for contacting me. At first glance you seem to have a lot going on regarding your finances. It will be difficult to make comparisons between how you manage your money and how I manage mine, because of the differences in incomings and outgoings. Maybe it would be a good idea to highlight these differences. I have a state pension and a small top up pension, no savings except for a small emergency fund, that's it. You may have more incomings from different places, stocks, shares, investments, savings. My whole lifestyle is very simple, you may have more going on in yours. Your spending will be different to mine, your priorities will be different. I have no commitments other than to provide for my pets, you may have other family members involved which can complicate things. 

You say 'bank accounts plural, I'm wondering how many you do have, and what you use them for? I have one account which everything goes through. I get a statement in the post which I can check. I have minimum direct debits, I never get more than one page because there is not much activity going on there. I withdraw cash from the machine inside the bank as and when I need it, £50 or £100, more if I am going on holiday. I have no problem with cash in my purse, because I have a strong discipline that I don't make impulse purchases. It will be two, three, or four weeks before I need to get some more out.

You ask about shopping rewards cards, I assume you mean store cards. I don't have any, why would I need them. Most of the purchases I make are in shops which don't have cards. You have to remember that store/loyalty cards are only dished out to entice the customer to spend more. I know how much I want to spend, and where I want to spend it, a card is not going to make me spend more. Dump those which you haven't used for a while and never go in their shops again, it makes life more simpler. 

I have one credit card, that's all I need. Years ago I used to juggle a few cards with 0% interest, purely to fund large purchases. It worked for me at the time, but as the statements were cleared I cut up the cards and cancelled the contracts. My one credit card earns me points, not many because my spending is controlled. I use it for convenience, mainly for petrol and food shopping, and of course it is cleared every month. I'm wondering how many credit cards you have? And why do you need more than one? How many statements do you get every month? If you are juggling several, can you use just one card, keeping it all in one place? On my one monthly statement I usually have only three or four lines on it at most.

Vouchers. I assume you mean money off vouchers. I know there has been a lot in the press, and some bloggers are really keen on couponing, to the extreme in some cases. I use very few of the vouchers I receive. You have to remember that vouchers are given to encourage you to spend more. If I forget to use a voucher before the date expires, I say, so what, I didn't need it anyway. 

A lot of people find budget software a useful tool for keeping track of things. I haven't tried any, I don't need to. It would be like adding an extra layer to my simple way of checking my finances, and would entail sitting in front of the computer longer than I already do. No thanks, I am not a number cruncher. All I need to know is that my pension is going into the bank every week, the few cheques I write are cashed, the withdrawals I make from the machine are entered on the statement, and the two monthly direct debits have gone out.  

I used to keep a spending diary when things were really tight, when my income was so low I had to account for every penny to make sure there was enough to pay the mortgage, utilities and council tax. I was sailing close to the wind at times, but my bank balance never dropped below the bottom line. The spending diary I had was a note book, took a couple of minutes to enter figures when I came back from shopping with the receipts. 

I have never needed to use a budget software to keep track. I see that as over complicating matters. I keep pieces of paper in different folders in date order. Once checked they are put away and forgot about. I only get them out if I need to go back to something a few months or even a year before, if some query arises and I need to verify something I have the statements. 

So, Anon, are there two people in your house? You say, 'as we get older I'm so overwhelmed with things'. Does this mean that all the finances are left up to you? Is that a job you willingly do, or is it that your partner does not want to be involved? Are you perhaps becoming a little bit obsessed with keeping things tidy and in little boxes? Everything in it's place? I'm wondering if this is a reflection of how you tackle your housework, your appointments diary, and your social life? Are you a person who needs to scrutinize every little detail about your life? Of course I am only surmising I only have your short email to go on. But I'm wondering if your complicated paperwork system is part of a bigger picture. 

You say, 'categorizing everything which I want to stop doing'. Not sure what you mean by that. I think you have missed a comma out there. You maybe want to stop categorizing. Ok, try this.

You need to declutter your paper/software systems. Give them a good clear out, only hang on to the information you need. Again it's down to 'needs' and 'wants'. Once you have a good understanding in your head of where your money is coming from and how it is spent, and that your budgeting is under control, you can begin to relax a little. I don't need to account for every penny now, my diary is redundant, because I trust myself not to go bananas and spend willynilly. 

If you are confident with your budgeting, try letting go of the reigns a little bit. Get rid of cards which you are not using, cut it right down to one or two. The points and rewards you accrue though using them are so piddlingly small it's not worth the hassle of keeping them. 

Vouchers. Sort them out as soon as they come into your hands. Do not hang on to any that you definitely won't use, or those that you might use. Chances are that you will forget and they will be out of date. Bin them straight away, banish them from your house. You have more important things to think about rather than rushing off to Tesco to get 10p off a pack of frozen peas. I get the £3 and £4 off a £30 shop at Tesco. I only ever use the £4 off one, the rest get binned. 

Close down your budget software, delete it. I know everyone is trying to get their customers on paperless billing, but I love it, and will not change. I have box files, the bills are checked and bills filed. Put away in a box where I don't have to look at them. If you have to stick with your computerized system, and you are confident that you are not overspending, only check things to make sure your cards have not been cloned or your account has not been hacked into. 

Personally I am very careful where I give my credit card details. I don't have any financial information on my computer. No internet shopping, no paying bills on line, no banking online. I take great care where I withdraw cash, only at a machine inside a bank, never outside. 

Phew, I think I've covered most points. If there is anything more to ask dear Anon, please email me again. It's sunny outside, it's a Saturday morning, and I'm going to get off my backside and get out there. 

I hope you have a lovely weekend, whatever you are doing. 

Tattybyes and Toodle pip.

PS. Please be aware that if you are reading seconds after I have published, what you see might not be the finished article. I always edit after I publish. Thanks for your patience.

PPS. I've just looked at the title of this post again. I am obsessively simple, ha ha.

Looking at the big picture

Hello. I'm mighty pleased with the new car. It's comfortable to drive, has plenty of space inside, it looks the biz, and it was a good choice. I got a fair deal from the salesman. and saved myself a lot of traipsing around by doing the research on the internet first.   

Questions have arisen about my purchase that I would like to address here. Feel free to ask anything you like. Why did I need to change my car, could I have hung onto the one I have and kept it for many more years? Yes, I could have done that, indeed that's what I have done in the past. Run my cars into the ground, then got rid of them when they were only worth scrap value. Doing it that way means you have to save up for a longer period of time while driving around in an old knacker, wondering if it will ever get you to your destination. Not a very enjoyable experience to drive like that. I now like to change every 3 - 4 years. I had the Meriva for four years, it was time for it to go. 

Wouldn't it be better to buy a new car? No, I wouldn't buy a new car when it is going to lose a big chunk of it's value as soon as it is driven off the car sales forecourt. I can now afford to buy a fairly decent second hand one with low mileage for a lot less than the price of a new one.

This Ford was a former Motability car, it is just coming up to 22,000 miles on the clock. It was used by a disabled person and was taxed as such. Motability cars are generally kept by the same driver for three years, they are maintained throughout that period then exchanged for a new one. Most of them don't do a lot of mileage.

How can I afford to buy a car on a pension? Now that's the big 64 billion dollar question, how can I splash out £8,300 just like that, when so many pensioners are apparently struggling to pay their bills? Anyone who has been reading my blog for a long time will know the answer to this one. I am called Meanqueen because I don't like to spend money. Not strictly true, I do spend money, but on the things that are important to me.

Top of my priority list is paying for my house, non negotiable. That's paid for now, I have accomplished that. I took on the responsibility of pets, I don't insure them with a company, I self insure, I put money aside to pay for anything they need. Me and my animals have to eat, this is a flexible outgoing, I can cut corners here a lot, as you know. I have to pay my house insurance, the bricks and mortar bit. I don't have contents insurance, the money I have saved over the years would have paid for replacements ten times over if I had to fork out for anything that was stolen or damaged. Things that need replacing I will look for second hand first.

My utilities have to be paid for, but I can keep them very low. My projected totals for this year based on last years payments are £97.85 for Gas, and £106.64 for electricity. That's for the YEAR. My water bills are also very low, I'm on a meter and make savings where I can.

I pay the RAC for breakdown recovery every year, I like the peace of mind that they will come and get me if I need it. My annual subscription to the YHA is £15, I get this back many times over in budget accommodation. I look on that as a charitable donation, the YHA is a charity. I send the odd cheque out now and again to the charities I support, as and when I can afford it.

What else is there to pay for? Dentist once a year. I look after my teeth as best I can, and for the last few years it has been a small charge for a check up. Broadband and land line phone is £35 a month, the computer provides me with a lot of entertainment. The one I am using now is around eight years old, and is still going strong with little maintenance. Mobile phone is £5 a month, PAYG. They say specs should be changed every two years, I make mine last a bit longer but still have the eye tests done. I get them checked then walk out of the shop with the prescription and tell them I will come back later to choose frames. I go back when I am ready.

There are loads of ways that I save money, even a few pence here and there add up. I don't eat out, don't go to restaurants, pubs to eat, can't even bring myself to buy a drink in a pub. I don't have takeaways, yuk, horrible food. Don't go in cafe's don't have a coffee. If I think I will need food and drink when I'm out I take it with me from home. I look in cake shop windows and think, 'Good God, how much', and swiftly walk on. My self restraint and determination doesn't very often fail me, apart from the odd Magnum ice cream. And the odd bottle of wine might find itself into my supermarket trolley, ha ha.

See, I am not a miserable old git all of the time, I know how to live it up, and it's not by spending money on frivolities.My purchases are all considered and calculated, do I need it, do I want it, can I afford it. I don't need a television nor want one, so that saves me a chunk every year. I don't eat meat and my food bills are low. I cut and colour my own hair, another saving.

So, my car comes pretty high on my list of priorities, other things are shoved to the bottom, or are flexible. I don't need it, but driving is one of my pleasures, I love driving, that's why I did it for a job. I love being out and about, being able to take off whenever I please. I hate it when I am stuck in one place for too long, I need to move about.

I still haven't answered the question, How can I afford to buy a car on a pension? I use my own money which I have saved up. I don't use anyone else's money in the form of Hire Purchase, or a loan, or borrow it from anywhere else. I have been saving for a car for at least three years. I don't put money aside in separate pots, it's all in one place. I just keep it in my mind that I will need it one day and I know it's there. I don't do spread sheets, don't have to do a spending diary any more, don't download gadgets that are supposed to track your money in and money out, it's all in my head and I check my bank statements.

My annual income from the state pension and a small top up pension is £9,500. I don't need to declare that here, but if it makes things more clear then I am happy to do that, I have nothing to hide. I have stated most of my outgoings above, give or take a few things, but overall I can save quite a lot because I keep my general living expenses quite low. I know I need to save around £2,000 a year towards changing my car. Sometimes I can save more than that, sometimes less, as long as it averages out. In three years I would like £6,000 spare cash to spend, £8,000 if this Ford holds out to four years, which it probably will do.

I don't dwell on the fact that all my plans might go belly up if some major disaster occurs, I will just deal with it. But for now, I will enjoy my car, knowing I saved up for it.

Please don't take this a big brag. I have no other motive in explaining myself except that some of it might strike a chord with you, and it might give you some ideas. You must look after your own financial affairs in the way you feel is best for you. If you cannot do without your takeaways, your pint in the pub, your daily newspaper, your flat screen TV with trillions of channels, then that's your choice. But if you feel you are in a rut always consider that there might be a different way of doing things. I have a little dog here that needs a walk, so I'll sign off. I'm just going to click publish without spell checking, will do that later.
Toodle pip.

Looks nothing like me

Hello. What a blustery old day it's been today, and flipping freezing as well. I went out to do a bit of shopping, and look at cars. I've been saving up for three years now, and I reckon I can afford to update my Meriva. I would like to get back to a Ford Focus again, I loved that car. I've been doing some research on the internet to give me a good idea of what I can afford, now it's time to have a look at the real deal. Been to two large dealers today, then more checking web sites.

I am also liking the size of the Zafira, seems you can get a slightly younger car (62 plate) for a similar price of a 61 plate Focus. Another difference is that the Zafira is £180 a year road tax, and the Focus is £130. Still got to visit another dealer, it's bigger than the others so has more choice. It looks like they have exactly what I want. There is a similar car locally, cheaper but a higher mileage. Hmm, can't rush these things. 

I got a bargain today, thanks to my friend Janet. She rang me to say that Tesco had a flash sale on and a senior railcard costs £5 in vouchers. Luckily I have enough so I got straight onto the web site to claim my card. There was only a certain amount available and they were selling like hot cakes, so thanks to Janet I didn't miss out. Looking at the web site now, they have all sold out apart from the disabled persons card. 

Didn't I tell you that I can't draw, ha ha. I have been watching The Big Painting Challenge on BBC1 iplayer. It's a competition to find Britain's best amateur artist, and this week the subject matter was portraits, starting with them painting their own self portrait. I can do that I thought, so here is my face. Oh dear, I think I got the nose wrong, ha ha, and the rest of it. Nope, I definitely can't draw. 

Oh well, can't be good at everything. Heidi's scabby face is looking a bit better, and she is getting used to me putting the lotion on. Thanks for popping in. It's a walking day tomorrow, will get wrapped up. My turn to lead the way.
Toodle pip.

Smile please, you're on camera

Hello. I think I should get Nellie Knowitall, our guest contributor, to write this post, it's right up her street, but as she is swanning around somewhere in the Bahamas, I won't disturb her. I am sure I am just as capable of stating the bleedin obvious, so I'll rattle it out myself.

Speeding, what do you think of speed cameras, or any cameras for that matter. There is an article in a well know national newspaper this morning entitled 'Know your enemy : there are 20 different kinds of cameras spying on motorists : spot them before they spot you.' Some are used to catch criminals, monitor traffic, or collect data. But large numbers are used to issue fines, which total £284 million pounds a year. They are despised because most of the money goes to the treasury. Every time you drive you are spied on.

Most of the population of Britain seems to hate them, they are labeled as 'cash cows' for the government. Ok, these are my thoughts, my simplistic way of looking at things. If you don't drive over the speed limit you will give the government nothing. If you don't park where you are not supposed to, you will give the government nothing. I have been caught speeding three times in the 45 years I have been driving, all in commercial vehicles, and all when I had a lapse of concentration for a few seconds. Not slowing down enough from 36mph when I hit a 30 limit, at 6am when there was no traffic about. Passing through a roadworks on an the A1M and didn't get down to 50mph quick enough, on a Sunday when it wasn't very busy. And coming out of a built up area on a wide road thinking the speed limit must be 40 when in fact it was still 30 for a little while longer. All my fault. My licence is clean now, and has been for some time, I have learnt my lesson. Driving over the speed limit costs money, so why would I put myself in that situation now.

You can get a speed camera detector gizmo for your car, it will bleep as you approach one, they can cost around £180. Why would you want to pay that much, when all you have to do is watch for the speed limit signs, make a mental note and adjust your speed accordingly. Simple really, it costs nothing to concentrate.

There are web sites out there which show where speed cameras are located. So, say you are planning a journey in an area you are not familiar with, would you spend time searching a map to find where all the cameras are? What if you decided to go off route during your journey and you didn't have the correct map, you are stuffed then, unless of course you have access to the maps in a sat nav. Jeez, there are enough distractions on the road without introducing more. For safety's sake you are supposed to be watching the road ahead, not eyes up in the sky searching for cameras. Wouldn't it be a lot easier to take note of the speed limit signs, then glance at your speedometer and make sure it is reading the same or less than the speed indicated on the sign. What could be chuffin easier than that!

Then there are web sites which tell you how to avoid paying fines, for goodness sake, you got caught, you pay. Don't speed, you won't get a fine. Simple.

A lot of the comments on the article are from people who object to Big Brother watching them, and I can't understand that. If you are doing something you shouldn't be, or if you are somewhere where you shouldn't be, then you have cause to be worried. Security cameras and speed cameras can work in your favour if you have nothing to hide. My car is street legal, no worries there. I don't mind the cameras in the High Street, I would rather someone be watching out for my safety. I don't mind cameras inside shops, useful tool to deter thieves.

When I retired the pressure came off to drive anywhere fast. I did take some risks, that was the nature of the job, but now I can go about my business in a more leisurely way. I have forgotten how to rush, everything I do is at my own pace. And it's lovely, I have time to smile at the cameras.
Thanks for reading. Toodle pip,

Where to find free advice

Hello and Good Evening. Anyone who finds themselves in financial difficulties and are struggling to make ends meet must be totally confused as to where to get help. The MSE forum has a section called Debt Free Wannabe, a good place to start where help and support is offered from those in similar situations. Sadly though, there are an increasing amount of people who sign up with the first commercial debt management company they come across, then find that not all of their monthly payments are going towards reducing their debt. The company is keeping a large amount to pay for their services.

I've had an email from Paul Farnsworth who is running a campaign at Derbyshire Districts Citizens Advice Bureau, to promote free debt management services. I think most people know that the CAB offer a free advice service, but not many know that they can sort out the whole Debt Management Plan for you, and it won't cost you a penny.

Paul is keen to promote the CAB Fee Free campaign, and wants to get the message across that you NEVER have to pay for debt help. People can visit their blog here for more information on spreading the word. Derby District CAB is also on Twitter, you don't have to sign up to read it.  The National CAB website is also a good place to find out where your nearest office is. So if you are needing help don't fall for all the advertising hype you see from commercial companies, about helping you to get rid of your debt, they will charge you. Get free advice from the CAB.

While on the subject, read up on what Martin Lewis says about tackling your debt problem. There you will find lots of useful stuff to help you get started towards debt freedom. There are other free  charities which can help you to set up a plan.
Christians Against Poverty.
Step Change.
National Debtline 
Payplan.

So much free advice out there, never pay for help with sorting your debts out. Do not sign up with a commercial company, I can't emphasize that enough.

Thank you for the email, Paul, I hope I have got that message across loud and clear, best of luck with your campaign.

Thanks for popping in. Catch you tomorrow. Toodle pip.

Monday's musings

Hello, Not a lot done today, been bimbling around and socializing. Monday is a village day, starting with the Craft Club. We almost had a full house this morning and it was catchup time with everyone chattering at once, and not much crafting getting done. Then a dog walk, then lunch, then the mobile library van and a natter with Stan the man. My fave mag arrived through the letter box, oooh, excitement, couldn't wait to get my sticky fingers into this, so an hour was spent drooling with a mug of coffee. I can be a real lazy slob when I put my mind to it, ha ha.

It's that time of year when I am thinking of walking. Itching to go off on a trek again. As soon as we get some longer days I will be off. I got a free book today, there are bookshelves in the Village Hall, people leave their unwanted books for anyone to take. You can keep them, or read them and take them back, or add some of your own if you have any to get rid of. I found this one all about The Living Countryside. Exploring the land in different parts of the country, looking at the animal and plant life. Some smashing pictures of places I have been to, and some that I hope to visit. Reading these kind of travel books makes me want to put my boots on and go now.

My Anglian Water bill arrived the other day, I get two a year for the water I use, plus it includes  the cost of taking the grey water away. Total for 12 months is £70.55. Out of that, only £15.55 is the cost of the actual clean water which comes into the house. The rest is made up of the standing charge and the taking away of the waste water. There's not a lot more I can do to bring the cost down there. I also get two bills from Severn Trent every year, for the surface water drainage from my property. This is charged at £61.10 per year, I am on a measured drainage band 2 tariff. So my total water charges are £131.65 a year. I will still be frugal with my water usage, even though it wouldn't make much difference if I used a bit more than my normal 10 cubic metres. It makes me feel better to flush the toilets with bath and rain water.

Utility bills due soon, wonder what they will be. Anyway. I'll cut you loose. I'll get back to my magazine, bought with my Tesco Vouchers I may add, in case any of you think I have been splashing the cash  ;o)

How to make money out of social media

Hello.
There are millions of news channels out there on the www, it's difficult to choose one or two which appeal to the curious, or should I say the nosey, like me. My dad was a news junkie, the first thing he did every morning on his way to work was to pick up a copy of his favourite paper. It was pulled out of his bag at tea breaks, lunch breaks, and the last detailed inspection came in the evening after he had settled down in front of the TV with his dinner on his lap watching Cliff Michelmore on the Tonight programme. Empty dinner plate cleared away, and he finally completed the crossword which he had been pondering over all day. There wasn't a word in that paper which he hadn't read, he certainly got his money's worth out of it. I wonder which news channel he would choose now, when every scrap of news is accessible at the touch of a few buttons. He would be in junkie heaven I guess, if he were still around.

I haven't bought a newspaper in years, I don't need to, as I have all the news I want here on this screen. My taste in channels is changing, I am leaning away from the more frivolous gossipy news, to something with a bit more substance, something which is a tad more educational, something which is more relevant to my lifestyle. I don't care what the so called celebrities are up to, and I use that term loosely. All they seem to be doing is flashing their tits and bums. Why not just go the whole hog and publish every picture totally undraped, they are only chuffin bodies after all, we all have one.

Anyway, what am I reading now? I signed up to an upmarket newspaper, it has some interesting stuff in it, food for thought. I'm not sure if that was a good move as they keep sending me email updates, I shall have to go back to it and un tick the box. The layout is quite complicated anyway, like fighting my way through a forest to get to the bits I want to read. Ho hum.

I recently dropped on the BBC news channel, never really looked before as I usually only use the BBC iplayer. There seems to be a large diverse range of topics to peruse, clear and concise, on uncluttered pages, and frequently updated. Maybe I'll stick with this one for a while.

You know when you start clicking, one page leads to another, and eventually when you have thoroughly read up on a certain topic, a clearer picture emerges. Your brain is nourished and bingo, you feel your new found knowledge puts things into perspective. Hmmm, that was interesting, given me something to think about.

I found a few items that you might be interested in, especially the bloggers amongst you. To give it a short and concise title, 'How to make money out of social media'. There are very blurred boundaries between  someone being very nice, and someone wanting to make money. Maybe I should re phrase that, nice and not wanting to make money, but hard nosed driven to make money. Have a look at these and see what you think.

Bloggers meet brands at networking event.
Look like a bunch of nice ladies, don't they? Probably are very nice, but look behind the scenes. They want to sell you something, because their blogs are their business. You could join them if you have a popular blog.

Instagram star makes a living out of selling photographs.
Man turns his hobby into a profitable business. Good at photography? Sell your photo's.

Vloggers paid for promotions. 
BBC Newsround are investigating the role of vloggers in advertising. The ASA has said it needs to be made clear when vloggers are paid to promote a product. Chyaz explains how she makes money from vlogging. Vloggers start out as bloggers, can you speak to a camera? If so you could make money with product or services endorsements.

Are you getting a taste for money making. Want to know how to take the next step? Have a read of this article in The Entrerepreneur.
21 Ways to make your boring trade blog interesting. Note the word 'trade', when you start selling on your blog you become a trader, and your blog becomes a business with a taxable income.

I've put together this little collection of useful articles, should you wish to go down this route. I won't be joining you because how will anyone ever believe a word I say if I start accepting money, and free goods and services.

An internet based business might be a good move for anyone young and ambitious with a bit of drive. Even seniors with time on their hands who want to supplement their pension would find it beneficial, if not for making loads of money, but for the experience of keeping their grey matter active. I gave up work at 60, I'd rather keep my life simple by managing on what I have already got. I don't need any more.

Thank you for popping in today. It's been a pleasure writing for you. Keeps my grey matter well oiled, ha ha.
Toodle pip.

First list your priorities

Good morning, I'm going to rattle this one off quick, have plans for the day. It always intrigues me how people prioritize their spending, what influences their choices, and how they decide what is important to them. We are all different and have different needs, but I can't help thinking that poor choices are at the root of many a problem debt. It's the psychology of what's behind spending which I find fascinating, but unfortunately I haven't time to write a whole book about it, so a blog post will have to suffice.

I'll start with what's at the top of my priority list, which I am sure many of you financial savvy people will agree with. First off is to pay for a roof over my head. I used to pay rent from the age of 16 to 27. Board and lodgings to my mum from the very first wage packet, then rent to a landlord for a bedsit or flat. At 27 I bought my first house which came with a mortgage. I never once defaulted on rent or mortgage because I didn't want to find myself without a home.

Second priority was to pay for any services to the accommodation. Council Tax which used to be called Poll Tax, and before that Rates, had to be paid. Heating and lighting had to be paid. I used it, I paid for it. So, that's a roof over my head covered.

My next priority was to eat, I always made sure I had enough money for food, even if it meant having to cut down a bit when things were tight. Now the edges start getting a bit blurred, things are not clear cut any more, there are choices to be made. Now the questions start. What are your priorities where food is concerned? What would you never give up no matter how much it costs? I still like to think I can adapt my eating habits according to how much money I have to spend on it. Squeeze my finances to the bone and I will find something to eat within my budget. I can't think of one thing that I would still buy if I had no money and had to go into debt for it.

Now comes the juggling bit, do you know how to juggle, because if you don't you need to learn. The term robbing Peter to pay Paul is imperative these days, though I wouldn't call it robbing, No need to go without if you prioritize before it gets to crisis point. And there is the crux of the matter. Good old fashioned sitting down and making a plan, thinking about what is important in your life.

I will never understand people who say they wouldn't give up this and give up that, and are perpetually in debt. So what they are saying is, plastic isn't real money and I will have whatever I fancy. I will have a latte every day, I will have the latest mobile phone gadgety thing, and I will change my car every year, because those are my priorities. I say, sunshine, you have got it all back to front, arse about face, and there will come a time when you will be drowning up to your eyeballs in debt because your priorities are all wrong.

But you can't tell folks that. Eventually they have a light bulb moment when the penny suddenly drops and they realize that something has to give. But the changes they need to make are like climbing a mountain, their habits are so ingrained in their lifestyle that they fight against change. They want to carry on with their current lifestyle and still get out of debt. Their juggling becomes more intense as they search out a remedy which will not impede their comfortable life.

The remedy is simple and staring them in the face, I'm stating the bleeding obvious here, where's Nellie when I need her, ha ha. If you spend more money than you have coming into the house you will go into debt. Spending someone else's money is not a good idea, it will come back to bite you on the bum eventually.

This is where the psychology comes into it. How do you decide what to spend your available income on? How do you divide it up and prioritize? Say you were down to your last couple of £'s would you spend it on a pint down the pub or a loaf of bread, a tin of baked beans, and six eggs?

Let's imagine we are all down to our last couple of £'s, no let's make it £5, I'm being generous. Imagine this scenario, we have paid the rent, and we have heating, what would you spend your last £5 on when you have a week to go till the next payday. I know what a lot of you are going to say, eat out of the freezer and cupboards, good for you. But there will be those who say I have nothing in my cupboards. Hang on a minute, what's that packet of pasta then, and what's that onion, and I see you have a stock cube. Isn't that food? Oh, I see, you don't fancy it so you are going out to spend your £5 on a pizza. Why not add a fizzy drink and a pancake to that and put it on the credit card!

Can you see what I mean, I'm sure you can, this is like teaching my grandma to suck eggs, but if there is one person out there who is desperately searching for that light bulb moment, then writing this post will have been worth it.

There is a lot more I could say but I don't want to appear sanctimonious, I don't know everything, I'm just drawing on my experiences and adding my thoughts. Questions you can ask yourself and only you can answer them. Do you have any debt? If not, you are swimming, if you have then you are sinking. What would it take to throw a life belt to you? You can do it the hard way, carry on sinking until you are eventually totally submerged, or you could sit down and work through your priorities. Divide up your income into pots according to what has to be paid, and when it has to be paid, but make sure you don't prioritize a new dress over slashing £50 off your debt. Never ever leave your debt languishing at the bottom of the list, promising to pay what ever you have left into it. It should be somewhere near the top. You have to pay your rent or mortgage, you have to pay Council Tax, you have to pay utilities, but you have control over how much you use, as I highlighted in yesterdays post.

Right, I'm off, done my bit, trying to help, need to go to town to pay some bills. I shall be looking for your comments, hope it all works out for you, whatever your situation.
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