After reading a comment by Marlene from Poppy Patchwork, on one of my recent Monthly Roundup posts, it started me thinking how much better things are going financially recently, now that I've got into the habit of minimising my spending. Whilst not wanting to tempt fate in any way, when I look back to the time she mentioned, I was regularly overspending by hundreds of pounds, on things I probably didn't really need.
As I've mentioned in a couple of posts, I now often have money left unspent in my current account at the end of the month, which is such a change for me, as for many years I lived with a constant overdraft, which was almost always maxed out. I don't know how I managed to live like that. I guess there was probably low level stress as a result, low because I could have paid it off with savings, but needless really, if I'd just got my act together sooner.
Going out to paid work for the last 11 months has helped, as my income has increased and I have less opportunity to go shopping, but in addition, seeing how much stuff gets donated on a daily basis to the CS, does really help to make you think differently about buying things and makes you really consider whether you actually need them or not.
I guess we can only do things when the time is right for us. The time may be right for me to spend less and save more, but it obviously wasn't the right time for me to stop spending altogether, as my failure at the Buy Nothing New Challenge this year highlights. Maybe I'll get to that point sometime in the future, or maybe I won't, but I'm pleased that for now my spending habits seem to be under much better control.
One example of this is my credit card usage or non usage to be more accurate. I used to regularly spend £200-300 each month on one or both of my cards. I would always pay it off in full each month, but I just allowed myself to buy whatever I liked (usually online), whenever I liked, utilising them. Now, I tend to only use them for essential expenditure online, such as paying for my daughter's school lunches and school trips, or for occasional online purchases, where I don't want to use my debit card details online
I have to admit that I succumbed to the latter kind of purchase just the other night, when I bought a new backpack on ASOS for £24. I'm considering it to potentially be a last treat to myself whilst I'm still earning money at the CS. My current contract ends at the end of this month and although I've re-applied for the post, who knows what will happen.
In other areas of my finances, I've been transferring at least £200 each month into various savings accounts and watching the sums grow. I've also been paying into a pension scheme at work which has generous employer contributions. In addition, by selling various small things on eBay on a regular basis, I find that my Paypal account tends to always have a reasonable balance, which facilitates my buying the various small things that I might need to buy during the month, (i.e. books, toiletries, pet care products) without spending any money from the budget at all.
Daily on the way to work, I listen to Dave Ramsey podcast episodes and little by little my resolve strengthens and it feels like I'm in a much better place and heading in the right direction. I know things can change on a sixpence and life has a way of throwing us a curved ball from time to time, but with no debts as such, I've at least got one less thing to stress about and when I do want to give myself a small treat, I not only appreciate it a whole lot more when I pay cash, but I know I really can afford it too.
If you are struggling with debts or feeling like your finances are out of control, just start and continue to take one small step at a time in the right direction and you will get to a much better place too. I'd recommend tuning into Dave Ramsey, for some no nonsense financial advice. It takes a while to get used to his particular style, but very soon he'll have you on board with his babysteps and you'll be changing your life and your finances forever.
Spending is all part of your bigger picture, recently you have been decluttering, which makes you think about the cost of what you are getting rid of. I read a good article where the author was exploring the cost of our lives and the unnecessary stuff we purchase, he said once you have made the purchase, the moment you walk out the store the item is worth nothing, making most of what we buy a waste of money. We buy what the shops want to sell us, we have evolved into shoppers, it's our new sport, every moment we can we shop, even online late at night. The government encourage it, it builds our economy.
ReplyDeleteBut we are waking up and realising what happening and stop shopping.
It is very hard to have a buy nothing new year. I always seem to fail at that, cause sure as shooting I will need new underwear, or my underwire in my bra can no longer be fixed, you get the picture. So now I try for no spend days, and find things I can recycle or reuse in my various crafty projects.
ReplyDeleteYou have done remarkably well with your cutting spending. I need to get on that wagon once again.
God bless.