Saving help...

**linuxgirlie** · 08-17-2006, 08:12 AM

Hi,

First I would like to say that I am from the UK so will writing in £pounds but will try and convert to $usdollars whereever I remember!!
I would also like to say I feel really

gulity for posting this as when you read the background below you will understand that we are not struggling but just would like to save more money than we currently do. Please be gentle with me...

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Background:

Both my partner and I work in schools, he is Head of ICT and is on £40,000/$75,873 (before tax) and I am an ICT System Manager and earn £25,000/$47,420 (before tax). Monthly after tax I get £1400/$2,655 and other half recieves £2400/$4,552 so in total £3800. This is where I aplogise again we are not 'poor' but would really like to live a life without 'what ifs' mainly and regrets for spending on stupid things in the future like I have now of the past!

So out of the £3800, £1500/$2,845 goes on 'bills' the bills include: boardband, phone, gas, electric, house, pet and car insurance, charity donations, unions*2, contracted mobile phone, contact lenses, mortgage, and child support.I research today and found that we could save £135 a month just by moving companies, but will have to discuss this with other half first.

£600 goes onto a credit card for petrol, groceries and bits and pieces, DIY etc This gets paid off in full every month. So our £3800 has gone down to £1700 which isn't bad savings per month...

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To the future:

I have been frugal and simple living now for two months, we have managed to go from have no savings at the end of the month, to £1400 which is exactly my pay..fantastic I thought, but then that doesn't give piece of mind, basically the other half and myself would like to live off my wage, so we need to have some saving tips to get as close to as humanly possible, we are hoping to live like that and amount saving that for example to go towards if my cat needed the vet, or the car needed to be fixed. But at the moment the closest I can get is £700 deference (3800-2100=1700 so 2400-1700=700). I am extremly happy with this but see so many people living on much much less and would like to do the same, for example my other half has a open source programing project does and it would be great if he could become a part-time lecturer so that he has more time to put effort into this project (if interested it's www-karoshi.org.uk), which is getting picked quickly by schools, at which it is aimed. But as we rely on his wage to pay things like mortgage, we don't want to make a mistake and end up homeless

Anyway, I not hoping for a mircle but do want to get to this point within about 5 years...soo if you haven't gotten bored or clicked off by now, any other ideas to save £700/$1,327 a month?!

Urmmmmmmm, That's it I think...

Many Thanks,

Jo

**PrairieRose** · 08-17-2006, 09:07 AM

My best advice would be to sit down and very meticulously write out your monthly expenses. Leave nothing out. Be totally honest. The easiest way to get a snapshot of them is to journal all of your spending, daily. From the cab fare (or whatever) to your Starbucks (well you know what I mean...anyway...don't leave off anything, nothing) in the morning. If you do this for a month and are diligent about it you can see where your leaks are. You'd be surprised how quickly the little things we spend on add up to big $'s. (or Lbs.

). If you do this first then you can look over and see where the extra money is going. Otherwise my main advice to cut down on expenses would be:

Food expenses (eat out a LOT less or not at all, cook from scratch not convenience foods).
Travel (stay home)
Entertainment (rent a movie once a week, or better yet just go for a walk)
Look at reg. expenses and see which ones you could cut out completely (do you need that huge cell phone pkg.? or could you get by without it or maybe just a prepaid for emergencies?, etc...)
It's just a matter of taking a fine tooth comb to every detail. And once you nail down the loose ends, keeping them nailed down. Every situation is different, no one recipe fits all but you can make amazing changes if you're willing to do the work and then....do the work.

Good for you for making the positive changes and you don't have to feel guilty for not being poor! Not everyone here is struggling for food each month...we just share a common interest of trying to make do with what we have and stretching it to nth degree (or we at least want to whether we do or not.....

). You're on the right path and I think it's a great idea to live off one salary and save the other. We have teacher friends who have done that for years and now they live very comfortably.

**kabin63** · 08-17-2006, 11:11 AM

I agree with PrairieRose.

**Valerie in WA** · 08-17-2006, 11:51 AM

I heartily second the suggestion to write everything down for a month. I still do this - every month; it helps me to stay on track and keep those leaks plugged.

Don't be embarrassed about not being poor. We're just below your income range, but I still struggle to not be wasteful. Being frugal is for all income levels.

**Telephus44** · 08-17-2006, 07:48 PM

I agree with the other posters 100% - you don't have to apologize for not being poor. Being poor isn't a requirement for being frugal. My DH and I make close to what you and your partner make, and we're still frugal - it's a personal choice!

I think Lisa's suggestion about keeping a log of all of your expenses - preferably for a month or so - and then looking over your spending patterns can help a lot. Do you eat your lunch out every day at work? Maybe you could take your lunch to work a few days a week - that kind of small stuff.

The other thing I try to bear in mind is to take baby steps - start small! Sure, I'd love to make all my own laundry soap and cleaners, and grow all my own produce, give up my car, and cook every meal from scratch - but it hasn't happened yet. I try and incorporate just one new idea at a time, and over a long period of time, they all add up. I also really enjoy posting on the Frugal Challenge thread, as it helps me to celebrate my small victories.

**nodmicks** · 08-17-2006, 10:28 PM

I agree 100% with all the above advice. Don't appologise for not being poor. We have quite a broad range of incomes on here. I think we are all here to do the best with what we have, prepare for the future and do what is in line with our personal values.

The absolute biggest thing for me personally is my weekly budget. I budget for savings, expenses, yearly expenses etc but do a 4 month week. That means since say car repairs/pets etc get $ added to the acct every month it is not a biggie when a unexpected emergency arrives. My med dental acct saved me this week when I had a bill of 525 for dental work after ins paid.

Budget is key! You know what we still have lots of fun!

You will amaze yourself with what you can do when you set your mind to it!

**Goodwin17** · 08-17-2006, 10:40 PM

I agree with the others. No apologies needed for not being poor. From when I originally started working on frugality Dh and I make triple each what we used to. We are still working on frugality so we will have a secure future. Wishing you lots of luck.

**linuxgirlie** · 08-18-2006, 06:01 AM

Thanks everyone

you make me feel so welcome...I am going to start looking into the ideas that have popped up so far, and I really like the advice of doing one step at a time, I think I will have to do it that way or I would lose track!!

Thanks again, you are all so nice and friendly

Jo

**ironmaiden** · 08-18-2006, 10:50 AM

Hey, if you spend every dime or more of what you earn, it doesn't matter what you make. There are plenty of high earners who have lots of debt - big mortgages, car payments, credit card debt.
The idea is to spend less than what you make, have zero credit card debt, have an emergency fund, retirement savings. And figure it out from there.