Cutting Your Costs

Cutting Your Costs

After sitting down and drawing up a spending plan, cutting your costs is the next step on the road towards financial freedom. Take a good long hard look at your spending plan / budget – especially the big ticket items like your mortgage, insurances and domestic utilities. These large expenses are where you should concentrate your energy because these are the areas where you have the opportunity to make the biggest savings. When was the last time you reviewed these high ticket items? Check your credit report to ensure that there are no mistakes which might be costing you thousands – if your credit score is impaired – it can affect your ability to borrow at reasonable rates. Cutting … [Read more...]

Writing A Spending Plan

Spending Plan

Writing A Spending Plan Tracking your income and expenditure is an essential first step in creating good money management habits. Back in August, after lifetime of "muddling through" I sat down and wrote my first ever monthly budget - it was a sobering experience. Like most first attempts they soon prove to be lacking in quality or detail and revisions are inevitable. So the first revision I'm making to my monthly budget is that I'm not going to use the phrase "monthly budget" again. The word "budget" has very negative connotations for most people, and creates an invisible barrier to action. Instead I think that the term "Spending Plan" seems far more positive, and positivity leads … [Read more...]

Frugal Or Mean ?

scrooge

Frugal or Mean ? There's a very fine balance between the two Given current circumstances - I think that I have to be brutally frugal, but intend to avoid being seen as mean at all costs. A good example of this fine balance came about yesterday afternoon. Let me tell you the complete - long winded story. Over the course of the last few days - I've decided to start writing down all my personal spending. If I've only got £286 a month to spend - then that's less than a tenner £10 a day!. So from the 1st of August I've started writing a log of my purchases. It already makes grim reading 1st. £3 sandwiches for lunch 2nd £4 Subway (lunch) £0.60 coffee machine 3rd £31.75 … [Read more...]