We have a big move coming up. One that is going to cost us a fortune to do, but will hopefully give us a more secure financial future and happier life.
This was a decision we made rather quickly, and it does mean that we’re risking a lot. We don’t have too much in the way of savings (although just enough for the move), so we’ve had to really cut back on our spending and start saving as much as we can.
With some patience and serious budgeting, we’ve managed to save enough to afford the basics and we’ll have something to fall back on once we’re over there (and that’s without selling the car yet and me quitting my job!) So, here’s how we’ve done it in 5 tips.
We had to look at our expenditure and cut back as much as possible. We made the choice to cancel some direct debits that we don’t really need and reduce our spending in certain areas. Consolidating our debts last year has really helped us initially.
This strict budget really does limit our luxury spending but it will be worth it in a couple of months. It’s just sticking to it. Not everyone will be willing to curb their spending completely. Not everyone will want to completely cut back.
You need to if you want any chance in saving as much as possible.
Our aim is to live on one income. Anything extra that I make is then put straight into a savings account.
Put Disposable Income in the Savings Account
This can help you stick to a budget. On pay day, I always look at the amount in the bank. I move as much as I dare into a savings account. I’ll overestimate the amount I can move, knowing I can always move it back if I need to.
When I move money into the savings account, I’m less likely to spend it. It’s earning interest and I don’t like seeing that account balance drop. All my income goes straight in, because usually we don’t need to use it.
You’ll also earn interest on the money in your savings account. It may be a small amount, but it’s better than nothing.
Cut Back on Unnecessary Energy Usage
Our bills are often the most volatile of spending. I can’t estimate it and I’ve tried. Just the last two months we’ve spent more than I thought we would in food and electricity.
It’s time to cut back on all unnecessary energy usage. At least with the weather being nicer, it is much easier. We walk a lot more so I don’t need fuel for the car, and I’ve turned the heating completely off and only put it on for an hour in the day if it is really necessary (we’ve had a very old spring so far!)
I’ll also turn off all the electronics when they’re not in use. I got out of that habit lately, but I’m back in it now.
For food, we’ve started shopping in a cheaper supermarket. We went to the more expensive one on Sunday just
because we needed something specifically from there and regretted it at the till. Our food bill was double what we usually pay for not much extra! It really put me in a bad mood for the rest of the day. I just can’t justify spending that amount.
Use Cashback Apps
We get a lot through cashback at the moment. I have apps to scan my food shopping and sites for buying things online. It helps us get a little bit of extra money.
Depending on what we’re buying, we can end up with £20-£50 per week in cashback. Every little bit adds up.
While that’s not exactly making money, it is saving some. That cashback is currently sitting in cashback apps but it will go into savings accounts soon.
Save Your Benefits
If you get benefits, it’s time to cut back on your spending to save them. We get child benefit (for the girls) and in-work benefits for the girls because our income is so low. It turns out that we don’t exactly need them. They pay for their nursery fees and then cover the cost of nappies and wipes.
The extra money could just be spent, but I’ve taken to saving as much of it as possible. It’s led to a good amount sitting in another savings account, just earning some interest.
This could be viewed as morally wrong. Right now, I know every little bit of income counts. If we weren’t moving and didn’t need to save, our disposable income wouldn’t all be thrown into a savings account and we’d actually spend a bit more as a family. We’d then likely need to spend the benefits.
Right now, we’re living on as little money as possible. It’s a boring life, but it’s worth it for the short term. In a few months we’ll be living somewhere new and getting used to a whole new place, without worrying too much about money.
I'm Alexandria Ingham, and am a work at home mommy and full-time freelance writer. Writing has always been a passion from a young age, but it was only in 2009 that I decided to use it to make money online. Since then, I've managed to make a career out of it and don't regret it. While history and weight loss are two of my favorite topics, I love writing about absolutely anything and even have fictional pieces in the works.