To those who work: How to save money when outgoings are almost same as earnings?

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    Hi all,

    This question is directed to those who work and support themselves financially and no longer are a student.

    I have been recording my monthly spending and have realised my spending is more than my earnings. How can I improve my budgeting and are there areas where I could cut down spending? I wondered how I could save and how others do saving?

    I earn approx £1200 per month

    Key Spending areas:

    Rent: £370
    Food: £200
    Travel: £160 (required for work purposes only)
    Disposable income/Miscellaneous: £30
    Top up: £10
    Toiletries: £20
    Clothing: £20

    Total: £810

    Money left after bills/expenses: 1200- £810 = £ 390

    I'm struggling trying to understand how I can improve my savings and budgeting. Any help from others who budget and have tips to avoid overspending would be really helpful.

    Thanks!
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    Hi
    I am still a student. but the obvious one to me is that your spending £200 a quid on food. that £50 a week. surely you could cut that down. if you look at something like this, it should help loads
    https://www.facebook.com/fyf20quid/?fref=ts
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    Having £390 spare after everything is paid is actually pretty good, especially on that income. People don't tend to regularly earn £1200 a month and save more than half of it. So having £390 to spare is pretty solid.

    In terms of how to save more money you need to identify ways in which you can reduce your spending/expenditure. That's the only way to save money if you can't find another way to earn more.

    You might look at these things and think some of them are fixed. One example is rent. Surely you can't negotiate the £370 down? Wrong. It's entirely possible in some circumstances that you'd be able to negotiate a drop in rent. Alternatively you'd look for another place to live that has lower rent.

    Odds are even if you think there's no way to drop your outgoings there will be something you can do. It ususally requires a change in perspective though. Maybe you think there's no way to reduce that £200 food budget because you are already buying cheap food. But maybe what you don't consider is other ways to buy food. Maybe your local supermarket will discount things that are going out of date. Maybe you can buy some of the food cheaper elsewhere, or online. If you top up £10 for making calls and texts with your phone consider free alternatives like wifi calling, Facebook chat and so on.

    You mentioned before that your spending is higher than your earning, yet you say your earning is £1200 and spending is £810. Can you explain this?

    Also don't discount students. We know how to live cheap. As georgeheal mentioned above £200 is pretty expensive for food (assuming you are just buying for yourself). I'm living on far less than that and eating pretty healthily. Repetitvely but healthily
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    (Original post by TheOcean)
    Hi all,

    This question is directed to those who work and support themselves financially and no longer are a student.

    I have been recording my monthly spending and have realised my spending is more than my earnings. How can I improve my budgeting and are there areas where I could cut down spending? I wondered how I could save and how others do saving?

    I earn approx £1200 per month

    Key Spending areas:

    Rent: £370
    Food: £200
    Travel: £160 (required for work purposes only)
    Disposable income/Miscellaneous: £30
    Top up: £10
    Toiletries: £20
    Clothing: £20

    Total: £810

    Money left after bills/expenses: 1200- £810 = £ 390

    I'm struggling trying to understand how I can improve my savings and budgeting. Any help from others who budget and have tips to avoid overspending would be really helpful.

    Thanks!
    You spend £200 on food for one person?, where do you shop as that's pretty steep, we feed two of us on £150 a month. Also £20 on toiletries is easily something you can cut down by buying from pound shops. £390 after bills is a pretty good amount though.
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    when i worked, my outgoings was more then my income!
    thankfully circumstances has changed
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    Do you need to buy clothing and toileteries every month?
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    The biggest spending where I can see saving done is on these two:
    Food: £200
    Travel: £160 (required for work purposes only)

    If you're really good you can get your food down to £70 but you'd have to be a nutritional Nazi. Take cereal for example:
    £0.66 per 100g Cheerios
    £0.24 per 100g Kellogs Bran Flakes
    £0.12 per 100g Tesco Bran Flakes
    £0.08 per 100g Oats

    Just looking at simple things like this helps, oats is almost ten times cheaper and far healthier than Cheerios (I bet you the carton itself is healthier than Cheerios and Bran Flakes). Oats might not be as interesting Cheerios but if you prefer the taste of cardboard you could always go for Bran Flakes which is still cheaper than Cheerios.

    Takeaways are expensive, meat is expensive, these are things you should consume sparingly, as if a treat. As I said, you need to be a nutritional Nazi. Buy in bulk, etc.

    You're spending £160 per month on travel, that's an average of £5.33 per day, public transport? Is this a journey you can take via a bicycle? A simple cheapo bike will cost around £270, lob in a good bike lock at £50. That's about £360- within two months you've paid off the bike. There are still cheaper bikes there but I'm just giving hypotheticals. After that initial investment you could be saving over £100 per month.

    When going to college, an average bus journey would cost me £5 easy, a car would take £3 in fuel alone. What's that like on a bike? I'm easily in credit because I paid off my bike with free travel for months. Let's assume £3 credit to me per day of travel, no gym necessary. If it's an option for you consider it, but don't skimp on safety EVER.
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    I wondered how do you guys ensure you are not overspending from your budget each month?


    Do you put cash aside for your monthly spending budget (e.g. food, general items) or do you use a debit card and make note of all the spending and receipts? Or do you have a separate current account for monthly bills/expenses so that you keep your savings separate from the bills?
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    become a banker, in your first year you'll earn your months wage every week
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    (Original post by MasterJack)
    The biggest spending where I can see saving done is on these two:
    Food: £200
    Travel: £160 (required for work purposes only)

    If you're really good you can get your food down to £70 but you'd have to be a nutritional Nazi. Take cereal for example:
    £0.66 per 100g Cheerios
    £0.24 per 100g Kellogs Bran Flakes
    £0.12 per 100g Tesco Bran Flakes
    £0.08 per 100g Oats

    Just looking at simple things like this helps, oats is almost ten times cheaper and far healthier than Cheerios (I bet you the carton itself is healthier than Cheerios and Bran Flakes). Oats might not be as interesting Cheerios but if you prefer the taste of cardboard you could always go for Bran Flakes which is still cheaper than Cheerios.

    Takeaways are expensive, meat is expensive, these are things you should consume sparingly, as if a treat. As I said, you need to be a nutritional Nazi. Buy in bulk, etc.

    You're spending £160 per month on travel, that's an average of £5.33 per day, public transport? Is this a journey you can take via a bicycle? A simple cheapo bike will cost around £270, lob in a good bike lock at £50. That's about £360- within two months you've paid off the bike. There are still cheaper bikes there but I'm just giving hypotheticals. After that initial investment you could be saving over £100 per month.

    When going to college, an average bus journey would cost me £5 easy, a car would take £3 in fuel alone. What's that like on a bike? I'm easily in credit because I paid off my bike with free travel for months. Let's assume £3 credit to me per day of travel, no gym necessary. If it's an option for you consider it, but don't skimp on safety EVER.
    I wondered how do you guys ensure you are not overspending from your budget each month?
    Do you put cash aside for your monthly spending budget (e.g. food, general items) or do you use a debit card and make note of all the spending and receipts? Or do you have a separate current account for monthly bills/expenses so that you keep your savings separate from the bills?
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    Mate I'd love to have that much left over at the end of the month. You're doing well.

    £200 a month for one person is a lot though; between us, me and my girlfriend spend just over that much a month on shopping in general (food, toiletries, the lot). Start shopping in Aldi, they may not sell brand stuff but for the most part it tastes just as good (even better, depending on what you buy).
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    (Original post by TheOcean)
    Hi all,

    This question is directed to those who work and support themselves financially and no longer are a student.

    I have been recording my monthly spending and have realised my spending is more than my earnings. How can I improve my budgeting and are there areas where I could cut down spending? I wondered how I could save and how others do saving?

    I earn approx £1200 per month

    Key Spending areas:

    Rent: £370
    Food: £200
    Travel: £160 (required for work purposes only)
    Disposable income/Miscellaneous: £30
    Top up: £10
    Toiletries: £20
    Clothing: £20

    Total: £810

    Money left after bills/expenses: 1200- £810 = £ 390

    I'm struggling trying to understand how I can improve my savings and budgeting. Any help from others who budget and have tips to avoid overspending would be really helpful.

    Thanks!
    There seem to be some key spending areas missing from these figures:
    • Council Tax - where does this come in your budget?
    • Utilities, eg. gas/oil electricity and water. These are usually a large expense for most people on low wages
    • Insurances, such as household contents?
    • Holidays?
    • Presents, Christmas, entertainment etc - does all this come out of the £30 miscellaneous.
    Not being funny here - just trying to help you nail things down a bit.
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    (Original post by gr8wizard10)
    become a banker, in your first year you'll earn your months wage every week
    I looked at becoming a personal banker. Then got my contract and saw £15.5k salary (rising to £16.6k), and decided that assessing loan and grant applications is a lot easier and comes with a Final Salary Pension

    Honestly, retail banking is not a great profession these days.
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    (Original post by DarlingtonViking)
    I looked at becoming a personal banker. Then got my contract and saw £15.5k salary (rising to £16.6k), and decided that assessing loan and grant applications is a lot easier and comes with a Final Salary Pension

    Honestly, retail banking is not a great profession these days.
    investment banking
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    1. Increase your income
    2. Decrease your expenses
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    (Original post by TheOcean)
    Hi all,

    This question is directed to those who work and support themselves financially and no longer are a student.

    I have been recording my monthly spending and have realised my spending is more than my earnings. How can I improve my budgeting and are there areas where I could cut down spending? I wondered how I could save and how others do saving?

    I earn approx £1200 per month

    Key Spending areas:

    Rent: £370
    Food: £200
    Travel: £160 (required for work purposes only)
    Disposable income/Miscellaneous: £30
    Top up: £10
    Toiletries: £20
    Clothing: £20

    Total: £810

    Money left after bills/expenses: 1200- £810 = £ 390

    I'm struggling trying to understand how I can improve my savings and budgeting. Any help from others who budget and have tips to avoid overspending would be really helpful.

    Thanks!
    Get a second job and shop for your groceries at Aldi instead.
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    Overtime at work/second job?
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    (Original post by TheOcean)
    Hi all,

    This question is directed to those who work and support themselves financially and no longer are a student.

    I have been recording my monthly spending and have realised my spending is more than my earnings. How can I improve my budgeting and are there areas where I could cut down spending? I wondered how I could save and how others do saving?

    I earn approx £1200 per month

    Key Spending areas:

    Rent: £370
    Food: £200
    Travel: £160 (required for work purposes only)
    Disposable income/Miscellaneous: £30
    Top up: £10
    Toiletries: £20
    Clothing: £20

    Total: £810

    Money left after bills/expenses: 1200- £810 = £ 390

    I'm struggling trying to understand how I can improve my savings and budgeting. Any help from others who budget and have tips to avoid overspending would be really helpful.

    Thanks!
    best bets are buying expensive stuff in bulk to get a discount like MasterJack said so stuff like meat and drinks just go on line and search i made some of my first business dealings off these types of sites
    maybe paying rent in advance might be cheaper but other than that you have it virtually as tight as possible
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    I mean I earn a little over £4,000 a week but i still use these methods so i have more to spend on the fun stuff and the stuff that makes me money
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    £200 on food really, just for yourself?
 
 
 
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