Every month, a week before payday; we go through the family finances. We dig out every receipt and we record everything we spend. We even create our own receipts for car boot sale and charity shop purchases. We then start to move money from one account to another. What ever is left (and there’s not much some months and some months there is much more) gets divided into more over paying the already over paid debt repayments, some into the long term savings account and some into the rainy day saving accounts. I try to make sure that more and more of my salary is left at the end of every month, by stretching everything that little bit further every month.
It may seem crazy saving money when you owe money, but what if your car goes wrong? What if you need to pay to get to see a sick relative at a moments notice, but what if you don’t have access to any credit? That’s when we turn to savings.
It’s an even better feeling at the end of each month when the savings didn’t have to be used. We’ve only token amounts in the #2 and #3 accounts. We are going to have to ensure our house is sellable in a very competitive market and have it ready to go ‘on show’ for spring next year with hope to sell by the autumn. We are going to have to be extremely creative about doing that and we’ll need access to real cash to do that. So, my new challenge, is to keep the debt repayments going and seriously save for the house renovations!!!
No pressure then!!!
What do you have to save for and what do you have to go without to get it? We’ll have to forget central heating this year, forget baths and forget any new clothes or shoes, we’ll have to forget Christmas again (we don’t ‘do’ it anyway) and forget any un-necessary car journeys. In fact, we’ll have to find another £100 a month from somewhere to do it!
I’m off to grit my teeth.