If you are anything like me you love shopping the online sales, especially when you get emails every week telling you about the ‘70% off sale and free delivery when you spend £30!’ You add an item here and there and before you know it you have spent over £100 on clothes.
But when you are on a budget this is not ideal and can cause some people to get themselves into even more debt and over spend.
I was that person, I would shop the boxing day and January sales to find the best bargain! In December 2019, I spent £250 on boxing day I bought clothes that I didn’t need and I never wore them.
For me, last year was the final straw when I had to pay off my credit card bill of over £200 that I wasted on clothes.
So keep reading as I share 3, yes only 3 really easy tips to help you stop impulse buying online.
Unsubscribe from emails
Ever heard of the saying out of sight out of mind? Well this couldn’t be more true for emails. Think about how many emails you get each week from different online stores, they are always there in your face tempting you to buy. I used to get hundreds of emails each week showcasing online brands sales and discounts and nine times out of ten I would buy from there.
So the first thing I did was unsubscribe from these companies, it took a while to do (I had so many subscriptions) but it was worth it. I do not receive any emails from online stores which means it doesn’t tempt me each day. I never know what stores have what sales unless I search for them myself.
This will make a massive difference to you and your bank balance.
Ever sat in front of the telly on an evening browsing through your phone and looking at shopping apps on your phone? How easy is it to add clothes to your basket and pay for it in seconds. It is only after that you realise how much money you have spent.
Most clothing brands have an app that makes it even easier to buy clothes, they can send you notifications throughout the day which again reminds you of their offers.
So the easiest thing to do is delete them from your phone. Last month I deleted…..
Pretty Little Thing
Nearly every day I was flicking through these apps and making small purchases which were going on my credit card and causing me to get into even more debt!
Now they are gone I don’t think about it.
Wait 24 hours before buying
This tip has helped me so much! It is as simple as leave the items in your basket for at least 24 hours before buying. This will give you time to really think about this purchase. Most of the time you will forget about the items and not worry about them.
If that’s the case I put the money I would have spent into my saving account or write it down. Then at the end of the month I can see how much money I have saved!
What do you think of my tips? Do you do the same or something different? Let me know in the comments.
Don’t forget to give me a follow over on my Instagram @budgetwithme1 to keep up to date with my journey
On my Instagram I have been asked many times to share my top tips on how to start a budget.
Having a budget that works is so crucial to paying of debt or increasing savings. But it is always so difficult knowing where to start.
So if you are unsure then keep reading this post as I share what I have done to start my budget. As always I am not trained in anything to do with finances these steps are what I have done to pay off debt and increase my savings.
Step 1: Write down your goals
The best place to start is writing down your goals. Are you paying of debt, increasing your savings? Whatever your main focus is write that down.
But you have to be realistic, the best way to achieve your goals is to make them manageable.
My goal for 2020 was to save £10,000, this was my main goal, but within this goal I broke it down. For example:
I need to save £770 per payday(13 paydays)
I need to save £5,000 in the first 6 months of the year
This is how I broke down my goal and it really helped. When I reached £5,000 in savings I felt a huge sense of achievement and this gave me motivation to reach my next milestone £10,000.
Step 2: Work out your monthly bills
Now you have a goal in mind and you have planned how you are going to do this it’s time to work out your monthly bills.
Take a look at your bank account and write down all the bills you have and what days they are due for payment.
Here are mine as an example:
Car Tax: £13.12 Due 2nd each month
Phone Bill: £23.99 Due 14th each month
Canva: £10.99 Due 20th each month
Rent: £150 Due 20th each month
Netflix: £8.99 Due 27th each month
Having all your bills written down and the due dates will help you have more control over the money leaving your account.
I like knowing when the money is leaving my account, that way if there is an issue with payments I can investigate it easier as I know how much I owe and when it is due.
Step 3: Remove unused subscriptions
Do you have any entertainment subscriptions that you don’t use any more? If so now is the time to get rid of them. Before I started my first budget back in 2018 I removed many subscriptions that I hadn’t used.
In my first month of budgeting I removed over £100 worth of bills which was a huge help.
My rule is, if I haven’t used it in a month then it needs to go. In November I stopped paying for Spotify premium as I hadn’t used it for months. I now use Youtube and listen to radio stations for music.
In this post I have written in detail about 4 different budgeting methods. The budgeting method that I use is the zero based budget. This means that at the end of the month I am left with £0 in my bank account.
This method is great for someone like me who wants to reign in their spending and increase their savings.
So do some research to find the best method for you.
Step 7: Do a trial month
You are nearly ready to do your budget for “real”, so now it’s time to do a trail month. This is a great way to see if your budget method and expenses work.
Whenever I change my budget I always do a trial month, that way I can have a clear understanding of my spending and debt payoff.
During your trail month, track all your spending and outgoings. This will give you a clear indication if you need to change anything about your budget.
That’s why I would over budget, if you normally spend £400 a month on food shopping up it to £450 for a buffer. Don’t go from spending hundreds of pounds to spending £50 a week on food. The whole point of a budget is to have control over your spending, not leaving you and your family hungry.
You can learn, set yourself targets. If you spent £500 on food one month why not reduce it to £450 the next month? That way you are still reducing your spending without effecting your home life too much.
Step 8: Review
Once you complete your trail month you need to review what you have done so far. Take some time going over your spending and figure out what is going wrong.
I always ask myself these questions when I review my budget:
What went well?
What didn’t go well?
What can I do better?
How am I going to change this?
To me this is the best way to review. For me I was spending a lot of money on meal deals for work. On average I was spending £8 per day on unhealthy food and snacks. Once I realised this is where I was going wrong I started meal prepping which has saved me lots of money.
Step 8: Create your budget
And your ready to start your budget for real!
By now you should have a clear understanding of your bills, expenses and savings. So you are ready to go!
Remember you will make mistakes, you will over spend some months but that’s okay. As long as you learn from your mistakes you will smash your budget!
I hope that this post has helped you have a better understanding of budgets and how to make it successful.
Make sure you check out my previous posts as I am always sharing the tips and tricks I have learned along my journey! 🙂
Since starting my financial journey I have learned a lot of tips and tricks that I would like to share. And one of those tips is how to improve my credit score. Now, i’m no Martin Lewis but I do know what has worked for me.
I never realised how important it was to have a good credit score especially when looking to buy your own home but now I do. And I have worked hard over the last few years to improve mine as much as possible.
If you are interested in learning how I improved my credit score then keep reading as I share the 4 things I have done to improve mine!
!Quick disclaimer: I am not trained in Finance coaching or credit scores, this what I have done to improve my credit score and research I have found!
Paying off my debt
This may seem like an obvious starting point but unfortunately, paying off debt can effect your credit score.
According to Experian (click on the link if you would like to read the whole report)if you pay off your debt in installments this can effect your score, and if you pay off a low balance before a bigger balance can also effect your score.
“For some people, paying off a loan might increase their scores or have no effect at all. It all depends on your overall credit profile and the type of credit score you’re checking.”
I only had £4,000 worth of debt and I was paying this off in installments over 5 years, this meant that my credit score dropped by a lot! So I saved up and made a big payment to clear it and my credit score went up.
On Instagram I have seen people paying off thousands of pounds worth of debt and their credit score drops.
If you have a lot of debt always start off by paying off the lowest balance. Yes this will effect your credit score but it is always better starting with the smallest as this will be more manageable.
Be patient when paying off debt, it takes time and your credit score will move around but it is worth it in the end!
Get a credit card and spend on it
I know, I know, I just spent all that time paying off debt and now I am getting a credit card which could get me into more debt.
But hear me out, improving your credit score isn’t all about paying off debt its also about showing the banks you are able to borrow credit.
As I had a small amount of debt, I was showing the banks that I am not able to borrow credit which doesn’t look good for buying a home.
So in November 2019 I took out a credit card and started spending on there. I took this advice from Martin Lewis’s Money saving expert site. On there he explains that having a credit card and using it to spend a small amount on there and paying the balance off in FULL on the due date will improve your credit score.
Every month since then I spend between £50 -£100 and pay it off in full and my credit score has improved. I buy petrol and occasionally online purchases.
A quick disclaimer, if you are someone who has credit card debt then this might not be for you. But as someone who only uses this for small amounts each month I am able to control my spending.
Never go into my overdraft
Since being on a budget I have never gone into my overdraft, I always make sure I have complete control over what money leaves my bank account.
I do have an overdraft arranged with my bank account but I have never used it. Just because it is there doesn’t mean I will use it. As according to Experian an overdraft will count as debt on your credit score.
“An arranged overdraft is unlikely to have a major impact on your credit score as long as you don’t go beyond your overdraft limit or have payments refused. In fact, if you use your overdraft sensibly and regularly pay it off it could improve your credit rating.” (Link to this website)
And having a a current account with the same bank for a umber of years can also improve your score.
Pay my bills on time
Before I started my budgeting journey I used to miss my due dates on my bills. I forgot to pay my car insurance and car tax which left me in bad credit.
I now have a lot more control on my bills and when they are due.
When starting your budget make sure you know when your bills are due, that way you wont go into your overdraft, which in turn effects your credit score.
I hope this post has been helpful and you can find some ways in which you can improve your score.
Don’t forget to check out my Instagram for all the latest updates on my journey.