How do you change from being a spender to a saver?

It was only five years ago that we lived pay day to pay day. There was just enough but everything was paid for. The bills were paid, there was always food and we got by. What we didn't do was save. 

We changed this after we'd paid off our debts and began a monthly budget which was the same as when we had debts. It meant that everything we had previously in the debt budget now went into savings. Part of that each month now goes into mortgage over payments but the bulk of that now goes into savings. It now means that we can pay for what ever we need with money we've saved. So, you asked me, how do I manage to save so much.

Budget?

I set an amount for everything and stick to it, for fuel, food, energy and don't allow myself to go over that. Yes, it does take self discipline, no it isn't easy but our money mindset keeps us going.

Money?

I don't carry any. There's nothing in my purse. It is drastic but it works. I can't spend what I don't have. There no impulse purchases, no treats, no coffees. I'd have to use my card for that and I can see every transaction. 

Clothing?

I buy quality every year or so. A set of summer clothes will last two or three years, as will a coat or pair of shoes. I prefer quality over quality and spend about £250 a year on clothes. Again, there's no impulse purchase but planned shop, for example knowing that I need two pairs of dark work trousers. 

Holidays?

After a hiatus, I've decided that this is important. I've worked out my ferry fees for the year and will buy my ferry crossings well in advance and all in one go. So, it will effectively cost me one month's savings. I don't work to sit at home and look at four walls and see this as investing in our well being.

Where do I save?

I have three bank accounts: everyday, rainy day and savings. Everyday has enough money for the bills and shopping and each month my wages go in, my direct debits go out, my nominated working budget is left behind and the rest is split between my rainy day and savings accounts. Rainy day is for items I'm saving for such as carpets, car tyres, holidays, vet fees, hairdressers, clothes ect. It contains 20% of my monthly savings. My saving account has the other 80% of my savings each month. The aim for this  is to not touch this. 

ISA.?

Yes, we have one and we've used less than our tax allowance each year. This is how we save for the big items such as a new car or in this case, the legal fees for the house in Huelgoat. We'll get back to replacing that straight away. Why do I have a lump of money just sitting there? It's our safety net. If my boiler needs replacing? The cooker doesn't work or the dog gets cancer. It's not there for an exotic holiday but for essentials that we need on an as and when basis. 

Mindset?

We are really aware of how lucky we are and how good our life is. Our little house is warm and comfortable, full of books, we have hobbies, we keep active, we walk a lot, we have busy social lives and we go on holiday. We enjoy home cooked, homemade and our home in general. We make do and love what we have. We don't feel pressure to buy anything for anyone else either. We enjoy seasons and festivities on our own terms. We have no dependent and no one to financially answer to. As far as we're concerned we feel very comfortable and know how lucky we are. We think differently. We've learned how to defer and put off wants for as long as not as it takes and we really enjoy what ever we've saved for.

Negatives?

None for us personally but it does mean were judged. However, never by anyone who means anything to us or know us personally. It's amazing how people are critical of success and happiness. We don't worry about this, all things pass eventually. So, any misgiving? None at all.

Love Froogs xxxx