what do you find is the best way to live within your means...?

Answer 1

Hi

Unfortunately the answer is to simply make a monthly budget. It's horrible, I hate it, but it has enabled me to control my financies because I simply cannot afford to be in debt.

I was having major financial problems about 10 years ago and I had to get a loan to bail me out and that taught me a huge lesson. However, the "trick" I found to make it work for me is to allow myself money for me, to spend on whatever I want.

When I went to my bank to discuss my problem, I had done my first ever budget and I included £40 per month (yes, it was that harsh!) for me to buy a book or magazine or something for me once a week to make me feel better, because that is the worst problem: it's like being on a diet, the moment to deny yourself certain foods - that's all you want, I'm sure you can put it in a monetary context. I was expecting the bank to say that I was wrong, but the advisor agreed that it was the right thing to do, even though I probably could have paid off the loan a year earlier. It then becomes your choice either to spend or not to.

Ten years on my financial situation has improved (but not by much thanks to my commuting to work), I have 2 credit cards and I don't use them unless I can either pay back a minimum of half the monthly spend amount or just don't use them until there is a zero balance. I have an ISA and an extra monthly saving account and I've gone up to a daily spend of £10 per day for me. There are drawbacks, I know that if I meet with friends, I have to plan ahead and have to save my daily allowance to blow it with them or be mindful of the fact that a last minute meet-up means that I have already spent my allowance for the next so many days. As I said at the beginning: it's tough, I hate it, but equally I don't have any real debts to speak of and those that I do have are managable and, relatively speaking, very small.

Answer 2

Switch to a bank account paying interest and make sure you are never overdrawn. Paying money to banks is sheer waste.

Save up for things you want and sometimes by the time you have the cash you decide the item you wanted is not worth it. You will become more discerning how you part with your cash.

Keep a record of what you earn and what you spend. If you use your credit card write out the amount spent from your balance immediately and always pay off the total amount of your card when the statement arrives. Use telephone banking and state the date the payment needs to be with the card company and it will not leave your account until it has to so you avoid charges.

You have to take responsibility for your money and enjoy it - don't just throw it away because you can't be bothered keeping a check on what you are spending.

Good luck.

Answer 3

- Definitely shop around for the cheapest item
- Buy stuff off e-bay or get it for free on sites like FreeCycle
- Have an ISA and a savings account, as well as a current account
- Transfer your wages to the savings account and then only keep a small amount in the current account for direct debits and a bit extra, this means you cannot go out on the spend up as you can only access a limited amount of money
- Book flights, tickets, hotels etc. well in advance to get the best deals = being very organised
- Keep some money for a rainy day so that if the car / washing machine etc. breaks down, you don't have to put in on credit card
- Sometimes you just have to say no to going out, buying clothes etc. - you can't have everything

Answer 4

To work to a budget taking into account all essential expenses over a 12 month period, mortgage/rent, utility bills, car expenses, etc. All those necessary payments that are applicable to you. Divide by the No. of times each year you get paid. Take that from the amount you get paid and enjoy the rest.

Don't forget to save for birthdays, holidays, Christmas etc., then nothing comes as a complete surprise. Oh, and don't forget to put something away for a rainy day. You can do and it works and gives you peace of mind.

Always "Cut your coat according to your cloth".

Answer 5

Don't have any credit cards or overdraft facilities. Get only the most basic bank account.

I only have one credit card, that I use strictly for emergencies. Other than that, everything gets paid for in cash. It's nice to know that everything I have is paid for, and I don't really owe anyone anything.

Answer 6

I plan ahead and only buy things if I can pay cash. I don't have cable and don't smoke. I don't buy "empty calories" such as soda, beer, and candy. To save money, there is always something you don't need to buy every month, so put that money into a savings account.

Answer 7

Create a budget in Microsoft Money or Excel and stick to it. Only pay what needs to be paid and don't buy the extras.

Answer 8

Use only cash, not credit and never borrow.! Like the man says, don't spend more that you get!

Answer 9

Don't buy expensive "Brands" and unnecessary - Luxury - items
etc.

Take pride in managing, your - personal future savings - etc.

Answer 10

I carry cash and pay by cash, that stops me from buying things I don't need.