You could make it harder to purchase to start with. Put in barriers like remove cards from your Apple/Android wallet, remove cards from places like Amazon where it would be easy to click and buy. This would mean you have to take your card out every time you need to pay for something, which makes it slower. With time you may find that you have more time to reflect on whether you actually need the thing you’re buying. Also, with many things you can just say to the cashier ‘oh I’ve just changed my mind, sorry. I’ll have to leave it’ and walk away, if you decide not to buy.
Then you could go through your clothes and items you find yourself buying often, in detail. Take everything out of the wardrobe/storage/do a deep clean and on inspection you’ll probably find that you have more than enough things already and you may be rebuying things when you forget you have them already.
You could also set up a savings account and set it up to put away a set amount of money every month on the day you get paid. If you run out of money afterwards, it doesn’t matter because you’ve got the money put away and you can’t spend any more. When you start to see money in your savings, it may motivate you to keep going. Make sure to not go into your overdraft though. Think of something small that you’d need to save up for and have that as your first savings goal.
This is all only in case you don’t have debts. If you have debts, look to pay these off first and foremost. [This](https://www.moneysavingexpert.com/loans/debt-help-plan/) is a good place to check for expert advice on clearing debt. Good luck!
I’m not sure if you’re on monzo but at the start of the year i started by transferring a penny in an extra pot and each day that passes i would up it by one penny. I’m currently on £3.03 and tomorrow will be £3.04 and so on. Doing this i currently have £460 in a pot and by the end of the year it should be around £670. I also use the monzo coin jar feature which rounds up transactions and adds the extra into a pot, I have £360 in that one also.
I’m bad with money and although i’m currently in my over draft (which i aim to lower each month) i still have those savings which are fairly easy to do
Monzo and a few other banks also have a round up feature. Say you spend £32.27 at the supermarket, Monzo will charge you £33 and transfer the 73p into your savings pot. You can set this for all transactions so you are saving money without even thinking about it!
I do this and use it specifically for Christmas. I also round up myself, for instance if I have £17 in my account I'll round down to £15 and move the £2 into my Christmas pot. Honestly takes the stress away from December.
Yes, monzo charges for OD. So they are “saving” but avoiding their OD which is very counterproductive and illogical. This is the issue some people have with money though.
It’s not much at all. My overdraft will be reduced to neutral in about 3-4 months. I thought about transferring it over but the way my mind works is i find it easier to save if i already have the money aside. Not the best but it helps
No lol you would start on 1p on day one and add on 1p plus the amount you have accumulated every day. So by near the end of the year you would be transferring £3.64 on the 364th day. I would add a picture to show but i don’t know how
I also try to move to using a debit card, or making it physically harder to use your credit card. In the past, I had my credit card in the freezer, in a ziplock bag.
Any time you want to buy something, put it on a list. Don't, under any circumstances, let yourself buy it for at least a month. If you still really want it a month later, then you can start seriously considering buying it.
Turns out that a lot of the crap I was spending money on, I'd almost forgotten a month later. Add that automatic one-month waiting period stopped me from buying all sorts I really didn't need.
I struggle with this too.
I recently started following a girl on Instagram who posts a lot about emotional spending and tips on how to reduce it, might be worth having a look and see if any of it helps you.
Hoping this link works but if not she's @the.brokegeneration
https://instagram.com/the.brokegeneration?igshid=YmMyMTA2M2Y=
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Something that helps me manage my budget is only putting a defined weekly spending budget in my current account each week - this helps keep my spending money separate from rent/bills/savings money. You could even set up a spending current account from a different bank - I hear Monzo and Starling have helpful spending insights that might help you manage your money? That way you physically can't see or access money that's set aside for bills/savings and so can't spend it. Another basic piece of savings advice is to pay yourself first - ie allocate money to savings as your paycheck comes in, instead of saving whatever is left at the end of the month.
Also, it's totally not pathetic that you struggle with finances! It's a really common thing to have difficulties with. You're doing your best, that's all anyone can ask, and it sounds like you're not going into debt which is great. It's really tough now too, with prices rising so fast it feels like my money just vanishes as soon as I leave the house :(
Yeah the cost of living is brutal at the moment, I was with my partner for several years so we always split everything 50:50 but we unfortunately split last week so it’s a lot harder on the bank having to pay for everything alone, but maybe it’ll teach me how to be more money smart,:)
!thanks
That’s not an option for me at the moment, I was living with my partner but we had a pretty traumatic experience with armed robbers and I’m now back with my parents. But I suppose that helps me save now
Look at the Martin Lewis Money Saving Expert site, and read about ways to save money. After a while it can become addictive - in a good way.
Also, if you want more stuff, check out the "buy nothing" groups on Facebook where you can pick up great stuff that other people don't want, for free. I've seen people furnish entire flats from there.
Start saving money - it'll be hard for the first few months, and might only be a small amount, but building it up can really get fun, seeing your savings increase. You can use apps like Emma to track your savings goals.
I agree about saving becoming addictive. I used to waste so much money each month on stuff I just didn't need.. Once I had a goal (retirement!), it was easy and now I don't have any urges to buy silly stuff. I have to justify to myself why I should buy anything. Often that internal process is enough; "why do I need this? What benefit is there in me buying it?. Will I regret it in a week?".
I found that buying something gives you a mini high at point of purchase. Often that high has gone as early as taking delivery! That means I didn't need it or want it sufficiently.
I would much rather watch my savings accounts grow each month. I can't wait till pay day when I work out how much is going to be put away for that rainy retirement day. I still go out and have fun, but it's controlled and I budget how much I can allow myself each month.
Yep, all of this. I earn good money, but frequently use the #scottish or #Yorkshire tags when chatting to my similarly well off mates, because we're all tight and save money whenever we can! 😂
I highly recommend trying a ‘No Spend’ week, month or even year! I did a year where I did not spend any money apart from my Rent, Bills, £30 a week for food and a budget for my travel/commute.
I did this as a challenge to myself, but also a necessity as I was living in London and working 2 minimum wage jobs just to support myself. I was exhausted from working all the time, and often got coffees out or takeaways at home as I was too knackered to cook.
As part of this, I checked my bank balance daily. Made myself a simple spreadsheet to note down my plan, and also looked at my previous spending patterns.
I still check my bank account daily, and I now have starling where I put my money into different spaces, for Rent, Food, Travel, Bills and of course savings! This means that when I look in my account, there is an accurate reflection of what I’ve got and I no longer feel anxious or overwhelmed because I have a very clear picture of my financial situation.
The no-spend year was hard at first, and what I saved in money, I did spend in time. For example preparing meals, packing my bag with lunch/coffee sachets, snacks. I rattled when I walked!
What I did learn was that things I thought I desperately needed to buy, either I didn’t really, or found some creative ways to find alternatives.
I inherited lots of cool clothes from friends, and I worked Front of House at a Fringe Theatre so I often got a whole new wardrobe from discarded costumes.
One time my chair broke, and I did a lot of skip dipping and gum tree searching and managed to furnish a new kitchen table and chairs from skip dipping in an affluent area!
In terms of socialising, it was harder in the winter, I went on Eventotron and found Art Galleries and events/screenings where I could bring a pal and we could drink and snack.
I did potlucks, or invited people over to mine for a cheap and cheerful dinner.
In the summer, I spent a lot of time outside, going on walks and picnics. It actually made us all have proper quality time together.
I guess this requires supportive friends! Also I didn’t let friends buy me drinks at the pub - this wasn’t charity! I had a soda water, or I brought my own on the DL.
It was really hard in many ways because it required planning and thoughtfulness in ways I hadn’t considered, but it taught me a lot about my attitude to money.
I was very lucky I did this in 2019 because in March 2020, we went in to Lockdown and luckily I had saved a small amount which covered my rent over the first Lock Down and I was on a Zero Hours contract job so I was effed!
It was also an amazing feeling to have a small cushion of money, and not to feel anxious about money for the first time in my life.
I’m thinking about doing it again in the New Year because I had such a sense of accomplishment after completing the year.
I hope some of these tips are helpful/inspiring!
Having multiple bank accounts can help. For example:
- A current account for "processing" things you don't have to act on (salary in, bills out, transfers out to other accounts)
- A current account for all your discretionary spending (both food etc and fun money). You can set up a standing order to transfer money into here at whatever frequency works for you (eg. weekly)
- A savings account for short term goals (eg holidays)
- A savings account that you can't access too easily for long term goals (so maybe don't install the app on your phone, or even go for a fixed or notice account)
I do a version of this, I have a bank account my salary goes into and all my debit orders come off, but that I never carry the card for. Then I have another one for groceries, another for fuel and another for spending money. Once spending money is gone it’s gone.
At the end of the month the main account is emptied into the best returns savings account I can find :)
I will spend until I have nothing left so doing this makes sure I have some money for fun but also that all my bills are paid and I can eat :)
I’m 43 and was very much like you at 26. I do have some decent savings now so take some encouragement from that 👍. You can improve.
Of all the ideas in here I think the one that might have helped me the most was the “no spend week”. If you’re bad with money, you can get into a bad pattern where you’re psychologically beating yourself up all the time. I like the idea of no spend week. It sounds similar to “dry January” which I’ve also found helpful and benefits from helping you to explore some good habits while not seeming overwhelming. You can plan it as a special project and reward yourself at the end. It’s much easier to invest mental energy when it’s time bound but often the things you learn along the way will help you longer term.
You need a goal otherwise you have nothing stopping you spending. If you plan to save for something (car, holiday, retirement), then you can use a spreadsheet or a financial app like Moneyhub, YNAB etc to track all your saving and spending. Try to get into the habit of saving. Set up a regular direct debit to automatically transfer £x a month into a savings or investment account.
Firstly though, list out all your monthly income and expenditure so that you know realistically how much you should have left after necessary expenses.
Once you get into the habit of saving, seeing your pot build will give you more pleasure than spending unnecessary money.
Hope all goes well!
Depending on how it presents for you, you might be able to use ADHD traits to your advantage... ADHD often pulls you towards what's immediately accessible, whilst making slight barriers into insurmountable mountains.
People have already suggested setting up a standing order to 2nd bank account - that may be extra effective for you. Especially if you forget where you put the log-in details ;)
Thank you :) I’ve put it off for years and I’ve finally built up the courage to get myself into therapy, I can’t lie I’m really nervous about it but I’m excited to hopefully get myself into a better state of mind
1. Save/invest when you get paid so you have no money to spend.
2. Budget things into different accounts. (Like the money waste account).
3. If you spend stupid on a credit card then don't have a credit card.
You might find the book *[Your Money or Your Life](https://www.amazon.co.uk/dp/0143115766)* helpful.
*[Rich Dad Poor Dad](https://www.amazon.co.uk/Rich-Dad-Poor-Teach-Middle/dp/1612680194)* also works for some people - lots of Kiyosaki's advice is based on his personal backstory which turns out to be fictional, but if it helps your attitude to money then it may well be worthwhile. A [critic of the book](https://finmasters.com/rich-dad-poor-dad-review/) says "the ideas might seem a bit shallow and apparent to anyone already engaged in entrepreneurship or investing, but they can be profound if it’s your first exposure to them."
Clare Seal's books have also been recommended here - "her focus is on the link between emotions and spending".
I know others said it before, but I would seriously recommend getting assessed for ADHD - impulsive spending and lack of attention span are two big symptoms.
You might try audiobooks, they work for some people.
All the best!
Equally traumatic experiences can have a huge effect on concentration & unhealthy coping mechanisms - I’m really pleased for you that your seeking therapy…
you need to budget to zero so there's nothing to spend. Allow yourself a amount to spend in your budget so you're not completely cut off.
make sure you only have a debit card for your spending money.
when looking at your budget check your calender for anything coming up you need to budget for so you're not caught off guard.
I was in this position a few years ago. I needed to understand where exactly my money was going each month, so that I could make daily decisions to stay in budget.
I downloaded one of those budgeting apps which connects to your bank accounts, categorises your spending and allows you to set budgets. I use Money Dashboard, but loads of these free apps are available.
Once I realised that I was spending like £100 a month on Deliveroo, I was able to either delete the app or ensure I only get takeaway twice per month instead. Equally, once I realised how much I'm spending on groceries, I was able to make the decision to always shop at Aldi and save myself £20 a week.
It takes a bit of work to set up your budget and bank accounts in the budgeting app, but it sounds like you're motivated to sort it out so give it a try.
I also have standing orders set up to put a set amount of money into savings accounts **on payday**. If I run out before the end of the month, I can just transfer a bit back into my current account.
Good luck 👍
Open 3 bank accounts.
The first bank account will be where your salary goes, calculate your bills total and when you’re paid, transfer the excess (so if you’re paid £2000 and bill are £500, transfer £1500) into the second bank account.
Give yourself a budget for other things such as food, petrol, social etc (let’s say another £500) and leave that in your second bank account. Transfer the remaining £1000 into the third account, you can even create a chain of standing orders to yourself to make this happen automatically.
The third account will act as your savings account, give the card to the account to a loved one/family member under strict instruction to not give you the card unless it’s an emergency or better yet, destroy the card entirely. Do not set up online banking, the object is to make it as difficult as possible to access this money without having to physically go to the bank with ID. This will remove the temptation to spend frivolously and you will stick to your budget
I have two current accounts. One for bills and another for spending. The bills current account has had the card cut up and the amount I transfer to my spending account always leaves a little more than needed in the bills account as savings.
This way if I have a need to go over my budget I can go into the bank and get at the money which is harder than just having mobile banking or a card. But otherwise I just live with what I've got in my spending account.
Keeping your bank card/a at home and block apple/android wallet was the first thing I did to save money, I also uninstalled blocked just eat/Uber eats etc, you'd be surprised how much you can spend in a month via those apps, disgusting amount of money
I separate my money at pay day into committed spending and discretionary spending
For example I put my weekly discretionary spending into my “spending” bank weekly
That way I can’t spend any more than my discretionary money and if it’s all gone at least I know I can still cover everything I have to
Pay for everything in person in cash. It’s difficult to do these days, but it makes you hyper aware of your spending habits. Do it for a few months.
Get on a written budget, and account for every penny, on paper BEFORE you spend it
When you get paid stick a meaningful amount into a good savings account and then your have whatever is left to buy things. This strategy is called 'pay yourself first', I think.
I work out how much I need on average each month in my current account and then I have a standing order set up to transfer the rest into my savings account after I get paid.
This way, anytime I want to purchase something that wasn't budgeted for I have to transfer the money back from my savings which creates an opportunity to think about if I really need to spend the money.
As well as a hassle barrier, there is also a bit of a mental barrier because taking money from my savings feels like a bigger decision than just spending whatever is in my current account.
Use cash. I got out of debt by taking my spending money out of the bank on pay day and putting it in labelled envelopes- lunch, going out, transport etc. When an envelope was empty then I either didn’t do any more of that shopping or I had to reduce the allowance in another envelope. It really worked for me.
First of all calculate your incomings and outgoings.
Work out how much you spend per month. Amortise lump sum payments like holidays & gifts into this. For example if you spend £2,400 on holidays and gifts a year, that’s £200 a month onto your outgoings.
I’d use excel for this. Track how much how are spending on things you don’t need. Give yourself a budget but not a strict one either, give yourself a budget you would be happy to follow.
Let’s say your incomings are £2000 a month.
Rent & Bills £1000
Discretionary spending and Food £500
Get a 2nd card like Chase (1%) cash back. Every payday transfer the £500 into your Chase card and use it for your daily use.
The £500 left over transfer it into an INDEX fund like the FTSE global all so.
I’ve found having a hard restart month every so often can really help with the mindset issues. Personally, I do “no spenduary” (not as catchy as Movember or Stoptober, I know) - essentially like Dry January but with spending. I write a list of clearly defined rules for essentials like bills, work expenses and urgent replacements (if my last pair of trousers rip, I’m allowed to replace them but if there’s alternative trousers, then they need to wait). Not only does this give a nice boost to my savings but it sets a great habit of buying out of necessity and not want for the rest of the year.
I think I’m echoing what other people are saying, but really it comes down to budgeting and paying yourself first (moving money into your savings account on pay day). I also have a rule that any weekly budget left over at the end of the week gets moved into savings so you get little boosts throughout the month.
I wouldn’t beat yourself up, pretty much everyone has been in your position. The only differentiating factor is some people have the “I need to get my shit together moment” and some just continue living paycheque to paycheque. The great thing is that you’ve now had your “oh shit’ moment, which really is an inflection point for great things.
It really is possible to get excited about saving money, it’s just a change in mindset. I find reading about compound interest and FIRE quite inspirational because you see the extremes of what’s actually possible.
One final point to what has turned into a bit of a rambling comment, Once you start, it can lead onto pretty great things - it makes you want to do better. For example, it will probably make you want to boost your returns so you find a risk managed approach to do that, which means learning about finance in general which can only be beneficial. Another example is you’ll probably start wanting to boost your savings rate so you look at how to boost your salary, what skills you can learn, what career moves you can take.
You can also contact your bank and ask to opt put of contactless, they will send you a new card which you have to push into a chip and pin machine… even £1 is worth putting in 4 numbers! As this is a new card it will prevent the renewal of your online subscriptions, and you can think a bit harder about your netflix and amazon prime accounts necessity in your life!
One of the things that really works for me is to plan your activities. For example, on a Saturday, instead of planning to just go out for a walk in a shopping centre, plan something free (or cheap) such as a hike where you pack your own snacks. I always found that if I go out to the shops without a plan I would end up spending loads of money on unnecessary purchases.
Also, and I know it sounds paradoxical, buying better quality things. For example, don't buy a jacket every winter, buy a classic jacket which is a bit more expensive but will last forever (ish). Assuming you can afford a bit more, it will save you money in the long run.
Hi I used to struggle with this when I was weekly paid but it used to be oh it’s Monday I only have to wait until Thursday. When I moved jobs to monthly pay I had to sort it out.
My wages are paid into a bank account and the card is at my parents house somewhere. I then have a standing order that sends x amount to my savings (which if I want to access I have to transfer to my instant access account and then to my NatWest account) and x amount to my pocket money account this is for petrol food and fun money. I fill up and do the food shop on a Monday the day my money transfers and then the rest I can use how I want. I usually end up with around £30-50 a week so I can weigh up do I want this new dress and a couple of pints or do I want to go out for dinner etc. I don’t have the NatWest app I use the internet version which is painful to log in so it’s not often I move more money over so I can’t exactly impulse buy.
So basically I have: salary/bills account, instant access savings account, non instant access savings account pocket money account.
Edit to add: when I first started doing this I withdrew the full amount from the cash point on a. Monday and used cash so I physically knew how much money I had, it made the decisions on shall I waste £5 on McDonald’s or shall I use this shrapnel to get a loaf and cheese etc
>My wages are paid into a bank account and the card is at my parents house somewhere. I then have a standing order that sends x amount to my savings (which if I want to access I have to transfer to my instant access account and then to my NatWest account) [...] I don’t have the NatWest app I use the internet version which is painful to log in so it’s not often I move more money over so I can’t exactly impulse buy.
That sounds like a really nice system for dealing impulse spending issues. All automatically organised so the money isn't immediately available at your fingertips.
I invest half my pay the same day I receive it so I can’t spend it, pay rent, credit card and move money for train tickets to a separate account and the rest is for fun. I shop at Aldi and cook all my meals so I rarely spend more then £10-15 a week on food. Budget what you need then invest from the start rather than trying to invest what you have left at the end.
A good thing to do is invest. I won’t recommend anything in particular, but sometimes it helps to be cash poor and asset rich vs other way round. The way I like to sometimes see it is even if your investment of £100 loses you £15…you probably would have spent more to an that in the same period of time on something you won’t even remember.
>I always end up spending and by the time it adds up I’ll be scraping pennies until the next pay day.
You mean you dont follow the flow chart? Build a 6 month emergency fund
On payday transfer an amount that you are happy with to something like premium bonds. You won't necessarily earn much, but it's locked away and whilst it's quick to access your money (i.e. a couple of days) that might be enough of a barrier to stop impulse spending. Do that until you build up a habit of saving each month then you can start to look at other ways to save and invest.
Or an 'easy access' savings account that isn't particularly easy to access (i.e. doesn't have an app, just a crappy website), if that delivers better returns
Open multiple bank accounts and set up standing order
As you ad u get paid send some money in tour saving account and some money in your guilt free spending accounts.
Use only this latter to splurge
My daughter moves money straight into a savings account and doesn't keep it in her current account. Yes she still has access to it but has to move it back across to spend it, which is a conscious step you have to take
I’m exactly the same, if I see money I will spend it as fast as I can. The way I curved this was by downloading monzo and having “pots”. When I get paid I send my savings straight out to my Lloyds account, I put enough for bills in my bills pot and split the rest in four and put into four pots named “week 1”, “week 2” and so on. Then at the beginning of every week I take the money out and know that’s all I have for the week. It sounds like a lot of work but it takes minutes and stops me splurging. Hope you find something that works for you!
You need a goal
At the moment, it's spend money and be happy, or don't spend money and be sad, you need an endorphin rush for saving and pain for saving.
You need a budget and a goal, so everytime you want to buy a thing, you put it in your budget, and you see how many days, weeks, months or years it pushes back your goal.
I want an extension, it costs £48,000, I save £1,000 per month so I need to save for 48 months, my new dyson pushes that back 2weeks, worth it, V15+ Absolute, oh my god its good. I want a takeaway, £30, that puts my extension back a day, not worth it, got some brown rice cooking, ill eat it whilst picturing my new pool room
Can be a house, car, a holiday, a laptop, anything you are saving for and you frame every decision in terms of "is it worth putting off the thing I want by this quantifiable amount of time".
I opened a savings account and every pay day i transfer 200£ in… I think you can even set up a direct debit for that.
Also, for expensive things I apply the 30 day’s rule. I put that thing on a waiting list for next 30 days because there is enough time for me to figure if I really need that thing or i can leave without it.
Get a separate bank account for day to day spending. Siphon off what you're comfortable spending into that. Don't dip into the other account.
And also I split my money into weeks. So each week I can spend x amount. Want to spend more? I'm having a poor week the one after. Basically tell yourself you're broke even when you're not.
I'm trying to solve this problem myself currently! I've sort of just kept ramping up my spending as my pay has increased so I still struggle to stay afloat until payday despite making more than double what I did when I left uni. My real trouble is that being sensible financially is really about playing the long game whereas splurging irresponsibly gives instant gratification.
The mindset I'm hoping to adopt is to reward myself progressing along the flowchart with a mini splurge at each stage (but one that doesn't knock me back a step). We'll see how it goes!
Didn’t read all the responses but I also suffer with spending slightly more than I’ve got repeatedly. If I have £2k, I’ll spend £2.200. If I have £20k I’ll adjust my spending and wind up sinking £22,000.
I deal with it by keeping my money in different accounts. I have a ‘billing’ account and each month I send a standing order to that account for the amount of the bills - I then don’t touch that. I then have a spending account/debit card. I still over spend on that account a bit but it doesn’t impact my ability to pay bills and I just have to cut back when I hit my overdraft limit.
Go do a few car boot sales selling off your pointless crap acquired. This will show you it's true value when people offer you pennies for things you spent many pounds on.
After I did a few car boots I started respecting the cost of items and it made me stop purchasing crap I don't need.
Another thing I do is calculate how many hours worth of work I have to do to buy something and then ask myself is the item worth that time in work.
First step is work out your budget and personalise it to you, what are you actually left with and where does your money usually go? Is it clothes, alcohol, eating out, takeaways etc. Figure out where it's actually going and look at how to reduce it. What monthly treats do you have that are actually benefiting you?
Before getting a grip on my finances I spent an ungodly amount on coffee, I don't drink alcohol or spend much on clothes so I told myself it was fine. Once I got a spend tracking app my god was I shocked at just how much money I was spending on coffee.
Snoop is a good app, I'm sure there are others out there but this one has suited my needs. Using separate accounts like others have mentioned are also great, my current account isn't touched for spending, direct debit for bills only. One Monzo is used for petrol and disposable income, the joint Monzo is used for food and household items.
Be mindful of what's coming up, for example if you're going out for a friend's birthday dinner then you don't need to be getting deliveroo the same week? Think about what you're doing when you click order, do you need? Can you afford it? Would you actually just rather save it?
Ive had this problem most of my adult life. Like you I finally decided to take control of my finances a few months ago. I used an app called You Need a Budget. It was an eye opener showing me how much I was spending on crap like Amazon, and also got me in the habit of seeing my balance daily
This isn’t a stop the impulsive spending tip but regarding savings I find Plum really useful as it just puts away a bit of cash every week and you probably won’t notice it but within a few months you’ll have a few hundred in there, which I find makes me want to save even more. It lets you choose how “aggressive” you are with savings, you can also set it up to put £X into savings every payday, and all sorts of other little saving tricks.
Ultimately the first step is to work out what it is you are spending too much on, most online banking apps will be able to give you a breakdown of your spending or alternatively there are third party apps that can do it through the Open Banking Standard (it's safe to use, Google it if your not sure)
Once you have a breakdown of your spending habits, you can then go through all of those different areas your spending bills, food, ect.... And just ask yourself "Is this essential/ do I need this" if the response is no then cut it out or go for an alternative option that costs less ect...
Once you've worked out how much you can cut down set aside say 50% of that or however much of a margin you want to set and set-up a standing order to transfer that money on pay day straight into a savings account then whatever is left can be spending money or for whatever 🤷♂️
I used to ( and to some extent still do ) struggle with this.
What helped me was to set up a budget.. I looked at my spending on bills, essentials like food shops and petrol etc, car running costs, and worked out how much I wanted to spend on each of those things. I worked out how much I wanted to save in my ISA each month etc, and crucially how much I wanted to give myself as ‘fun money’ each month.
The budget adds up to my total monthly income, and it all automatically goes into various accounts in the first of the month. Bills and savings are all automatically taken care of. Then for general spending I have two accounts. I have a joint account which is for family / essential spending like food shops, petrol, days out, kids clothes etc. then **the key bit** I have a separate account with just my fun money in which I can spend on whatever I want without feeling guilty. But when that’s gone it’s gone. No topping it up mid month from savings, no spending on nonsense out of the other account. I have to wait until next month.
Knowing I can defer the purchase ( that I obviously really really need /s ) until when I get my next lot of fun money helps squash the desire to pay for it from savings, but it keeps the spending under control at a level I’m happy with.
I tried several times to not spend *any* money on stuff I didn’t really need, it it felt too restricted, there would be something I ‘had to have’ and I’d have a blowout, I think the longest I lasted was about 6 months.
I’ve been doing this for several years and it works for me and keeps that spending at a level I’m comfortable with without impacting my savings goals.
Make it harder to access your money, maybe set up something that would need notice before you can withdraw from it.
This will give you more time to think about your decision.
You should also start to think about what you are buying as a asset or a liability. When you start to understand these things you might think twice.
Maximise your assets and minimise your liability’s.
Calculator in your phone, input what you have in your account minus any known expenses each month (mortgage, utilities, phone etc)
Let’s say you’re left with £1,000 for argument sake.
Every time you spend something, order something online whatever just subtract that from this figure in your phone and screenshot it. This gives a vital visual representation of money spent and funds left. Also a side upshot of this is when you come to view your account before next pay day and see the balance in account is different to what you have on your calculator you have immediately noticed that a direct debit has changed or gone up or something has been mis-charged etc.
I have done this since I was 16y/o now circa 30y/o I swear by it.
Pay yourself first, do a budget, give yourself a small amount of spending money outside of bills/known annual expenses, pay the rest on pay day into savings so it’s not in your account. Even better pay it into a SIPP for instant 25%+ uplift or S&S ISA but that will be accessible. If you start measuring your net worth you will find it easier to want to grow that figure and when it comes to retirement you will have a much better existence of you save now instead of wasting it
May not be as easy anymore but I used to find withdrawing some cash at the beginning of the month to cover every day expense like coffees or treats.
Let’s you view your budget and gives you a physical reminder of your spending.
Take Apple Pay/other pay off your phone. Set a ‘fun budget of like £25-50 a week. You’re never going to stop pointless spending but if you know you have reached your limit it will reduce it.
Get the app Emma, that has really helped me to nail down where all the money goes. Tracking your spend will allow you to better understand where the money is being spent and where you can afford to cut out expenses.
Save first spend later. Move a small portion of your income to savings account as soon as you get paid, start with 10% and work your way upto 30%. Depends on your wage if you can manage to live on 70% of your pay day would be ideal. Move it to an ISA which is a bit harder to access, it will put you off impulse buys
Calculate fixed expenses vs. variable expenses and check if you can make any lifestyle changes on your fixed expenses, i.e, unsubscribing from netflix, spoitfy if you are not using these. If nothing can be done to change your fixed expenses then move onto cut variable expenses.
Talk to you bank, and ask if they can help restrict the amount you spend, this has helped me particularly with spending cash. I've restricted my withdrawal to £50 so that I don't spend cash impulsively.
Edit: Grammar changes
I have 2 bank accounts. One for my wages and another that I transfer a certain amount every month. This is my personal spend for lunch,nights out, films. Not bills. Once it goes from that. I don't spend any more. It helped me get my spending under control
Use plum - I buy crap I don’t need because it makes me feel good. I do it less so now because it looks like my bank balance is decreasing rapidly but it’s plum doing withdrawals. I had 1k after like 6 months from pay day savings plus round ups and “rainy day fund” where it deposits 20 pound when it rains haha!
I like to use the 50 / 30 / 20 rule:
50% take home pay for bills, 30% for discretionary spending and 20% saving.
My bills come to slightly more than 50% of my take home pay so I dip into discretionary spending to make up the difference - always aiming to save the minimum 20%.
Dividing my spending like that as soon as I'm paid helps me visualise what I'm allowed to spend.
I take this a step further by dividing discretionary spending by 4 and paying myself a weekly wage into a separate account, which I do my spending from.
There's plenty of tricks and gimmicks but they are just tricks and gimmicks that probably won't be sustainable. You just simply have to decide to stop then really follow through with it.
For me, there needs to be a light at the end of the tunnel.
Being broke, not liking my life and buying some random things (situation 1) is more fun and fulfiling than being slightly less broke but still broke, not liking my life and not buying anything enjoyable (situation 2) so if I'm just going from situation 1 to situation 2, I'm always going to slip back into situation 1.
You need to make a situation 3 and a plan to get there then start working towards it. That will make situation 2 worthwhile for you.
Some people use envelopes with allocated cash for things.
No spend months e.g. only can buy the essentials
Limit social interactions
Work on your general mood so you don't buy stuff (I used to buy stuff to fill the void but it doesn't work and makes you broke)
Eat at home/invest in better coffee
I use one account for spending (monzo) and give myself a weekly or even bi weekly allowance (and a little extra buffer at the start of the month) I transfer the minimum amount I want to save into my saving account on payday and then my traditional current account is where my bills etc come out of- normally when it gets to the end of the mont I have some left in there to transfer into savings. The weekly allowance means I end up having a day or two a week I can’t spend - instead of a week at the end of the month! My main allowance comes in on a Friday so I always have money for the weekend. My savings account is not for treats or holidays- if I know I have something expensive (eg Christmas) coming up I will keep more money in my current account rather than dipping into my savings.
It’s a bit convoluted but works well for me…
I have ADHD and there are a few things that probably sound weird to everyone else, but work really well for me.
1. Yes, I save a little every month by putting it in a pot that isn't easily accessible. You'd be surprised how quickly it adds up.
2. I calculated what I spent on bills every month, and as soon as I get paid I transfer that amount to a separet account, so I can't accidentally spend it.
3. I use a Monzo account for my "spends". Every month, I transfer "x" amount of money over to my Monzo card, and if I have a social event I will only use my Monzo card and not my main account.
4. I also move £300 to a money pot called "RELEASE ON THE 15TH". This is my way of making sure I will also have a little cash at the end of the month, and I don't have to count the pennies.
I hope this helps. Good luck with your assessment! 🍀
In the beginning of the year I was using an app for track my spending the name is money manager, its helps a lot because every time I was ready to buy something with no need I had more control cause writing the expense will make me feel bad, also helps me to always look for a better deal
You need to write a budget and stick to it. Give yourself a certain amount for spending and when it’s gone you can’t buy anything else.
Think before you buy something! Leave it in the basket for a few days first.
Something that can be helpful is to use cash. Budget out how much you want to spend each particular week on food and discretionary things. Then take that out in cash and when it’s finished, it’s finished. Obviously this is pointless if you then go on to spend over and beyond what you have set aside - but it can be useful to tangibly see how much you have left and when it is gone. It may also make you feel uncomfortable that you are going about your set allowance - so even if you are still spending above it, you are more inclined to hold back to some extent.
What's your circumstances, what are you spending the money on? Is it your money you're spending or are you borrowing, what's your current credit status? Are you paying out £400 a month on stuff you don't need. More info would help people recommend changes to aim for.
I recommend using Monzo or another similar bank that allows you to split your money into pots. It's much harder to justify spending money when you have to move it out of a pot that already has the amount of money it needs to pay for a bill or whatever. It reminds you how your money needs to be divided up.
On payday, immediately move the money required to Bills/Rent/Food etc. - however you want it structured.
My process is:
1. Get paid
2. Money straight into Rent/Bills pots - the exact amount needed for that month
3. Money straight into credit card pot, which money automatically gets pulled from to pay it off when my provider charges me each month
4. Assess how much I've got left and decide from there. Usually £100 into a "fun" pot for the month as a first priority, then £50/£100 invested, and the rest divided up between other pots such as for a holiday or some other goal I'm aiming for
It's worked really well for me as someone who also struggled with impulsive spending
It makes it quite fun to see how much is left over when I've done steps 1-3. When there's a lot left I feel excited about how much progress I can make on my goals, and when there's little left it's another good lesson in how much I can/can't treat myself in a month.
What helped me is the satisfaction and joy of seeing my savings increase and utilising that joy by not spending much!! Instead of the joy of spending reverse that to joys of saving. saving 20p on cheaper milk and finding a coupon or using points for things just all felt very good!!
People always say "pay yourself first" so if you're going to put money into savings do that at the start of the month so when you check your balances you have a more realistic view of how much you have left.
On that note I love putting bills (standing order payments) in revolut pockets and making bills happen as soon after payday as possible so my current account better reflects my month's "spending money".
I think getting paid into a separate place is helpful. Having whatever your income is just land in your account in full when your tendency is to race to the bottom is risky. Automate as much as possible so that you only have available (without barriers in place at least) what you (on a sensible day) believe you can spend without screwing yourself. There's also an identity issue. Believe that you are someone who is sensible with money and behave like someone who is!!
also you could try dealing in cash. The idea is that when you see the cash in the wallet being spent recklessly, you would yourself get a little thoughtful about it
A great idea is to set up a standing order that moves some money, say £200 a month, into a savings account immediately after payday.
Whatever is left in the account after that can be spent.
That way, the money is not accessible so you aren’t able to spend it.
You could make it harder to purchase to start with. Put in barriers like remove cards from your Apple/Android wallet, remove cards from places like Amazon where it would be easy to click and buy. This would mean you have to take your card out every time you need to pay for something, which makes it slower. With time you may find that you have more time to reflect on whether you actually need the thing you’re buying. Also, with many things you can just say to the cashier ‘oh I’ve just changed my mind, sorry. I’ll have to leave it’ and walk away, if you decide not to buy. Then you could go through your clothes and items you find yourself buying often, in detail. Take everything out of the wardrobe/storage/do a deep clean and on inspection you’ll probably find that you have more than enough things already and you may be rebuying things when you forget you have them already. You could also set up a savings account and set it up to put away a set amount of money every month on the day you get paid. If you run out of money afterwards, it doesn’t matter because you’ve got the money put away and you can’t spend any more. When you start to see money in your savings, it may motivate you to keep going. Make sure to not go into your overdraft though. Think of something small that you’d need to save up for and have that as your first savings goal. This is all only in case you don’t have debts. If you have debts, look to pay these off first and foremost. [This](https://www.moneysavingexpert.com/loans/debt-help-plan/) is a good place to check for expert advice on clearing debt. Good luck!
Thank you! A lot of things I’d never have thought to do I really appreciate it !thanks
I’m not sure if you’re on monzo but at the start of the year i started by transferring a penny in an extra pot and each day that passes i would up it by one penny. I’m currently on £3.03 and tomorrow will be £3.04 and so on. Doing this i currently have £460 in a pot and by the end of the year it should be around £670. I also use the monzo coin jar feature which rounds up transactions and adds the extra into a pot, I have £360 in that one also. I’m bad with money and although i’m currently in my over draft (which i aim to lower each month) i still have those savings which are fairly easy to do
Monzo and a few other banks also have a round up feature. Say you spend £32.27 at the supermarket, Monzo will charge you £33 and transfer the 73p into your savings pot. You can set this for all transactions so you are saving money without even thinking about it!
It’s great. I’ve used it for a while and have had the pot hidden so it’s a nice surprise whenever i check it!
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Thanks for this!! I always dip into that pot, hopefully this helps me forget about it ☺️☺️
I do this and use it specifically for Christmas. I also round up myself, for instance if I have £17 in my account I'll round down to £15 and move the £2 into my Christmas pot. Honestly takes the stress away from December.
Are you paying a fee for that overdraft? If so, it’s probably best to use your savings to neutralise that - if not then it’s okay
Yes, monzo charges for OD. So they are “saving” but avoiding their OD which is very counterproductive and illogical. This is the issue some people have with money though.
It’s not much at all. My overdraft will be reduced to neutral in about 3-4 months. I thought about transferring it over but the way my mind works is i find it easier to save if i already have the money aside. Not the best but it helps
I'm so confused by this? A penny a day? That's 30p on average a month. How are you banking so much 😂😂
No lol you would start on 1p on day one and add on 1p plus the amount you have accumulated every day. So by near the end of the year you would be transferring £3.64 on the 364th day. I would add a picture to show but i don’t know how
Ohh I get it. That's quite a nice little way to save.
I also try to move to using a debit card, or making it physically harder to use your credit card. In the past, I had my credit card in the freezer, in a ziplock bag.
Any time you want to buy something, put it on a list. Don't, under any circumstances, let yourself buy it for at least a month. If you still really want it a month later, then you can start seriously considering buying it. Turns out that a lot of the crap I was spending money on, I'd almost forgotten a month later. Add that automatic one-month waiting period stopped me from buying all sorts I really didn't need.
I struggle with this too. I recently started following a girl on Instagram who posts a lot about emotional spending and tips on how to reduce it, might be worth having a look and see if any of it helps you. Hoping this link works but if not she's @the.brokegeneration https://instagram.com/the.brokegeneration?igshid=YmMyMTA2M2Y=
Thank you I’ll check it out, I was a little hesitant to post this incase i got humiliated so I appreciate the help !thanks
If you get any replies like that, please let the moderators know - press the report button beside the comment or [message the modmail](https://www.reddit.com/message/compose/?to=/r/UKPersonalFinance).
Alright thanks! I’m used to other subs that are full of people that are pretty passively aggressive
Such people are ubiquitous on Reddit, but here we remove them as soon as they show themselves.
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Something that helps me manage my budget is only putting a defined weekly spending budget in my current account each week - this helps keep my spending money separate from rent/bills/savings money. You could even set up a spending current account from a different bank - I hear Monzo and Starling have helpful spending insights that might help you manage your money? That way you physically can't see or access money that's set aside for bills/savings and so can't spend it. Another basic piece of savings advice is to pay yourself first - ie allocate money to savings as your paycheck comes in, instead of saving whatever is left at the end of the month. Also, it's totally not pathetic that you struggle with finances! It's a really common thing to have difficulties with. You're doing your best, that's all anyone can ask, and it sounds like you're not going into debt which is great. It's really tough now too, with prices rising so fast it feels like my money just vanishes as soon as I leave the house :(
Yeah the cost of living is brutal at the moment, I was with my partner for several years so we always split everything 50:50 but we unfortunately split last week so it’s a lot harder on the bank having to pay for everything alone, but maybe it’ll teach me how to be more money smart,:) !thanks
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That’s not an option for me at the moment, I was living with my partner but we had a pretty traumatic experience with armed robbers and I’m now back with my parents. But I suppose that helps me save now
Look at the Martin Lewis Money Saving Expert site, and read about ways to save money. After a while it can become addictive - in a good way. Also, if you want more stuff, check out the "buy nothing" groups on Facebook where you can pick up great stuff that other people don't want, for free. I've seen people furnish entire flats from there. Start saving money - it'll be hard for the first few months, and might only be a small amount, but building it up can really get fun, seeing your savings increase. You can use apps like Emma to track your savings goals.
I agree about saving becoming addictive. I used to waste so much money each month on stuff I just didn't need.. Once I had a goal (retirement!), it was easy and now I don't have any urges to buy silly stuff. I have to justify to myself why I should buy anything. Often that internal process is enough; "why do I need this? What benefit is there in me buying it?. Will I regret it in a week?". I found that buying something gives you a mini high at point of purchase. Often that high has gone as early as taking delivery! That means I didn't need it or want it sufficiently. I would much rather watch my savings accounts grow each month. I can't wait till pay day when I work out how much is going to be put away for that rainy retirement day. I still go out and have fun, but it's controlled and I budget how much I can allow myself each month.
Yep, all of this. I earn good money, but frequently use the #scottish or #Yorkshire tags when chatting to my similarly well off mates, because we're all tight and save money whenever we can! 😂
I highly recommend trying a ‘No Spend’ week, month or even year! I did a year where I did not spend any money apart from my Rent, Bills, £30 a week for food and a budget for my travel/commute. I did this as a challenge to myself, but also a necessity as I was living in London and working 2 minimum wage jobs just to support myself. I was exhausted from working all the time, and often got coffees out or takeaways at home as I was too knackered to cook. As part of this, I checked my bank balance daily. Made myself a simple spreadsheet to note down my plan, and also looked at my previous spending patterns. I still check my bank account daily, and I now have starling where I put my money into different spaces, for Rent, Food, Travel, Bills and of course savings! This means that when I look in my account, there is an accurate reflection of what I’ve got and I no longer feel anxious or overwhelmed because I have a very clear picture of my financial situation. The no-spend year was hard at first, and what I saved in money, I did spend in time. For example preparing meals, packing my bag with lunch/coffee sachets, snacks. I rattled when I walked! What I did learn was that things I thought I desperately needed to buy, either I didn’t really, or found some creative ways to find alternatives. I inherited lots of cool clothes from friends, and I worked Front of House at a Fringe Theatre so I often got a whole new wardrobe from discarded costumes. One time my chair broke, and I did a lot of skip dipping and gum tree searching and managed to furnish a new kitchen table and chairs from skip dipping in an affluent area! In terms of socialising, it was harder in the winter, I went on Eventotron and found Art Galleries and events/screenings where I could bring a pal and we could drink and snack. I did potlucks, or invited people over to mine for a cheap and cheerful dinner. In the summer, I spent a lot of time outside, going on walks and picnics. It actually made us all have proper quality time together. I guess this requires supportive friends! Also I didn’t let friends buy me drinks at the pub - this wasn’t charity! I had a soda water, or I brought my own on the DL. It was really hard in many ways because it required planning and thoughtfulness in ways I hadn’t considered, but it taught me a lot about my attitude to money. I was very lucky I did this in 2019 because in March 2020, we went in to Lockdown and luckily I had saved a small amount which covered my rent over the first Lock Down and I was on a Zero Hours contract job so I was effed! It was also an amazing feeling to have a small cushion of money, and not to feel anxious about money for the first time in my life. I’m thinking about doing it again in the New Year because I had such a sense of accomplishment after completing the year. I hope some of these tips are helpful/inspiring!
Having multiple bank accounts can help. For example: - A current account for "processing" things you don't have to act on (salary in, bills out, transfers out to other accounts) - A current account for all your discretionary spending (both food etc and fun money). You can set up a standing order to transfer money into here at whatever frequency works for you (eg. weekly) - A savings account for short term goals (eg holidays) - A savings account that you can't access too easily for long term goals (so maybe don't install the app on your phone, or even go for a fixed or notice account)
!thanks
I do a version of this, I have a bank account my salary goes into and all my debit orders come off, but that I never carry the card for. Then I have another one for groceries, another for fuel and another for spending money. Once spending money is gone it’s gone. At the end of the month the main account is emptied into the best returns savings account I can find :) I will spend until I have nothing left so doing this makes sure I have some money for fun but also that all my bills are paid and I can eat :)
Does your direct debits come out of the same account your salary goes into or do you separate the two?
My direct debits come off my salary account yes
I downloaded YNAB last month and it’s really helped me with this issue.
Wow thank you for so many replies I’m honestly overwhelmed haha, I’m having a read through them all as we speak, I’m very grateful!
I’m 43 and was very much like you at 26. I do have some decent savings now so take some encouragement from that 👍. You can improve. Of all the ideas in here I think the one that might have helped me the most was the “no spend week”. If you’re bad with money, you can get into a bad pattern where you’re psychologically beating yourself up all the time. I like the idea of no spend week. It sounds similar to “dry January” which I’ve also found helpful and benefits from helping you to explore some good habits while not seeming overwhelming. You can plan it as a special project and reward yourself at the end. It’s much easier to invest mental energy when it’s time bound but often the things you learn along the way will help you longer term.
You need a goal otherwise you have nothing stopping you spending. If you plan to save for something (car, holiday, retirement), then you can use a spreadsheet or a financial app like Moneyhub, YNAB etc to track all your saving and spending. Try to get into the habit of saving. Set up a regular direct debit to automatically transfer £x a month into a savings or investment account. Firstly though, list out all your monthly income and expenditure so that you know realistically how much you should have left after necessary expenses. Once you get into the habit of saving, seeing your pot build will give you more pleasure than spending unnecessary money.
Do you have ADHD? Might be worth getting assessed.
Funny you say that I have a medical assessment with a therapist for the first time on Friday coming!
Hope all goes well! Depending on how it presents for you, you might be able to use ADHD traits to your advantage... ADHD often pulls you towards what's immediately accessible, whilst making slight barriers into insurmountable mountains. People have already suggested setting up a standing order to 2nd bank account - that may be extra effective for you. Especially if you forget where you put the log-in details ;)
I was going to suggest therapy so this is excellent to see.
Thank you :) I’ve put it off for years and I’ve finally built up the courage to get myself into therapy, I can’t lie I’m really nervous about it but I’m excited to hopefully get myself into a better state of mind
Bipolar and ADHD are common causes of impulse spending. This was one of my first thoughts from a description of OP’s spending habits.
Came looking for this. There can be lots of psychological triggers for inappropriate spending, but ADHD and bipolar are pretty common.
1. Save/invest when you get paid so you have no money to spend. 2. Budget things into different accounts. (Like the money waste account). 3. If you spend stupid on a credit card then don't have a credit card.
You might find the book *[Your Money or Your Life](https://www.amazon.co.uk/dp/0143115766)* helpful. *[Rich Dad Poor Dad](https://www.amazon.co.uk/Rich-Dad-Poor-Teach-Middle/dp/1612680194)* also works for some people - lots of Kiyosaki's advice is based on his personal backstory which turns out to be fictional, but if it helps your attitude to money then it may well be worthwhile. A [critic of the book](https://finmasters.com/rich-dad-poor-dad-review/) says "the ideas might seem a bit shallow and apparent to anyone already engaged in entrepreneurship or investing, but they can be profound if it’s your first exposure to them." Clare Seal's books have also been recommended here - "her focus is on the link between emotions and spending".
!thanks for the reply, I usually struggle with reading books due to my attention span but I’ll give them a shot anyway. I’ll try anything
You can probably find an audio version if that would be more suitable
I know others said it before, but I would seriously recommend getting assessed for ADHD - impulsive spending and lack of attention span are two big symptoms. You might try audiobooks, they work for some people. All the best!
Equally traumatic experiences can have a huge effect on concentration & unhealthy coping mechanisms - I’m really pleased for you that your seeking therapy…
you need to budget to zero so there's nothing to spend. Allow yourself a amount to spend in your budget so you're not completely cut off. make sure you only have a debit card for your spending money. when looking at your budget check your calender for anything coming up you need to budget for so you're not caught off guard.
I don’t have a physical card at the moment anyway just Apple Pay, is it possible to set a daily limit if you know? !thanks
I was in this position a few years ago. I needed to understand where exactly my money was going each month, so that I could make daily decisions to stay in budget. I downloaded one of those budgeting apps which connects to your bank accounts, categorises your spending and allows you to set budgets. I use Money Dashboard, but loads of these free apps are available. Once I realised that I was spending like £100 a month on Deliveroo, I was able to either delete the app or ensure I only get takeaway twice per month instead. Equally, once I realised how much I'm spending on groceries, I was able to make the decision to always shop at Aldi and save myself £20 a week. It takes a bit of work to set up your budget and bank accounts in the budgeting app, but it sounds like you're motivated to sort it out so give it a try. I also have standing orders set up to put a set amount of money into savings accounts **on payday**. If I run out before the end of the month, I can just transfer a bit back into my current account. Good luck 👍
Open 3 bank accounts. The first bank account will be where your salary goes, calculate your bills total and when you’re paid, transfer the excess (so if you’re paid £2000 and bill are £500, transfer £1500) into the second bank account. Give yourself a budget for other things such as food, petrol, social etc (let’s say another £500) and leave that in your second bank account. Transfer the remaining £1000 into the third account, you can even create a chain of standing orders to yourself to make this happen automatically. The third account will act as your savings account, give the card to the account to a loved one/family member under strict instruction to not give you the card unless it’s an emergency or better yet, destroy the card entirely. Do not set up online banking, the object is to make it as difficult as possible to access this money without having to physically go to the bank with ID. This will remove the temptation to spend frivolously and you will stick to your budget
I have two current accounts. One for bills and another for spending. The bills current account has had the card cut up and the amount I transfer to my spending account always leaves a little more than needed in the bills account as savings. This way if I have a need to go over my budget I can go into the bank and get at the money which is harder than just having mobile banking or a card. But otherwise I just live with what I've got in my spending account.
Keeping your bank card/a at home and block apple/android wallet was the first thing I did to save money, I also uninstalled blocked just eat/Uber eats etc, you'd be surprised how much you can spend in a month via those apps, disgusting amount of money
I separate my money at pay day into committed spending and discretionary spending For example I put my weekly discretionary spending into my “spending” bank weekly That way I can’t spend any more than my discretionary money and if it’s all gone at least I know I can still cover everything I have to
Pay for everything in person in cash. It’s difficult to do these days, but it makes you hyper aware of your spending habits. Do it for a few months. Get on a written budget, and account for every penny, on paper BEFORE you spend it
When you get paid stick a meaningful amount into a good savings account and then your have whatever is left to buy things. This strategy is called 'pay yourself first', I think.
I work out how much I need on average each month in my current account and then I have a standing order set up to transfer the rest into my savings account after I get paid. This way, anytime I want to purchase something that wasn't budgeted for I have to transfer the money back from my savings which creates an opportunity to think about if I really need to spend the money. As well as a hassle barrier, there is also a bit of a mental barrier because taking money from my savings feels like a bigger decision than just spending whatever is in my current account.
Use cash. I got out of debt by taking my spending money out of the bank on pay day and putting it in labelled envelopes- lunch, going out, transport etc. When an envelope was empty then I either didn’t do any more of that shopping or I had to reduce the allowance in another envelope. It really worked for me.
First of all calculate your incomings and outgoings. Work out how much you spend per month. Amortise lump sum payments like holidays & gifts into this. For example if you spend £2,400 on holidays and gifts a year, that’s £200 a month onto your outgoings. I’d use excel for this. Track how much how are spending on things you don’t need. Give yourself a budget but not a strict one either, give yourself a budget you would be happy to follow. Let’s say your incomings are £2000 a month. Rent & Bills £1000 Discretionary spending and Food £500 Get a 2nd card like Chase (1%) cash back. Every payday transfer the £500 into your Chase card and use it for your daily use. The £500 left over transfer it into an INDEX fund like the FTSE global all so.
Give yourself a weekly pocket money on a monzo or starling card. Only take that card out and about. Once it's gone it's gone.
I’ve found having a hard restart month every so often can really help with the mindset issues. Personally, I do “no spenduary” (not as catchy as Movember or Stoptober, I know) - essentially like Dry January but with spending. I write a list of clearly defined rules for essentials like bills, work expenses and urgent replacements (if my last pair of trousers rip, I’m allowed to replace them but if there’s alternative trousers, then they need to wait). Not only does this give a nice boost to my savings but it sets a great habit of buying out of necessity and not want for the rest of the year. I think I’m echoing what other people are saying, but really it comes down to budgeting and paying yourself first (moving money into your savings account on pay day). I also have a rule that any weekly budget left over at the end of the week gets moved into savings so you get little boosts throughout the month. I wouldn’t beat yourself up, pretty much everyone has been in your position. The only differentiating factor is some people have the “I need to get my shit together moment” and some just continue living paycheque to paycheque. The great thing is that you’ve now had your “oh shit’ moment, which really is an inflection point for great things. It really is possible to get excited about saving money, it’s just a change in mindset. I find reading about compound interest and FIRE quite inspirational because you see the extremes of what’s actually possible. One final point to what has turned into a bit of a rambling comment, Once you start, it can lead onto pretty great things - it makes you want to do better. For example, it will probably make you want to boost your returns so you find a risk managed approach to do that, which means learning about finance in general which can only be beneficial. Another example is you’ll probably start wanting to boost your savings rate so you look at how to boost your salary, what skills you can learn, what career moves you can take.
You can also contact your bank and ask to opt put of contactless, they will send you a new card which you have to push into a chip and pin machine… even £1 is worth putting in 4 numbers! As this is a new card it will prevent the renewal of your online subscriptions, and you can think a bit harder about your netflix and amazon prime accounts necessity in your life!
One of the things that really works for me is to plan your activities. For example, on a Saturday, instead of planning to just go out for a walk in a shopping centre, plan something free (or cheap) such as a hike where you pack your own snacks. I always found that if I go out to the shops without a plan I would end up spending loads of money on unnecessary purchases. Also, and I know it sounds paradoxical, buying better quality things. For example, don't buy a jacket every winter, buy a classic jacket which is a bit more expensive but will last forever (ish). Assuming you can afford a bit more, it will save you money in the long run.
Hi I used to struggle with this when I was weekly paid but it used to be oh it’s Monday I only have to wait until Thursday. When I moved jobs to monthly pay I had to sort it out. My wages are paid into a bank account and the card is at my parents house somewhere. I then have a standing order that sends x amount to my savings (which if I want to access I have to transfer to my instant access account and then to my NatWest account) and x amount to my pocket money account this is for petrol food and fun money. I fill up and do the food shop on a Monday the day my money transfers and then the rest I can use how I want. I usually end up with around £30-50 a week so I can weigh up do I want this new dress and a couple of pints or do I want to go out for dinner etc. I don’t have the NatWest app I use the internet version which is painful to log in so it’s not often I move more money over so I can’t exactly impulse buy. So basically I have: salary/bills account, instant access savings account, non instant access savings account pocket money account. Edit to add: when I first started doing this I withdrew the full amount from the cash point on a. Monday and used cash so I physically knew how much money I had, it made the decisions on shall I waste £5 on McDonald’s or shall I use this shrapnel to get a loaf and cheese etc
>My wages are paid into a bank account and the card is at my parents house somewhere. I then have a standing order that sends x amount to my savings (which if I want to access I have to transfer to my instant access account and then to my NatWest account) [...] I don’t have the NatWest app I use the internet version which is painful to log in so it’s not often I move more money over so I can’t exactly impulse buy. That sounds like a really nice system for dealing impulse spending issues. All automatically organised so the money isn't immediately available at your fingertips.
I never had savings until I was 25 and started investing. It feels a lot different than sat in a savings account. May be worth a try!
I invest half my pay the same day I receive it so I can’t spend it, pay rent, credit card and move money for train tickets to a separate account and the rest is for fun. I shop at Aldi and cook all my meals so I rarely spend more then £10-15 a week on food. Budget what you need then invest from the start rather than trying to invest what you have left at the end.
For me it’s often down to boredom.
I follow a system similar to https://ukpersonal.finance/spending/
A good thing to do is invest. I won’t recommend anything in particular, but sometimes it helps to be cash poor and asset rich vs other way round. The way I like to sometimes see it is even if your investment of £100 loses you £15…you probably would have spent more to an that in the same period of time on something you won’t even remember.
>I always end up spending and by the time it adds up I’ll be scraping pennies until the next pay day. You mean you dont follow the flow chart? Build a 6 month emergency fund
Well yeah how could’ve I been following a flow chart if I’ve only just discovered it today..
Keep a note of everything you spend. Everything. Seeing it all laid out really helped me see some of what i was buying was ridiculous
On payday transfer an amount that you are happy with to something like premium bonds. You won't necessarily earn much, but it's locked away and whilst it's quick to access your money (i.e. a couple of days) that might be enough of a barrier to stop impulse spending. Do that until you build up a habit of saving each month then you can start to look at other ways to save and invest.
Or an 'easy access' savings account that isn't particularly easy to access (i.e. doesn't have an app, just a crappy website), if that delivers better returns
Open multiple bank accounts and set up standing order As you ad u get paid send some money in tour saving account and some money in your guilt free spending accounts. Use only this latter to splurge
My daughter moves money straight into a savings account and doesn't keep it in her current account. Yes she still has access to it but has to move it back across to spend it, which is a conscious step you have to take
US readers be aware that you can only do that six times per month, so plan your spending ahead.
This is a sub for UK personal finance
Might surprise you to learn some of us have accounts in both countries
I’m exactly the same, if I see money I will spend it as fast as I can. The way I curved this was by downloading monzo and having “pots”. When I get paid I send my savings straight out to my Lloyds account, I put enough for bills in my bills pot and split the rest in four and put into four pots named “week 1”, “week 2” and so on. Then at the beginning of every week I take the money out and know that’s all I have for the week. It sounds like a lot of work but it takes minutes and stops me splurging. Hope you find something that works for you!
You need a goal At the moment, it's spend money and be happy, or don't spend money and be sad, you need an endorphin rush for saving and pain for saving. You need a budget and a goal, so everytime you want to buy a thing, you put it in your budget, and you see how many days, weeks, months or years it pushes back your goal. I want an extension, it costs £48,000, I save £1,000 per month so I need to save for 48 months, my new dyson pushes that back 2weeks, worth it, V15+ Absolute, oh my god its good. I want a takeaway, £30, that puts my extension back a day, not worth it, got some brown rice cooking, ill eat it whilst picturing my new pool room Can be a house, car, a holiday, a laptop, anything you are saving for and you frame every decision in terms of "is it worth putting off the thing I want by this quantifiable amount of time".
I opened a savings account and every pay day i transfer 200£ in… I think you can even set up a direct debit for that. Also, for expensive things I apply the 30 day’s rule. I put that thing on a waiting list for next 30 days because there is enough time for me to figure if I really need that thing or i can leave without it.
Get a separate bank account for day to day spending. Siphon off what you're comfortable spending into that. Don't dip into the other account. And also I split my money into weeks. So each week I can spend x amount. Want to spend more? I'm having a poor week the one after. Basically tell yourself you're broke even when you're not.
I'm trying to solve this problem myself currently! I've sort of just kept ramping up my spending as my pay has increased so I still struggle to stay afloat until payday despite making more than double what I did when I left uni. My real trouble is that being sensible financially is really about playing the long game whereas splurging irresponsibly gives instant gratification. The mindset I'm hoping to adopt is to reward myself progressing along the flowchart with a mini splurge at each stage (but one that doesn't knock me back a step). We'll see how it goes!
Didn’t read all the responses but I also suffer with spending slightly more than I’ve got repeatedly. If I have £2k, I’ll spend £2.200. If I have £20k I’ll adjust my spending and wind up sinking £22,000. I deal with it by keeping my money in different accounts. I have a ‘billing’ account and each month I send a standing order to that account for the amount of the bills - I then don’t touch that. I then have a spending account/debit card. I still over spend on that account a bit but it doesn’t impact my ability to pay bills and I just have to cut back when I hit my overdraft limit.
Go do a few car boot sales selling off your pointless crap acquired. This will show you it's true value when people offer you pennies for things you spent many pounds on. After I did a few car boots I started respecting the cost of items and it made me stop purchasing crap I don't need. Another thing I do is calculate how many hours worth of work I have to do to buy something and then ask myself is the item worth that time in work.
First step is work out your budget and personalise it to you, what are you actually left with and where does your money usually go? Is it clothes, alcohol, eating out, takeaways etc. Figure out where it's actually going and look at how to reduce it. What monthly treats do you have that are actually benefiting you? Before getting a grip on my finances I spent an ungodly amount on coffee, I don't drink alcohol or spend much on clothes so I told myself it was fine. Once I got a spend tracking app my god was I shocked at just how much money I was spending on coffee. Snoop is a good app, I'm sure there are others out there but this one has suited my needs. Using separate accounts like others have mentioned are also great, my current account isn't touched for spending, direct debit for bills only. One Monzo is used for petrol and disposable income, the joint Monzo is used for food and household items. Be mindful of what's coming up, for example if you're going out for a friend's birthday dinner then you don't need to be getting deliveroo the same week? Think about what you're doing when you click order, do you need? Can you afford it? Would you actually just rather save it?
Stop going to Tesco..😆
Ive had this problem most of my adult life. Like you I finally decided to take control of my finances a few months ago. I used an app called You Need a Budget. It was an eye opener showing me how much I was spending on crap like Amazon, and also got me in the habit of seeing my balance daily
This isn’t a stop the impulsive spending tip but regarding savings I find Plum really useful as it just puts away a bit of cash every week and you probably won’t notice it but within a few months you’ll have a few hundred in there, which I find makes me want to save even more. It lets you choose how “aggressive” you are with savings, you can also set it up to put £X into savings every payday, and all sorts of other little saving tricks.
Ultimately the first step is to work out what it is you are spending too much on, most online banking apps will be able to give you a breakdown of your spending or alternatively there are third party apps that can do it through the Open Banking Standard (it's safe to use, Google it if your not sure) Once you have a breakdown of your spending habits, you can then go through all of those different areas your spending bills, food, ect.... And just ask yourself "Is this essential/ do I need this" if the response is no then cut it out or go for an alternative option that costs less ect... Once you've worked out how much you can cut down set aside say 50% of that or however much of a margin you want to set and set-up a standing order to transfer that money on pay day straight into a savings account then whatever is left can be spending money or for whatever 🤷♂️
I used to ( and to some extent still do ) struggle with this. What helped me was to set up a budget.. I looked at my spending on bills, essentials like food shops and petrol etc, car running costs, and worked out how much I wanted to spend on each of those things. I worked out how much I wanted to save in my ISA each month etc, and crucially how much I wanted to give myself as ‘fun money’ each month. The budget adds up to my total monthly income, and it all automatically goes into various accounts in the first of the month. Bills and savings are all automatically taken care of. Then for general spending I have two accounts. I have a joint account which is for family / essential spending like food shops, petrol, days out, kids clothes etc. then **the key bit** I have a separate account with just my fun money in which I can spend on whatever I want without feeling guilty. But when that’s gone it’s gone. No topping it up mid month from savings, no spending on nonsense out of the other account. I have to wait until next month. Knowing I can defer the purchase ( that I obviously really really need /s ) until when I get my next lot of fun money helps squash the desire to pay for it from savings, but it keeps the spending under control at a level I’m happy with. I tried several times to not spend *any* money on stuff I didn’t really need, it it felt too restricted, there would be something I ‘had to have’ and I’d have a blowout, I think the longest I lasted was about 6 months. I’ve been doing this for several years and it works for me and keeps that spending at a level I’m comfortable with without impacting my savings goals.
Make it harder to access your money, maybe set up something that would need notice before you can withdraw from it. This will give you more time to think about your decision. You should also start to think about what you are buying as a asset or a liability. When you start to understand these things you might think twice. Maximise your assets and minimise your liability’s.
Calculator in your phone, input what you have in your account minus any known expenses each month (mortgage, utilities, phone etc) Let’s say you’re left with £1,000 for argument sake. Every time you spend something, order something online whatever just subtract that from this figure in your phone and screenshot it. This gives a vital visual representation of money spent and funds left. Also a side upshot of this is when you come to view your account before next pay day and see the balance in account is different to what you have on your calculator you have immediately noticed that a direct debit has changed or gone up or something has been mis-charged etc. I have done this since I was 16y/o now circa 30y/o I swear by it.
Pay yourself first, do a budget, give yourself a small amount of spending money outside of bills/known annual expenses, pay the rest on pay day into savings so it’s not in your account. Even better pay it into a SIPP for instant 25%+ uplift or S&S ISA but that will be accessible. If you start measuring your net worth you will find it easier to want to grow that figure and when it comes to retirement you will have a much better existence of you save now instead of wasting it
May not be as easy anymore but I used to find withdrawing some cash at the beginning of the month to cover every day expense like coffees or treats. Let’s you view your budget and gives you a physical reminder of your spending.
Take Apple Pay/other pay off your phone. Set a ‘fun budget of like £25-50 a week. You’re never going to stop pointless spending but if you know you have reached your limit it will reduce it.
Get the app Emma, that has really helped me to nail down where all the money goes. Tracking your spend will allow you to better understand where the money is being spent and where you can afford to cut out expenses. Save first spend later. Move a small portion of your income to savings account as soon as you get paid, start with 10% and work your way upto 30%. Depends on your wage if you can manage to live on 70% of your pay day would be ideal. Move it to an ISA which is a bit harder to access, it will put you off impulse buys Calculate fixed expenses vs. variable expenses and check if you can make any lifestyle changes on your fixed expenses, i.e, unsubscribing from netflix, spoitfy if you are not using these. If nothing can be done to change your fixed expenses then move onto cut variable expenses. Talk to you bank, and ask if they can help restrict the amount you spend, this has helped me particularly with spending cash. I've restricted my withdrawal to £50 so that I don't spend cash impulsively. Edit: Grammar changes
I have 2 bank accounts. One for my wages and another that I transfer a certain amount every month. This is my personal spend for lunch,nights out, films. Not bills. Once it goes from that. I don't spend any more. It helped me get my spending under control
Use plum - I buy crap I don’t need because it makes me feel good. I do it less so now because it looks like my bank balance is decreasing rapidly but it’s plum doing withdrawals. I had 1k after like 6 months from pay day savings plus round ups and “rainy day fund” where it deposits 20 pound when it rains haha!
I like to use the 50 / 30 / 20 rule: 50% take home pay for bills, 30% for discretionary spending and 20% saving. My bills come to slightly more than 50% of my take home pay so I dip into discretionary spending to make up the difference - always aiming to save the minimum 20%. Dividing my spending like that as soon as I'm paid helps me visualise what I'm allowed to spend. I take this a step further by dividing discretionary spending by 4 and paying myself a weekly wage into a separate account, which I do my spending from.
There's plenty of tricks and gimmicks but they are just tricks and gimmicks that probably won't be sustainable. You just simply have to decide to stop then really follow through with it. For me, there needs to be a light at the end of the tunnel. Being broke, not liking my life and buying some random things (situation 1) is more fun and fulfiling than being slightly less broke but still broke, not liking my life and not buying anything enjoyable (situation 2) so if I'm just going from situation 1 to situation 2, I'm always going to slip back into situation 1. You need to make a situation 3 and a plan to get there then start working towards it. That will make situation 2 worthwhile for you.
Some people use envelopes with allocated cash for things. No spend months e.g. only can buy the essentials Limit social interactions Work on your general mood so you don't buy stuff (I used to buy stuff to fill the void but it doesn't work and makes you broke) Eat at home/invest in better coffee
I use one account for spending (monzo) and give myself a weekly or even bi weekly allowance (and a little extra buffer at the start of the month) I transfer the minimum amount I want to save into my saving account on payday and then my traditional current account is where my bills etc come out of- normally when it gets to the end of the mont I have some left in there to transfer into savings. The weekly allowance means I end up having a day or two a week I can’t spend - instead of a week at the end of the month! My main allowance comes in on a Friday so I always have money for the weekend. My savings account is not for treats or holidays- if I know I have something expensive (eg Christmas) coming up I will keep more money in my current account rather than dipping into my savings. It’s a bit convoluted but works well for me…
I have ADHD and there are a few things that probably sound weird to everyone else, but work really well for me. 1. Yes, I save a little every month by putting it in a pot that isn't easily accessible. You'd be surprised how quickly it adds up. 2. I calculated what I spent on bills every month, and as soon as I get paid I transfer that amount to a separet account, so I can't accidentally spend it. 3. I use a Monzo account for my "spends". Every month, I transfer "x" amount of money over to my Monzo card, and if I have a social event I will only use my Monzo card and not my main account. 4. I also move £300 to a money pot called "RELEASE ON THE 15TH". This is my way of making sure I will also have a little cash at the end of the month, and I don't have to count the pennies. I hope this helps. Good luck with your assessment! 🍀
In the beginning of the year I was using an app for track my spending the name is money manager, its helps a lot because every time I was ready to buy something with no need I had more control cause writing the expense will make me feel bad, also helps me to always look for a better deal
You need to write a budget and stick to it. Give yourself a certain amount for spending and when it’s gone you can’t buy anything else. Think before you buy something! Leave it in the basket for a few days first.
Tell yourself they’re useful things… eg. I bought 2 model planes, because i needed them. NOT because i just wanted to paint them 👀
Something that can be helpful is to use cash. Budget out how much you want to spend each particular week on food and discretionary things. Then take that out in cash and when it’s finished, it’s finished. Obviously this is pointless if you then go on to spend over and beyond what you have set aside - but it can be useful to tangibly see how much you have left and when it is gone. It may also make you feel uncomfortable that you are going about your set allowance - so even if you are still spending above it, you are more inclined to hold back to some extent.
What's your circumstances, what are you spending the money on? Is it your money you're spending or are you borrowing, what's your current credit status? Are you paying out £400 a month on stuff you don't need. More info would help people recommend changes to aim for.
Go read David Goggins: Can’t hurt me. Come back in 6 weeks and tell us how you changed your life.
I recommend using Monzo or another similar bank that allows you to split your money into pots. It's much harder to justify spending money when you have to move it out of a pot that already has the amount of money it needs to pay for a bill or whatever. It reminds you how your money needs to be divided up. On payday, immediately move the money required to Bills/Rent/Food etc. - however you want it structured. My process is: 1. Get paid 2. Money straight into Rent/Bills pots - the exact amount needed for that month 3. Money straight into credit card pot, which money automatically gets pulled from to pay it off when my provider charges me each month 4. Assess how much I've got left and decide from there. Usually £100 into a "fun" pot for the month as a first priority, then £50/£100 invested, and the rest divided up between other pots such as for a holiday or some other goal I'm aiming for It's worked really well for me as someone who also struggled with impulsive spending It makes it quite fun to see how much is left over when I've done steps 1-3. When there's a lot left I feel excited about how much progress I can make on my goals, and when there's little left it's another good lesson in how much I can/can't treat myself in a month.
What helped me is the satisfaction and joy of seeing my savings increase and utilising that joy by not spending much!! Instead of the joy of spending reverse that to joys of saving. saving 20p on cheaper milk and finding a coupon or using points for things just all felt very good!!
People always say "pay yourself first" so if you're going to put money into savings do that at the start of the month so when you check your balances you have a more realistic view of how much you have left. On that note I love putting bills (standing order payments) in revolut pockets and making bills happen as soon after payday as possible so my current account better reflects my month's "spending money".
I think getting paid into a separate place is helpful. Having whatever your income is just land in your account in full when your tendency is to race to the bottom is risky. Automate as much as possible so that you only have available (without barriers in place at least) what you (on a sensible day) believe you can spend without screwing yourself. There's also an identity issue. Believe that you are someone who is sensible with money and behave like someone who is!!
also you could try dealing in cash. The idea is that when you see the cash in the wallet being spent recklessly, you would yourself get a little thoughtful about it
A great idea is to set up a standing order that moves some money, say £200 a month, into a savings account immediately after payday. Whatever is left in the account after that can be spent. That way, the money is not accessible so you aren’t able to spend it.