A British Man's Take on Debt, Saving & Investing

Archive for the ‘Quick Tips’


LoveFilm Free for 30 Days AND a £10 Homebase Voucher 0

Posted on October 06, 2009 by Lee

If you have yet to sample the delights of having a LoveFilm subscription, then now is the time to try.

I’ve been a member of LoveFilm now for 7 months, and it has revolutionised my film watching. Each DVD has cost me just £0.89 to watch thus far, compared to the typical purchase price of £15. If I want to see something again later, I just pop it back in my list. I’d have to rent it nearly 17 times in that fashion to make purchasing it worthwhile!

ING Direct has an offer on at the moment for a 30 day free trial, and a £10 Homebase voucher to go with it. It’s worth taking out the trial just for the voucher. Cancel within your trial period, and pay nothing.

Click here for more details.

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Patience is a Virtue 3

Posted on October 02, 2009 by Lee

As many of you will know, my journey to debt freedom began back in January 2009. I have been diligently working to pay off my debt  since then, and now that the end of the tunnel is in sight, surely it should be time for inward celebration? After all, in a maximum of two months time I will be entirely debt free.

In reality, I am more frustrated now than I have been at any point in the long, arduous road to a positive net worth. I sat down to try and work out just why that is.

In the beginning, it was fun finding places to make cuts in my budget. After 4 months I had pared down my outgoings to their absolute barest minimums. There is now not a realistic penny left to be shaved without going totally insane or malnourished along the way. I enjoyed seeing the balances come down. I enjoyed working overtime to make it happen faster. I enjoyed the mental challenge of not spending a single penny on myself unless it was absolutely necessary and budgeted for.

In my overtime quest, I have just spent 7 days away from home working 15 hour days and being accommodated at night for a few hours before getting up and doing it all over again and again and again. The days were long. I missed my family. I did nothing but work and sleep.

The money will be good when it comes in, but I am now completed exhausted, mentally and physically.

I have one day off before returning to my ‘normal’ work tomorrow.

I am frustrated because no matter how hard I work now,  I remain in debt until the numbers come together in one or two months time.  I am so close, yet so far away.

I find myself wishing for 2 months to just fly by so I can finally say “I am debt free!”.

In our lives we are constantly striving toward one or more goals. These vary from person to person and life-stage to life-stage. I strive to be debt free; others strive to buy their first home. You may be striving for some other target.

The one thing that remains the absolute same, regardless of what you are striving for, is that it is a future event. You require the passage of time for it to come to fruition. We are ultimately wishing our lives away to reach an arbitrary goal that constitutes only one portion of our ultimately very short lives.

I vow, here and now, to stop ’striving to be debt free’.

I am striving for one target, and one target alone.

To live every day to the maximum it can be.

Enjoy the sunrise if you are fortunate enough to be awake. Help others in your day as you would like to be helped. Treat others as you would like to be treated. Make the most of time with friends and family. Appreciate the sunset each day.

Do not desire the passing of time to achieve your goals. By all means celebrate it when the event arrives, but not to the detriment of everything and everyone around you. I will be debt free. I will be a home-owner. You will achieve whatever it is you are striving to achieve in time.

Live your life by its journey, not its final destination.

Why should you wish away 2 months or 2 years or 2 decades of your life to reach a goal? When one goal is out of the way, you will replace it with another and then another. All events that will occur in the future, and each requiring your patience to achieve it.

Patience is a virtue, and it is the journey that matters.

Others will not judge you on what you achieve, but who you were whilst getting there.

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Frugal Friday! 7 Tips to Reduce Your Grocery Bill 1

Posted on September 25, 2009 by Lee

Every Friday I publish “Frugal Friday!”, an open-ended series with some of the simple and best ways to really save you money both now and in the future.

This week I’m focusing on short, sharp tips that could save you hundreds of pounds over the course of a year while food shopping.

Never Shop on an Empty Stomach

You know the drill. It’s early evening, you are tired from work, starving hungry and find no food in the house. By some miracle you resist the temptation to ring the local Indian delivery folks, and instead shuffle back in your car to visit your local supermarket. You have nothing in mind particularly beyond getting home again, and as a result end up massively overspending. Your hunger did your shopping, rather than any conscious plan you may have had.

Eat before you go shopping. If you are not hungry when you go, then tantalising offers that are not already on your shopping list will likely be easily ignored. Which neatly brings me to my next point…

Write a List

Going shopping without a list is a disaster waiting to happen. You buy loads of things you don’t need, forget half the stuff you do, and get loads of “extras” on the side.

To combat this, work out a meal plan for the week ahead and everything you’ll need to buy to make it happen. If you are going to do some batch cooking in the week, see what you already have in the store cupboards before adding them to the list.

If it isn’t on the list – don’t buy it!

And leave the pen at home… adding it to the list afterwards is cheating.

Calculate a Budget

Much like having a list is important for not over-spending, so is having an idea of where ‘overspending’ would be in the first place. Everyone will have their own idea for a budget, but £50 per person per month is not unreasonable to aim for if you have the time to batch cook. That is my own personal food budget, and mostly, I manage to achieve that these days.

Slow Down & Scan

The items on the shelves at eye-level are the most profitable products. You see a jar of pasta sauce the moment you walk into the aisle and grab it, throw it in your basket and zoom off to the next item in the list.

You just fell for the oldest marketing trick in the book. Next time slow down and study the prices. Scan the entire shelf from top to bottom and look at the cost per unit calculations most supermarkets provide in the super-small-print on the shelf labels. If you take a moment to compare prices you can save upwards of 100% on the purchase price of some items.

Try Downshifting

Downshifting isn’t about suffering a cheaper product, it is about finding a cheaper product where you cannot honestly tell the difference between it and a more expensive brand. If you have a habit of always buying “Finest” or “Taste The Difference” or some other premium product, try a brand name instead. If you’re feeling particularly adventurous, try stores-own. You’ll often save pounds per product doing this and likely won’t notice a shred of difference when cooked.

Some premium brands and stores-own are even made in the same factory. The only difference is the packaging and the price.

Shop at Reduction Hour

My father makes a killing doing this. He very rarely goes shopping before 8pm, which is precisely when our local Tesco begins doing the final knock-downs on things that are going out of date the next day or so. It is not uncommon for him to come home with bagfuls of items at 10p here, 20p there where the original cost would have been pounds here and pounds there instead.

Anything that will not be eaten or turned into a batched meal gets frozen until it is needed and remains just as good and just as flavoursome as the full priced equivalent.

Never Turn Down ‘Free’

Quite regularly my mother will include me in meals she makes for herself, or my father will invite me out to lunch to catch up. Never turn down these opportunities, as it’s a great way to spend extra time with friends and family, and shave costs from your food bill as well.

Happy Friday, and Happy (Cheaper) Shopping!

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Is Debt Shameful? 0

Posted on September 19, 2009 by Lee

Something came up at work this week where I caught the tail end of a conversation where someone said they were ashamed to be having problems with their debt. I didn’t think much of it at the time, but as I was walking back to the office, I found myself thinking about it again.

I can understand their point, but shame can very quickly turn to pride when you make the decision to deal with your debt rather than just stick your head in the sand and roll on from month to month.

Am I ashamed of the fact I am in debt? No I’m not. It happens, it’s life. It’s how you deal with it that counts.

Am I proud to be dealing with my debts? You bet I am.

My First Weekly Roundup

You could spend a lifetime reading personal finance blogs and likely still not find all the good bits. Periodically I’ll round up some of my favourites and share them. Here are my 5 for this week:

  1. Frugality That’s Outside The Realms of Possibility” from The Simple Dollar.
  2. Going Broke to Win Big” from Financial Samurai.
  3. How to Get A Raise (Or At Least Keep Your Job)” from Five Cent Nickel.
  4. How Buying an iPhone Can Make You Rich” from Monevator.
  5. Being Rich is Not a Sin” at MoneyNing.

Don’t miss out!

The Oblivious Investor is still offering his new book “Investing Made Simple” for free download while stocks last (ahem). Grab it while you can as after October 1 rolls round, it will be an opportunity lost.

Enjoy!

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http://moneyning.com/better-yourself/being-rich-is-not-a-sin/
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Frugal Friday! 5 Easy Ways to Spend Less 3

Posted on September 18, 2009 by Lee

Being frugal isn’t about becoming miserly and miserable. It’s about making sound financial choices that will make you prosper, save you money in the long run, and re-evaluate your connection with consumerism.

Every Friday I give you my tip of the week on all things frugal – except this week I’m giving you 5 to chew on over the weekend!

Use a 30 Day List

Want a new laptop? Fridge? TV? DVD Player? DVD?

Whenever you consider making a non-essential purchase such as the latest DVD, or a big purchase such as a new laptop, don’t go and order it the moment you think about it. I know Stuff Magazine says its the best TV on the planet, but do you need the 72″ version?

The idea behind the 30 Day List is you write down the stuff you want to buy right now and then the date of whatever today + 30 days will be, and disallow yourself to buy it until that date comes round. You sleep on it for 30 nights, research it during the 30 days, and perhaps find something better or cheaper in the meantime. It’s also possible you decide during the enforced wait that actually, you’d rather keep the £3,000 you were going to spend in your savings account instead.

Count to Ten

This is the smaller cousin of the 30 Day List and is much simpler. Despite its simplicity, it’s still really, really effective. Imagine you’ve picked up a £14.95 DVD in Tesco because you really want to watch it. Before you put it in your trolley, hold it and just count to ten. Convince yourself why you should buy it right now, rather than just put it in your LoveFilm list. Still want to shell out £14.95?

Didn’t think so.

Drop a Price Plan

Mobile phones are expensive, and deliberately so. Are you really using the 5,000 minutes and 45,000 text messages included in your plan at £55 a month? Could you make do with 300 minutes and 300 texts instead at just £15 a month (or somewhere inbetween)? Even if you’re still in contract, most carriers will permit you to drop one price plan after a couple of months – if you can still fit your usage comfortably in the plan below – switch to it. You could save hundreds of pounds a year!

Eat Out Less

The old favourite! Eating out is hellishly expensive, and it’s not all that good for your waistline either. If you eat out three times a week (not outside the realms of possibility for most folk), then you’re going to spend at least £10 a time. If there are 2 or more of you then that shoots up to £25 or beyond with ease. I’m going to shock you now:

That’s £3,900 a year on takeaways or restaurant food (based on £25 a pop, 3 times a week for a year)! That pays for the TV if you really want it on your 30 Day List, plus enough left over to get the surround sound cinema system to go with it.

If your primary excuse for eating out is a lack of time, then you might want to take a gander at last week’s Frugal Friday tip.

Switch to Energy-Saving Lightbulbs

According to the Energy Saving Trust, if you replace every lightbulb in your home with energy saving equivalents you could save upwards of £45 a year or more. Most retailers have deals on at the moment on these, so there has never been a better time to go and grab an armful. They last considerably longer as well so even if you spend £45 this year buying them, you’ll make back that inside 12 months.

And you won’t have to buy any for another 3-5 years netting you somewhere between £135 and £225 off your electricity bill during their lifetime.

Have a great weekend everyone!

Got a frugal tip to share? See you in the comments.

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