How do you feel about your finances?
Are you a budgeting icon? Or is your spending a shambles?
If it’s the latter, How I Save is here to help.
Each week we follow the saving and spending of someone who’s been brave enough to share the reality of their money situation. Sometimes that person will have saved up loads of money, and thus we can learn from their wisdom. Other times they’ll be finding saving a tad tricky, in which case we can pick up some tips from the expert advice we offer up at the end of a week’s diary of spending.
In both cases, we’re keen to get honest about the awkward topic of money and give you an insight into how people really spend and save.
This week we’re peeking inside the wallet of Nadine*, a 23-year-old student services assistant at a college in Birmingham.
How Nadine saves:
I earn £17,658 a year (before tax) and in my savings account right now I have £1,807.
I’m saving for a house deposit and driving lessons.
I’ve saved by putting between £100 and £300 into a savings account for the last year. In recent months, I have not managed to save anything at all but I always put £100 into my Help to Buy ISA.
I don’t buy unnecessary material items, such as new clothes or electronics, but I struggle with saving because I spend too much on eating out and drink, sometimes at work but mostly over the weekend when socialising.
How Nadine spends:
Monthly expenses:
- Rent (including utilities): £400
- Train travel: £67
- Food shopping: £100
- Phone Contract: £25
- Weekend budget: £200
- Help to Buy ISA: £200
- Car expenses (driving lessons/test/MOT etc.): £150
- Credit card: £100
A week of spending:
Monday: I have a busy day at work ahead as two of my colleagues are on holiday and Mondays in Student Services are always busy (lots of problems seem to crop up over the weekend, particularly as the new academic year has only just started).
Unfortunately for me, I had a bout of insomnia last night so on the way to college, I buy a ready-to-drink iced coffee (Vita Cold Brew) from WH Smiths for £1.99. I don’t usually buy these as they are a bit overpriced and I take my own flask of coffee to work every day, but I knew by 3am that it was a two coffee day.
As my boyfriend’s birthday is approaching, I stop by the shops during my lunch break and purchase some wrapping paper. I’ve got his presents sorted. The wrapping paper comes to £3.80 and then I wander into Accessorize and buy myself some blue stud earrings, which have 70% off – they were only £1.50.
Later at home, my boyfriend and I visit Asda for our weekly shop, leaving it as late as possible to avoid the crowds. We usually get an online delivery from Tesco but don’t need £40 worth tonight, which is the minimum order to avoid the basket charge. It is quite a small shop (all the bread is essentially gone by 8pm) and we only spent £22.90. We go halves so I spend £11.45.
I budget £50 a week for spending on whatever I like and for weekend outings, so £200 a month. Unfortunately, I have gone over my budget the last two weeks so now have £30 in my current account left to last until October 24th. This is because I went clothes shopping with my sister, who I rarely see, and it’s my boyfriend’s birthday soon so I had presents to budget for. We can safely assume I’ll be going into my general savings pot and/or my credit card this month!
Total spent on Monday: £18.74
Tuesday: I buy a bottle of 7up for £1.37 on my way to work, because I forgot to buy any at Asda yesterday.
I have the O2 app so can claim a free hot drink from Café Nero once a week. I am trying to cut back on my hot chocolate consumption, hence the slightly less satisfying summer fruits tea I order during my lunch hour after going for a short run.
On my way back to college, I go into M&S and buy a single blueberry muffin from the bakery for £1; that’s my boyfriend’s birthday cake sorted. Now I’ll have to resist eating it for the rest of the day.
Total spent on Tuesday: £2.37
Wednesday: I cycle to my train station then take the train to college, as I usually do.
At lunch time I walk into town and buy a two pint bottle of milk, paper cups, sugar and plenty of biscuits for a staff wellbeing event that I am hosting tomorrow. I spent £7.05 but I am getting all the money I spent reimbursed tomorrow.
I head home a few minutes late as I have some admin to do, but the trains all run smoothly, for which I’m grateful because my partner and I are going out for a meal tonight. It was part of a voucher deal purchased three months ago, which included a three course Indian meal for two for only £17. This is my second Indian in the last week and I’m almost certain that’s not excessive. We bought drinks alongside and some rice and tandoori roti, so we only had to pay £16.90 tonight.
Total spent on Wednesday: £23.95
Thursday: I left the bottle of milk I needed for my staff event at home so a quick trip to the shops before work results in me spending another £1.50 for milk. I then drift into Café Nero and order a regular mocha with coconut milk, which comes to £3.30, as I didn’t sleep again the night before. I am reimbursed for the milk and other provisions I bought for the event, so I only really end up buying my own coffee.
I promise myself not to buy anything else today. I feel guilty about the amount of money I waste on things like coffee during the working week but I am yet to find a strategy that stops me spending.
My event goes well and I head to the shops after work to look at clothes and shoes in Next and the rabbits in Pets at Home. I then end up in Sainsbury’s. I buy a ready meal (vegetable jalfrezi with rice and a bag of salad) for my dinner, as my partner is out tonight, and some wholemeal bread for the weekend. I spend £4.15.
I walk home in the rain while catching up with my mum over the phone. Once home, I have a candlelit bath while listening to Atli Örvarsson, put my dinner in the microwave, and watch the Apprentice with our cat. My boyfriend gets home and we catch up for an hour before heading to bed at 11:45.
Total spent on Thursday: £8.95
Friday: I am out of the door by 7.15 this morning and my boyfriend gives me a lift to the train station. However, I manage to forget two important items today on the rush out of the door; my lunch and my Swift card, which I use for my train fare. The Swift card slashes my train costs in half and is only £66.60 per month – not much considering that my commute is an hour. Alas, as I don’t have the card, I buy a day return for £6.50.
I get lunch from Boots for £3.39 because I love the vegetarian food in its meal deal, especially the Vegan Chicken and Sweetcorn sandwich. I also collect Boots points and spend those when I’ve saved enough but alas, I only have a 19p worth of points at the moment.
I’m going to go for a run at lunchtime in the woods near college, which should give me an energy boost. A quiet night at home, so no money spent!
Total spent on Friday: £9.89
Saturday: We get up at a relatively reasonable time and do some household shopping, spending £7.50 at Home Bargains and £10.25 at Wilko. We needed a new spatula (among other things) as I melted one on the hob the previous night. We share the costs of household shopping again.
My boyfriend treats me to a hot chocolate and we then go for a walk in the woods. I also order some hemp/CBD oil online for £8.99, to see if it helps with my sleep, but as my boyfriend has Amazon Prime, postage is free.
After a few hours at home, we head to the pub and share a bottle of house white wine, which costs £9.55. We then head for dinner around 9pm – I have tapas and my boyfriend has a burger – and we share a cocktail pitcher. We spend £42 in total at dinner, so £21 each. We’re home before midnight.
Total spent on Saturday: £48.41
Sunday: I spend the day window shopping and make a quick call to a friend. I succeed in not buying any more clothes or other trinkets.
I do go to Tesco and Boots, buying reduced sandwiches and bread to feed the garden pigeons, and spend £5.50. I then head home and my partner and I play the Xbox together, before I have a bath and make pizza for dinner.
Total spent on Sunday: £5.50.
Total spent this week: £117.90
How Nadine can save:
We spoke to the experts over at money tracking app Cleo to find out how Nadine can save better (and what we can learn from her spending).
Note: the advice featured is specific to one individual and doesn’t constitute financial advice, especially for a London budget.
Here’s what Cleo said:
You’re not one to miss a trick, Nadine. There’s not a lot of splurging going on, and you know which pennies are going where. Excellent work.
Where you’re going right:
We love your thriftiness. Taking your own flask of coffee to work, looking for voucher deals and using your Swift card are all neat ways to trim your monthly spending.
For anyone reading: The reduced section of your local supermarket is a great way to fight those pricey lunchtimes.
Putting money into your Help To Buy ISA – this is great.
For anyone reading: As of 30 November 2019, Help to Buy ISAs will be shutting down. Google now or forever hold your peace…
Where you’re going less right:
You mention you haven’t been able to put anything into your savings in recent months. We all go through spendy times and it’s important to have flexibility here. If you know you’re going to have a super expensive couple of weeks, maybe tweak your budget for the following month. If you’re lacking in motivation, book that first driving lesson to help you visualise the goal.
Spending challenges:
You ate out twice this week, which came to £39 (you’re spending £156 on eating out per month if this is a regular thing). We’re going to suggest you try eating out every other week and cap the bill to £30 each. This will save you £96 a month.
On top of your free Caffè Nero, let’s try to stick to one takeout coffee per week. *Cough* Cleo actually has a ‘watch category’ feature that can help you with this *cough*.
For anyone reading: Pick a day where you try to make as few purchases as possible. It works.
Bottom line:
Being thrifty when it comes to the boring stuff so you have room for the fun things is what Cleo is all about. We think you’re doing a great job at this. Stick at it.
How I Save is a weekly series about how people spend and save, out every Thursday. If you’d like to anonymously share how you spend and save – and get some expert advice on how to sort out your finances – get in touch by emailing ellen.scott@metro.co.uk.
*Name has been changed.
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source https://metro.co.uk/2019/11/21/save-23-year-old-birmingham-feels-guilty-buying-coffee-11192292/
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