SINKING FUNDS FOR BEGINNERS

Sinking funds - only something I had started using approximately 18 months ago when I had signed up to Monzo and was able to set up pots. Sinking funds are a great way to save up for any large expense. It's definitely something I'm glad that I started doing as spreading the cost has made things a lot easier than trying to find money in one go.

If you are wanting to get started with sinking funds and have no idea where to start than this guide for beginners is for you. I'll be explaining all the basics including what a sinking fund is,  benefits of them as well as how to create one. 

What is a sinking fund?

A sinking fund is a way of saving money by putting away a set amount each month for the purpose of being used at a later date. It means you are saving small amounts over a set period of time instead of needing to find money all in one go. This is a great idea for those things that you know are coming up and won't be able to afford from one month's income and also saves you having to go into debt.

You can set up a sinking fund for any financial goal you may have. I have four different sinking fund categories at the moment although this may change - mine are:

- Summer Holiday

- Back to school 

- B's Birthday 

- Christmas 

Sinking fund/savings /emergency fund

A sinking fund is a way of saving but should be separate from your savings and emergency fund. A savings account is where your savings go and sinking funds are how you save your money.

Sinking funds are also different from an emergency fund. A sinking fund is for those expenses you know are coming and can plan ahead for - such as for your home insurance, back to school, Birthdays, Christmas or even for things such as saving for a new sofa. An emergency fund, on the other hand, is for unexpected expenses. Examples include: damage to home like needing a new roof, car repairs from an accident, medical emergencies etc.

5 TYPES OF BUDGETING METHODS

The number one thing I recommend to anyone wanting to sort out their finances is to have a budget. Having a budget helps you to keep track of where your money is going. There are quite a few different types of budgeting methods and what works for others may not work for you. The right type of method for you, should fit with your own personal goals.

Budgeting does take time and effort, however it's great for helping you to gain financial independence by spending money responsibly, improving debt repayment strategies and  increasing your savings goals. 

5 Budgeting methods to consider 

Before choosing a budgeting method it's a good idea to sit down and  look through your finances to see if you can spot any trends. You can do this by looking at bank statements or by keeping approximately two months worth of receipts. To make it easier it's wise to sort them into categories such as household, food, personal, entertainment etc. Once you understand your finances better and understand your spending patterns then it's time to look into budgeting methods such as the five below.

The 50, 30, 20 method

The 50 30 20 budgeting method is where you plan your budget by allocating it into three categories: needs (50%), wants (30%) and savings (20%). This is a great method if you are starting out with budgeting as it doesn't mean having to track thoroughly. It's also great if you struggle with budgeting and want to find a method that's a bit more easier. You can also customise the percentages depending on your circumstances, for example 40/25/35 if you are wanting to put more into savings/debt. 

MY 2024 FINANCIAL GOALS

 In my previous post about my 2024 goals I mentioned that my top goal this year is in regards to my finances. There are quite a few financial goals that I'm hoping to achieve this year that I thought I'd share with you. 

Savings:

Quite a few of my goals this year are savings related. The three goals I'm setting myself in this area I'm sure I'll have no problem achieving.

Emergency Fund

My first goal is to save £1000 for an emergency fund. We had to use savings to pay towards our new roof and so I'm starting my Emergency fund from scratch. I've decided to do a money saving challenge where I'm putting away £20 a week so by the end of 2024 I should have achieved this.

MONEY SAVING CHALLENGES TO KICKSTART YOUR 2023 FINANCIAL GOALS

With a fresh new year here, you may have decided on your financial goals for the year ahead. If not than you may find my post from  last January about making S.M.A.R.T goals helpful. Savings are something that we all should have, but isn't always possible. In fact alot of us have no savings at all! 

There is always a good reason to put a little money aside each month. Maybe you are wanting to save for a holiday, for next Christmas or start an emergency fund. To get you motivated I'm sharing some of the money saving challenges that are around that can get you started on your saving journey.

Things We’ve Done To Reduce Our Everyday Expenses

Since the cost of living has gone up dramatically it's definitely noticeable on our finances and our money is certainly disappearing quicker. Subscriptions have gone up along with our every day expenses especially food. We are finding we are topping up our electric and gas alot more often than we use to. We've started looking into what we can cut down on and I thought I'd share some of the things I've done personally and a few joint things too.

HOW TO SAVE MONEY DURING THE SUMMER HOLIDAYS

The summer holidays are fast approaching. It tends to be an expensive time when children are off school for 6 weeks. The cost of living crisis this year is also going to make the summer holidays harder financially on families. Planning is going to be key when it comes to keeping kids occupied/entertained and fed this summer. Below are  some ideas to help you to save money during the summer holidays.

MAKING MONEY BY SELLING ON VINTED

Affiliate links in this post will be clearly marked with a *. Clicking one of these links means I earn a discount or receive payment.

I've sold items online before and didn't get on that well with Ebay and Facebook marketplace. So last September I decided to try out selling on Vinted after hearing about it for a while. I still donate to charity shops from time to time but I had lots of clothing Blake had grown out of piled up at the bottom of his wardrobe. It was doing my head in as every time I opened his wardrobe they would fall out,  plus I had some clothing items of mine I wanted to get rid of. So trying out Vinted has definitely helped me to make a bit of money. Here are 5 reasons to shop and sell on Vinted as it's not just about making extra cash.

SPRING CLEAN YOUR FINANCES

When it comes to spring cleaning it not just your home you need to think about.  Taking time to look at your finances and see if there are things you can change is a must. It's important that we get into good money habits. So that is why I'm sharing with you some of the things that you can do to make better financial choices and habits so that you get your family finances in order. There are also a great selection of financial freedom books out there that are really helpful. 

4 online side-hustles you need to try

 *This post contains a few referral links. However nothing will cost you extra.

The cost of living is increasing ridiculously with fuel skyrocketing, food prices are creeping up and even energy prices are getting to the point that alot of us can't afford them and are most likely to go even higher. It's definitely a worry for alot of people, however there are ways you can make a bit of extra cash here and there. I've featured some of the things that I personally do or have done to make a bit of extra cash. It's important to know about side hustles and tax before doing any of these.

POLAR CREDIT : HOW THEY CAN HELP YOU

 *This is a collaboration with Polar Credit

Life can throw a curveball at you. During the past few years many of us have come into financial difficulties. Covid sure has a lot to answer for thanks to many people being furloughed, hours being cut, having to juggle working from home whilst homeschooling. The stress about money to pay the bills on top is definitely something that isn't needed. Plus it's January which tends to be a bit tougher financially because Christmas has been and gone and December payday was most likely earlier than other months.

If you are in a position where you need to borrow money NEVER opt for payday loans as they cause much more stress and have high interest fees which you really don't need. Instead find a company like Polar Credit who offer alternative financial services.

Help I've got an unexpected cost!

Oh no! An unexpected bill has landed in your letter box and you can't afford to pay it! So what do you do? First of all don't panic or bury your head in the sand. No matter how careful you are with your budget unexpected bills or a bill that is higher than usual do happen. The way you react to it, its important and there are things that you can do. Here are some tips and tricks to help you out.

Borrow from family/friends 
This is the one thing I feel really uncomfortable about personally. However if you have a family or friend who can help you out than make sure you have a payment plan in place for paying them back.

Selling unwanted items
I like to declutter when I get the chance and its a great way to make some extra money to pay off that bill. There are many places you  can sell items such as EBay, car boot sales, auctions and Facebook selling pages.

Loans
With the payment deadline looming you may feel a loan is your only option. Zippa Loans are a great option for borrow up to £500. You can repay weekly or monthly and chosen repayment period. With it being an online loan its easy to apply with a 2 minute application. You will then get an answer within 2 hour. Upon completion of your online loan agreement, funds will be transferred swiftly into your bank account on the same day.

Contact the provider
If you can't raise the funds in time  contact the provider. They can be understanding if you explain the situation and you may be able to  sort out a payment plan with them. This is so  much better than getting default notices and late payment charges. Ignoring the bill won't make it go away and doing so can  damage your credit rating and potentially legal action taken against you.

Ways to make and save money for Christmas

The festive season is fast approaching but don't worry you still have time to make and save money in time for the festive season. 

Making Money

Making more money for the festive season can be a lot more easier than you think depending on how much effort you put into it. Here are some of my ideas on what you can do: 

- An extra job

Ok this is not something everyone will be able to do but hear me out. If you are able to why not take on an Christmas temp job to bring in a bit of extra money towards Christmas. Many shops/ warehouses need the extra staff to keep up with the demand. 

- Sell your unwanted stuff

Have a clear out and sell the stuff you or family members you live with don't use anymore. I've managed to sell many items of clothing, toys and furniture before and other bits on ebay and facebook selling pages. There are also places such as CEX where you can sell items such as DVDs, games, mobiles and other electronics and some places online you can sell books. 

- Sponsored posts

If you are a blogger than one way to make some extra money is by Sponsored posts which is something I do and its something definitely worth looking more into. 

- Other ways

There are other ways to make extra money some I have tried and others I've not such as:

- Matched betting

- Surveys

- Mystery Shopping

- Apps such as receipt hog and  shoppix where you scan your receipts to get points which in return = cash or amazon vouchers.

- Bingo games

You can browse online bingo games and find a wide range of ones that are fun to play. Why not also check out these six ways you can  make money online.

Saving money

Saving money is also a great way to make sure you don't get into debt when it comes to Christmas. I've never used a credit card to buy for Christmas and its something I'm proud to say as I don't want to be paying off Christmas and struggling come January. 

Here are some things you can do to help you save ready for the big day: 

- Budget 

I usually set a budget of what I can afford to spend on each person and what we can afford on food, drink and days out such as a visit to see Santa. 

- Cashback 

When shopping online I tend to try and get cashback via quidco. My current bank also offers cashback on certain stores as well which is handy. 

- Buy second hand

some people don't like this idea however I don't have any issues I've brought gifts for both Blake and Stuart that have been second hand and they still got used and I saved money doing so. 

- Shop around

You may think Amazon works out cheaper but that's not always the case. Shopping around is a great way to save a few extra £'s. 

- Homemade gifts

This is something I must admit we haven't done before. However its a lovely idea to be able to give a gift to someone that ha a personal touch and can save you money.

- Buy in Poundland

I love poundland Christmas decor at the moment and as most things are £1 it means I'm not spending loads of money to bring a bit more festive cheer to my home. 

- Switch Utilities

This is the best time of year to do this as the prices tend to go up so its worth finding a better deal. 

Do you have any other ideas on ways you can make and save money in time for Christmas?

No Spend October : Poundland broke me

I wrote my plans for No spend October and so I wanted to give you an update and unfortunately I only lasted 13 days before breaking the ban and giving up. Poundland broke me, Poundland have really been upping their game recently and after seeing loads of people sharing their Christmas bargains online I couldn't resist much longer. 

However even though I have given up the no spend month I did manage to save around £400 during the 13 days which I have put into savings. Usually as soon as I got paid I would have just splurged on Amazon. 

During the 13 days I managed to stick at it I did learn some things: 

1. That I actually enjoy saving more than I do spending

2. Its made me think more before buying something

3. That it's worth saving for something I want as it would make me appreciate it a bit more

4. That I need to think of my money/finances long term 

5. I spend too much on things not needed especially things for Blake

6. That we need to cut down on takeaways 

I also feel that some of the ideas that I mentioned in my previous post are easy to stick at such as using up what we have in, borrow books/films,walk rather than getting the local bus, enjoy free days out. 

When it comes to No spend months I don't think I'll try it again however I do feel that I can cut down my spending and at least once a month do a no spend week or weekend. 

Have you done a no spend month? How did you get on?

No Spend October (2017)

October is here and the last month has really flown by. Spur of the moment I have decided to do No Spend October. I really do need to cut down on my spending, so I thought by taking part in No Spend October this will really give me a kick start in curbing my spending.

The rules are pretty simple from the first of October to the 1st of November  no spending on things that aren't essential. All bills and personal bills such as my phone, insurance and Netflix are covered for.

I have also going to be accounting for special circumstances these are: 

- My slimming world countdown ends on the 26th so I will be buying a new one

- I'll allow myself to buy chocolate/Hifi bars occasionally as I can't completely go without them.

- Travel costs only if visiting my family

- Blake's friend's birthday gift

- If Blake needs anything for Pre-School.

So what will I be cutting out: 

- Takeaways/eating out

- Drinks when out and about 

- Alcohol 

- Clothes

- Toys

- Lottery/scratch cards

- Entertainment (movies, books,  day trips etc) 

- Cosmetics

-Home Decor 

- Bus fairs

- Anything else non essential you can think of.

 I'll be making sure there are no shopping trips or online spending this includes no charity shops, ebay, facebook selling pages, no amazon (eek) no matter how much of a bargain something is. 

I'll share with you if I cave in and buy something I shouldn't and I'll also be sharing with you some of my ideas on things we have done. Here are some ideas below on how I am going to manage during the month.

1. When going out take my own drink with me 

2. Eat before going out/take a packed lunch

3. Batch cook lunches (I'm going to make soups and pastas)

4. Use up what we have: Food, cosmetics, toiletries, cleaning products

5. Don't go into any shops other than supermarkets for a month

6. Go to supermarket with a shopping list and stick to it

7. Read books I own but haven't yet read

8. If I do run out of books to read I can borrow from the library instead of buying.

9. watch movies that we already have or are on netflix

10. Remove the amazon app from my phone/tablet

11. Find free days out and ideas of things to do with Blake that don't cost anything

12. Walk rather than get the local bus 

I know its not going to be easy especially with half term coming up at the end of the month and with Halloween around the corner too.

I'd love to know if you will be joining in or if you have any tips or ideas for the month ahead for me. 

Time to tighten your belt?

Life can throw unexpected things at you for example you may wake up one day and find you have no job. We have been in that position before, having to rely on benefits whilst finding employment. This is why its important to handle your finances correctly especially with the cost of living rising. 

Sometimes you have to take out loans with places such as Cash Lady, use credit cards or borrow money from other sources. It is important though to monitor your spending, so that any debt doesn't spiral out of control. 

Recently we have found that our financial situation has now changed and so it's time to give our finances a shake up. So here are a few things that we need to start doing: 

Budget

We need to look into what we have coming in and what is going out. Now that our situation has changed we need to start a fresh budget and see where our money is going so that we can live within our means. 

Cut backs

We need to be a lot more stricter and say no a lot more often. It's time to see if we can find cheaper alternatives when it comes to not just our utility providers but with what we eat and drink. This means finding ways to save money on grocery shopping. We also need to look into new ways we can be frugal/thrifty as possible and still have fun. 

Save

Even though our situation has changed it still important to put money away for emergency's. Luckily we have no debts to worry about which makes it a bit easier to do so. 

I'm also planning on finding new ways to save money by reading other blogs that focus on money and by joining facebook groups as there is always someone out there that may have thought of something that you may not have. 

It is time for you to give your finances a shake up?

Know Your Money: A guide to dealing with your finances

I've not always been good with money, in fact I could still do much more better when it comes to my finances. When I moved out of my family home at 18 to go and live with Stuart it was certainly a learning curve. 

Taking the time to manage your finances better can really pay off. It can help you save money on your bills as well as save a good amount of money each year. I wanted to share with you the many things I have learnt and also the things I do to make sure we are saving those precious £s.

Budget

One of the first things you should do before moving out or even to a new property is to sort out a budget so that you know what you can and can't afford. This way you have an idea of money coming in and out. You can purchase a range of budget planners but you can also find some free ones online. Managing your family budget is so important as you can see what you have left over after essentials.

Cutting household bills

Household bills take up a huge chunk of your money and so one of the best things you can do is shop around. There are so many ways you can cut down on your bills.

Set a savings goal

If you have a goal in place it helps you to be motivated in sticking your budget and saving money. One of things that is important is to have an emergency fund which I admit we don't have and is something we need to rectify. Once you have an emergency fund you can then think of goals such as saving for a mortgage, going on holiday or a car so that you don't have to take out a loan are some examples. 

Sorting out debts

It is easy to get overwhelmed with debts but sometimes you may need to take out a loan and  Swift Money® are there to help you with online applications. When it comes to debts its always best to put them into priority order such as ones that have an high interest rates and then pay off them first.

Meal plan  

Meal planning really helps as its stops you from wasting money and food and you know what you will be having every day I use a magnetic planner to help this and it includes a handy memo and shopping list section. 

Insuring valuable products

This is important I've been caught out before when tablet broke down and I didn't have insurance/extended warranty so ended up having a to buy a new. I learnt my lesson and now I have insurance on both my tablet and on my mobile as well as other items that are valuable. 

Setting up direct debt/s to savings

You can do this weekly or however you see fit and its a good idea to look into what you can afford to save no matter how little.

Change banks

Some banks offer cash intensives to change to them which is dependent on what you can put in each month. When it also comes to banks its worth looking into whether you feel you will need an overdraft facility. 

 Get Cashback 

My current bank offers cashback in certain stores but as of last year I've started when shopping online using Quidco. This is such a good idea and handy if you shop online a lot more than you do in store.

Buy second hand 

If you really need something see if you can buy it second hand or see if a friend or family member are getting rid of an item you are looking for. 

Find free things to do 

Go to the park or for walks, do craft activities try and find some fun things to do that wont cost a thing or are cheap to do.

Get into couponing

One of the things I started doing to the end of last year was to start using coupons. You can get ones to print off to use in store or promo codes that you can use online. This way when buying something you can get a discount or even a freebie. Just make sure you use promo codes and coupons if you are actually need or will use the item. 

There are so many more tips on ways to secure your financial future and saving money and you can find many books or articles online to give you a helping hand. 

*In collaboration with Swift Money 

#PlanAheadToSave

As I mentioned in my new years goals post this year my main goal is to sort out mine/our finances. I really want to start saving more this year, spend less and lower our out goings. 

I think its important to be more aware about where your money is going and areas you can cut down on. Before I moved in with Stuart back in late 2008 I wasn't sensible with money and had no savings. Over the years I've learnt to be a lot more thrifty and frugal but there is definitely more room for improvement, especially when it comes to unnecessary spending on Blake for example. 

I wanted to share with you some of the things that caused us to loose money in 2016 and what we will be doing this year to prevent similar pitfalls.

Here are things which caused us to loose money:

 Not meal planning

Not meal planning meant that we ended up wasting food and not using up what we had in. This meant we were literary throwing away our money into the bin.

 Not having a budget 

 Not having a budget meant we didn't know where our money was going. Having a budget means you can see where your money is going, therefore being able to see  the areas where we need to cut down on

 Not having insurance on valuable possessions

Not having insurance on valuable possessions meant that when my tablet broke I ended up loosing out on money as I had to buy a new one. So lesson learned and now I make sure I have insurance on my tablet, mobile and other expensive gadgets.

 Not keeping an eye on when bills go out 

Not keeping a record of when certain bills go out has meant on a few occasions going overdrawn leading to fees as our bank accounts don't have an overdraft

Not saving 

Not saving has meant that when we had an emergency we didn't have the money to help us out meaning on occasion credit cards had to be used.

So here are some ways I plan on saving money in 2017:

1. Meal plan 

I have started doing this using a magnet meal planning board which also has a handy memo and shopping list section. We have already decided a budget for our weekly food shop which we didn't do before which is helping to stop waste. 

2. Using a budget planner

We have started to use a budget planner and will look at what we get in each month and what will be going out. The planner has sections for monthly and weekly spends and any monthly and weekly income we receive. The planner i'm using has has different sections for your outgoings such as bills, car, childcare, clothing, food, healthcare, insurance, leisure etc. 

3. Insuring valuable products

I've recently got insurance on my new phone and also made sure my tablet has insurance too. I would recommend insuring expensive gadgets such as Iphones especially if you have children. 

4. Use a filofax/diary 

I've started using a filofax and diary to keep any eye on when certain bills go out which is very helpful as I can make sure we have the money to cover for them. 

5. To do lists

I've started using to do lists in my filofax to remind me to do certain things for example set up a direct debit to my savings account. 

6. Set up a direct debit to savings

I am setting up a weekly and 4 weekly direct debit into my savings account I'm starting off small with £5 a week and £20 every 4 weeks to see how I get on. 

7. Use cash back sites when shopping online

8. Spending ban 

I plan on doing a few weekend and also a month ban at some point this year 

9. Sell unwanted items 

Any money I get from sell unwanted items will go straight into a money tin

10. Cut down on takeaways and eating out.

By meal planning we will know what we are having each day so the temptation to go out or have a takeaway will be less. 

I hope this post is helpful to you if you are like me and looking at sorting out your finances. 

*In collaboration with Contact Numbers 

Saving money during January

January tends to be one of the toughest months financially because of paying back Christmas. January is the perfect time to start looking at your finances and finding ways to cut back and ways to save money when you do need to spend. 

Here are some ideas of what you can do to start doing today to help you start saving: 

- Start the year with a  fresh budget

- Change Banks

This is something I am considering doing as some banks have cash/voucher intensives to change to them. It is all dependent on what you are able to put in each month so this is something you will have to consider. 

- Get into couponing

One of the things I started doing to the end of last year was to start using coupons and using places such as https://www.promocodesfor.co.uk/ to find promo codes so that when I do need to buy something I am able to get it at a discount. 

- Switch energy suppliers

Again this is something we are looking into in hope of cutting down our bill. 

- Clear out clutter and sell online

The new year always makes me want to be more organised so I have a good clear out and try and sell any good quality products that I no longer use. 

- Set up a direct debt to savings

This is something I am starting to do you can start off small (£5 a week is what I am doing) 

-Ditch memberships you don't need

- Get Cashback 

My current bank offers cashback in certain stores but as of last year I've started when shopping online using Quidco. 

- Cut down on takeaways

- Meal plan

This is a great way to make sure food doesn't go to waste and you use up what is in your cupboards and freezer. 

- Buy second hand 

If you really need something see if you can buy it second hand or see if a friend or family member are getting rid of an item you are looking for. 

- Borrow books and films from the library.

I love reading and I did spend some of my Christmas vouchers on new books but a cheaper way is to borrow books and films from your local library. 

- Have a no spend weekend/month 

This is something I plan to have a go at some point this year. 

- Find free things to do 

Go to the park or for walks, do craft activities try and find some fun things to do that wont cost a thing or are cheap to do.

- Do the 365 day money challenge 

You can find many posts about this on Pinterest