I mentioned in this post that 2010 wasn’t the best year for our finances. Making the move from two salaries to one should have brought about a serious change in our already fairly frugal spending habits, but it didn’t; I don’t think I adjusted very well.
I may be being too hard on myself but I’m frugal for three reasons 1) to achieve our goal of moving abroad 2) to become financially independent and 3) because I hate waste. Over spending just delays one and two and can add to number three………..it also makes me very mad at myself 
In 2011 I’m managing the budget and looking for ways to further cut our spending. It’s a challenge but one I’m going to enjoy.
Budget costs:
These are our costs outside of mortgage, water rates and council tax.
Gas and Electric: Something that springs to mind here is using the oven less. I don’t always use it for cooking more than one meal.
House Insurance: This is mainly for building insurance as our contents insurance is at a minimum already. When the time comes for renewal I’m going to do my research!
Telephone Line: This has already been reduced. I took advantage of a BT offer and paid up front for our line rental saving over £24 for the year.
Grocery: Still work in progress. I know I can reduce our grocery bill further and need to start replacing some shop bought convenience items with homemade.
Digital TV: This cost is split with my son, who pays board. There is no moving him or my husband on this cost. I blame football: NFL and soccer!
Going Out: This is for the occasional drink or movie trip. My plan is to not go over this amount, not necessarily reduce it.
Miscellaneous: This is one area of spending I’m looking to reduce and where my conscious spending comes into play.
Window Cleaner: This is a monthly cost for getting our outside windows cleaned. They don’t need doing every month but I don’t have the heart to cancel. I may switch to a clean every two months.
Gifts: This amount will be a challenge in itself. Help?!
Are you challenging yourself to reduce your spending this year?
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{ 7 comments… read them below or add one }
I definitely am! Though it’s really hard when you want to be sociable – I’ve been out for meals a bit too much already in January. Must get back on the meal planning wagon
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Laura Reply:
January 20th, 2011 at 9:19 am
kat: agreed re being social, it’s difficult!
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TRYING!! Have cut back on grocery bill – lots of waste there! Like you I have TV watchers in my family so am stuck with cable for a while longer. I’m sure there are other areas I could reduce, just have to get crackin’!
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Laura Reply:
January 20th, 2011 at 9:21 am
Jane: I watch the sport with them so I shouldn’t really complain..it’s just…does it have to be in HD?! £10 extra a month and I can’t tell the difference…appparently they can!!!
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Our cable bill just went up another $5 this month to almost $80/month for basic (no premium or movie stations). It’s a monopoly in my area and I’d love to cancel cable just out of the principal of it, but like you the NFL trumps my personal vendeta against time warner.
We are doing some major remodeling at my mother’s while she is in Poland, so we will be spending more this year than last. The challenge is the conscious spending and not splurging on too many items. Luckily once she has a non rotten bathrooms and radiators that don’t leak, it won’t be a continued expense (hopefully).
Best of luck to you. Food is where I probably could cut the most..and the clothes dryer. I hung a bigger drying rack in my basement and have been using it about 50% of the time (it’s very cold here, so outside is not an option).
I’ll be curious to learn if you have any breakthroughs.
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Laura Reply:
January 20th, 2011 at 9:16 am
@ FirstGenAmerican. It’s difficult not to get carried away when spending on houses; I’ve found it difficult to move my thinking re our house as it’s going from home to rental property. It doesn’t help when you’re living in it!
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I really need to do one of these, looking at our annual costs. I’m far too stuck in the ‘monthly’ mindset and it doesn’t take everything into account so thanks for the inspiration! As for doing gifts on a budget, I keep a list in my filofax (one titled Birthdays, one titled Christmas) and record what I’ve bought for who through the year. I’m rubbish at saving up for Christmas but I’m quite good at buying things in advance. I also tend to stock up during the summer and winter sales, particularly in places like Accessorise (I just bought a relative a gorgeous bag reduced from £28 to £8.40. Their birthday isn’t until October so it will be tucked away until then). x
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Laura Reply:
January 20th, 2011 at 9:23 am
Shoestring: I need to change my mindset re gift buying and shop at sale times. At the moment I hardly ever go to the shops and so miss the bargains. An annual gift list sounds like a good idea! Thank you
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I must say that I think your expenses are pared down pretty well already. We saved £400 on building insurance this year using moneysavingexpert.com, but you obviously don’t have the same scope there. Maybe you should charge the kids a bit more
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Laura Reply:
January 20th, 2011 at 9:25 am
@ Salis: I think [know] that I channel an inner Jacob! That’s a good idea re the kids!!
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It is difficult once you think you’re already living frugally to lose one income and then start to think about living MORE frugally. At a certain point it becomes a bit overwhelming – which is not to say it can’t be done.
Hang in there – we’ve gone from two full-time, to one part-time, to two part-time, to one part-time income and each time it’s been a struggle. Learning to live on less is tough, no doubt about it – it may be rewarding, but it’s difficult in the early stages.
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Laura Reply:
January 20th, 2011 at 9:27 am
Steve: Good to hear from you and thank you! I know that I wouldn’t trade our previous lifestyle for anything so we must be on the right track.
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I compared your spending with my own (probably not a universal metric
). You look like you’re doing quite well! What I’m finding is that costs are slowly creeping up. I agree with your spending rational.
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Laura Reply:
January 23rd, 2011 at 8:54 am
Hi Barb, costs are creeping up and it difficult to know when it’s going to end!
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