Hello Dear Reader,
Georgie boy says today’s budget is for the “makers, doers and savers”. To my mind, that’s all of us.
I’m going to ignore the politics and simply stand for common sense and promote a set of household economics that means each household shrinks it’s spending and yet increases income to balance the books and create their own financial security. Froog’s budget for 2014 would look like this:
Cap on spending
In essence, no body is out of the woods yet. I don’t know anyone who has had a pay rise and I don’t know anyone who is getting cheaper energy that last year, cheaper food than last year and cheaper clothes than last year. All that means, in real terms your salaries are worth less every year. There is nothing you can do about that except react financially. You, me and every body has to continue to rein in spending to nothing more than the bare essentials. If you spend more than that, then don’t come running to me whining when you haven’t got the money to fix your car, boiler or house if it needs it. You need to cap your energy usage, your spending on food, your spending on clothes and there is nothing what so ever for anything that doesn’t simply keep you alive! What ever your salary, no matter how small or large, now is the time for a fiscal fast and a long lasting one at that.
Reducing debt.
So many people are up to their necks in financial mess as they spent far too much prior to the financial down turn. Now every penny they earn is worth less than it used to and yet they still have debts. No body with any debts can afford to spend any more than it takes to survive! It is their responsibility alone to sort out the mess they created. To start, stop using your credit cards and don’t even think of borrowing any money for anything what so ever! Create a survival budget and use every penny to pay off debts. You will suffer in the short term but over the years you will know that you did the right thing.
Building your economy.
Every single family needs to work collectively to bring more money into the house. Deliver take aways and parcels, find bar work and evening work, do a few late shifts in the supermarket, take in lodgers, share the car on the way to work and halve your fuel costs. Every single member of the family needs their money saving task. Who reads the meters? Who is responsible for turning off unneeded lights? Who is responsible for drying the towels so they can be used again without being washed? Who is responsible for turning the duvet so it can go a few more days without being washed? Who is responsible for sweeping the floors daily so they do not need vacuuming? Every single family member needs to ask the question daily…..what do I need to do every day to save this family money and bring more money into the family home? Have a family ebay weekend and a clear out and use the money for the family. Have a family carboot sale weekend and make the family some money. No household member should ever be ashamed to knock on doors and offer to cut the lawn and wash the path, on the contrary….they should feel really proud. Look on every job website and agency website and look for extra work. Be proud of having two or three jobs. Money never comes to those sat on their backside but goes to those who earn it! (There is a teenage lad in Liskeard who rides around with a mower in a trailer attached to his bike and I see him knock on many doors, some say no thanks, but some have him cut the lawn………..I salute him!!!)
Budget Deficit.
Every household needs to have the clear penny by penny understanding of all money coming in. Every person under that roof is an equal contributor and moochers should hang their heads in shame!(any stay at home mum, with school age children can go out and clean when the kids are at school…….if that’s you……then all power to you….every penny helps!) Every household should have a clear budget of every penny that needs to be spent on: rent/mortgage, utilities and taxes, insurance, children, food and transport. Nothing else is a necessity! Nothing! Now, every household needs to look at those costs and cut them to the bone! Less heating, home cooked food, make do with what you have, mend what you can, buy less and in some cases buy nothing. No one needs to eat out…..ever! If you spend all you earn each month, then you have a budget deficit! Even worse, is spending more than you earn! The equation must work in the reverse, you must always ensure there is money spare every month and that you save.
Budget for makers, savers and doers.
Make: all your family meals from scratch, make you lunches and take them to work, make your own coffee and never buy one ever again (take a flask everywhere!), make your own curtains, make your own quilts,birthday and Christmas presents, bags and even clothes, knit, sew, create, mend. Make your own food by growing some, even a row of runner beans or potatoes will reduce your household expenses. Make: more money for the family pot, more time for essential maintenance on your home to keep it in order, make more time to keep fit so you cost less to feed and keep!
Do: more by keeping fit and active, more by working more to raise your income. Do less spending and moaning. Do less eating - it costs a fortune and every time you look at your hips you can see what you ate! Do more healthy home cooking. Do more socialising at home and invite friends round and in turn get out to see them. Do more volunteering, it will keep you busy and you will help others at the same time. Do more walking and less driving to save money.
Save: fabric for quilting and crafting, food tubs to raise seeds, paper to light the fire, kindling picked up on walks. Save money by menu planning, creating a shopping list and eating everything in the house. Save money by reducing the amount of time the heating is on and how long you spend in the shower. Save money by reducing car journeys to essential only.
The strivers and survivors work through any political system and any economic conditions. They ignore the politics, they don’t whine and they pull themselves out of bed every day and go to work. When they get home, they work on their own finances and ensure their family has a secure financial basis. They never spend needlessly and they check every penny.
Are you a maker, doer and saver? Are you a striver and survivor? I would love to hear your comments on what you are doing, will continue to do and will do differently to build your family’s financial security? Who is prepared to give up meals out? Who is prepared to give up new clothes or the hairdressers until you’ve saved or paid off debts? You, as corny as it sounds, are the architect of your own future? What will you do to make it a good one?
Looking forward to hearing from you.
Until tomorrow,
Love Froogs xxxxx
Chancellor Froog’s Budget 2014.
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Never a truer word said.
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“What ever your salary, no matter how small or large, now is the time for a fiscal fast and a long lasting one at that.”
I hear you, Froogs - and we are on it…. :o)
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If people like you ran the country, omg then we might stand a chance. Love your work.
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Awesome post!! Thank you!!
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We both live frugally AND make mindful choices to enjoy life. It's not “either-or”… there aren't points for personal flogging. Heat doesn't have to be at either 32 degrees at Fahrenheit or 78 degrees. One needn't deprive oneself of all comforts unless the salary simply doesn't afford it. At the same time, one doesn't need EVERYTHING. Better to buy one, classic, good wool sweater (for example) that will last decades, rather than two lesser quality, acrylic fad pieces of clothing for the same price. Cook from scratch most days, and enjoy a special meal out once every few months. As long as you can afford it.
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Annual income £1.0s.0d, annual outgoings 19s/6d, all is well.
Annual income £1.0s.0d, annual outgoings £1,0s. 6d, all is misery.
Can't remember whose quote this was, but never a truer word spoken.
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I agree.
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I agree.
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I'm just beginning to put a few things on eBay each week, hoping to make a few dollars whilst letting go of some things that are nice but no longer useful to me. Finished my 3rd transaction today, and unfortunately, had an unbelievably stressful row with a buyer over shipping cost. I tried everything I could think of to be nice (a thankless effort, in this case) but I ended up actually losing a few dollars on the “deal” - eliminating my tiny profit from the past two sales! I'm learning, but it was a bit discouraging.
Inspired by all the bloggy sewing going on, I'm planning to sew a summer top for myself, with some very pretty fabric bought on sale a while ago. My sewing skills aren't much, but maybe with practice will improve? Having already spent some money on this, I feel a real commitment to end up with a top I can wear!
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“Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery.”
― Charles Dickens, David Copperfield
One of my favorites!
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Hi Froogs! Good post! I definitely agree with all of it if someone has debts other than a mortgage. If the only debt you have is a mortgage and you have an emergency fund (say a year's worth of income), then I recommend people do several of your suggestions but not necessary all of them. Every situation is different, but personally I would experience burn out if I did everything on your list - especially because I have a demanding job (and am barely surviving on 5-6 hrs of sleep as it is). If you share a household, everyone needs to be on board, and you can divide and tackle which makes it a lot easier. If everyone is not on board, a discussion is in order.
The one quote that stood out to me was “what do I need to do every day to save this family money and bring more money into the family home?” We should ALL be asking ourselves that question every day. It doesn't have to bring in big bucks or save a ton. But working on the principle of “everything adds up”, finding an answer to that question every day (AND acting upon it) would bring long-term financial success to families. Thanks for all of this ~ Pru
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I agree with every word! I have always been frugal.
However, my husband is the exact opposite of me. I will be planting carrots, peas, and lettuce soon which not only provides food, but also exercise and is a great stress reducer. We both take our lunch to work everyday. Soon I will be able to set aside more for my later years due to an elmination of one debt which at this moment is my only debt.
On another note, I live in a small town about 40 minutes away from the city. Every Friday afternoon on the way home no one is headed to my small town, they are all headed away to the city to eat out, go to mall, see a movie, etc. You see in our town we have very few food choices, one main shopping store (Wal-Mart), an old theater in which there are only two choices when it comes to which movie you will see. There is not really much to do. Well, I guess that is a matter of perspective. They will easily spend $100 on food and a movie. Everyone needs a break every now and again. We succumb to the pull every now and then ourselves. I enjoy it, but I like my cooking better. However, I cannot help but think to myself how discontented they must be to always go to and fro always lurred by the newest restaurant to open, movies, etc. It sounds corny, but I want to be the architect of my future…I like that phrase…very empowering dotcha think! 🙂 XXX
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we've given up meals out, we keep the heat off all day and use our passive solar windows to heat her up all day so she emits heat all night (log house with stucco on the exterior) I dry on the line, we buy WHOLE foods and make meals from those we use very few short cut foods, I've lost weight so I eat less and my clothes cost less ( I can buy MORE from the 2nd hand now that I've dropped a few sizes, I workout outdoors not in a gym-there are so many ways to save you just need to pick a few a go with them
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As a reply - eating out was once a rare treat, something that was done by the wealthy. Now everyone thinks it's a 'break'. Give yourself a break from cooking by having a rota or make and freeze a meal a week so you can have one night without cooking.
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I don't have any debt apart from a student loan (or HECS as it's called in Australia). I'm happy. I'm 25. Working full time in a permanent teaching job and saving heaps because I'm teaching in an isolated area with a 70% rental subsidy. Could do more work in terms of growing my own food but I do buy from others who make food - high school slaughters lambs and has free range eggs, primary school has vegetables, garlic round the corner, rockmelons on the highway. All good. Love country life.
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Lucky you lanelle, no young single person gets any subsidies at all here, we are over flowing with graduates with degrees in under water basket weaving so even they have to start life on entry level jobs and there certainly isn't the weather or land for most people to grow much. As for schools raising and slaughtering meat, the mumsnet brigade would stage a mass boden cardy and peep toe sandal march in protest
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We live very rurally and its a nightmare, fuel costs have taken any enjoyment out of being here, theres no prospect of the kids getting a job here once they finish education . its a 30 mile round trip to the shops , My OH has a job just up the road . The whole of my wages is eaten by transport costs , absolute never ending nightmare . ebay puts food on the table
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My break is my husband cooking on a Saturday night - bliss!! It's nothing exotic, a Chinese stir fry or chicken and bacon risotto. Sometimes he also cooks a roast dinner on a Sunday (still expects help with the washing up but I don't mind, just lovely to have a break from cooking). I also batch cook eg bolognaise and it's a ready made meal out of the freezer during a busy week. I really resent eating out; I could easily buy a week's worth of groceries for the price of a meal out, and I can cook nicer meals at home most of the time.
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Although things for us are are financially much tighter than they were, I'm grateful for good health, a lovely family, great friends, a roof over my head and (usually frugal) food on the table; hearing the news each day, I'm aware that there is nowhere in the world I would rather live and what seems 'poor' to us would be unimaginable luxury for many. You can buy Sainsbury's fairtrade basics teabags (27p for 80) however tight your budget and help someone even worse off at the same time - they taste good too and we get 2 cups out of every bag (OK, we do like weak tea!)
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Our teachers and health professionals are offered incentives to go work in very remote rural locations. Without inducements professionals don't choose to work in such areas. They earn far more if they stick to city locations. Without teachers and doctors our isolated rural towns would not have access to these essential services. A young teacher moving to work thousands of kilometres away from family and friends in areas that offer little in the way of social life has to be commended and rewarded. I have to also tell you Froogs that here in Melbourne we have a very expensive girls grammar school that runs a farm as part of its curriculum. The girls are taught animal husbandry and so forth and we always come across them at the Royal Melbourne Agricultural Show where they show their livestock. So here, parents actually pay a hefty price for their princesses to learn farming skills. I think when people are desperate enough they will find every which way possible to grow what they can (plant and animal) in order to feed themselves and their families.
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Excellent post froogs - wish you were up for PM at the next election - I'd certainly vote for you! 🙂
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I love this especially the part about you can't sit on your backside and get extra money. We do kleeneze and offer people the chance to make an extra income doing kleeneze. we talk to lots of people who answer our adverts and you would not believe how many people basically say they want to sit on their backside and get paid. Some people really do have a skewed view of how the world works. I hope you don't mind me putting the link to our website. I'm not sure if I did it right. I'm new to the whole blog thing. We started kleeneze as a extra income around our jobs and now we earn more from that than we did at our jobs. Its certainly helping with paying off our mortgage earlier. Don't get me wrong though I am still allergic to wasting money which is why I love yours and other blogs like it. I don't see the point on wasting money when we could be paying off our mortgage. If anyone wants information on how to make an extra income please feel free to contact me. http://www.regular-income.co.uk
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I love this especially the part about not thinking you can sit on your backside and get paid. We do kleeneze and offer people the opportunity to make an extra income. You would not believe how many people answer our adverts and basically say they want to sit on there backsides and make money. I think some people have a pretty skewed view on how the world works. We started doing kleeneze as an extra income and worked hard and built our income to more than we were earning at our full time jobs. It certainly helps with paying off our mortgage early. Don't get me wrong though I am still allergic to wasting money. I don't see any reason to spend everything that comes in when that could be used to pay off our mortgage and for our kids futures, which is why I love blogs like this. I hope you don't mind I've added a link to our website, i'm not sure if I did it right i'm new to blogs ect. If anyone wants more information about making an extra income please feel free to contact me.
http://Www.regular-income.co.uk
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Your budget makes a lot more sense than the Chancellor's did!
I'm happy that fuel duty has been frozen and that the help to buy scheme has been extended because they will genuinely help people (I wouldn't have my house without the scheme) - but I feel that a large chunk of the population have been ignored by the budget.
Laura @ Tilly, Bailey & Irvine
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Hi my hubby sells on ebay and if someone moans about the postage after buying but before sending he refunds them telling them to read the listing before buying. If they do it after he has sent them he tells them the postage and packing costs are clearly listed and they agreed to that when buying. Also it is not just the price of postage but packaging, time and fuel spent to get that item to the post office. Just a thought for future.
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Froogs,
This post is spot on! I am the master architect of my (and my family's) future. We continue to live well below our means, yet have a good quality of life. Multiple small things done daily, which are second nature, to save money, reduce expenditure, make do, and do without. You mention giving up the coffee shop habit and meals out-we never do that as it is, with the exception of a birthday or other celebratory occasion. DS #1's birthday is in April, he was given a choice: meal out, “take out/take away”, or a meal of his choice cooked at home. He picked take out Chinese. Fine, it's in the budget, set aside. His gift will be a laptop, BUT I have saved my credit card rewards points and have cashed them in as credits to be used towards this purchase. I wouldn't be able to afford a laptop for him otherwise.
We are currently in a bit of a budget crisis as I am on unpaid medical leave. It was anticipated back in Dec, and we've made cuts to adjust to the significant drop in income. Since I am paid Sept-June, with me setting monies aside to tide us over the Summer, this reduced budget will continue thru August. Mom recently phoned and asked if we needed any $, as she knew that I was now on unpaid leave. I am able to decline as we are fine, I have to be careful, I do have significant savings to draw upon, if I HAD to. Meanwhile, I have absolutely ZERO debt. New to me hybrid car was purchased in CASH, with impending income loss, too many what if's-it was the best plan for me. My fuel consumption has gone done (previously was driving an economy car at 42 mpg) and I am thrilled. I am focusing at the moment on the rental house costs, exploring alternative housing situations in an effort to reduce our expenditure, especially on heating. I am hoping to downsize as well, as this home is too large, yet poorly planned out. The plan is to rent in this town for 2 more years, until the twins finish high school. A modest home is what my next forever home will be, and I continue to save frantically for it so as to put down a large down payment, to make it affordable as well as to avoid private mortgage insurance (huge rip off that only benefits the bank). I also set aside monies into an emergency fund as well as a new car fund. While the aforementioned car is just paid for, if I set $ aside NOW, in 6 years when I anticipate moving to another car, I'll have the funds available to do so, avoiding a loan.
So, we trudge on. I do try to have some small “treats” so as to avoid any feelings of deprivation. Many things can be done for free, or low cost. A treat can be a home baked good, a movie and a bowl of popcorn off Netflix or borrowed from the public library, a visit to the local farm to see the newborn animals (I belong to an organic, local farm and one perk is that they host animal or farm tours for free for farm members, otherwise charge $10/person), a trip to a museum or a concert, discounted due to vouchers through the library, etc. We are blessed to live in a beautiful town, in the woods and have 2 state parks to enjoy for free as well.
Carol in CT
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Hi, me and my husband have very good jobs. We were 'heavy spenders' till last year when we realised that we had practically saved nothing and were in credit card debt. Thanks to all the motivation I get from reading articles and especially your blog, we have managed to kick out credit cards from our lives. Our personal loan (high interest) got over this month and we pledged never to take a high interest loan again. I think no matter how much you earn if you do not know how to manage your money, it will all go downhill. I am happy making small compromises, cutting down on bare necessities now, as I see my bank balance grow and debt decrease with each month. Thanks for all your wisdom, you are doing a great job! Be it Mumbai or Cornwall, this wisdom fits all contexts - Amruta
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Hi, me and my husband have very good jobs. We were 'heavy spenders' till last year when we realised that we had practically saved nothing and were in credit card debt. Thanks to all the motivation I get from reading articles and especially your blog, we have managed to kick out credit cards from our lives. Our personal loan (high interest) got over this month and we pledged never to take a high interest loan again. I think no matter how much you earn if you do not know how to manage your money, it will all go downhill. I am happy making small compromises, cutting down on bare necessities now, as I see my bank balance grow and debt decrease with each month. Thanks for all your wisdom, you are doing a great job! Be it Mumbai or Cornwall, this wisdom fits all contexts - Amruta
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Love this blog, am steadily working my way through the recipies and already have a few firm favourites.
Have always mostly cooked from scratch and taken packed lunches. Even the kids had packed lunches when they were at school.
I have now got an allotment - a massive spend of £36 for the year and although I have only ever grown a few tomatoes and lettuce will give it a whole hearted go.
My latest thrift move is rather odd, we have a very elderly cat who is now housebound and needs a litter tray. Added expense of cat litter. Well not any more, No the cat hasn't gone to the great mouse hunting paradise in the sky- husband has to shred documents at work and we have found the cat loves shredded paper in the litter tray. As long as it is cleaned out every day (and sometimes twice a day ) it is fine and its freeee!
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We have cut out the monthly takeaway and have every Saturday evening as our Fakeaway night. My other half and I cook a two course dinner from scratch which is completely new to us. I trawl pinterest for something that catches my fancy and go with it. I may have to spend a few £ to buy the unusual ingredients that I don't have in my store cupboard, but it is a damn sight cheaper than the £20-£30 I would spend at the local Chinese or Indian for the three of us.
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An interesting angle on the budget :). Most PF bloggers I read went for the '…this is a great budget for savers' line. Which is probably not true - it is not great for 'savers' it is great for the Tories before election trying to please middle England.
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An interesting angle on the budget. Most bloggers went for '…great budget for savers' line and praised the £15,000 ISA allowance. We at The Money Principle think that this budget is great only for the Tories who are getting worried about the next elections (quite right to be) and are trying to get the middle vote again.
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Well said, i'm currently just starting off on my frugality….. keep up the posts x
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This budget makes no difference to any one who has to save to eat or save to pay bills. We are well paid and we still have to scrimp to have savings.
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Most stay at home moms I have known are the furthest thing from moochers. They save their families money in ways many families can never achieve. I am hoping your intention was not to call SAHM's moochers.
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Loved Mr Micawber …Belived he was based on Dickens father.
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Amen!
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Food in the US is getting so expensive. Especially fresh fruit. It is down right scary. I am looking forward to my garden and fruit trees.
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Plenty of stay at home mothers, do plenty to save money, however, once the children are at school they can decide, if they want to , to go out and work and add money to the household.
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Now I know how we come to be living on a 5 acre smallholding, working for ourselves, with savings and no mortgage. It's because we did all the things in your post 10, 20, 30 years ago.
and I really agree with getting up and DOING something about earning extra.
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