Cost of living: Niamh’s story

Take a look at some hints and tips offered by Park colleague Niamh.

Date:

3 November, 2022

Save money by being savvy

I don’t know about you, but for the longest time, money hasn’t ever been a subject I’ve felt comfortable discussing – a subject silently deemed inappropriate for conversation. But as the cost of living crisis isn’t going away (yet), it’s right to be vocal about it. No matter how our circumstances differ, we’re all in this together. Soppy, I know, but there’s small comfort in knowing I’m not alone in my worrying.

I’m by no means on par with Martin Lewis, and although I’m only 25 (and yes, still live at home but I pay my way), I have learned how to budget quite well – I can thank my taxman dad for that. I’ve also learned some savvy hacks from my research for Park’s Summer of Savings articles – this one in particular is filled with hints, tips and tricks, and following some cool influencers and watching / listening to their advice. I won’t lie, saving money isn’t easy, but in my experience, it requires one thing – discipline.

Affordable, but realistic

I log everything I spend. This means I’m able to understand my spending habits. I use Microsoft Excel as my virtual budget planner, but before that, I just used a good old-fashioned pen and paper. Investing in a budget binder helped too, especially if, like me, you budget with the cash envelope system (more on that later).

I work out my finances on a monthly basis since it gives me more of an idea of what I’m dealing with. My budgeting plan sees me document every transaction. It may sound a little tedious, but this allows me to make plans without worrying about if I’ll be skint afterwards. It also lets me buy something without feeling guilty.

  • Payslip. I check it regularly to see if my salary is correct; if not, I can get it sorted.

  • Managing expenses. I group my expenses together into categories, such as ‘Needs’ and ‘Wants’ - the former is costs I can’t avoid like utilities, the latter is what I can live without such as a takeaway.

  • Consider savings. I put some of my monthly wage into my savings account – it’s off limits and only to be used if I’m ever in a really tight spot.

  • Cash envelope system. It's as easy as it sounds! I put money into an envelope based on budget categories and that’s the only cash I can spend on that particular thing. Find out more about it here.

Money saving tips done easy

I’m still living at home and although I pay keep, it’s not as much as some people’s rent. I do pay for other things too, like gym membership, subscriptions to online services and pet insurance, but I try to stay nifty.

This is how I manage to keep an eye on my spends….

  • Takeaway coffees. I’ve invested in a reusable cup and make my coffee before I leave for work. I have already saved £250.

  • Sales. When I need new clothes, I pick them up during a sale and I sleep on it before to help me curb impulse buying.

  • Subscriptions. Just recently, I cancelled my Amazon Prime membership after working out I wasn’t getting my money’s worth – this means I’m saving £8.99 a month - £107.88 over the year.

  • Pay with cash. If I’m going out with my mates, I leave my credit and debits cards at home so I have to stick to a budget. Contactless = too easy, too alarming! Not an option.

  • ‘No-Spend’ challenge. Once or twice a week, I don’t spend anything other than what I’ve budgeted for. Learn more about the challenge here.

On a final note...

As much as I enjoy the finer things in life, I’m constantly reminding myself to be grateful for what I have. Instead of attempting to live outside my means, I really do try hard to make the most out of the situation. I’m still living at home, which affords me the opportunity to save more – something I’m taking full advantage of until I move out.

Resource bank

A list of resources all about budgeting, offering hints and tips on the best ways to manage our money: