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Saving as much as I spend

Posted by on Thursday 3 March 2011 in frugal, low spend 11, personal finance | 0 comments

Following the 20 Financial Milestones for your 20s(ish) list I worked through at the start of February, I’ve started a new separate savings account for “saving-as-much-as-you-spend” thing.

I ummed and aahed about adding it to my normal savings account but I like the idea of starting its own dedicated account so I can really see it add up.

I’ve decided not to include all of my spending in the “to-save” pile – just the stuff that feels optional or a treat/luxury: books but not bus fare, meals eaten out but not food for meals cooked at home, pretty craft stuff but not pet supplies. My very own VAT ;)

From the whopping £242.52 which I spent in February, £137.16 was myVAT-able so that’s the opening amount for the new savings account.

I’m doing this for two reasons: firstly, I need to get back in the habit of saving money regularly again as during my lean-wage/self-employment over the last five years, my saving has been adhoc at best but more frequently, for long stretches, not at all – the savings I do have now date almost entirely from when I was employed. To start saving though, I’m going to have to free up some money from somewhere and that’s where the second reason comes in: I’m hoping it’ll help me reduce my consumption and make me more mindful about what I do spend. Those myVAT-able things now cost twice as much as far as my current account is concerned – I won’t (I WON’T) go into debt or start putting things on credit cards so they only way to live within my means will be to cut back. Of course, the theory only works because I know there is plenty of slack that I could cut back on without it particularly affecting my life for the worst – it will be interesting to see how it is in practise though.

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