Happy New Year 2020

2020 is going to be tough for many people – that is the reality of it though.

Some things are beyond our control, whilst others are not.

I have a few things I always do.
So for me, they are not new habits but for you, they may be.

I’m going to make a few suggestions-all of them are things I do or have done.

We often need to change our habits as our family grows and the way we did things 5 years ago, or 10 years ago may not work best for us now.

This list is not endless, just a few ideas which spring to mind to help avoid you enduring extra suffering when times are difficult moneywise.

Here is my first tip.

Spending Diary

This is my favourite as having a spending diary really does explain where your money goes.
If you have any spending habits which need extra control it will show them up.
Sometimes we are spending in areas we have not really thought about.

Keeping a continuous log of it helps you to define what goes where.

I first started my spending diary about 10 years ago-it could be longer.
It became a habit-a way of life. I am so well trained now that I think I can let it go!

The diary I buy is usually an A5 daily diary-this is a nice size to write down your every purchase.

I used to categorise them in great detail but that can be too much for some people and as time goes by, you come to realise which categories are suited to your own spending.

I suggest the following:

• Food
• Household (cleaning, regular items which are often replaced)
• Electricals and White goods
• Petrol/Diesel or transport costs if you do not have a car
• Clothes
• Toiletries
• Household maintenance such as a gardener or window cleaner

You can of course combine these categories as you wish but those are just a few ideas to get you started.

I write down each spend accordingly and go through my receipts.

If you bought food plus clothes plus cleaning items in Aldi for instance, deduct the non-food items so you know what went on food.

Do this with each category.

Remember to include eating out on the food bill unless you want to keep a separate budget for it. Account for it whichever way you do it.

I keep a running total and add up the spending at the end of each month.

If you divide your spending between January by 31 and then multiply by 7 you will have your average weekly spend for January.

I do that every month. It is such a habit that it is second nature to me and no longer laborious.

Even if you only write it down, it means you can track your spending and get some idea of what you are spending.

By doing this you will halt your overspending and be much more aware-especially if you have goals.

Some people enter this onto a spreadsheet and even do graphs and pie charts for it. I have done but no longer do so.

It is as complex as you want it to be.

Start off simple-maybe just 3 columns

• Food
• Non food
• Clothes

Good luck with your Spending Diary.