The Frugal Bank
What is a Budget?
What to do if your bank is broken
- Stop spending immediately
- Prioritise - essential household bills and debt repayments need paying first
- Make a list because lists are very versatile and help you focus
- Needs not wants - you need food and water to survive so think survival! You don't need tobacco, alcohol, cosmetics, expensive toiletries, 1,000 TV channels, takeaway mealsm big brand names or the latest gadgets.
- Reassess your budget in a more meaningful way - keep a spending diary and record every penny spent. Your role has now become that of accountant and manager of your own home, no matter what form your home takes.
- You need to count in all costs - from the cost of living to the cost of working - have you ever counted up how much your job is costing you? Are you wasting money on travel, coffee breaks, lunches etc?
- Look at ways of generating some emergency income - extra work, sell stuff you no longer need, decluttering your space can declutter your mind.
- Analyse your overall debt total to start chipping away at that, paying whatever is commanding the highest interest rate first.
- Become a frugalista in the kitchen and adopt a zero tolerance for waste. Believe it or not, it is still possible to live on an average of £1 per day for all your meals, based on £365 per person over the year. I'm not saying that it is easy and you may need to find your nearest food bank, community larder and Olio food hero, plus find a friend prepared to share so you can take better advantage of offers - it can be done.
- Learn to make and love porridge, soups, stir fries, stews, curries and strange concoctions of leftovers.