Thrifty ways to make 'pocket money' go a bit further

10:17am Wednesday 5th November 2008

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As the credit crunch bites deeper, we are all looking for ways to cut back. In an attempt to make their money stretch further, Press writers Stephen Lewis, Maxine Gordon and Charlotte Percival set themselves the challenge of spending £60 ‘pocket money’ a month. Here is how they got on.

Stephen writes...

SOMETIMES it’s the little things that cost so much money.

A few years ago, when I began to find myself repeatedly broke by the end of the month, my wife suggested a little experiment.

Try to keep track of all the cash you spend during the week on things like coffees and snacks, she said: and limit yourself to £60 spending money a month for such things.

I decided to give it a go: and quickly realised just how much money had been dribbling through my fingers.

Buying a newspaper, a coffee and a sandwich for lunch every working day could easily cost a fiver. And when you work it out, that comes to £100 a month.

Allowing myself only to draw out £60 cash a month made me much more aware of what I was spending.

The idea wasn’t to become a stay-at-home misery guts. Evenings at the pub, visits to the cinema, days out and holidays all came out of a different budget. The idea was simply to reduce the amount of money frittered away without even noticing.

It worked. I’m never really bothered if I exceed my £60 monthly budget.

But having it there in the back of my mind makes me much more aware of what I’m spending. And it helps motivate me to make my own sandwiches the night before, and to bring my own tea to work.

All of which means more money in the bank. And that ain’t a bad thing when times are tough.

Maxine writes...

AS A self-proclaimed bargain hunter, I like a bit of a financial challenge. Ask me to find a stylish red winter coat for under £60, and I’ll have snapped it up before you can hum the intro to Lady In Red.

So I felt confident I could follow Steve’s example of limiting my day-to-day spending to just £60 in one month.

It all began well. I started the month by bringing my own sandwiches to work and each time I felt the urge to hit the high street at lunchtime, I would just ask myself: ‘Do I really need a new make-up bag from Cath Kidston?”

I felt good each lunchtime, returning to my desk, and adding to my spending ledger the sum ‘zero’ for the day.

I was quickly gripped by frugal fever.

I bought a pack of 20 filter coffee bags for £2.80 to take to work, which worked out at 14p a brew, and knocked my take-out-lattes habit on the head.

On the days I forgot – or was too rushed – to bring my own lunch to work, I felt pained having to fork out on food at nearby takeaways. The £2.95 for a jacket potato with coronation chicken seemed extravagant when lunch was normally ‘free’, so I was pleased to discover the new Polish deli on Walmgate offering a cup of home-made soup with a hunk of bread for only £1.10.

Occasionally, I like to meet friends during my lunch hour, hooking up in town for a sandwich and a coffee. This normally sets me back at least fiver, but if I was really stepping in Scrooge’s shadow, I could have eaten my lunch at my desk and just met my mate for a coffee (not as much fun, though).

However, I eased my conscience – and balance – by having a cheap night out at the cinema. City Screen reduces its ticket prices on Wednesdays, and anyone on the Orange network can get a double bonus by claiming the ‘two-for-one’ Orange Wednesdays offer, making admission just £2.75 per person.

A train trip to Scotland put a serious dent in my pocket money. Normally, I get a lift to the station from my hubby, but he had to go to work, so I spent a fiver on a taxi. Also, I usually take my own snacks and drinks for me and my six-year-old daughter, but didn’t this time, and forked out £7.50 at the buffet car. Add on the £3 spent at WHSmith’s on a newspaper and magazine and it’s easy to see how £60 can easily evaporate if you are not careful.

As the month wore on, I easily exceeded my target. Too ashamed of my failure, I stopped keeping my ledger.

However, I was mindful of the spending challenge, and it did make me bring my own lunch to work more and think twice about the little things that it is easy to fritter away money on.

Being more financially careful spread to other areas too. I started making a list of what I needed for the week before going supermarket shopping, and was surprised by how much lower my bill was.

I will definitely try the £60 challenge again this month. Who knows... I might have enough left over at the end of November to treat myself to a new party dress.

Charlotte writes...

I like to think I’m quite good when it comes to budgeting. All my spare cash goes on holidays, so I don’t mind missing out on big nights out and fancy meals to have fun later.

As I live 25 miles from work, I often drive too, so my booze bills are lighter than those of my friends when we go out.

However, my biggest vice is my lunchtime coffee and cake with my pal, Haydn. Sometimes we each pack away a chocolate brownie and cup of tea a day to get our fixes of gossip and sugar – that could easily reach £60 a month.

So, I challenged myself to just one coffee a week but no cake – and we would chat while walking around the shops instead.

During the trial, Haydn had some leave from work, which helped me escape the lure of the coffee shops. I also brought my own lunch to work most days.

I did spend £18 on a meal to celebrate his birthday during the first week, however, and £4.15 sharing a Chinese with my friend the day after.

As time wore on I became a bit more lax and spent £13 on decorations for my Hallowe’en party. But I still made it to the end of the month with about £3 to spare.

Next month I’m going to lower it to £50 – but spend it all on cake!

Money-saving tips from a thrifty author

Columnist and author India Knight loves shopping so much she wrote a book about it.

But in 2007 she was served with bankruptcy papers and knew she had to change her ways.

Her latest work, The Thrift Book, (Fig Tree, £14.99) aims to show us how to live well, but for less cash.

Here is her advice...

* Shop online. Make a list first, by planning your meals for the week and buy only what you need. Not only is it cheaper, it stops impulse buying and stocking up on snacks.

* Shop at cheaper supermarkets. Prices are a fraction of the market leaders and you can save a fortune on your weekly bill.

* Make your own lunch.

* Drink tap water. It’s free.

* Look for dining offers. For special occasions, don’t limit yourself to ‘cheap’ restaurants. Many of the best places offer special lunch deals or pre-theatre, early-bird menus.

* Look after your clothes. Learn to mend, iron well, polish your shoes and use weather-proofing spray, save a fortune by buying thick opaque tights that last for years.

* Swap. Hold swishing parties with friends, where you swap clothes and accessories, or look out for local events and organisers in your area.

* Free babysitting. Join a circle where you repay your sitter by sitting for her.

* Free books. Join your local library.

How to limit spending by keeping track of your cash

* Set yourself a monthly “pocket money” budget for snacks, sandwiches, newspapers, coffees and so on. It could be £60, or a bit more or less, depending on your circumstances.

* Take that amount out of the bank in cash once a month, and once only. Use only this cash to buy coffees, newspapers etc – and try to make it last until the following month.

* Make sandwiches at home (or bring leftovers to work for lunch), and bring tea, coffee and milk to work so you can make your own. You will save a lot this way.

* Don’t worry too much if you do exceed your ‘pocket money’ budget one month – just make sure that you still try to stick to it the following month.

* Even if you do overrun your budget, you will find that having set a monthly target makes you much more aware of what you are spending money on. You will fritter away far less.