Every new year feels like a fresh start. It is the perfect time to look at your family budget and review your spending and find ways to save money.
We make new plans and set new goals every year, and tell ourselves that this year will be different.
But do you check your money every year? Do you review your budget and see where your money is going?
The best way to start the new year is with a new plan. A new budgeting plan that works for your family and helps you save some extra money this year.
A budgeting plan that will help you understand where your money is going and help you control your spending.
Review Your Subscriptions
Have you ever actually checked how many subscriptions you are paying for?
How many of them are you actively using? And how many of them have you actually forgotten about and don’t know that you are still paying for?
It’s surprisingly easy to build up a long list of subscriptions and forget about it.
So why not go through the list and check them all. Check your music plan, any streaming services or apps that you have downloaded and subscribed to.
Go through your bank account and check every regular payment that leaves your bank account. Ask yourself a few simple questions: Do I need this? Do I use it often? Can I combine any subscriptions?
Not long ago, I saw an advert for a package that brings Netflix, Disney+, HBO Max, and Hayu together under one subscription. It turns out the offer is from Sky and, which now includes these services in its Ultimate TV package. The package is advertised from £24 a month for new customers.
Well, my point is, check your area and the companies around you for those types of packages.
Whether it will save you money or not entirely depends on how much you are paying for your current TV package and which subscriptions you are using. If you could bring everything together under one package, it’s definitely worth checking.
Shop Sales and Save Money
Everyone loves shopping!
Seeing the words “SALE” “50% OFF”, and “FINAL CLEARANCE” can make us feel like we have found a bargain.
Something about those words that makes us happy, and when checking the sale items in the shops, it can feel like the best way to save money.
Keep something in mind, only shop the sales when you actually need something.
For example, I like to buy clothes for my children that are on sale for the season ahead. Yes, it does need some organisation, but it works.
Plan and get their summer clothes in the January sales. Or buy their school uniform when you find it on sale later in the year.
The important thing is not to buy something simply because it’s on sale. Buy it because you need it and think ahead, especially when shopping for kids.
Use a Cash Allowance to Control Spending
It is so easy to overspend in the world of technology.
A quick tap of your card here and there, or buying something online with one click and having it delivered the next day, can make spending so much easier.
And this is the problem we face these days.
We don’t physically hand over cash, and it can be much harder to notice how quickly the money is disappearing.
A friend of mine told me, “We are that bad with spending; we can’t even make it through the weekend.” Her husband gets paid weekly.
The advice I gave her is the same I will give you here.
Plan what you need to spend money on during the week. For example, weekly shopping, fuel for the car, and a set of tyres for the car that need changing. Calculate how much you will need and take the money out in cash.
When the money is gone, that’s it. You can’t spend any more.
It might sound bad and old-fashioned, but using cash makes you so much more aware of how much you are actually spending.
Write a Gift List Plan
I know at least three people whose family birthdays are around Christmas. And when birthdays are around the same time of year, they become very expensive.
My kids’ birthdays are towards the end of the year too, and with Christmas celebrations, oh wow, it is expensive every year!
I have seen a lot of families going crazy, not only with Christmas gifts but also with birthday presents.
But why does your child need so much every year?
In our family we have one simple rule: the birthday gift will be one gift. Whatever you like, whatever you choose, but it will be one gift.
For Christmas we have another rule: Santa brings one bigger present, and the rest of the presents are smaller gifts from Mum and Dad.
And Santa doesn’t bring animals, expensive game consoles, or lots of expensive electronics.
Of course, every family will have their own way of doing things, but I think it is very important to set your limits and stick to them.
Children don’t need a huge amount of presents to have a wonderful birthday or Christmas. Sometimes, having fewer presents or simply spending time with them can be more special than anything else.
Plan Your Grocery Shopping
Food shopping is the biggest spending area in every family budget.
It is also one of the biggest places to overspend without realising.
Often, we go to the supermarket only for a few bits and come out with a trolley full of things we never planned to buy.
One thing that helps is to plan your meals around what you already have at home.
Before you write your shopping list, have a look through your cupboards, fridge and freezer and make a list of meals you can already cook using the ingredients you have.
Once you have worked out your meals, make your shopping list from the ingredients you are actually missing.
This is so much better than going to the supermarket without a plan and trying to work it out while you are there.
Why not challenge yourself a bit: What meals can I make from what’s already in my kitchen?
DIY Repairs
Another expensive part of your life can be repairs around the home.
Things break, walls need painting and furniture needs repairing or replacing.
Not everyone is able to do everything, but there are so many things that you can learn to do yourself.
We live in a time when information is everywhere. Online tutorials and guides are available for free, and if you don’t know how to do it yourself, you can usually find the information online and at least try to do it yourself.
You don’t need to become a professional. Start with the small things, and even if you have a friend who is good at DIY, ask them to show you how to do things.
Of course, only stick to the jobs that don’t include gas electrical work or major structural work in the house. Leave those jobs to the professionals.
But for the simple jobs around the house, don’t be afraid to ask for help and have a go yourself.
Sell What Is Not In Use
Teach yourself and your family to declutter.
My mum always taught me not to keep things in the house that are too old, broken, or simply not being used. Her rule was simple: if you haven’t used something in the past year, you probably don’t need it.
Of course, there are always exceptions, but I think this is a simple rule to start with.
With clothing, it’s the same. Style changes, our body changes, and something that was trendy and fit us last year may not be something we wear this year.
So why keep filling your wardrobe with clothes you no longer wear?
Go through your clothes regularly. If things no longer fit, are out of style, or you simply know you will not wear them anymore, let them go. Give them to charity, sell them online, or give them to someone who will use them.
The same thing applies to things around the house. If something is broken and you have been saying that you will fix it, but you have not done it yet, well, maybe you have to admit that you are probably not going to fix it and let it go.
Decluttering can be therapeutic and satisfying. You make space for new things, and you free up space around your house.
If you sell some of the things you no longer need, you will make some extra cash and perhaps put that money towards something else in your budget.
Final Thoughts
A New Year, A New Plan!
Remember, saving money doesn’t mean you have to stop enjoying your life or never spend any money.
It is all about being more aware and knowing where your money is going. Make the right decision at the right time.
Simple things like looking through your subscriptions, planning your meals, and writing a gift list can help you be more organised, save a little extra money, and use that extra money somewhere else in your budget.
Don’t overload yourself with changing everything at once. Start with one small thing, and build from there.