Cutting costs - where do you even start?

[Dogg Thang]

Serious question for serious times. With the times that are in it, well, the old Dogg is at a very fragile time work-wise (like many of us). I'm also in the unfortunate position of, since having two girls, spending more than I earn. I had a bit of a buffer from the good times that now no longer exists. So, even if I make what I make now for a while, I'm in difficulty and, if I'm on the dole queue, well that's a whole other disaster.

So where does one cut back in spending?

I know there are a few obvious ones. I bought Mario yesterday - that's not essential. I have more music to last a lifetime so I don't have to buy that latest album. But even without the excesses, just looking at the monthly bills, food and household costs and godawful things like petrol, car tax etc, I seem to have horrific outgoings that I can't quite work out how I'd begin to reduce. I mean, I went through poor times when single and it was much easier then but having a family now seems to have created this beast of household essentials.

Has anyone done this? Where do you cut and how? Any beginner's advice to budgeting would be really appreciated.

[averybluemonkey]

Like you said cut out all spending on non-essentials. Do you need the car - you could sell it and get bikes or walk/bus as that would save a lot of money, what MPG is it? If ending up on the dole the silver lining is that you have the time to walk everywhere. Cutting down on food is where we saved most our money when I was looking at unemployment, opting for a vegetarian diet makes for a significant saving and cutting down to the basics in terms of carbs - bread/pasta and vegetables/fruit can see a person living a healthy diest for as little as week on ?6-7 easy, funnily it's always the unhealthy stuff that costs the most. Having a timer on showers we found can also make a noticable difference to our gas bill. What kind of outgoings are you having at the moment?

[Dogg Thang]

I'd love nothing more than to get rid of the car. It costs us a fortune. Unfortunately, that's a really tough thing to do with the two kids, especially as our support network (parents) live far away and where I live the public transport is godawful. Would love to make it work without the car - getting that past the wife would be a battle!

Cutting down on food? Our food bills are high and it's one place I haven't really examined in detail in terms of what exactly the money is going on. That may well be a place to look. And, yeah, our gas bills are horrendous (one of our main outgoings actually) so timing showers could be a big one. We don't even use the heating all that much so I haven't quite figured out why those bills are so high but we have an immersion heater and power shower - that's got to be costing us, right? I haven't got the outgoings to hand (still adding them up to be honest - using November as a real test month to see if there are places we're spending money that we haven't factored in) but they're nasty! Car, gas, food, household is all high. Phone bills and electricity don't seem to be too bad, thankfully.

[smouty]

Desperate times call for desperate measures it is said.
Cut out luxuries - take away food, booze (brew your own ), fags, sky TV, mobile phone (reduce to what you need), ISP, question every insurance/AA/RAC renewal, pay off any credit card debt or at least look for low interest offers.
Buy what is on offer in supermarkets and go late or just before closing for any reductions.
Reduce heating by a few degrees and wear more clothes - speak to your grandparents if they are still with us. Mine were from the generation that lived through the depression and WWII so were a mine of prudence much to my annoyance as a kid.
Look to sell anything you no longer use.

It is quite easy to reduce your outgoings with a negligent effect on your quality of life to start with.

[Dogg Thang]

Thanks guys. Wouldn't have thought of picking a time for supermarket reductions! Not a boozer or smoker but there is the sky TV - hard to give up but might just have to be done.

[EvilBoris]

My monthly outgoing for Essentials are fairly stable, but I find it's buying all those little things I between that really rack up the monies. Buying my lunch here, a can of drink there a 'bargain' impulse buy etc etc

[speedlolita]

I love grabbing me cheap bakery stuff on a Friday night as Sainsburys.

[Skull Commander]

Sorry if this all seems obvious, but I live by the 'Look after the pennies...' saying. Cut out brands where possible, substitute fizzy juice with squash or even better, tap water, bulk buy non perishable good deals at the supermarket. Also utilise your freezer, and use them to store fresh food that's been reduced and on it's sell by date for later. Use topcashback and Quidco for everything humanly possible, and get used to looking regular on hotukdeals. If you have a sky tv package maybe re assess if you need everything you have got, and also do the same for any mobile phone contracts. Giff Gaff do some very competitive sim only tariffs with internet bundles and the suchlike.

[Kieran76]

Planning your weeks food, and more importantly sticking to it, is a great way to save money. I save loads of money by making myself dinner to take to work. I often make soups/stews etc on a sunday and freeze them to use throughout the week. A simple leek and potato soup is not only dirt cheap to make, but is super healthy and super tasty.

[EDDIE M0NS00N]

When I 1st glanced at the title I thought it said: 'Cutting throats'

[Mr Ono]

I just stopped buying games for a while and probably saved loads. If you have games to finish (or even start) do that. Went about 3 months without a purchase and only resumed recently with BF3, MW3 and Skyrim (on the cheap). Really want AAA stuff like Uncharted 3, Mario 3D and Zelda but know I just won't play them.

Just don't buy luxuries of any type.

[charlesr]

Sky TV is useless anyway. Was glad to see the back of it. You can keep the box and use it as a freeview box (get "Freesky from sky") so still get the free HD channels. The pause facility is removed though wtf.

Make sure the kids know the situation.

And tell relatives you aren't doing presents this Christmas and why.

[Flabio]

How old is your gas boiler? The government will offer incentives to replace old crappy inefficient ones, and that'll bring your bills down.

[speedlolita]

Sky TV is useless anyway. Was glad to see the back of it. You can keep the box and use it as a freeview box (get "Freesky from sky") so still get the free HD channels. The pause facility is removed though wtf.

Make sure the kids know the situation.

And tell relatives you aren't doing presents this Christmas and why.

I've never ever had Sky TV, or equivalent. Dave and BBC3 do me fine between working and playing video games. Although I do stream stuff like Simpsons, Family Guy and American Dad online.

[Matt]

Firstly, truly sorry to hear you're having problems mate. Many of us are in the same boat - 2 kids, income not as much as outgoings, uncertain work future. Add an interest rate hike on top of that, and I think many of us will be in a ****load of trouble

I try and be sensible, but then I can go out and act like an idiot with spending from time to time Here's some things I've done over the last few years, many of which have been mentioned already.

Cancel Sky TV. Get a FreeSat box, or a Sky FreeSat card. Sure, you lose a lot of channels, but you can get by. Total outgoings on TV is now zero.

Call your internet and TV provider (if different), and talk to them. Say you're going to have to cancel. Get a good deal - but not a long term contract.

Plan meals out. Just buy what you need, and never eat out

Go down to 1 car if you. We only have 1 car. And get a cheaper to run car if it's viable. Fuel costs are obscene.

Hope things pick up for you mate.