The Credit Crunch Expert
1. Money - 1. By far, the most important change I am going to suggest you make to help you beat the credit crunch is to adopt the "envelope system". Each week I withdraw my spending money for the week and divide it into 6 envelopes:
Envelope 1 - Bills - £30
Envelope
2 - Adults - £60
Envelope 3 - Kids - £30
Envelope 4 - House - £20
Envelope 5 - Food - £70
Envelope 6 - Fuel - £30
Of course, your envelope names and the amounts you put into them is specific to you and your circumstances however the golden rule is that everything you buy MUST come out of the relevant envelopes and that is all you can spend. No cheques, credit/debit cards or trips to the cashpoint. If you dont spend it all then it stays in the envelope and accumulates to be available for a larger purchase.
2. Personal Debt - If you cannot afford to buy it then DONT have it! Plan your finances and budget carefully so that whatever you are buying is a "one off" purchase that you enjoy and not a long term monthly purchase that you regret.
3. Mortgage - Shop around for the best mortgage deals. Try to secure a fixed rate that you know you can afford now and in the future.
4. Cars - Start car sharing. Reduce your fuel and running costs and do your bit for the environment. With a bit of planning I am sure that you could car share with one of your work colleagues at least twice a week. Visit liftshare.com to find other people that do similar journeys to you.
5. Household - Use well known websites like mySupermarket.co.uk to find the best deals available. Take full advantage of the Buy One Get One Free offers to stock up on products you will buy every week.
6. Clothes - If you currently buy your clothes from the likes of Next and M&S then start looking at what you can get in Matalan, Primark or one of the main Supermarkets. Fantastic bargains on everyday items and childrens clothes.
7. Holiday - Try going to somewhere like Bulgaria, the weather is as good as Northern Spain, the accommodation is often better and the food and drink is a fraction of the price. You will still get a pint of beer for 40p - 50p. Click Here for more information.
8. Going Out - Take advantage of the many deals that are being offered by the main pub/restaurant chains where they offer 2 meals for the price of 1, Kids eat free and earlybird discounts.
9. Staying In - Cook for your friends or neighbours on a rota basis. It will not cost you much more and the following week they will return the favour. You are not entertaining, simply sharing the cost.
10. Children - Talk to your children about the credit crunch and how it affects the family. Start to have discussions about how much things cost and manage their expectations about what is affordable.
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