As you might recall, I break our spending down into categories and track each one really carefully week by week. You can read about how I do this by clicking on the link to the post, above.
What went well
Our spending categories for September were as follows:
Dog-related expenditure (gotta feed the hound!)
We don’t worry about regular expenses such utility bills because those are taken care of from our second account with regular standing orders and direct debits. What we’re dealing with here is discretionary spending.
Food and groceries
The ‘food and groceries’ part of the budget went really well. Because I’d analysed our spending over the previous few months, I knew how much to budget for our weekly food and groceries shopping.
As the month progressed, I tracked what we’d spent so I knew that I’d allocated the right amount of money to this particular pot when ‘actual’ amounts were pretty much what I had anticipated.
Other pots – dog-related stuff, eating out, phone bills etc. were also on budget.
What didn’t go so well
I knew instinctively that my ‘miscellaneous’ category might be where the greatest ‘sticking-to-the budget’ challenge lay. This opaque and potentially confusing category was where I’d record things such as clothes (we don’t buy many), books, haircuts, cash withdrawals for general use and so on. At the beginning of the month, I was clear what we could spend per week under this heading.
The Miscellaneous category
This opaque and potentially confusing category was where I’d record things such as clothes (we don’t buy many), books, haircuts, cash withdrawals for general use and so on. At the beginning of the month, I was clear what we could spend per week under this heading.
I also knew myself: most of this spending happens at the weekend, so I have to be more vigilant on Saturdays (in particular) to guard against a modest splurge! However, at the beginning of the month, I was clear on what there was to spend per week under this heading.
Emergency fund required!
Then, we had a leak under the sink.
£124 later, the leak was repaired and a new part fitted, but that blew the budget for the week and significantly impacted on the following week.
This is where having an emergency fund is essential Dave Ramsay’s Total Money Makeover advocate a series of 7 baby steps, the first of which is to save $1000 to start an emergency fund (in our case, that’s 1000 GBP!). That means no spending on anything that isn’t absolutely essential and doing everything possible to build that fund before tackling all other baby steps (the next of which is to pay off any debts via Ramsay’s ‘snowball’ method).
Happily, our emergency fund is in place, but this shows that the ‘miscellaneous’ category really needs to cover only those spends that are considered or well-thought-through, rather than unplanned ‘surprises’. And you do need to control those spending urges, otherwise it’s easy to overspend mindlessly.
What about you?
How do you manage your monthly budget? Have you tried my dual account budget approach, or do you use another system? Maybe you use a particular app that works really well for you. Do share by replying below!
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What would it mean if you spent a whole year buying nothing new? What changes would you have to make? What impact would there be on you, on those close to you and on your finances?
5 years ago, Jen Gale set herself this very challenge. It not only changed her year, but changed her life.
In this exclusive interview with Jen, I discover what prompted her challenge, the experience of living through a ‘make do and mend year’ and asked how her life had changed as a result.
Jen, you first came to prominence when you wrote about your ‘My Year of Buying Nothing New’ during 2012/13. What was the catalyst for this?
I always say that I’m not entirely sure..! I do remember becoming suddenly aware that our eldest, who was about 3.5 at the time, seemed to have already tuned into ‘stuff’. He was doing that thing of demanding (very vocally!) to be bought anything bright and shiny that caught his eye whenever we ventured out to the shops. I remember feeling quite shocked that he had already tuned into these societal messages that ‘more’ is good.
At about the same time, I read an article about a lady who was doing a ‘Secondhand Safari’ – a year buying nothing new; I slightly naively thought that it sounded like a fun challenge!
How did those around you respond to your ‘make do and mend’ philosophy?
The kids weren’t really old enough to understand what we were doing, or indeed to really argue about it, which certainly made things easier. I think it would be a very different challenge to undertake with them now at the ages of 8 and 6, or as teenagers!
My husband was great. We had an initial ‘heated debate’ about whether a newspaper counted as something new, but after that was ironed out, he was really supportive.
I think he was probably more attracted to the money saving benefits of reducing our consumption, which was never really a driver for me, but he got stuck in fixing the washing machine, the toaster and even the microwave. He also made a ‘Fix-it box’ where we put anything that needed mending – he ended up fixing all kinds of things, from toy cars to wooden railway track!
What did you find most challenging about it?
In all honesty, the year buying nothing new wasn’t anywhere near as hard as I thought it would be. The most challenging thing ended up being the blogging. Somewhere along the way I decided for some reason that I wanted to blog every day through out the year, and as you might imagine, this ended up being the most difficult part of the whole thing!
Christmas was also a challenging time. We started our year in the September, so the festive season came upon us very quickly. I decided that in addition to making all of the presents, that we also needed to make all of our own decorations, including the tree… After hours scouring Pinterest for inspiration, I found a picture of a tree that looked fabulous and was made of egg boxes! I decided to try and emulate it, and the result was a little…underwhelming.
Now that you’re through it, what did you learn? What were the benefits?
I learned so much, and it has totally changed my life. It has changed not only how I shop, but how I see my place in the world.
I used to see things that I wanted to change in the world, but never really thought that I could do anything about them.
The biggest lesson of the year was that I CAN do something about the things I want to change. They might only be little things, things that seem almost inconsequential, but it is really important that I do do them.
If we all make small changes, then collectively we can make a big difference.
What aspect of your experiment have you maintained, all these years later?
We are more relaxed now that we are no longer constrained by the ‘rules’ we set ourselves for the year, but we are still far more conscious and thoughtful about the things that we buy.
I try whenever I can to find the things that we need second-hand and charity shop shopping is still my favourite type of shopping! If I can’t find it second-hand, then I explore the most ethical option available. Sometimes that means buying an ‘ethical’ product from a business with values that align with my own, and sometimes that can simply mean choosing to buy from a local independent shop rather than a large chain store.
Tell me about your interest in sustainable living: was this always part of your values, or did this develop over time?
I always thought I was quite ‘green’ – I did my recycling! But as the year progressed, I was forced to confront so many of the big issues that are affecting the planet and our global society – issues I had been vaguely aware of before, but had somehow chosen to look away from.
I had never really joined the dots together and seen my role as a consumer in the whole system. I had never believed that my actions could make a difference, but now I know that they do.
Having developed a wonderful community of like-minded people, you’ve recently launched a business helping ethical and environmental entrepreneurs unlock their potential. Tell me about this!
I’m so excited about this!
As you say, over the last few years an amazing community has sprung up around the blog, and we have an amazing Facebook group of over 6k people, all making small changes every day, and inspiring and motivating each other to keep doing one more thing.
I’m really passionate about encouraging and empowering people to take responsibility for the impact of their actions, and this applies to business owners as well as individuals.
There are so many amazing ethical businesses and social enterprises out there making good stuff happen and having a really positive impact on the world. I work with them to help them to unlock their potential, and to amplify the impact of their businesses. I really do believe that all businesses should be ‘good business’ and should take into account people and planet as well as profit when they are making decisions.
Running any business on your own can be lonely, and there are aspects of running an ethical and ‘conscious business’ that provide additional challenges. I provide the support and accountability that is often missing when we are working on our own. I can help ethical entrepreneurs to get really clear on their vision for the future, and to work out a strategy to get them there more quickly and easily.
What’s your vision? What kind of businesses are you looking to work with?
I want to make ‘good business’ the norm, and for that to happen we need more enterprises that are gently disrupting the status quo of ‘growth at all costs’.
I work with anyone wanting to run a business that makes a difference. Entrepreneurs who have a clear passion and a purpose that guides their actions, and you want to develop truly sustainable businesses, both environmentally, and financially.
What’s the one thing that we can all do to live more sustainably?
I think it comes back to the thing I touched on earlier about taking responsibility for the impact of our actions. So often we buy things, we do things, almost on auto-pilot. We very rarely stop and really think about what we are doing, and what the impact is on the environment, and on the people who have made the things that we are buying.
We all make hundreds of decisions every single day, and we all have the potential to make the best choices we can, just be taking a bit more time, and being a little bit more thoughtful.
I think that’s why our year buying nothing new worked so well. Because we couldn’t get the things we needed straight away from the supermarket or on the High St, it put a stop gap in the way of our purchasing, which was enough to create the space and time needed to think about the things I wanted to buy.
What would you advise anyone looking to live a more intentional life?
Take the time to stop and think – it doesn’t have to be a deliberate mindfulness thing – it’s just that fraction of a second before knee-jerking into doing something out of habit or because we are stressed/tired/busy.
As you might expect, I am a massive fan of the power of a period of buying nothing new – a year might be a little extreme for most people, but I really do think that even a week, or a month, is enough to make us more aware of what we are buying, and where from. It helps to create that stop gap and that space, and to be more conscious of what we are buying.
Where can we go to find out more?
I have continued to blog at My Make Do and Mend Life, and we are part way through a year of One Planet Living – looking at a different aspect of sustainable living each month.
My coaching business is at jengale.co.uk and you can find out more about me and my work with ethical businesses. I’ve got some great blog posts up there about things like ‘how to face your fears’ or ‘how to beat comparisonitis’ and I’ve got a podcast launching very soon packed with interviews with ethical entrepreneurs and changemakers!
What or who inspires you?
I’m really inspired by the online community! Social media can be a mixed blessing, but it has enable me to connect and engage with so many wonderful people and do build a wonderfully supportive and inspiring community, all inspiring each other to change the world, one baby step at a time.
Jen is an ethical business coach, inspiring change makers and purpose-driven entrepreneurs to create positive impact and a better world.
Having originally trained as a vet, Jen responded to her inner voice, telling her that there was something more! So, she made a bold move and now spends her time coaching business owners and start-ups who want to make a change too, unlocking their potential and enabling them to live the lives they dream of and to genuinely be the change they want to see in the world.