Kia Commodore

A Little Bit Richer

Our podcast offers bite-sized money management tips. Great for listeners in their twenties and early thirties. 

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Kia: Hey, Kia here. The cost of living has made everything so much more expensive. Not just the price of things that we buy regularly, but our more significant outgoings too. Energy bills, rent and mortgages have seen some huge increases. With everything seemingly on the rise, knowing how you can cut back to make your money stretch even further is something that we all need to know. Welcome to another episode of a Little Bit Richer, brought to you by my friends at Legal & General.

Here to help us with the top tips to trim your spending is Charlotte Jessop. Charlotte is a financial educator, writer and vlogger, and the woman behind the Looking After your Pennies platform. While working as a maths teacher, Charlotte noticed a gap in the education system around personal finance skills. She shared her own experiences with money online, which led to a recognition that poor financial education is a national, even global problem. Welcome, Charlotte.

Charlotte: Hello. Thank you for having me.

Kia: Thank you for coming on. I'm really excited to delve deeper into how we can trim back our spending. So first things first, let's touch on day- to- day spending. So, can you share some ideas on trimming your spending when it comes to food?

Charlotte: I don't think there's any other part of our lives where you get this intersection where you are dealing with your finances, your health, and also your time management as well. Because when you go food shopping, you're looking for things that are going to nourish your body, but they also have to stay in budget and they also have to not take too long to cook because you're busy.

Then yes, it is one of those things that we can control a little bit more with our spending. We have a choice about how much it costs, but also it is a mammoth task. So, some of the things that I recommend people do are things like meal planning. So, sit down and decide what you want to eat for the week, and sometimes that restriction, that can be a little bit controlling for some people.

Actually for me, I just like the freedom of going, " What we're having today? Oh look, we're having chicken nuggets and chips," or whatever it is. And the benefit of doing this is you can think about what you need to buy. You can also think about what time constraints you might have. So, if I go out to the shops and I buy something that's going to take two hours to prepare, that's going to sit in the fridge and go to waste. Whereas if I go, actually this needs to be a quick in the oven, 15 minutes, then I know I've got that on the menu. So, that really helps reduce things like food waste and keeps the cost down.

Other things like just choosing your supermarket wisely. Some supermarkets are cheaper than others and this is widely acknowledged. Do a little bit of shopping around. I also do want to acknowledge that I live in Norfolk and sometimes you don't get a choice about what supermarket you can shop. But yeah, I think just being a little bit of aware of things like the pricing.

All the tickets these days have to have how much it costs per kilo or per hundred mil, or whatever it is. So, you can make a little bit of a comparison when you're in the shops itself. The things on the end aisles might look cheaper, but they're not necessarily, they're just the promotions. So, take your time with some of these things.

I'm a big fan of having my shopping delivered, and this is mostly because I then have the freedom to shop around and compare prices. And one trick that I really like, and I use this when I'm doing my meal planning, is I will go online and look at the supermarket's pricing and go, " Oh actually, what's on offer?" Because sometimes chicken might be on offer that week and that's a really good price, whereas I was thinking about having pork chops or something, but actually the chicken might be cheaper.

So, I can combine the two things and create meals around what's cheaper that week. So, just tweaking some of these things can help shave off a few pounds off your food bill each week.

Kia: Absolutely. I think one big thing that my dad got me into before I went to university and that I still do today, and that he loves to do is the yellow stickers. Because it does feel like sometimes everything's always on the rise, but there are so many different ways that you can bring down that spending.

Charlotte: Absolutely.

Kia: When it comes to treat spending, because I think this is a big thing, as people life is very stressful. You want to spend some money and treat yourself, but what are some ways that we can make sure that we're not just splashing the cash, but we're actually being a bit more measured with our treat spending?

Charlotte: So I think one of the things that I love to do here is actually pre- determine what I want my treats to be, because we can get caught up in the moment. So, I like to set a list of things that actually mean something to me. So, I have various hobbies like paddleboarding and I like eating out, and I like travel. So, I'm trying to make sure that if I'm going to treat myself, it's on something that actually is meaningful to me and I'm not just trying to fill in a gap and an emotional splurge, but also budgeting that in, allowing that to be part of your spending.

So many people that I see when they are preparing a budget or they're sitting down there, they've got a spreadsheet or they've got an app, and they've planned out what they want to spend their money on, they remove all of the fun, and that makes it hard work to stick to a budget, instead if you allow some of those things to be in your budget. So, if you want to takeaway, put a little bit of a takeaway buffer in there. The point of life isn't just to sit in your house bored.

Kia: No, it's not. I completely agree. I've had a treat yourself fund, that's what I call it, for ages now. So, when I see something I don't feel bad. I can spend and say, " Okay, it's within my budget. I've got X amount set aside. I can buy this." So, let's talk more about budgeting then. What can people do when it comes to making more significant cutbacks to their spending and their budgets?

Charlotte: Yeah, so we've talked about things like food shopping. We've talked about those treats and reducing those things, but actually these are smaller tweaks. What we want to do is look at some of the more significant purchases we are making in our lives and see what changes we can make there. So, I have a budget spreadsheet, I have all my outgoings, all my income. And what I do is I look, and I'll highlight maybe a category on there. So, it might be like my electricity bill and I'll be like, I'm coming for you electricity bill, and that month I'll work on how I can reduce that.

And that might mean I switch my provider or it might mean that I look at ways that I can reduce my spending around the house. Look at those big expenses that we have in our lives, rent, mortgage, all of our utilities. Here is where we can make the big difference.

So, things like if your mortgage is out of your fixed deal, go speak to a mortgage advisor, speak to them and try and get a deal that maybe lowers some of those payments. All of these things are very much worth looking at and trying to reduce. Because ultimately, if my mortgage costs me less, I still get the same quality of life. I'm still living in the same house, it's just my mortgage is costing me less. Same with my electricity. So, these are less about lifestyle choices and just significant financial changes, and they can make a real difference to your budget.

Kia: I think there's a key thing that you said there, is that to speak to someone. So, I drive and I have my car. Every year, I do not renew my insurance or go over new insurer without picking up the phone and see if I can get the best deal. I think that is a very key one that you mentioned there. Just pick up the phone and speak to someone. And if they don't give you one, you're no worse off.

Charlotte: Yeah, absolutely.

Kia: And I think often a lot of people have this consensus that, oh, I'm just bad with money, because they feel as though they have no control over how they spend their money. So, what would be some of your tips when it comes to actually controlling how much you spend?

Charlotte: I think you need to start with an awareness of what you're spending. A lot of people jump straight in with trying to just cut out all unnecessary expenditure. And what there needs to be is a period of reflection. What are you currently spending your money on? And I can speak to this, because a couple of months ago I realized that there was certain areas I was like, how is this costing me this much? And so, I reflected a little bit on where my money was going and I'm shifting in my seat, because there was some almost embarrassing, there was some online shopping that came in to 400 pounds.

It wasn't like I was like, " Oh, I have 400 quid's worth of stuff." Off the back of it, it was, " Oh, well where did that go?" And there were little trips down to the local shop for top- up shops. This was not my grocery shopping, this was just the odd, we'll need a pint of milk and a chocolate bar, and this and that.

So, I needed to start from the point of, this is where my money is going and why is that happening? What am I not doing? So, things like those top- up shops, I was like, well, what is it that I'm getting? What is it that I'm not getting on my weekly shop that I feel the need to go down to little Tesco for in order to get every couple of days? And then, I was able to make a change to my habits. I wasn't able to make a change to my grocery shopping and go, " Oh, okay, I need to buy more milk." I was like, I'm running out of milk, but if I just got six pints a week rather than four, that's going to fix my problem and then I don't have to go down the shop.

So, control and spending isn't about completely eliminating some of these things that you're doing. It's about just having an awareness of why, and that's when you start feeling a little bit more in control. So, I don't recommend that anybody goes cold turkey on changing their financial habits around their spending. Instead just reflect, go through this period of understanding where you're at now and looking for areas where you can make improvements.

And it might be that I allowed myself, for example, one trip down to the shop and then that change was enough to let me go, "Well actually, I don't need to go anyway." It was just a little outing. And making those smaller steps is much better than trying to make one huge leap to something that feels a long way off.

Kia: I think those small steps just feel more achievable and more attainable and they keep you motivated on that journey, and it gets you building up that good habit. So speaking of habits, I want to ask you, what are some good or positive spending habits? We've spoken about things to be aware of, but what are some good ones that we can make sure that we're enforcing?

Charlotte: Yeah, so I think when it comes to positive habits, having a budget, any budget is a great place to start, because this isn't just about your own financial awareness. It's about knowing what you have coming in, and income is just as important as spending, but also things like seeing where your money is going. Knowing it's so easy to get those little subscriptions crop up. So, having a budget that is all encompassing with your spending is an absolute place to start. The next habit that follows on from that is making sure that you actually bother to look at it.

Kia: That's a crucial one. Don't just make it and leave it, make sure you're referring back to it.

Charlotte: You need to be able to check in with that. It needs to be a functioning document, something that adapts and changes. I think another one is to just have that knowledge around your own wants and needs as well. So, when it comes to spending, I always sit there and go, " I know I want this, but does it align with my bigger vision for myself?" Do I want this meal out because I can't be bothered to cook, or can I just shove a pizza in the oven and then actually that can go in my holiday fund, because I want the holiday more than I want this meal out today."

So, just knowing what you're trying to achieve, and having goals and being clear about where you're trying to head with your finances, can really help you keep on track with your spending. And this was huge for me. I went traveling with my kids a few years ago, and that was literally knowing that we were going away and knowing that we needed some money for that really helped me.

Kia: I agree. I think having a clear goal keeps you on track and just keeps you focused. But let's talk about when things don't always go to plan, especially when it comes to budgeting. What would be some easy ways that we can correct that and get back on track with our budgeting and spending?

Charlotte: I think one of the key points here is not to be too hard on yourself. If you're hard on yourself because you've overspent, normally that leads to further overspending. It's so easy to draw parallels with the world of health and fitness. You have a cheeky muffin and you're trying to lose weight, and then you're suddenly like, " Oh well, I've messed that up. I might as well have a McDonald's." And it's the same when it comes to our money, so just be like, " Whoops."

Kia: It happened. We can draw a line under it.

Charlotte: Exactly. So just be gentle. Be kind on yourself. And I think then the next thing is to actually think about your budget in terms of monthly or longer term progress. So, let's say you set a budget, week one of the month it all goes wrong and you've overspent a little bit. You don't need to go like, " Well, next week I've got to spend nothing." You just take what you've got and you get your calculator out and you divide it by three and spread it out over the next three weeks. But actually, that will get you back on track.

Kia: Charlotte, you've been incredible. You've given us some of the top tips that we need to trim back our spending and ace budgeting. But before you go, I want to ask you, what are your top three budgeting hacks?

Charlotte: So the first one is to just be gentle on yourself. We mentioned this already, don't try and over- restrict yourself. Your budget should be about creating freedom in your life, and you need to start from a place where you feel like you are going to actually achieve it. You don't want to set any rules in your life or cut back so much that it's not going to be successful. So, that's the first one. So, the second one is I love to team up with my friends. So I had a neighbour, she's moved now, and I'm not going to hold this against her, but we used to team up on that bulk purchasing. So, if there was a deal that was two for one on toilet roll or something, I'd be like, " Mate, I got you some toilet roll." And then we'd split the cost, so then-

Kia: That's great.

Charlotte: ... we were getting the benefit of the deal and actually seeing a reduction in some of our spending. And we also did things like pressure washers. We both went halves on one of those, because we knew that we could share a bit. We wouldn't need it that much. So, look at big purchases, even look at those little things like toilet roll and see if you can share those between family and friends.

Now, we started off talking about food spending as well. One of my favourite things to do is use food waste apps. So, there were some examples like Olio and Too Good To Go where you can either get free or reduced priced food. And what I love about this is not only the monetary benefits, you're stopping food waste. And there's a real sense of community, like local cafes giving away cake or something, and it's just nice to be a part of that process and save some money along the way.

Kia: Charlotte, you have been an absolute gem on this episode. Honestly, so many tips that I'm going to go away and write down and start implementing from today. So, thank you so much for coming on and blessing us with your tips on this episode.

Charlotte: You are absolutely welcome.

Kia: Some great advice there. Thank you so much, Charlotte. So many ways we can trim our spending and beat the budget. Next time, we're talking cryptocurrencies. Where to start and what to be careful of. I'd love it if you could review the podcast, spread the word, and help others get a little bit richer too. Keep up with the show on TikTok and Instagram at Legal & General. Thank you for listening. See you soon.

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