What does this mean? Well in the MDS household the Chanel 2.55 savings fund is being moved to the 'don't panic Mr Mannering' fund. I'll be the first to admit being of the magpie tendency that I always need a spending strategy. I am actually quite a big fan of the piggy bank approach! With interest rates so low there is no much joy for savers. You are realistically better off paying back any debt.
I don't want to put a dampener on the joy of new clothes and undermine the fashion industry but your priorities should be a healthy bank balance and then your contingency fund to cushion you from any shocks - be it the 20% VAT in the new year or the potential increase in unemployment.
None of this is nice, pretty or sparkly. It is a shame that the bankers broke our economy and got the government to bail them out. It was a necessary evil for which we are having to pay for. Hence my rant about greed on Friday. I've been on a make do and mend push since 2007 and have just started to break even, so I feel slightly bitter at being stuffed not by my own personal stupidity or greed.
What I've learnt since writing on this subject over the years is we tend to peak and trough on financial restraint and living within our means. Until now it seemed okay to occasionally have a blow out at not much cost to our bank balances. However, given the coalition are hell bent on culling fun and frolics to reduce national debt I'm afraid the hard times edition has set in.
Think of it logically style isn't just about the clothes on your back, it is your poise, your inner peace of mind. What can you do to work your wardrobe harder? What do you think is a top tip when it comes to thrift, savings and debt reduction? What plans do you have for the coming year? How far are you prepared to go? Share all here to help motivate us (in the UK!).
That is what makes me mad too - even though I have always been sensible with money, I've ended up paying for people who took out loans they couldn't bloody well afford! The greed wasn't just on the banks part, plenty of ordinary people were playing with more money than they should have. I get angry that because I saved to buy my own home, my taxes will go towards bailing out people who jumped the gun before they were ready. And here am I, still renting. Bah, don't get me started!
ReplyDeleteWhat wise words Ms MDS, I agree everyone needs to live within their means which is something that seems to have been forgotten. Cut up the credit cards!! My own personal fave is to sell what I no longer need/want/wear in order to update my wardrobe, and ONLY spend what I have earn't! I think we could all do with being less greedy. Hope you are well.
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Sometimes I almost feel relieved that people are being penalised for their extravagant ways. I've never owned a credit card, pay in cash for almost everything I buy and nearly killed myself paying off my mortgage before I reached forty.
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I definitely feel extra virtuous by getting my clothes fix via swaps and thrifting. Plus I still manage to get a few fab bargains in ebay (Velvet Emporio Armani Jacket for £24 last week!). In fact I positively enjoy things more if I feel they have been a marvellous bargain. I'm not sure I would pay the full price for most things even if I could afford it.
ReplyDeleteI got serious with myself a few years ago and worked REALLY hard to pay off the overdraft, the car loan etc. I've got the savings cushion now but the amount I put away per month has reduced recently due to needing to buy new clothes that actually fit me. Pesky expensive weightloss!
ReplyDeleteIn terms of tips and plans, I've made a list of the stuff I actually NEED and I'm aiming to stick to it. If I see something in a charity shop that's not on the list but is a bargain then I'll still get it - charities are going to suffer over the next few years too - but only within reason. Frivolous purchases are not allowed.
Hi my dear-another sound and intuitive post, I'll carry on thrifting for finds, paying cash and generally sticking to a budget every month! xx
ReplyDeleteI used to be a fan of the piggy bank. But I just couldn't stand not breaking it all the time! :)
ReplyDeleteGotta update my budget...
I'm going to do forward planning to create new outfits out of my existing wardrobe. I'm also going to learn how to sew (my mum has an industrial sewing machine) so i can either fix, make or revamp some of my clothes.
ReplyDeleteOh well no new sparkly outfit for the office xmas party - back in the days PA's used to be given money for a new dress & money to get their hair done for the party - oh yes that was for real not only in Mad Men times...this year I will recycle a party outfit, mend some shoes and hit that free bar with a vengence.
ReplyDeleteCan I just ask that people don't forget to give as well as buy at charity shops? Funding is going to be well-trashed for a lot of them. PLUS it keeps your chazzing karma in good nick :)
ReplyDeleteAs to the bankers - well, you can always choose which bank to put your savings in (ie not the greedy feckwits who helped to bring this on).
I'm going to try to get a bit of value out of what's already in my wardrobe - so much of which I never wear. I shall also be doing a bit of mending and fixing if possible.
ReplyDeleteHowever I hope there'll be a bit of money in the pot after the scrimping and darning to purchase some sort of little (and I mean little) treat. There's got to be something to look forward to!
Dear Kate, this is a very interesting post. I agree everyone should cut back. I used to be much extravagant than I am now. You know I don't spend much on clothes as a rule and I don't buy the latest clothes or bags. I have no credit cards and my mortgage isn't too bad. I never save anything and I have nothing for the future. I'm trying to work out how to have a cheaper Christmas this year (I normally go mental). It's a tough one. My plans would be to getter a better deal on my mortgage and bills next year and really cut down on anything I don't need xx
ReplyDeleteCut back, I cant watch the news anymore. I find myself watching comedy more just to keep myself happy. Love your picture of the pig surrounded with money though. Xxxx
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