How I Save Money and Still Live Life: Practical Tips for Budgeting Mums

As a mum trying to balance family life and finances, I know firsthand how challenging it can be to save money without sacrificing the things that make life enjoyable. Over time, I’ve developed a few strategies that help me stay on top of my budget, avoid unnecessary debt, and still make room for fun and meaningful experiences. Here’s how I do it:

1. Keep Track of Incomings and Outgoings

One of the most important things I do is keep track of exactly what I’m earning and spending each month. By knowing where every penny goes, I can avoid the trap of impulse spending. It’s super easy to lose track of small purchases, but they add up quickly. By monitoring my spending regularly, I’m able to identify areas where I can cut back and ensure that my spending aligns with my priorities. The first time we started monitoring our money, I could not believe the amount of unnecessary spending we were doing!

2. Set Realistic Budgets

In the past, I used to set super low budgets in an attempt to save as much money as possible. The problem? It was completely unrealistic. When I inevitably exceeded my budget, I felt like a failure and often ended up spending even more as a result. Now, I set more realistic budgets that allow for a little extra spending. Planning for slightly more than I think I’ll spend gives me some breathing room and helps me stay on track without feeling deprived. This approach has been a game-changer, helping me stick to my budget over the long term.

3. No Shame in Buying Second Hand

I’ve faced my fair share of comments from people who think shopping second-hand is somehow gross or dirty. But honestly, I don’t see any harm in it. In fact, buying second-hand is one of the smartest ways I save money. Think about it: when you try on brand-new clothes in a store, you’re often wearing something that’s already been tried on or returned by someone else. So why not buy quality items second-hand at a fraction of the price? There’s no shame in being thrifty, and it’s better for the environment too!

4. Have Sinking Funds

Sinking funds have been a lifesaver for me. Whenever we have some extra money, we distribute it into various sinking funds. These are small savings pots earmarked for specific purposes, such as holidays, car insurance, Christmas, and even our house deposit. Having sinking funds means we can still do the fun things we enjoy without going into debt. We plan and save hard for these moments, so when the time comes, we can enjoy them guilt-free. Our current sinking fund pots include:

• Holiday
• Car Insurance (paid annually)
• Christmas
• House Deposit
• Our child’s birthday
• Emergency Fund

By using sinking funds, we’re able to plan for both the expected and unexpected expenses, ensuring that our budget stays intact even when life throws us a curveball.

Final Thoughts

Living on a budget doesn’t mean you have to give up the things you love. By keeping track of your income and expenses, setting realistic budgets, embracing second-hand shopping, and using sinking funds, you can save money while still enjoying life’s little luxuries. Remember, it’s all about finding a balance that works for you and your family. Saving money is a journey, and with the right strategies, you can make it work for you too!