Simplify and Get Back to Basics

by Sally Robinson; 25th October 2009

We are in the middle of a difficult economic time resulting in job losses; pay cuts and uncertainty for most families.

Not only are people looking at their personal financial situation and trying to reduce their outgoings but people are re-evaluating their expenditure and demanding more quality and value for money from suppliers.

There is a definite change of approach and a shift towards simplifying your life and the benefits of this, in the current climate, may be worth giving serious consideration if you haven’t already.

A good starting point is to take a look at the questions below:

Do you regularly buy stuff that you don’t use or wear?
Do you forget what stuff you’ve actually already acquired and have within your home because you have that much stuff?
Do you find that unused but out of date food is wasted each week because you don’t plan what meals to have during the week?
Do you regularly lose track of your debit/credit card transactions and can’t always recall what you actually bought?
Do you put essential weekly/monthly expenditure on your credit card?
Do you find it difficult to locate the very thing you want when you need to use it?
Do you feel that you’ve fallen into a commercial trap of buying the latest gadget; “must have” or trend without thinking?

If you answer Yes to one or more of these questions, it may be time to review the situation and get simplifying.

If you’ve answered Yes to questions 1; 2; 4; 6 or 7:

Start by reviewing exactly what you already have and identify what items you want to keep and what items you don’t use; need or wear. The things that fall into the latter categories you can then decide which to donate to charity and which you wish to sell via a car boot sale or via online auction sites. It is recommended that as you identify the unwanted stuff, gather them all together until you have reviewed all your cupboards; wardrobes and storage areas. The reason for this if that you can get a true picture of the actual extent and volume of unwanted stuff. This will also give you some idea of the potential monetary value spent on it needlessly. You’ll no doubt be stunned by how much you’ve bought and had no value or use from.

If you’ve answered Yes to question 3:

Get meal planning before you go shopping and don’t forget to assess what you’ve already got in your cupboards; fridge and freezer.

Don’t feel that you must rigidly stick to each meal on the nominated day – you can always switch which meals you have on what days. For example, if you get home from work later than expected and don’t feel inclined to wait an hour while your meal is prepared and cooked; feel free to swap with a day in the week that you planned to have something quick to prepare i.e. soup.

If you’ve answered Yes to questions 1; 4; 5 or 7:

If you haven’t recently reviewed your income versus your expenditure, do it now and don’t put it off. It isn’t a task that is particularly fun or enjoyable but it is necessary and there are tools to make the task that bit easier. If you take a look at moneysavingexpert.co.uk there is a great budget spreadsheet that will calculate if you are within your budget and by how much or conversely if you are spending more than you are earning or receiving. Additionally the spreadsheet will remind you of outgoings to factor in that can often be overlooked i.e. dentist costs; allowances for birthdays and Christmas etc.

If you find that your outgoings are exceeding your income, don’t panic – review if there are any areas of your expenditure that you can reduce and make cost savings i.e. look at switching utilities to get better rates on gas and electricity; mobile phone tariff comparisons or if you can get a lower APR on credit cards. If you still find that you are unable to get your expenditure within your income, ring the National Debtline free on 0808 808 4000. They will work through your specific financial situation and provide you with impartial, practical advice about your next steps.

If you are within your budget, even if its by only a few pounds, think about whether there are cost savings you can make to increase the amount of money you have available at the end of the week/month. It is also worth considering having specific bank accounts or cash wallets within which the allocated money for a week or month are contained for food shopping; rail/bus fares or fuel for the car. This approach really focuses you on the amount available to spend rather than falling back on credit cards. It will also make you question yourself about if you really want to buy something you’ve spotted before you do – hopefully this will prevent you from finding it months or years down the line, long after you forgot you bought it and then selling it on eBay for a loss!

The current pressures on society as a result of the credit crunch are reported on by the media with doom & gloom messages but I personally know a number of people who are responding to their own financially pressurised situation by seeing it as a challenge. The challenges are almost like games “How little money can we live on this week?”; “How much money can we get for our old mobile phones?”; “What is the best freebie we can get?” (One person told me that they have a friend who has just moved house so money is a bit tight and has been offered an unwanted greenhouse for nothing!)

Once you start simplifying your life you’ll be amazed how liberating it is to not be driven to spend, spend, spend and how much money you can generate by selling unwanted stuff you’ve acquired; how much money you save by selective shopping; how inventive you become at maximising what you already have; how much you noticeably see the amount of waste reduced and find enjoyment in what you’ve already got rather than looking for the next thing to have.