Is not just a good exercise mantra…..I did my ‘ideal’ budget for us for the next couple of years while we save towards a deposit for a house. The Grazia article by the blogger ugly debty was enlightening - she has spent 100k or so (on credit) on shopping for shoes and bags, that amount is also our goal in the next year or two. It’s scary but it’s inspirational. At least she has taken the first step. In the long run, as a woman, it is empowering to take control of your own finances regardless of how much you earn.
In alot of ways I think we have been indoctrined into the expectation of insta-everything from instant conversations to friends to money, sacrifice is a taboo subject in current times for any average twenty something. We haven’t had to work and live through World Wars, major recessions or crises (yet). The next bubble that bursts is going to be a bigger slap in the face for many of us that are used to buying what we want, when we want and not saving.
We are a generation that doesn’t promote saving the pennies. Drawing up and sticking to the ideal budget is a challenge for us but it’s only because we have become laissez-faire. It’s a good kick up the bum though as if we don’t do this now we will be stuffed once we have a mortgage and family as although we are both on decent wages we have zero money management skills!
Because I haven’t started the new gig it’s given me enough free time to sort out all of the usually boring financial tasks that I have been lazy with. This includes:
1. Super - I’m switching to MTAA as Colonial First State were charging me a ridiculous management fee however the paperwork is completely boring and there are about 50,000 forms to complete, why can’t this be an electronic process?
2. Managed Fund - Have decided to set up a managed fund that focuses on the resource sector - my super is already invested in a moderately diversified fund so investing in this growth sector will spread our savings across different categories, ideally I want to have a % in funds, a small % in shares , majority in cash. Again more form filling, the good part however is that I can set this up as a savings plan with monthly contributions rather than investing a whole lump sum.
3. Household budget - so I have looked at the telecomms spend and I’ve signed up for Skype and will try it out tonight calling my family in the UK, I usually call them once a week and I’ve ordered an additional calling card to handle the UK mobile calls I have to make too. I’m holding out on the iPhone for now
“Food, glorious food”
Next item on the list is food, we have in the past spent a ridiculous amount on food, not that we eat alot, we don’t even eat alot of  ’gourmet’ food. The high cost boils down to the following factors (deep breath):
1. We don’t shop for the season — I have no idea what fruit and vegetables are in or out of season. It’s even more confusing for me as I’m British and I struggle to discern the actual seasons over here!
2. We shop for convenience — we buy everything at Coles or Woolies each week, even the greengrocers at the local Marrickville Metro is a little on the pricey side
3. We don’t stock up — there’s minimal frozen meat in our fridge and we spend most of our time chucking out food we haven’t used and it’s gone off or forgetting what we do have that we could use.
4. We eat out alot — no, we’re not at Tetsuyas every Friday but we do have big cafe breakfasts in Bondi and Newtown and the odd takeaway. This all adds up and I’m going to attempt to have nothing but coffee after our Sunday runs and just take a banana with me! Or cook up something lovely at home.Â
 So in the last fortnight I’ve decided to cut down (and there have been a fair few quarrels along the way!) by attacking our huge food bill through:
1. Buying all basics at Aldi or Bi-Lo, i.e own brand low fat milk, crackers, loaves of bread (I plan on making my own soon though), brown sugar, free range eggs and flour. They are cheaper and they taste the same. I’ve managed to halve my milk bill this way as 2 litres of low fat milk at Aldi is $2.70 instead of the $4 for 1 litre of Pura for example.
2. Every fortnight buying veggies and fruit at Flemington market, on the first visit I have had to stop myself from buying every box! Again looking at basics, onions, potatoes, carrots etc and stuff that’s in season.
3. Aim to cook up meals that can last a few days i.e more soups, casseroles and bakes.
4. Reverse Cooking - Â Instead of looking at recipes and deciding what I want to cook, I’m going to buy the veggies and see what’s in season and affordable and then find recipes.
5. Use up everything in the cupboard to reduce chucking stuff out
Reducing the food bill and doing more market shopping will also minimise the packaging we have to recycle and make us think about what we are buying rather than automatically throwing it in the trolley. The only thing my hubby won’t skimp on is 3 ply toilet tissue………
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