Mum saves her family over £2,000 a year by following simple budget routine
As the cost of living crisis continues to squeeze our finances, one mum says she has saved her family over £2,000 in the last year by sticking to "one rule" when spending.
It may sound simple, but Lydia Garner, 43, from Southampton, swears by her daily spending budget - and the mum-of-two says she is "very disciplined" around following it. Research from MoneySuperMarket.com reveals over half of people in the UK don’t follow a budget, but Lydia credits this as being the "cornerstone" to her success.
She told The Mirror: "Knowing what you're spending each day, from the moment you wake up, is essential to understanding your disposable income. It keeps you accountable, so if you overspend one day, you know you have to balance it out later.”
Lydia's overall daily budget for her and her family sits at £53 and she splits it into different categories, such as morning essentials, lunches, groceries, household bills and emergencies. For morning essentials, the mum allocates £10 for her family’s morning routine, which includes both breakfast and commuting expenses.
Lydia sometimes includes an extra £5 in this category for unexpected morning needs or "treats" such as grabbing a coffee on the go. On these days her daily budget increases to £58. MoneySuperMarket research found the average person spends around 70% of their income before the day has even begun, which is why Lydia is so strict about spending in the morning.
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For household bills, Lydia has set aside £20 which covers expenses such as electricity and broadband. To work out her daily allowance, Lydia used price comparison sites to get the best deal for her. She is also a member of the MoneySuperMarket SuperSaveClub which gives cash rewards for purchases through its site.
She said: “I used MoneySuperMarket to find a new car insurance provider, 1st Central, which charges me £30 a month for two adults on a family car. For home insurance, I switched to Paymentshield, paying £25 a month for the family home. I’m now saving £300 a year across both in comparison to my previous providers.”
To help prevent impulse spending while she is at work, Lydia has budgeted £3 a day for her packed lunch. She estimates making her own lunch and sticking to this allowance, rather than spending £6 per day on lunch at work is saving her £756 a year.
With her groceries, Lydia knew this would take a significant chunk of the budget, so she strategically plans her family's meals to fit within her daily allowance of £15. Alongside this, she also maximises savings through cashback sites that provide vouchers to cut costs.
Each day, Lydia also puts aside £5 into her emergency fund which she uses for things such as roof leakages or car repairs. Recently, she moved her emergency fund pot into a easy-access savings account with an interest rate of 4.84% to help build her cash pot even more.
Alongside her daily budgeting, Lydia also sets a monthly budget of £80 for family activities or treats to make sure her family can have fun. Lydia said: "When my son wanted to visit LegoLand, I timed my purchases right to take advantage of Tesco Clubcard promotions. I secured vouchers at three times their value before the deal ended."
As she is a member of the MoneySuperMarket SuperSaveClub she often takes advantage of the National Days Out members card, which gives her unlimited access to over 2,000 venues which offer activities such as bowling, swimming, and trampolining. Lydia says she has saved around £450 a year by cashing in deals like this.
After taking a look at her spending, Lydia realised she was spending a lot on subscriptions and services each month that she didn't use so after cancelling these she managed to save around £30 a month.
Lydia believes it is important for people to be open about their finances, especially in the current climate. She said: "Right now, everyone is feeling the crunch. It doesn't matter if you're a student, retired, or a family like us. Talking about finances can be a sensitive subject, almost taboo in fact, but I’d love to see people more open to talking about money matters and sharing their strategies.
“I’ve created a daily budget that stretches every pound to its fullest. I don’t see this as a constraint, or something to be embarrassed about. It’s a tool that helps prioritise what truly matters to my family.”
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Savings Lydia has made over the last year
- Using Moneysupermarket.com to switch to better value suppliers - £300
- Free days out through MoneySuperMarket's SuperSaveClub, Kids Pass and National Trust - £450
- Cashback sites like Quidco - £110
- Swapping lunches out with packed lunches - £756
- Cancelling unused subscriptions - £384
- Total - £2,000
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