money TV’s Sarah Willingham reveals how to take control of your finances & make the most of your cash
‘ We’re skint on one salary’ Danielle Pilcher, 21, a charity worker, lives in Cambridgeshire with her husband Toby, 26, and they’re struggling to survive on one salary
“My husband Toby recently went back to university to train as a lawyer, so we’re living off my salary of £21k. He gets a student loan of £4k, which is helpful but it doesn’t make a huge difference, so we’re using our credit cards. I spend a lot trying to eat well, then waste food – especially veg – when it goes off. We do a weekly Tesco shop online and sometimes use Clubcard points. We spend on travel – Toby takes the train to High Wycombe from Cambridge twice a week and I drive to work. We’re both generous so we like to buy rounds of drinks or treat friends to meals. We’re spending £800 a month on rent, but we’d love to save £20k over five years for a house deposit. We also have £30k of student debt – I’m not paying mine back yet as my income falls below the threshold, and neither is my husband as
he’s at uni, but it will impact our ability to save in the future. We also have credit card debts of £5k. We don’t get charged interest as we pay them off each month – normally around £200 to £400. How can we save?” Sarah’s 3-point plan 1)Danielle can cut back! Use the calculator on Lovefoodhate waste.com to buy the right amount of veg. Turn the excess into soups and sauces, which can be frozen. Book travel well in advance. The trainline (thetrainline.com/ticketalert) sends email alerts when cheaper tickets become available. You can also swap £5 in Tesco Clubcard vouchers for £10 on rail fares on Redspottedhanky. com. Use points for discounts in restaurants too. 2)Clear debt, then save Any “spare” money at the end of the month should pay off debt. While Toby is studying, saving is unrealistic, but the average firsttime buyer is almost 40, so they have time to sort their finances. 3)Save smart The more
MONTHLY INCOME:
EXPENSES: Rent: £800 Travel: £100 Bills inc insurance: £60 Internet and TV: £20 Credit card: £200 £400 Food: £240 Clothes: £40 Socialising: £100 Pet bills: £20 Phone bills: £40 TOTAL:
£1,620-£1,820
deposit you have, the better mortgage rate you will get. Having 15% will give you decent options, but the most competitive deals come with at least 25%. Help to Buy means people can buy with just 5%. If Danielle sets up a Help to Buy ISA, the government will top up her savings by 25% (so £50 for every £200). The maximum the government will contribute is £3,000, but that’s £12,000 towards a home in four years. Visit Sarah’s consumer website: www.letssavemoney.com And follow her on Twitter at: @sarahwillers
my life in money
photos: getty
£1,400
My pocket money was… A few dollars and I’d buy candy in the school’s cafeteria – Nerds or anything sour. My first job was… In a store called MARCS, which I thought was Marc Jacobs, but was an Australian outlet store. I earned £9 an hour. my first big purchase was… I saved up to buy a cute little emerald Mitsubishi Mirage for £2,000.
money saving tips
WASH AWAY CASH Savewatersavemoney. com has a calculator that can help you save up to £95 a year. Go to their site, take a survey and get personalised advice on cutting water bills and a free Water Saving Box with clever saving devices to help you save up to £95 a year.
DODGE DELIVERY FEES Amazon usually offers free delivery when you spend over £20, so it can be worth buying extras to avoid up to £6 for postage! Money Saving Expert has a Super Saver Delivery tool with small, useful items to bump up your order to £20. Smart.
Australian X Factor finalist Seann Miley Moore, 25, on his money history My biggest impulse buy was… I impulse purchase constantly. All of my impulse buys are now hanging in my wardrobe. The most expensive thing I own is… My iPhone, which I bought outright for £600. My last purchase was… Rihanna’s single Work and some coconut water.
l Seann is performing in the X Factor tour, go to Itv.com/xfactor/tour
Closeronline.co.uk
71