A year ago I wrote a guide to sorting finances out. I ignored it completely, because I’m a grade A dick with money. It’s time that changed – most of us have this period of deadtime after Christmas which we spend stuffing our face with lard and booze, so instead I’ve tried putting mine to good use. This is a quick breeze through what I’ve been up to – feel free to throw in any extra advice in the comments, especially for the final part concerning reselling.

First off, I’ve gone through the last three month’s worth of bank statements to see how much the family was spending. I really wish I hadn’t because it was out by a long way. Balls.  But if I don’t measure it, I can’t manage it – I’ve now got a spreadsheet which I swear on my children’s lives I will complete every week. We now have a new monthly budget that’s reasonable but not excessive, although I may have to chop the wife’s hands off in order to stick to it.

Now I can see that there’s spare money sloshing about, I’ve got a plan to pay off the two credit cards and overdraft hanging round my neck. I reckon I can pay them off in order of highest APR in about 18 months, instead of making the minimum payments and not daring to opening the statements (today I’ve opened my first credit card statement in a year – again, I am a dick). I’ll still have an outrageously large bank loan for another year after that, but I’m managing those payments for the moment. (more…)

And so the bad news keeps on rolling in; the Chartered Institute of Personnel and Development believes at least 600,000 jobs could disappear in the UK within the next 12 months, and that between now and April will be the worst for job losses since 1991.

So let’s get frugal people, because who knows what next year is going to throw at us. That doesn’t mean you have to change the way you live, it just means making every penny count:

• Start as you mean to go on; WiseBread have a simple guide to throwing a New Year party on a budget

• It may be entirely patronising to tell you to get your household budgets in order, but plenty of us are too damned lazy to bother; Bitterwallet has 5 simple financial habits you need to get into

• You’re probably aware of how you can save money by switching gas and electricity accounts, but there are savings to be made by reviewing your water rates, and even your council tax; The Guardian has these and other ideas for saving  on your household bills

• Ever swished before? Newcastle’s probably a little too far to travel for a new wardrobe, but read what Daisy Green magazine are up to, and keep an eye out for similar events where you live

• Don’t let anybody take money from you that they don’t deserve, whether it’s a high street store, a bank or a restaurant; learn how to complain well

• If you’re really pumped up, get involved in stealth-saving; some of it appears to border on stealing, but read the article by The Telegraph and make up your own mind

January is the most rubbish month of the year. Not only do you have to go back to work, but it seems like several billion years until payday. And you may have bought half a dozen new handbags and a new plasma television in the sales, but you’re living on beans and urine for the next five weeks. Congratulations.

Since you can’t afford to eat, drink or be merry, you may as well put the month to good use and prepare for the year ahead. It’s going to be a stinker, so you need to be as financially sound as possible. Here are five habits you need to pick up – they’re very basic and brain-rottingly dull, but they’ll help you survive in the coming months.

1. Know how much you’re spending

Do you know to within £25, how much you spend in any given month? If the answer is no (and it probably will be) you need to find out. As a starting point, you can use something as basic as the This Is Money household budget calculator. To compare what you’re spending with what you think you’re spending every month, you can download a free Excel spreadsheet here. If you’re still confused and think budget is something washed from the bottom of a parrot’s cage, watch this intensely patronising video:

2. Be realistic about your spending

Yes, you could live on pasta and soda water for the next twelve months, but then it shouldn’t come as a surprise when your toenails fall out. Budgeting is far easier when in denial, but renders any attempt to live frugally a complete waste of time. If you’re a social butterfly, there’s no point trying to manage with no budget for entertainment, so try eating out less than cut it out altogether. Going on holiday in the Summer? That needs to be accounted as well. Be honest with yourself – it’ll probably scare the living bejesus out of you, but you’ll know where you stand.

3. Reduce your spending

Once you’ve realised exactly how much financial excrement you’re wallowing in, what can you do about it? You can start getting a better deal on your bills. You don’t have to do everything at once; every time you’re due to pay a bill, look at whether you can find a cheaper alternative. Keep reviewing your expenditure all the time as new deals become available, and you’ll save hundreds, if not thousands of pounds a year. As an example, last night I switched my phone line rental and call package from BT to Sky (shudder) and found a better quote on my house insurance – first using Money Supermarket to find the best deal and then applying for it through Quidco for £56 cashback. In half an hour, I nipped and tucked nearly £600 off next years’ household budget. (more…)