Let's Have Some Relevant Economic Indicators Please

What is economic recovery? The economists, politicians and journalists would have us all believe that it's to do with complex figures to do with the growth or otherwise of Gross Domestic Product (GDP). This is because it's possible to measure things like factory output, inflation and the like but do these really give us a realistic indication of the state of the economy. Big figures such as bank profits, yes, banks are back reporting huge profits again (and no doubt bonuses to match), don't really represent the country as a whole as they make money by trading on, well, money! There are very few people who actually benefit from banks doing well. And don't get me going on the supposed trickle down effect, it simply doesn't happen.

Surely economic recovery ought to be gauged on a national basis and not allow itself to be skewed by large figures that represent such a minuscule, population wise, part of the economy. The health of the financial sector, and by this we are talking about The City, might be improving but that has no tangible positive impact on the rest of the country and merely hoodwinks those economists, politicians and journalists into thinking that the country is on the mend.

Learning To Live On Less

With the economies of the Western world heavily in debt, next to zero percentage growth and individuals suffering from reducing incomes in real terms it seems maddening that people are being encouraged to spend to help kick start economies. This is a regular call from politicians and popular economists every now and then when sensible ideas seem to have dried up. So why would individuals and families who already have debts and are worried about their incomes want to go on a spending spree?

Consumer driven growth is just what has got many economies and individuals into the perilous financial states they are in right now. What needs to happen is that people start to understand what previous generations always took for granted - if you can't afford it, you don't buy it. If this means doing without then so be it.

Re-using, re-cycling and reducing what we consume might be what the more environmentally conscious of us call for but these are just what we all need to do if we want to have any chance of paying off our debts and living on less money than we'd like to. 

If this means:

1. buying second hand as opposed to new, 
2. borrowing instead of buying, and
3. fixing instead of replacing

then what's wrong with that? It's worked perfectly well for so many previous generations.

Saving Money On Train Tickets

For those of us who don't have to travel regularly by train but can plan some time in advance a great deal of money can be saved. This is especially so compared to turning up at the train station and buying a ticket on the day of travel. The train companies clearly want a good cash-flow and getting customers to pay in advance makes business sense for them even if the money they get is less than if everyone had to pay on the day. 

The best deals are for travelling out of the busy morning and evening commuting times so if you can adjust your travel arrangements accordingly, whether it's for business or leisure, you can save an enormous amount.

My top 3 tips for saving money when travelling by train are:

1. Book as early as you possibly can - decide whether you want a flexible ticket or not but remember flexibility adds to the cost
2. Travel out of the peak travelling times in the morning and evening - the trains are less crowded too 
3. Journeys are usually more expensive when there is a straight through service to your destination - changing trains may make it cheaper but there's the added risk of potential delays

I happen to like travelling by train and do so on longer journeys and I've got used to planning as far ahead as I can even if occasionally if I have to cancel a journey I know I've lost the price of that ticket - the amount I save doesn't make it seem so bad.

Don't Forget, It's Quality That Counts

For all of us that are doing our best to save as much money as we can so that we can pay off debts and pay for what really counts the idea that 'quality costs' probably sounds like nonsense.

If we can't afford to think beyond the very short term then buying the cheapest product we can that does what we need it to do makes sense.

If we can afford to think slightly longer term then maybe it's worth thinking about paying a little more to reduce the lifetime costs.

The Best Days To Look For Bargains In Charity Shops

For those of you, like me, who enjoy browsing Charity Shops in the hope of picking up a bargain or something really special, or just saving money on every day items and clothes, there needs to be a little bit of thought put in to when to look. Week-ends are busy for all shops and Charity Shops are no different so Mondays are best avoided as the staff probably won't have had enough time to sort out the recent donations and put them on the shelves or hang them up. For some reason Tuesdays and Thursdays seem to be the best days to have a mooch round, probably because new stock has been put out and there are fewer other bargain hunters around. I guess the same could be said for Fridays, you get to look around before the hoards descend at the week-end. 

Of course it all depends on what you are looking for and whether there is likely to be much competition from other bargain hunters. All this assumes you are able to plan your bargain hunting and fit it into a busy schedule. This is highly unlikely for most of us so just popping into a Charity Shop as and when you pass by is always something I'd recommend as you never know what might be there. You get to know the ones that have the stock that you're interested in and those that seem to be little more than glorified jumble sales. Others too seem to take themselves far too seriously and charge way over the odds for what is second hand stuff. I know the chains I avoid wherever I am in the country and whatever the day, it's simply not worth it. 

Yes, always check Charity Shops out when you're passing but if you can plan your trip, try Tuesdays and Thursdays and see if that improves your bargain hunting.

Save Money When Eating Out

We all like to go out for a meal every now and again. It's a great way to unwind and enjoy ourselves with family and friends. But the costs can and do add up really quickly. How often have you got the bill at the end of the meal and secretly thought "HOW MUCH?" while outwardly smiling to everyone else? 

The main course is what we generally consider the most expensive part of any meal but this can easily end up being less than half of the total when starters, desserts and drinks get added on. And that's not including a tip! That's why we get a shock with the final total because we subconsciously consider the price of our meal as being more or less how much the main course itself costs.

So if you could save a little on your meals out that would help wouldn't it? If nothing else it would allow you to go out for more meals although in the spirit of this blog I ought to be recommending strongly that you use what you save to pay off high priced debt instead. 

Some tips that I find keep the price of meals to more reasonable levels are:

1. Choosing 2 courses instead of 3 or if you want, just go for the one main course
2. Look at any special offers for set meals, many restaurants have cut down versions of their à la carte menus
3. Thinking carefully about the drinks you have with your meal - there's nothing wrong with having chilled water instead of or as well as other drinks (just make sure it's tap water and not expensive mineral water)
4. Don't bother with the coffee at the end of the meal, you can probably make a better one at home

Using these 4 simple ideas it's possible to reduce the price of a meal out by around 50% and that's money that can be put to good use elsewhere. 

How do you save money when going out for a meal?

5 Ways To Cut The Cost Of Motoring

With the high cost of motoring it's tempting to ditch the car and see how much can be saved. Certainly the initial cost is expensive enough, then there's the insurance, fuel and maintenance to think about. Maybe ditching the car altogether is too extreme for some people as it's a necessity for their everyday lives (although I'd argue anyone in a city with a car is mad - why not just rent one when you need it?). So if getting rid of our car altogether is out of the question what else can we do to reduce the costs of car ownership? Well, I've pondered this question for some time now and have come up with the following obvious and not so obvious suggestions: 

1. Go easy on the accelerator - speeding away from the lights and slamming on the brakes mean you use excessive amounts of fuel.
2. Keep to a moderate speed - the government figures always quote consumption at 56 mph which may feel a little slow on motorways but sticking to a constant 60 - 65 mph isn't too bad.
3. Leave your car at home - OK you can't do this all the time but try a day or two a week not using the car and you will reduce your mileage and costs - if you can work from home this ought to be easy.
4. Keep the tyres correctly inflated - tyres will go down a little over time and when they do you use more fuel, so check they're OK once a month and top up if needed.
5. Share lifts with others - car-sharing very rarely gets off the ground when businesses and governments make a big deal of it and try to encourage people to do it but why not take the bull by the horns and offer someone you work with who lives close by a lift and see what happens.

OK, maybe all these are pretty obvious but how many of us can put up our hands and say we do all 5? Not many I'd imagine but they are so easy really and can make a significant contribution to saving money that can be used elsewhere. 

Small Businesses Need To Shape Up Or Die

It seems that no matter what the weather or economic conditions, headlines can be made to make out that things are really bad (they rarely get written if things are really good!). The latest is that retail figures for March in the UK are down because of the un-seasonally cold weather. Well, that's a big surprise isn't it. Next we'll have higher than predicted profits at the energy companies because people stayed inside and kept the heating on! Such economic indicators are neither newsworthy or even relevant. Yes, economic activity will decrease when it's really cold and also when it's really hot - never, ever, ignore the weather.

At the same time I find it extremely disappointing that small businesses appear to be lining up to complain that all is so bad. What do they expect when people can't get out or simply don't want to go out in atrocious weather conditions. It makes you wonder whether such small businesses have really thought things through properly. When people can't go out but still need things they will turn to the internet. Do the very same small businesses have websites that offer shopping facilities, even basic ones? Times are difficult for many small businesses but if they don't respond to the changing needs and expectations of consumers they will go to the wall just as so many large retailers and others will come in to better meet customer expectations. 

Supermarkets: We Love Them & Hate Them

I have to admit to having a love/hate relationships with supermarkets. I love the fact that everything is in one place and the savings that can be made when I look carefully and pick and choose what I buy. At the same time I hate the fact that they are wiping out our high streets and local traders and seemingly as many other market sectors as they can get their hands on. Supermarkets themselves recognise this and instead of using their own names when expanding are using or creating brands that seem like they are small local brands but aren't - just check out Tesco and 'Harris + Hoole' artisan coffee.

So what does all this mean for those of us who want and need to make savings in our weekly shopping but also have a passion for supporting our local retailers as well? It means that we have to be careful when we do see new stores opening and understand what their ownership is if we want to support true small businesses and simply not provide extra revenue to the big players in the industry. It also means that it's OK to shop in supermarkets if we know we are doing it on our own terms, that we are making conscious decisions on what we buy and when. It also means that we are consciously using the local retailers in our own high streets when they supply what it is we want. And if they aren't supplying what we want to buy, tell them, they need to know. Remember, spending just 10% of your weekly shop in real local stores can make all the difference. It certainly would if we all did this.

Is Living Frugally Our New Norm?

Frugal living is a phrase that seems to have taken off in recent years. Probably as a result of the downturn in the economies in the western world but perhaps also in response to the realities of our lives and the shifts there have been over the last couple of generations. Jobs for life and guaranteed pensions were the norm not so many years ago yet for those entering the workforce now and many others these are things that sound as though they come straight out of history books. Unfortunately all this has come along at a time when there has been a rapid expansion of debt and a seeming willingness and acceptance that a high level of debt is the right thing to have. Even with the banks becoming far more choosy about who they lend to, individuals and businesses, the opportunities to pile on debt have never been greater. And when people see whole countries doing the same why would they think it's unusual?

The fact is that having large debts over long periods of time is far from normal and is completely debilitating. It becomes a habit that spreads to friends and family members. If we want to change a habit for a better one we need to break that old habit and start living the new one - and we need to do that for quite some time before it become second nature, our new habit. So, yes, live frugally while you pay off your debts and do all you can to increase your income and when those debts have been repaid you may well ease off on your frugalness, or you make not - but at least you will then have the choice. 

5 Ways To Save Money In The Kitchen

All the best parties end up in the kitchen so it's said and the kitchen is the heart of most homes. It's where time is spent preparing meals, making drinks, washing - let's be honest, it's the one room in the house we automatically gravitate to. It's also the room which has a great deal of cost associated with it. Yes, the appliances in there cost a lot but also all the bits and pieces in there that we use each and every day cost a fair amount too. So here are a my 5 tips for saving money in your kitchen:

1. Use discarded plastic bags in your bin instead of buying plastics bags made specially for bins 
2. Start using eco-cloths instead of dish-cloths and paper kitchen towels
3. Save left-overs in either plastic containers or other sealed containers in the fridge - you haven't lived unless you've had bubble 'n' squeak
4. Keep a large jug of water in the refrigerator instead of buying bottled water - it's always great to have chilled water available
5. Re-use kitchen foil unless it's really greasy or ripped 

There are lots of ways to save money in and around the kitchen. These are just a few of ours. How do you save money in the kitchen?

Borrow A Book, Don't Buy It

With all the talk of e-books, Kindles and being able to hold thousands of books on a tablet computer it seems that once again technology is driving us down a route that perhaps we don't really need. Publishers have now found a way of getting us to pay the full price for each book we download and it's impossible (yet) to borrow a digital book as we would with the real thing. So, here's a reminder to everyone who enjoys reading and enjoys reading the latest books from their favourite authors - libraries still exist and they stock all the latest books just as any good bookshop does. And here's the best part - you borrow the books and take them back and don't have to spend a penny (unless you're late returning them that is).

I've never found a library that wasn't willing to help me track down a book I wanted to read or even buy one in if it was new one. Just ask at your local library and they will do what they can to help. Anyone who has a child with an insatiable appetite for books will know the costs involved in buying books week in week out but think how much would be saved if you got all or most of those books from the library. Borrowing doesn't have to be from a library of course, you can lend books to friends and family too. Maybe it's a habit we're in danger of forgetting in the rush for something that's handy but expensive to boot. Don't download the next book you want to read, go to your local library and borrow it instead.

Drastically Reduce How Much Washing Powder You Use

Have you ever considered just how much washing powder or liquid you use when washing clothes. Most of us just pour it straight into the washing machine, walk away and leave it to it until that tell tale beep lets us know all is finished. For those of you who completely fill up the drawer with washing powder or liquid just think whether all that is really needed to wash those clothes. The same goes for fabric conditioner if you use it. If the washing smells of a really strong artificial odour when you take it out them chances are you could save a lot of money by cutting back on how much you use.

Try reducing by a third or a even a half and see what the results are. Most people's clothes aren't that dirty, they have just been worn once so may be a little sweaty, that's all. If you are line drying your clothes, and you should be if you want to save money, you will also benefit from the bleaching quality of the sun and the freshening up that a breeze brings. Makes you wonder why you want to use highly perfumed liquids and powders when you are going to get rid of that odour on the breeze. Cleaning products can make up a sizeable proportion of our weekly budgets so it makes sense to cut down where you can and when there is no discernible difference in the end product.

Are Shopping Malls Going The Same Way As High Streets?

Boarded up shop fronts are nothing new and there's no doubt that since 2009 the number of them on our High Streets has increased dramatically. This has been matched, in my opinion, by an increase in the number of charity shops too but these don't seem to be replacing shops that go, there are still boarded up shop fronts in many towns. So a High Street with mostly chain stores, charity shops, empty shops and some local shops isn't a good sign and I do as much as I can to support locally owned shops whenever I can. But the boarded-up syndrome seems to be spreading to large shopping malls. 

Now there have always been shops in malls that are in the process of being refurbished or taken over by another store but lately I've noticed far more boarded up store fronts in a couple of malls I visit. This seems to be an economic indicator that others are missing but is one that I predict will start to be noticed by mainstream commentators in the coming months. We've had a string of closures of large chain stores in the recent months and while some are continuing to trade for the time being while new owners are sought by the Administrators, most will start to close for good in the coming months. I just wonder what businesses will step up to replace them. All Malls are full of clothing, electronic goods and 'gift shops', surely there can't be any more to come in? Maybe the Malls are starting to go the same way as the High Street as the recession starts to bite ever deeper.

Look After The Pennies

Do you think about the cost of things before you buy them? Of course you do, everyone does - don't they? Maybe for big ticket items or one-offs you think about how much an item costs but what about those day-to-day items that you've become accustomed to buying. "Look after the pennies and the pounds will look after themselves" is an old adage that still rings true (insert your own currency here). 

Keeping yourself up to speed with offers and pricing on food items can be a daunting experience with supermarkets always trying to outdo each other with the special deals they put on to tempt us. The way to get round this is to focus on the items that you regularly buy and that you aren't too fussed about when it comes to branding. This could be toilet rolls or fruit and veg but try and stay on top of 10 or 12 regular items so that you know a good deal when you see one.