Saving Money – Page 2 – Business Plus Baby

April 21, 2010April 15, 2012

Savings? What Savings? Or How We Survived Maternity Leave Twice

Two years ago I started my first maternity leave utterly convinced that I’d be back at my desk six months later. I couldn’t afford to take any longer than that off work, or so I thought. Here’s what really happened – I’m still laughing about how naive I was back then!

A month into my maternity leave, the day after my daughter was born, I realised I couldn’t go back to work in five months time. So Mr L and I agreed I’d take a total of nine months off, mostly because that’s when my maternity pay ran out.

Then I realised I couldn’t face working full time and went back to work two days per week. Somehow our budget still just about worked out.

Then I found out I was pregnant again. Big shock. Our finances got tighter, but we coped. After four and half months back at work, I was on maternity leave again.

A month ago I passed the nine-month mark on my second maternity leave, meaning my maternity pay has run out again. Now we’re in the gap between my maternity pay ending and my new business bringing in an income. This is when we start to spend our savings in a big way.

I can feel my stomach clenching at the thought of it.

I’ve always been fairly sensible with money. True, there were times I could have been better, but I’ve always had a bit of cash tucked away in an online savings account for a rainy day. So I’m uncomfortable about spending it all now.

I’m also uncomfortable about being (temporarily) without an income and not contributing into a pension for a few years. At a time in my life where I’ve just picked up a lot more responsibility, I’m not being very responsible with my finances.

But maybe I’m being too hard on myself. I keep reminding myself that we are in exceptional circumstances. Life will get easier and I will find the time and energy to earn an income again soon. And if I can plan a business while having two babies fifteen months apart, then I can do anything!

In a way, this is the rainy day we were saving for.

Having babies has booted me out of my comfort zone in so many ways. The gap in my income isn’t a failure; it’s me being out of my financial comfort zone. If you’d told me two years ago about the battering our finances were about to receive, I’d have told you there’s no way we could have coped, but we have.

I’m actually quite proud of us.

Photo by Alan Cleaver

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February 22, 2010February 21, 2010

Where’s The Money Gone?

If you look at your bank balance at the end of the month and ask yourself, ‘Where’s the money gone?’ read on. In this article we look a couple of ideas to stop the drain of cash from your account.

Payment protection insurance

Did you sign up for payment protection insurance when you took out a loan or credit card? Payment protection insurance (PPI) is designed to help cover your repayments if you have an accident, are ill, or become unemployed. However in past years people have been missold this insurance You may have been told that it is compulsory, which it isn’t, or been sold the insurance when you have cover elsewhere. If you are a pensioner, self employed or unemployed, you may have wrongly been sold insurance against becoming unemployed. And you can be paying out pounds every month for this cover.

Check your own circumstances by reading the paperwork with your load or credit card. If you think you have been missold PPI you can reclaim what you have paid. There are template letters to help you do this on Money Saving Expert. The site can also help you work out if you are getting a good deal on the insurance that you DO need: insurance offered with a loan or card is often dearer than an independent product.

Direct Debits

Another way to save money is to look through the direct debits and standing orders that you have. If you have online banking you should be able to check this instantly, or simply take the time to go through your bank statement. If you can’t identify where the money is going, ask your bank to help. You my find that you are still paying out for subscriptions that you no longer need. Cancel these by writing to your bank. The Direct Debit guarantee also means that if the originator or the bank/building society makes an error you are guaranteed a full and immediate refund of the amount paid. So, get in touch with the bank if you think that money is coming out of your account in error.

Council tax rebanding

Council tax takes a big chunk out of everyone’s monthly income, and it is relatively simple to see if you are paying a fair amount or whether it is worth asking for a council tax reband. The first thing to do is check out your neighbours’ banding to see if you are all paying around the same amount or if some houses on your street are in a lower band than yours. Look on the Valuation Office Agency website in England, and in Scotland use the Scottish Assessors Association. Then, work out what your house was worth in 1991 to get an idea of the correct band. If you think you are paying more than neighbours with a similar property, get in touch with your Local Listing Officer. Make sure that you’re sure that your property is overvalued, though, as they can also put you up a band!

This article is by Gemma Johnson, co-founder of www.babeecard.com

Winner of Mumpreneur of the year 2009 sponsored by WBMN

BaBeeCard Winner of Best Gift Card Award 2009 by Prepaid365.com

February 15, 2010February 15, 2010

How To Save Hundreds Of Pounds In Minutes

If you’ve got a baby and a new business you need every spare penny.

You could look at every single purchase you make and try to get it cheaper, but this takes time and all that penny pinching can get depressing. Why not be smart with your time and your money by finding ways of saving the most money in the least time?

1. Change tariff and save a wad of cash

I just found out we could save £25 a month on our gas and electricity by switching to a different tariff without changing my supplier. It took me about 3 minutes on the web to find that out, I can’t believe I didn’t do it months ago.

Money saved: £300 per year

Time taken: 3 minutes

2. Insurance just got more interesting

When your house or car insurance is up for renewal, phone up the insurance company and ask if you can get a better deal. I’ve saved £100 off our house insurance twice in the last two years, again without moving companies. It’s far easier for an insurance company to retain you than it is to get a new customer to replace you. So they’ll usually give you a discount if you ask nicely.

You’ll probably save a bit more by going to a price comparison website, but if you’re pushed for time this is a great alternative.

Money saved: £100 per year

Time taken: 3 minutes

3. Don’t forget the loyalty card

I used to think that loyalty cards were a waste of time, but it really does all add up. Despite being on a fairly tight budget (going on maternity leave twice in two years does that to you), we still make about £150 per year on loyalty cards, almost all of our points come from the basics like toiletries and the weekly food shop.

Money saved: £150 per year

Time taken: about 3 seconds longer at the till

4. Get a credit card to suit your spending style

If you’ve got an outstanding balance, get the lowest interest rate you can. If you pay off your credit card balance every month, get a card that pays you points or cashback when you use it. We do both – we have a low interest card with an interest free period for our outstanding balance and a points card that we pay off every month. You need a bit of self-discipline to do this, though.

Money saved: anywhere from £50 per year if you use a points card to £100s if you lower your interest rate

Time taken: 10 minutes to apply for a new credit card

5. Cook like you’re takeaway

We used to grab takeaways on a regular basis because we were tired and lazy. I don’t mind the occasional takeaway if we’ve got a burning desire for a decent curry, but if it’s down to laziness, it can be an expensive habit.

Why do you get takeaways?

If it’s because you’re hungry and the fridge is empty, try cooking a double portion and freezing ahead for a day when you’ve not got time to shop or cook. Cooking double takes the same time as cooking a single portion.

If you love the food, see if you can get a cheaper but quick alternative. You can throw together a chinese dish in minutes using a pack of pre-prepared vegetables, a pack of pre-sliced chicken, a jar of stir fry sauce and some dried noodles. If pizza is your thing, you can keep pizza bases in your freezer (find them in the supermarket with the chilled pizza), plus grated mozzarella, pepperoni and a jar of passata. Much cheaper, takes minutes to prepare, tastes good and it’s healthier too.

Money saved: £15 per week on a takeaway = £780 per year

Time taken: if you’ve planned ahead, this is actually faster than going out for a takeaway

6. Go for supermarket own brands

You won’t even notice the difference. And if you do, switch back to the non-own brand for just that item.

Money saved: £15 per weekly grocery shop = £780 per year

Time taken: 0 minutes

Do you have any tips that save money in minutes? Drop me a comment!