Don't let black Friday take you into the red

Over here in the UK black friday is increasingly becoming a bigger event (despite the fact we don't do thanksgiving so it seems odd to have a place in UK culture). It is so easy to get caught up in the moment but don't let black friday drag you into debt (or hinder your progress for getting out of debt).

Shops love to lure you in with special deals, that get you up at the crack of dawn. The pressure to buy can feel overwhelming. Some easy ways to manage your spending on black friday are

• Shop on cash (or debit card for online) only. Cant afford to pay cash (or the electronic equivalent) then you can't afford to buy what you are looking at. Take a pre-set amount of cash with you and once it is gone its gone.
• Plan ahead, if you are going to be making purchased make a list of what you intend to buy (and ensure that they are things you need to buy and can afford). This could include thing that you intend to buy for christmas presents.
• Stick to your list. When you start to deviate from your pre-set shopping plan that is when the problems arise and you start buying compulsively.
• Use the method that reduces compulsion the most. Some people find being a physical shop worse than online shopping and visa versa.
• Take a buddy who will hold you accountable (make sure its not someone who will compel you to buy more) and enjoy the shopping experience together whilst being responsible. 

As Dave Ramsey puts it 

via http://www.daveramsey.com/blog/stay-in-the-black?ectid=Pinterest 

How to reduce your water bill

The cost of utilities can feel like its spiralling out of control. But utilities bills are one of the easiest areas we can save money. Making a few simple changes to your habits can have a big impact on your bill. This tips are especially useful if you are on a meter bill rather than direct debits. Check out this tips to cut your water bill.

1. Hand-wash rather than using a dishwasher. Using a bowl of water uses considerably less water that washing using a dishwasher. Consider (depending on the size of your family) washing up every other day (or every few days) so that the water goes further and washes up more. Plus hand washing saves on the electric bill as well.
2. Shower rather than bath. Showers are much more efficient, and the shorter the shower the more efficient, try to keep them less than 4 minutes. We alternate shower days with 'strip-wash' days which use even less water and completely avoid filling the bath. 
3. Use your washing machine when it is full. Be efficient with your washing, putting it on when the load is full rather than doing lots of little loads. I find that if I'm going to run out of anything it is underwear so I will often hand wash this if I have run out. If you find it hard to get a full load try using a colour catcher so you can put both dark and light clothing in the same wash
4. Car wash with a bucket. Using a bucket and sponge rather than a hose when car washing is a much more efficient way of using water. Using a hose can use unto 140 gallons when washing your car, using a bucket is a fraction of this amount. If you can't use a bucket try getting an automatic shut off nozzle as this can save up to 70 gallons per wash.
5. Collect rain water. Using a water but to collect water for use in the garden and for washing your car isa  grey way to reduce you bill as these are activities that do not required sanitised water. What you are really paying for in you water bill is the cost of purifying and distributing the water so why not use the free stuff when you can. 
6. Flush efficiently. People used to put bricks in to displace water and reduce the amount being used when fluxed however nowadays you can get bags filled with silicon gel that do the same job, these bags save about 30% of the water per flush. However, if you have a newer toilet with a dual flush function be sure to use it. Though a little gross the 'if its yellow let it mellow' rule works quite well at night time and again reduces the amount of flushes. 

Sinking funds and why you NEED them

Within the future there are expenses you will want to plan for to ensure as few emergencies occur as possible.

There may also be bigger long term goals that you are working towards.

A new car or solar panels for your roof. Really it could be anything.

But to buy it your going to have to save up for it to avoid going into debt.

What is a sinking fund?

A sinking fund is a savings pot that you contribute regular amounts to because you have a mid-to-long term savings goal. It is there to prevent delving into your emergency fund as that money is for the unknown. 

It is more specific than a savings account as you know how much you are going to save and what you are going to spend it on rather than just putting money away until you need it. 

Here is an example

You want to save £2,400 for a deposit for a rental flat and you want to be able to do it in one year.

£2,400 = 12 x £200

So you could achieve this goal in 12 months by saving £200 a month

Why have a sinking fund?

It is important to have a sinking fund as to avoid emergencies and dipping into your emergency fund.

You should have a sinking fund for car and home repairs as these are things you know will at some point need repair.

It can also be good to have sinking funds for other expenses such as back to school, birthdays and Christmas.

We use sinking funds for several goals

• Annual, Bi-Annaul and Quarterly Bills  (we have an account for gas and electric which don't come out monthly so we set up a standing order to go out each month).
• Vacation fund (we used this when saving for our vacation this summer though it is currently empty, when we start planning our honeymoon we will use this again).
• House deposit- C and I are currently saving for a deposit on a house and this is by far the longest term goal of our sinking funds.
• Bar exam- I have been saving for the past few years towards the cost of my bar exam this is also a longer term savings goal. 

Where to keep your sinking fund?

You want to keep your money somewhere where you are not going to easily touch it, but conversely it needs to be easy to access in case of an emergency. 

When determining the account look at what your sinking fund is for. Is it for a goal where you are going to have a good period of notice before needing to withdraw such as a deposit fund. 

Or would it be a fund where you would need immediate access in case of emergency such as a car repair fund. 

With that in mind you have a couple of options

• Cash- If your prefer to use cash envelopes consider setting up envelopes for your sinking funds. This will provide you with the quickest access if you need it (but be aware of the temptation to spend the money). Also remember cash earns no interest so if you sinking fund goal is longer term consider the impact of this. 
• Easy access E-savings accounts- This give you instant access- we use the ones attached to the Lloyds bank account for our car fund, bills fund and vacation fund. This is by far the best option as it provides the greatest level of flexibility and means it is easy to transfer money in and out. Plus a small amount of interest will be earned whilst there is almost no risk (as its likely to be covered by the FSCS)
• Premium Bonds- These give you 3-5 working days access and we use this for some of the bar exam money and house deposit money.
• Peer to Peer (P2P) lending- These accounts have 30 days to access and we use this for the remainder of the bar exam and house deposit money. But remember this is higher risk investment.

How to support a friend with debt

We look to support our friends through difficult times, through redundancy, divorce. And hope they would do the same for us. But do we support our friends in debt enough? Debt = stigma in our society, and it is our responsibility as a friend to be there and support them through the challenges ahead. One of the hardest stages in getting out of debt is admitting that you have a problem, being able to confide in your friends is a big part of this stage.

It can be hard to know how to support someone in debt, be it friends or family. This is especially so if you have never experienced debt yourself as it can be hard to comprehend the feelings someone in debt goes through. C just recently became debt free and through the journey I learnt a lot on how to support someone with debt. 

Don't isolate them from social activities. 

Be conscious that they may not be able to do all the social activities you normally do due to the price incurred. If you find that your friend is constantly blowing off plans don't assume that they are not interested in your friendship. They may not feel comfortable saying that they cannot afford the activity you proposed. Also, they will probably hate having to say no as it is a constant reminder of their situation. Try to meet up with them the best way to do this is to organise things that are free or very inexpensive. At the end of the day, good friends do not need to spend money to have a good time. This could be a Netflix movie night (rather than going to the cinema), a potluck (rather than going out for dinner) or even just go out for a walk. 

Along the same lines, don't push your friend to buy things that you barely even consider an expense. To them that one coffee can be a lot, as every penny they have they are trying to save. Even the smallest of expenses they are trying to avoid and remember something that doesn't seem expensive to you may be too much for someone in debt. Take this challenge in your friends life as an opportunity to build your friendship and memories together. 

Let them know that you are there for them. 

Your support as a friend is priceless, let them know that no matter how long or challenging this process is that you are still there for them. Debt is oppressive; it brings fear, depression and anxiety into people's lives. It is stigmatised by society and not openly discussed. It is a situation where you need a good friend to share your burdens with, to know that there is a constant in the world beyond the debt situation that feels so out of control. By being there for you friend you can be the best kind of support that is available, you friend may feel like a failure in so many areas in the life but by having a great friendship they will continue to feel success even if in only one area.

They don't need financial support. 

A big part of getting out of debt (and staying out) is about changing of mentality. This is a change that your friend can only make on their own. By loaning someone who is trying to get debt free money to help is not helping it is just shifting their debts and avoids the issue of changing mentality towards money. 

Loaning money to friends and family is never a good option anyway and can put a significant strain on your relationship. And please don't sign as a guarantor on any debts. You may want to "treat them" as a kind gesture, but this just leaves them feeling like a burden and that they should pay you back in some capacity. It may make you feel good to help out someone, but it does just that, it brings no real help to the person on the journey. 

If you want to help them with their finances, offer to sit down with them and work through a plan. Help them to create a debt-snowball and make repayment in manageable sized chunks. Or offer to help them with organising of letters and important documents and they may feel to overwhelmed to deal with it on their own. Offering to help in the process and being a support by doing so is probably one of the best ways to support your friend. 

Be sensitive about bragging. 

You may be debt free and in a great position financially. You may never have known debt. Perhaps you are excited that you recently purchased a new widescreen TV or the latest smart phone. You may have worked hard to save for it and feel justified in bragging. However, be sensitive to the emotions of someone getting out of debt.

They have a big challenge ahead of them, and you can be sure that they wish they weren't in that situation and that they could have the financial freedom to make those kinds of purchases. They don't need it rubbing in their face that they have made bad financial decisions, especially by their peers. Even worse would be if they were to go on a spending spree because of it. So be considerate enough not to raise this in front of your friend.


How were your friends during your debt free journey and how could you be a better friend to someone in debt?

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If you are new to our blog, we are all about finding new ways for students and millennials to make and save money. Here are some of our favourite sites and products to help you out:

• Start a blog. Blogging is our side-hustle just over a year ago we didn't think I would bring us any income . You can create your own blog here with my easy-to-use tutorial. You can start your blog for as low as $3.49 per month plus you get a free domain if you sign-up through my tutorial.
• Save money with gift cards Whether its for buying clothes, your weekly shop or dining out use Zeek to buy discounted gift cards to get more bang for your buck. 
• Use Swagbucks for your online searches. Swagbucks is a passive way to earn gift cards. Over the course of a year you could earn $500.  Swagbucks is just like using Google to do your online searches, except you get rewarded “points called SB” for the things you do through their website. Then, when you have enough Swagbucks, you can redeem them for cash, gift cards, and more. Receive $5 for signing up today.
• Try matched betting. Matched betting is a great way to may easy money online. Despite the name it is not gambling and could see you earn £500-£1000 a month for only a couple of hours work a day see here and here. For your free trial head to profit accumulator or join the Facebook 'getting started' group.  
• Sign up for a cashback site like Quidco. where you can earn CASH BACK for just spending like how you normally would online. The service is free too! Plus, when you sign up through my link, you also receive a free £10 bonus!

Making the most of casback

Who wouldn't want free money just for shopping? We that is exactly how cashback works. Whenever I make a large online purchase I look to see if I can get cashback. 

Currently some banks offer cashback on purchases made. The Santander 123 Credit Card (and I'm only advocating credit cards if you can use them responsibly i.e. pay them off every month and even then I strongly caution against them) has a staggered cashback depending on the type of purchase. Lloyds offer an 'everyday offers' scheme which provides cashback and is available on all current account including student accounts (and can be used on a debit card). Also if you are a Lloyds customer be sure to sign up to their 'its on us' scheme where they can randomly pay for something you purchased on your card during the month up to the value of £500.

My favourite online cashback scheme is Quidco. I have found myself using it a lot whilst booking my holiday to America this summer. We managed to get cashback on our flights, accommodation, car hire and currency exchange which has saved us quite a bit of money and all for buy what we would have bought in the first place. Plus there is a handy app so you can see what inshore cash back offers are available in your area. Though the cashback may not seem like huge amounts it quickly adds up. But remember to not let it encourage impulse buys purely because of the cashback. 

Grocery cashback- Quidco, Shopitiize, Checkoutsmart and TopCashback all offer cashback schemes for shopping where you upload your receipt and if it coincides with any cashback offers they are running you get the money back. I find that it works well to check these sites when you are writing your shopping list. Though don't be fooled sometimes it still works out cheaper to buy generic store brand rather than the branded product with cashback. For all my English readers out there head over to CouponShop for the latest top cashback deals and where best to use them. 

What amazing deals have you found with cashback schemes?