Money Saving Tips

Debt management Financial expert Jasmine Birtles advises struggling freelance writer Anita Sethi on taking the reins on future finances, which means first understanding the past. According to Ms. Birties says, the psychology of our spending habits stem right back to our childhood. The idea about the ‘inner child’ was posed by Ms. Birtles during her makeover and Anita Sethi’s final evaluation includes further discussion about not letting her inner child control the purse strings. Anita Sethi visualises herself as a child since she has been in school, at 14 she's working four days a week after school, earning £2 per hour. After that she's at Spinks the bakery, dishing out daily doughnuts at £2.17 an hour. Later on, obtaining a student loan for university education, she determines to pursue a career as a freelance writer. She is setting herself long-term goals, including earning goals, thinking about sensibly paid ways that can make money, not about her childhood aspirations, ie., novels; ghostwriting, focus groups, mystery shopping. Anita has to live on a cash-only budget of £80 per week, with her spending per month (rent, telephone, food, transport, toiletries and not including socialising) is £695. Week 1: She blows her £80 cash budget, 50p on a Cadbury's cream egg, spend on Coffee Republic's vanilla shake; diet Coke, drop coins in a charity box and a busker's violin case. In mere five minutes, blowing her £80 cash budget buys an £89.99 Dictaphone for work. She enters these proclivities into her green Woolworths cashbook, bought for £1. Week 2: It’s springtime, she fills up a Tupperware box with bread and cucumbers to ward off unnecessary spending on junk food. It's her birthday, she is at her hairdresser to shed some split ends. On her hairdresser’s request she is persuaded to try dry shampoo (£9.50); She pays for two friends and herself to take a spin on the London Eye (although she is later refunded by one). An old school friend in New York invites her for a hen party. It'll be about £550 for flights and accommodation. Plus spending money Week 3: She decides to visit her cousin's newborn baby and two-year-old niece who will also be there. She buys a rattle, a fairy book and cuddly toy (£17). All this shopping is making her hungry and she cheers up herself with a happy Meal. She takes the train down to Slough (£7.50). Week 4: Week four begins with an Orange phone bill, ends up with as she accepts the New York hen night invitation. Anita Sethi has reassessed her lifestyle and grown more self-aware. She sees that it is not always a case of black or white, rich and poor, but that life is often a tangle of contradictions that need working through. She vows not to drift again into that horrible financial situation under any circumstance, but to reassess her values and not feel that ‘she must live as her peers do”, instead exist on porridge and peanuts. Click here to visit debt management company Think Money