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Frugal February

February is well and truly here, and we want to tell you all about how to make the most of your finances during the shortest month of the year.

The Frugal February challenge started several years ago and is gaining as much popularity as Dry January, Veganuary and Movember.

It’s all about living frugally for the whole month to see how much you can save – and identifying what you can do without for the rest of the year.

Many can attest that February is a great month to flex those frugal muscles. After the big spending commitments of December and January, February can be a time to reflect on your spending and?saving habits.

An audit allows you to identify possible areas where your money is unnecessarily draining and helps you to set up a future-proof budget, an emergency fund, or to start a small?investment portfolio with the money you are managing to save.

Take the challenge! What to include in your budget?

What you include is totally up to you – it’s your challenge! It will depend on your personal circumstances and commitments. We suggest?identifying all your “essentials”, as you need these to function.

What “essentials” are is totally subjective, but you might want to think about food and travel, plus any work and childcare expenses. Here are our top tips for?Frugal February?success:

• ?Set aside all the bills that need that come out of your money each month – they have already been accounted for.
• ?Think about which extras you don’t want to go without, and include a small emergency fund if you can.
• ?Choose an amount to spend for each week of the month.
• ?If there are any larger items you need to buy for the household, can they be deferred to March? Obviously, don’t go without a fridge if yours decides to break, but if you plan to upgrade anything, hold off until next month.

How much could you save?

This depends on how much you earn and how much you set aside for bills and essentials. It also depends on your lifestyle.

Here are some?easy swaps?you can do:

Swap 1:?Lunch bought at a café for a packed lunch from home, and dinner at a restaurant for a meal prepared from scratch.

Swap 2:?Preparing a new meal daily for dinner to eat up leftovers – cheaper and less wasteful!

Swap 3:?Going to the supermarket unprepared to take a detailed list for the coming week.

Swap 4:?Having the thermostat at 21?C for setting it to 19?C.

Swap 5: Lighting the whole house for lighting the rooms only you and your household are using. Limit the lights to just one, or experiment with any candles you have in the house.

Swap 6:?Cinema tickets, nachos and drinks for a movie at home and homemade popcorn.

Just these six swaps can make a huge difference in a month, and you might want to switch permanently – but remember, you can always add in the extras you missed!

Don’t forget to track your spending, savings, and whether you lasted the whole month or a few weeks. We’d love to know about your experience, how much you saved and what you plan to do with those savings. You can get in touch here:?[email protected].

And if you want to share your journey throughout the month, don’t forget to keep us in the loop on social media with the hashtags?#smartpursefrugalfeb. Tag us, too: @SmartPurse on?Facebook?and @smart.purse on?Instagram.

Book now for our Moneyssentials Course

If you need a little help with?financial confidence, look no further than our?Moneyssentials course. Financial writer Ellie Austin-Williams and SmartPurse’s Olga Miler have created this four-week live webinar course to help you to take charge of your money.?

The course includes a deep dive into a topic each week and practical tips between each webinar. With one live webinar per week, the course fits perfectly with planning your year ahead.

Enrolment includes three months’ access to the SmartPurse Digital Money School, which starts on 28th February. What better way to leap into spring than with financial confidence?

• During the four weeks, you’ll sort out your budget and reduce wasted cash, develop a personal financial plan that works for you, and examine your pension to start closing the gaps.?
• You’ll begin to feel confident with your new money mindset, enabling you to make the better?decisions in the future.
• You will have access to our unique hands-on tools: hacks, calculators, and checklists so that you can start immediately.
• You will be able to ask questions and exchange information with others.

Sign up now!

Figure of the Week

The average household spends ￡671 per week on living expenses?        

According to a 2020?Office for National Statistics survey, this is the amount we spend without including a mortgage or rent!

These figures suggest the?average UK household?spends the most on travel (15% of our budget), with food coming in a close second, at 11% of our budget.

Take a look at your travel and food budgets – are there areas where you can improve and get more money into savings, pensions and emergency funds?

Meet the expert – Cara Williams

Cara is a financial coach with over 20 years of experience and is the Head of the Financial Intermediaries at consulting firm Mercer.

Her coaching is designed to help people to avoid making the same money mistakes over and over and to make better financial decisions, whatever your stage of life.

She lives in London with her family, is keen on sports and keeping fit and is passionate about making a difference to people’s lives and the planet.?To learn more about Cara,?click here.

The Money School App is coming on Android

Last summer, we released our Money School on an app for iPhones and now, the Android version is almost ready for release.?So if you want to access the Money School on the go and have our unique?toolbox in your pocket, click the link below to join the waiting list and be the first to know when the app is available. Get on the waiting list!

Join our community!

Are you planning for your future now? Do you have any tips you want to share in a like-minded community and learn from others along the way?

Join our Facebook group and meet people like you who are putting plans in place to gain financial freedom.?Click on this?link, and we’ll see you there!

Money Inspiration?@smart.purse?

We love hearing from you. Send us your comments and feedback to:?

[email protected]

Always remember to consult an independent financial advisor for personalised investment advice.

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