You Can’t Save Money When You’re Spending; Or Can You?

Written by Karen Bryan

£20 notes close up 240This is a story about Katrina, who manages to save while she spends.

Katrina doesn’t think that she can save, because all she wants to do is spend, spend, spend. And why wouldn’t she want to live her life to the full? She is young and doesn’t have any responsibilities. You only live once, right?

Despite the fact she spends a lot, it’s amazing  how she rarely buys anything at full price.

And why would she pay £299 for designer shoes, if she can get them for £119 online?

Retail stores can charge a lot more for the same items just because they need to pay for overheads (rent, staff salary, electricity, shop equipment), so actually, you are not getting what you pay for, you are helping the company cover their overheads.

The basic saving method is to spend less than you earn. Advanced saving is making the money you have make money – investing; and this is exactly what Katrina often does without even realizing it herself.

Here are Katrina’s 5 main tips:

1) Combine Making Money with a Hobby

Without putting too much effort into it, Katrina has created herself a second and a third income stream by doing what she really loves.

Since she writes daily about music into her diary anyway, so she decided to join Elance, Odesk and Freelancer for some freelance music writing work.

She currently writes around 5 blog posts for the music company a week and gets £20 for each of them. That’s £100 extra a week, which basically covers her weekly rent.

She also dog walks two dogs in her neighbourhood twice a week after work, which is another £30 a week.

You, too, can combine your passion with money. What do you enjoy doing? Love kids? Babysit in the evenings. Are you entrepreneur at heart? Start something from scratch. Blogging, perhaps? And see where it takes you. There are plenty of blogs earning money these days. Did you know that Mashable and Huffington Post are million dollar blogs? With hard work and good ideas you can be the next big thing, too.

The world is your oyster. Don’t limit yourself to one income only. Wear as many hats as you want and enrich your life.

2) Buy Designer Clothes in January & July – Then Sell Them on eBay

“eBay is my favourite business”, Katrina says jokingly. January and July are the design bargain months.

She receives newsletters from all of her favourite designers: Kurt Geiger, Russell and Bromley, Boden and many others.

Then, when she needs some extra money, she sells her items on eBay. She recently sold clothes and accessories which she doesn’t wear anymore, and earned £600 in a week.

She says that buying expensive designer clothes in July and January actually helps her to save money in the long term, since she can later sell them at a reasonable price on eBay. Otherwise she would just spend money on cocktails and eating out, and that’s the money you will never get back.

Sometimes, she manages to sell designer items for more than she originally bought them for.

“I bought designer shoes for £280 (retail price £480), wore them a few times and then sold them for £330 looking brand new.”

3)  Shop with Vouchers

“I always check voucher deals before I buy anything. You can usually get 10% off everything, sometimes even more. Vouchers are all over the web, so there is no excuse not to make the best of them.”

“Boden coats are the best quality. I have a Holland Park Coat and I got the coat and a bottle of wine delivered home for free with the voucher.”

4) Once a Year Do a Big Clear Out to Get Rid of Clutter

You can earn money and be environmentally conscious at the same time by using sites like Clothes for Cash. It offers 60p per kilogram of unwanted clothing sent to them.

5)  Walk or Cycle to Work to Save on Commute Cost & Gym Membership

“I cycle or walk to work—it takes a half hour each way—rather than spend £2.50 each way on the fare. The physical activity means that I don’t need to pay for gym membership.”

And it doesn’t feel like sacrifice at all – cycling is fun.