Reducing costs before you reduce your hours; the art of conscious spending

One inevitable compromise when lowering your hours through flexible working, is a reduction in salary. When speaking to clients, this is their main concern; how with they cope with less income?

Finances can be a driver to stay in roles that don’t offer the flexibility you want or need. Having gone through this twice when I changed my working pattern, I thought I could give you an overview of how I went from a spender to more self-sufficient; hopefully after applying these ideas you will see where you have room to reduce your outgoings within restricting your lifestyle.

• Bills, bills, bills

Convenience costs. On an annual basis review all your regular payments such as utilities and insurances on a money comparison site and shift to something that is cheaper. It is amazing how these can creep up without you even noticing! Also, take this opportunity to check over if you are paying for things you don’t actually use!

• Downgrade your brands

This is something that I have been doing for a while, after a recruitment client mentioned they manufactured a product that was branded as both a luxury item and a basics item – with very little difference in the a quality! It pains me to think that I am paying a premium to cover an organisation’s advertising costs. I started this process initially by going from branded to own brand within a supermarket, then to their basics range. Now, have shifted completely and only shop within one of the “cheaper” supermarkets (Begins with an L – rhymes with nidl”) and we reduced our monthly food shop by over £100! It also saves time (due to the limited choice) and we actually have more food in the house! You can impact these savings even more by meal planning!

• Make your own

This covers a range of things. From cooking quickly from scratch, going old school and having a “packed lunch” to – and I promise you this works – making your own washing powder and kitchen cleaner. I was astonished how much this reduced our outgoings. There are some great recipes and instructions on Pinterest for things like this – you will be amazed by how many products white vinegar, bicard of soda and essential oils can create!

• Don’t lose your points

I make sure I gather as many points cards as possible; at certain times of the year they get “boosted” and at the end of the year they pay for lots of Christmas presents (apart from the ones that Father Christmas gets – of course). Don’t forget these bits of plastic can also represent days out, holidays or nights out. You just need to make sure you collect them consistently!

• Sell to spend

I am a Car Boot and an Ebay fan; just because I don’t want something anymore, doesn’t mean someone else won’t pay good money for it! Several times of year I have a good clear out and this money is used to update my work wardrobe or goes towards things we need for the house. For the parents out there, I have also got my eldest on board, who joins me at the Car Boot with her toys and books, and has become a feisty negotiator!

• Plan and spend consciously!

Even with my mega frugal mind-set, I often get distracted and find the money flittering out my wallet. One sandwich here, a Latte there and an emergency birthday present, and I’m £30 down! Try a month of only spending on the essentials; obviously decide what is essential to you and stick to it. It may make you realise where else you can cut down once you see the bank balance at the end of the period.

• Diary management for the sales

Finally, and this does take a bit of planning but it is worth it, do all your gift shopping in the New Year. Consider who you have to buy for over the year – family, friends, the work “secret santa” – and stock up. Set yourself a budget and don’t go over it – then store it away to be used over the year.

This is just a snapshot of a few tools that have helped me manage a reduction in salary. Whilst flexible working doesn’t always mean a reduction in income, I hope these few ideas will help you have more wiggle room in you budget!

To find out more about bespoke flexible working recruitment, individual and corporate coaching, contact Clara Wilcox, the Ethical Recruiter on hello@thebalancecollective.co.uk or follow The Balance Collective on https://www.facebook.com/Flexibleworkingforall