Our relationship with money is a bit like our relationship with ourselves. Sometimes we work out, treat ourselves with kindness, and eat good food. Other times we skip exercise, have negative self talk and eat rubbish. This leads to inconsistency and doesn’t serve us in the long run.

Until recently I was happy that I had financial consistency. I felt that my outgoings were as low as they could be, at the lifestyle I wanted. What I didn’t anticipate was how much of my lifestyle was to compensate for my unhappiness at work. Happiness, I have learned, is not about the amount you earn, it’s about the margins.

Have you ever felt the power of discipline? Or of delayed gratification? It’s one of those things completely in our control but most do not use it. I made a coffee at home today and had it before I left. It felt good to show this discipline and not part with £4 to outsource the work.

Let me tell you more about the review of my outgoings that I undertook in July. I am proud to report that I have made savings, in the region of £20k per year. 

I started with reviewing my spreadsheet of outgoings and associated details. If you don’t have one of these, I urge you to do it. Be honest, be transparent and be in control.

My first thought was, what is on this spreadsheet that is non-essential. Multi sports subscription, Amazon prime and Netflix. I don’t watch them enough. They had to go. 

Don’t be afraid to ask for what you want or negotiate. During my discussion with BT about my multi sports package I managed to get Netflix for free. £65 pm saving. Tick.

Next I saw the details of my home insurance. Lots of listed items that I wasn’t using such as watches. They had to go. Watches sold, lead to a home insurance premium reduction of £45 pm.

Energy bills. I thought it wise to ask some of my friends and neighbours about their bills. I was shocked to learn that mine was way higher, and some of them had 3-4 people living at home. 

Upon investigation I have a immersion heater that is always on. What is it doing? As I have an electric shower with its own heat element. What do I lose if I turn it off? Hot water from the taps? I can live with that. In the first month I saved £150. 

Gym membership. I use it all the time, but is there a cheaper option. After visiting a leisure centre and getting a price 5.5x cheaper than my current arrangement, I called my gym to share the news. With a little prompting, they came up with a counter proposal that saved me £60pm. I’ll take it.

I left food costs alone, as I already shopped smart. No waste. I am not going to be consuming or advocating cheap food. This is an area that needs to be the highest quality you can afford.

I did however begin food prep. Not only is this a cost saving, it guarantees you eat the food you want whilst you are on the go. No snacking on what’s available and feeling crap. Ker-ching!

There were a couple of zero interest balances that were being paid monthly. I settled those for ease of admin. 

The final thing I tackled was the water bill. This wasn’t particularly high compared to my friends and neighbours but I wanted to be thorough. I love my garden so naturally I water it a lot. Each day of the summer was the equivalent water of flushing the toilet ten times per day. I had a solution. A water butt. 20 litres of natural water ready for me to reuse. £40 outlay and easy to fit. 

What has this done to my happiness? I said at the start it was all about the margins and it really is. I find myself more tuned into to the cost of things and I question before I buy. I call it self imposed austerity and its bringing me joy everyday. I even got a free coffee on my birthday just by asking the question. Cash back! (As Alan would say).