How To Plan A Successful Low Buy Year
I hate the concept of all or nothing when it comes to anything, including spending. That’s why a low buy year suits me so much better than a no buy year.
If you want to save real money this year but don’t want to give up on everything you enjoy, then a low buy year is perfect.
When it comes to your money, one of the things holding you back from changing excess spending habits is maybe that you just don’t want to give it all up.
Changing a habit is hard, especially one that while you know it’s not great for your bank balance and overall wellbeing, in the moment it feels pretty great.
So this is where trying a low buy year, instead of a no buy year, could really help you up your savings this year and get closer to your financial goals. It could also be a step towards changing long term habits.
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What is a low buy year vs a no buy year?
A no buy year is where you give up on all non-essential spending, and make do with what you already have.
A low buy year is way less restrictive. You cut right back on your non essential spending but you leave room in your budget for spending on some things that you love.
The idea is you cut back on your non-essential spending, but ensure there is space in your budget to prioritise the things you really enjoy.
How to do a low buy year
Getting started with a low buy year requires a little planning but it’s nothing too taxing.
Examine your budget
Having a plan in place is absolutely key and if you’re someone who doesn’t take a regular broader look at their regular spending then this is such a valuable exercise.
You want to examine your budget and make a plan for your low buy year, so that there are no nasty surprises.
First of all take a look at your spending. This is a good chance to assess your budget, take a look at anything you can cut back on such as subscriptions, and really see where your money is going.
Take into account upcoming costs
Write down the costs that you can predict this year.
That includes Christmas, birthdays, holidays, car MOT, car and home insurance renewal and car tax.
Estimate what that will cost you and make sure you are putting aside enough money to cover those big costs throughout the year. The money set aside for your expected annual costs is sometimes known as a sinking fund, and it’s so worth having one.
I’ve found that really useful as the summer tends to be expensive for me as all my car costs fall in that month, plus the kids are off school and I spend more on entertainment for them.
Organise spending into three categories
Once you know where your money goes, then you can place your outgoings into three categories for your low spend year – essentials, fun and banned.
Your fun list is the non-essentials you are allowed to buy this year, and the banned list is the things to avoid.
The items falling under your lists will be different. Here’s my lists to give you an idea of how it may look.
My essentials budget
- Mortgage
- Food – essentials only, not takeaways
- Energy and water bills
- Car tax, MOT and insurance
- Home insurance
- Essential clothing – ie school shoes
- Mobile phone
Fun budget
- Experiences for the kids. I’m always happy to pay for my kid to do fun stuff, now that doesn’t mean I can spend mindlessly. I would love to taken them away every school holiday but I can’t afford to. So there’s still got to be a spending cap here, but I am not banning spending on fun stuff for them.
- Socialising. I’m not ditching all nights out. I’m a mum of two young kids so I go out incredibly rarely anyway, anything later than 9pm is very rock and roll for me. What I’ll do is set a limit on spending on going out each month.
- Holiday. I don’t know where we are going yet but we will go somewhere. It will cost less than we spent last year. I have a girls holiday planned for early summer so that’s already happening.
- Books. This is an easy one to add to the list for me because books give me so much. They keep me entertained, they educate me, they educate my kids. So I am happy to buy new books, with the caveat that we have to have finished the one we were reading first.
- Monthly takeaway
Banned budget
- Beauty products that are not replacements of stuff I’ve run out of
- Getting my hair coloured at the hairdressers
- Home decor and furniture
- New tech. My phone will be paid off at some point this year but I will not be replacing it with anything new. I’ve also got a very old iPad but again while that still works there’s no point in getting rid of something that’s absolutely fine.
- Jewellery. I have a lot of jewellery already and I just don’t feel that it’s something I really need any more of right now, it’s absolutely not an essential for me, so I would rather allocate the little fun budget I have to some clothing purchases.
- Bags. I do not need any more bags. I’ve got plenty.
- Clothes. I have enough clothes. To be honest if anything I need to get rid of some. The only allowable purchases are where something has become totally worn, and has to be replaced. I have had my eye on Adidas Sambas for months. They’re £90 so I just don’t feel like I can justify it. So I am not going to buy myself them this year, I have trainers already. However what I may do is add them to my birthday list.
- Cheap hauls of stuff. Places like Home Bargains and Primark are so cheap that you can end up feeling like you’re saving money just by shopping there. But the reality is if you’re buying random trinkets, clothes you don’t need and little storage boxes that you actually do not need, you’re not saving money even if it was cheaper than you would get it elsewhere. You’re just spending.
Your lists may look a little different to mine and that’s OK because we all have different priorities. Maybe getting your nails done professionally is a crucial bit of self care for you. For me I’ve always been happy to do it at home.
How to stay motivated in your low buy year
To stay motivated on this journey it’s important to decide why you are doing a low buy year. Something abstract like “to save money” isn’t going to stop you from a spending spree in a moment of weakness.
My motivation is that this year we really want to get closer to buying our next house. We have a lovely home but it’s just not located in the best place for us.
That’s particularly the case as we look forward to our kids moving into secondary school, we want to be placed well within catchment so we don’t have any stress about applying and so that they can walk to school when they’re older.
Tips for a successful low buy year
Try these tips to get through your low buy year.
Agree with your partner
It needs to be a joint effort so speaking to your partner and getting them on board is an important part of making this a success.
Agree on what’s on your fun and banned list, and this way you can help to keep each other motivated.
Audit what you own
Take a look at what you already have. This always surprises me when I get out all of my clothes and beauty products just how much I already own and therefore do not need to spend any more money on.
Stick with your plan
Once you’ve made a plan find ways to ensure you stick with it.
Having a clear goal for what it is you’re trying to achieve really helps.
If you are struggling to stick with your plan then try making a wishlist of the things that are really tempting you. Then you can make a plan for treating yourself at the end of the low buy year to one of those items, or add them to a birthday or Christmas list.
Tracking your spending makes a huge difference here.
Change your habits
If you are someone who regularly spends beyond their means, like I used to be, then entering a low buy year will require a big shift in your spending habits.
In order to change your spending habits you can try:
- Avoiding temptation. That may include unsubscribing from brands that regularly email you and tempt you into impulse purchases.
- Finding free fun. Look for different things to do that don’t involve spending money. Picnics in the park, movie afternoons at home with the family and a trip to the beach.
- Acknowledge your emotional spending triggers. It could be boredom, loneliness, work stress or something else. Whatever leads you to spend to make yourself feel better, it can help to identify that trigger and make a decision to do something different to help you. That may be exercising, going for a walk or picking up a new hobby (maybe something creative).
- Pay yourself first. Remove extra cash from your bank account that you may be tempted to spend as soon as you are paid.
Incentivise your savings
Keep track of how much you are managing to save can really incentivise you to keep going. Month one may not look that impressive, but once you get to month six you may see you’re really gaining momentum!
Make your savings work for you
If your low buy year is going to help you top up your savings then it’s not worth stuffing that extra cash under the mattress!
Make sure that money is working for you by putting it somewhere with a decent rate of return. Where exactly that is will very much depend on your circumstances.
I split my savings between an easy access account with a competitive rate of interest, an investment account and an ISA.
