Monday, 13 February 2012

The Frugal Living Challenge Just Got Even More Interesting

Frugal Frivolity in the Name of Financial Fun

It's now almost mid-February and we're 6 weeks into the 2012 frugal living challenge. As explained in the appropriate forums, the part I play in all of this is to try to raise whatever extra finance is needed in order to have a bit of fun, over and above the fun of frugal living that keeps us debt and mortgage free while pursuing a fairly good life.

The next stage of my particular challenge is about to begin - playing with the savings in the hope they attract a little more than they can generate in interest!

Basing this experiment, once again, on £600 over the period of one year, it equates to £50 per month, or approximately £11.50 per week. For all you smokers out there, that's 40 cheap cigarettes a week and for all you drinkers, that's only about a dozen decent cans or a bottle go cheap spirits and possibly a mixer.

For the purposes of boring security, the first £100  is banked and another 2 months' money secured by way of Premium Bonds - always safest to safeguard at least one third of your income for future emergecies, I say. In the original trial of this challenge, in 2006, the money was allocated as follows:
  • £100 into a high interest savings account
  • £100 into premium bonds
  • £100 on lotto tickets
  • £100 on scratch cards
  • £100 on sports bets (horse racing)
  • £100 on shares
Owing to all the changes that have occured over the past six years, high iterest is no longer available and online shares trading is almost impossible on such small amounts owing to the free trading opportunities having disappeared - please correct me if I'm wrong and you know of any sites offering completely free trading or banks offering more than 5% interest on small sums of money.

This year it's a free for all - I can do as I please with the remaining £400, so who can afford to join me in this wacky challenge? It is completely separate from the business money-making ventures, this is purely for fun and should be looked upon as a hobby.

Shona Prophett

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