Malcolm Krohne, 62, is maximising his retirement income after leaving the teaching profession.
He took early retirement on health grounds and saw his income drop by around 50% as a result. However, because he raised six children with wife Silvia, he has learned a few tricks to help stretch his retirement income and boost his savings accounts.
"I had to leave work unexpectedly," he says. "At the time it was a big decision because I was the breadwinner.
"But throughout our lives we were living on a teacher's salary with a large family to look after - so we've always been careful with our money.
"The lessons we've learned over the years would be useful for anyone looking to cut costs."
Tightening the purse-strings
Some things are straightforward - such as sticking to one credit card and paying off the balance every month, as well as shopping around for the best fuel deals. Other forms of money saving require more discipline and keeping a careful rein on spending.
"We almost exclusively buy our meat when it has been reduced in the supermarket, and we’re always on the lookout for deals and special offers," Malcolm says.
Some tips that have come in handy to save the Krohne family money include buying two of the same item when it’s on special offer and avoiding impulse-buying.
Sticking to what you need
"It's about making sure you don't buy more than you can use - it's outrageous the things which go to landfill sites," Malcolm adds.
The family also regularly checks out charity shops, which they say have changed a lot in recent years, as the 'eBay culture' of recycling items is changing the stigma once associated with buying second-hand.
And it pays to think about where you do your shopping.
"When you go to more affluent areas, take a look in the charity shops - you find the quality of goods is better," Malcolm says.
Using the internet to find the cheapest option for big purchases, such as a washing machine, can also save a small fortune. Even if you prefer buying the item face to face in a shop, it pays to know the prices that are out there, adds Malcolm.
Ultimately, it all comes down to common sense.
"It doesn't matter how much you earn; if you don't keep within your budget then you are going to have problems," Malcolm says. "It's just about living within your means."
Issued by Sainsbury’s Finance
Sainsbury’s Finance is a trading name of Sainsbury’s Bank plc. All information correct at time of publication, but may be subject to change. Any views or opinions expressed in this article are the responsibility of the author and do not necessarily reflect the views of any part of the Sainsbury’s Group of companies.
Sainsbury’s Finance is a financial services provider engaged in savings accounts, credit cards, and personal loans. It also supplies insurance services in car insurance, home insurance, life insurance, pet insurance and travel insurance as well as being a provider of travel money services.
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.