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How do you make a budget

(10 Posts)
InNeedOfBrandy Thu 08-Nov-12 20:12:39

I'm making a budget and I'm going to stick to it, what things do I need to budget for and what sort of money on a month to month basis is feasable? I don't want to under budget and never buy anything extra.

Council tax
Electric (don't have gas)
Birthdays and christmas
Other childrens birthday partys
DC gymnastic club and any school trips and contributions
Coffes when out and about
emergency fund

^^ what I'm thinking so far.

InNeedOfBrandy Thu 08-Nov-12 20:23:10

no ideas??

I budget all outgoings like you have listed, how much I want to save then whatevers left we divide by 4 and that gives us our spare cash for each week. I always do a spreadsheet and highlight each direct debit as it leaves my account so I can are straight away if anythings missed or changed. Shopping money I take out at the beginning of the month and put in a separate purse, when its gone its gone. Same with pocket money and money to spend on clothes etc - all taken out in one go and in envelopes.

Do you have a window cleaner, milkman etc you need to budget for?

Mum2Fergus Thu 08-Nov-12 21:23:40

Rent, Council Tax, electricity/gas, SKY, BT, insurances, mobile phones, TV Licence, childcare cost, car costs, housekeeping for shopping. Start tracking your spend now and update your budget as the days pass. Do you intend for long term budget too? If so, dont forget birthdays, christmas, holidays, etc. I have a simple excel spreadsheet that keeps me right.

LadyMaryCreepyCrawley Thu 08-Nov-12 21:24:50


ivykaty44 Thu 08-Nov-12 21:39:34

I budget so that the money from my wages goes into my must pay bills each month, and then a few other accounts for other money - I like to keep things in apart, otherwise I don't know how much money I have to spend on what and that is when I over spend and things go wrong for me.

So I list all my monthly bills that I must pay without fail

Car tax
council tax
water bill
fuel for house
house insurance
life insurance
gym membership
tv licence
car service

Work out how much each bill is per year, then add the total up and divide by 12 ** as water is paid here 8 months and council tax 10 months.

So say the total for each month is 725, that goes into the bills account each month on the 1st - then the bills are paid by standing order or direct debit from that account.

Then I work out how much school trips and sporting activities cost per year and again divide by 12 and put that in a different account - the money is about 25 per month over the whole year, so that goes in on the 1st of the month.

Then Christmas and birthdays - work out how many birthdays in the year, then total up that and how much is required for presents for christmas - again put this away on the first of the month in a different account - usually a monthly saver which gets a bit of interest.

I have one more savings pot and this is for holdiays,

I found if everything was bundled in together I wouldn't really know how much money I had to spend and then would over spend.

Now what is left in my current account is mine to spend on food, clothes, hairdressers, coffee when out and petrol - Every month I have the same amount to spend and I know all the other bills are taken care of and the money will be in each pot ready and waiting when I need to use it for a present, a holiday or if my dd2 needs a hockey stick form the sports account.

InNeedOfBrandy Thu 08-Nov-12 21:46:15

Yes long term. I want to stop wasting my money but also know where it all is and when it all comes out. I want a rainy day fund and a real emergency like fridge breaking down type savings.

I'm fed up of wasting money.

Mum2Fergus Thu 08-Nov-12 22:11:46

Remember to include and regular debt repayments if any too, loan repayments, credit cards, etc.

InNeedOfBrandy Thu 08-Nov-12 22:22:53

Im getting a debt relief order, so I really need to learn how to manage my money... but won't have any deb to pay off.

Mum2Fergus Thu 08-Nov-12 22:34:04

Ok, just start tracking your spend then, Ive put together a spreadsheet that keeps me right...nothing fancy but youre welcome to a copy if you want to pm me your email address.

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