This is a Premium feature
To use this feature subscribe to Mumsnet Premium - get first access to new features see fewer ads, and support Mumsnet.Start using Mumsnet Premium
What’s the best way to budget with weekly, fortnightly and monthly incomings?(21 Posts)
I get paid wages monthly, child support monthly, child benefit and tax credits weekly and housing benefit top up fortnightly.
Is there a “best” way to manage my money so that the end of the month isn’t so tight? Is there an app or method I can use? I have tried YNAB in the past but really didn’t get on with it.
I've just started using ynab as I'm in the same situation and have never managed to get paper/spreadsheet budgets to work with variable income in random times.
As I've just started, I won't know how well it works for actually budgeting ahead until I've used it a few months and have some data to work with. But loving the concept so far. I spent days reading and watching videos about the app and the philosophy though, so I'm totally obsessed with it at the moment. I hope it works out as nothing else I've tried ever has.
Why did you not get on with it? Were you using the old version or new one?
It was a couple of years ago so possibly an old version?
I got confused about what I actually had in the budget for each category as it never tallied with what it said I had on the app. I seemed to spend a lot of time adjusting the balances in the app to match my RL accounts so for me it wasn’t an accurate reflection of what I had. I don’t know why. I couldnt work out the problem.
I use park for xmas.
On the beach if I want to go away as you can pay up to two weeks before
I try and have a couple of pots if desperate and pay things when they come in- I have the same payments as you (tax credits, DLA and wages)
Depending on the amounts involved, is there a way to match up your weekly incomes to weekly outgoings, monthly to monthly?
E.g if wages paid monthly, they are allocated to rent / mortgage. The weekly income is allocated to the weekly food shop etc?
I use an app called money dashboard. You sign up and connect it to your bank accounts and then use it to categorise and track spending, and you can put in predicted outgoings too so you can see what of your money is already sornt on bills etc. V useful, and less confusing than ynab for me.
Thanks OMG, is there any security risk of attaching an app to my bank account?
That’s a way I hadn’t thought of dr thanks. That might work.
See the above for a review. Its verified and has had no reprted breaches from people using it, so i was happy enough to give it a go. Obviously there are risks with using your phone to access the details so if you're someone who is known to lose it I wouldn't use the app on your phone. Best practice would be to have a strong password that is different to all of your other ones. There is a web version too, so you dont have to use it on your phone.
The new YNAB is all web based on one system, no syncing with Dropbox required, so it is probably worth another look. It very much sounds like you tried the old one.
I’m exactly the same NOCRY.
I’ve worked out what I get in a year in total and then I work weekly as find it easier. I am also trying to use mainly cash so have various envelopes with the weeks money. Some things are easier to budget for monthly ie car maintenance but I do food and petrol weekly. It seems to be working for me
Yes I had to use drop box so it was the old system. That’s good to know. I’ll give it another look.
I wondered if maybe I should have all the incomings into one current account and let it all sit there for the month and then transfer the whole amount into another current account at the end of the month like it is one salary coming in and use that account for bills to come out. It would mean being very frugal for a month or two to let enough build up. Or perhaps do spending on the 0% credit card for that first month to allow it to build up. Or is that mad?
It doesnt matter where you have your money so long as you know what is already committed to being spent and what is spare.
For example, I leave anything to be spent within normal monthly outgoings in my current account (ie my working account for boring but essential spending), move money for larger and more ad-hoc expenses (car services, holidays etc) to savings until it's needed, use an ISA for proper savings (ie money that I'm sure I wont need to withdraw) and lastly have an account for "fun" money (ie money for little treats for myself, say 50 quid a month).
I think your idea of transferring it once a month is the best way.as You would then be assured of money there to pay bills.
Maybe try saving a bit each month for a while to cover first month.
Ps dont use a credit card if you dont have to. Especially if money is tight. If you do use one, put the minimum needed on it for a specific category of spending that is known and budgeted for, and have a direct debit set up to pay it off in full every month. That way you will improve your credit rating (assuming you have no unlaid/outstanding debts and if you do have credit of any kind you generally pay on time and in full)
Yes the CC would just be for my essentials like food and petrol to allow my funds to build in the current account. It would be paid off in full as it would just be what I would normally spend anyway. There is no balance on it now. I only got it for emergencies.
Thanks everyone, this has given me lots to think about. I’m going to go and write it all down with my calendar so I can see if the once a month salary way would work.
I tried money dashboard a few months ago, but was more tracking rather than planning.
My next plan was to get a student account with free overdraft and use that to put enough money in my current account to cover a month... I had a complicated plan involving several accounts and transfers...
Then I discovered YNAB and it just seems a much better way of doing things. I haven't had any problems so far and it seems easy to use, all matches up with what my account actually has in it.
May be worth another try?
I'm the same have child Ben and tax credits weekly as well as some customers from work then the rest of my customers pay monthly
For bills I have separate account and pay a set amount weekly that just ticks over and covers all direct debits
I also have numerous accounts and name them things like xmas, holidays, kids, gymnastics etc and pay a set amount into those each week so when Christmas or gym bill arrives the money is there rather than having to find it out my weekly money so it doesn't leave me short, same when kids need new costs, shoes etc
You can also change the CB etc to be paid every 4 weeks, if that helps do your head on less?
I found pencil & paper for mewas the best way
Literal like another poster states work out all my bills over the entire year - bills I have to pay, so water, electric, gas, council tax, nursery or after school care, rent, car insurance & VED
Add it all up and then divide by 52
Electric 66 per month £800 per year
Water 25 per month£300 per year
Gas £16 per month £200 per year
Council tax 88 per month for 10 payments 880 per year
Total is £41.92 per week as 2180 divided by 52
Now multiply all your incomings to a yearly amount so your HB by 26 your tax credits and CB by 52 and your wages by 12 and the total divide by 52
do for example if what you earn, CB & WTC and CTC and HB comes to hypertheticly 7000 that would give you £134 per week
So leaves you with £92 per week for food clothes petrol etc
So each week take out the £41 amount and put in a building society account or set up a standing order to a separate account - that account will then always have money in to pay the bills
The other amount is what you have to spend, it may take a few weeks for this amount to physically be in your account and eventually there will be more - what you must not do is spend more than your allotted amount as other wise you won’t have enough money at the end of the month
Please ignore advice to use hamper companies. Terrible idea.
If tatmas makes things tight, grow up and lose it.
consider having 2 accounts
one that all Direct debits and food/ petrol/house insurance/mortgage or rent etc comes out of...ie all unavoidable living expenses, (work out what those costs are per annum then divide by 12 for the monthly amount add 10% for discrepancies ) and ensure exactly that amount goes in every month.
Never touch that account for personal or optional spending.ie clothes/going out/drinks etc
Put any extra in another account for spending/saving..if you have an excess for savingat the end of the month, then you can transfer an amount to a savings account from here.
Once you have set this up it is so simple to ensure all bills are paid and see what is over/ensure you don't overspend.