I've just done a budgeting spreadsheet - shocked!

[Allnewtometoo]

Where does the money go?? I do know i have a bit of a "frittering away" habit. Buying a drink at work, getting the dc snacks from the petrol station, that sort of thing but jesus I cannot believe how much I should have "leftover" each month. I know that on paper can be different to reality but even so, this is mind boggling.

Can anyone recommend a way to sort myself out? Is there a plan/program/book?

I know some of you will say "just stop spending" but I feel like I need more than that.

I've previously read about sone sort of budgeting app but can't remember what it was called.

Start writing down what you spend and when and what on. Chances are the effort of writing down will be greater than the urge to buy whatever it is you're buying.

Set yourself a frittering budget. I’m terrible with money so I set up pots on my online banking app and allocate money to those on pay day, and send money to my savings accounts. Then I have a set amount in my current account that I’m allowed to fritter away and spend how I want each month. The things I’ve budgeted for I transfer the money from the pot at the time of paying for it.

I use Snoop and you don’t have to put money into pots, I just use it to watch what I’m spending

I have a general interest in finance and previously worked in the sector. I log everything on a spreadsheet and have done for a good 15 years, maybe more. Previously in notebooks. It does take time logging receipts, checking against bank statements etc, so if that’s not your cup of tea, snoop is great. I’ve got the free one with mine and my husband’s cards and accounts on. I’ve just set one up for my daughter who is off to uni too. It’s completely low effort. It categorises everything for you. You can easily see your spending in each area and it’s all automated by being linked to your accounts.

@Allnewtometoo in YNAB, that overdraft is a debt that it will help you pay off over time. There are videos on YouTube about how to set it up.

Keep it simple. Use MSE budgeting tools.

• keep a spreadsheet for the big spends - mortgage, bills, clothes, holidays, big household items etc.
• set a weekly budget for food and incidentals.
• write down what you spend every day in a notebook, add it up once a week and add it to the spreadsheet
• also highlight any expenditure that was unnecessary and watch out to not do the same the following week
• identify something you want to save for and keep a running total for your goal

I like moneyhub. More.basic (and cheaper than YNAB) but works.for me

So, I had this exact problem. I spent four years saving to buy a house, bought a house and then went a bit wild with buying things and never stopped. Had a rough time in personal life - dealt with by adopting a ‘I deserve a treat mantra’ and frittered on coffees, pastries and Sainsbury’s pyjamas. Kept dipping randomly into my savings.

I sat down and did an Excel Spreadsheet with all my fixed costs (mortgage, bills, etc) and found I had a lot more direct debits than I thought (gym, cinema pass, too many tv subscriptions). I cut some of them that I wasn’t utilising to the max. I figured out a budget for food based on average spend and make conscious decisions to eat less meat and to stop being lured in by Sainsbury’s Taste the Difference products at twice the prices. I plugged in my salary to my spreadsheet and I could see I had a lot left over so where the hell was it going!

I then visualised some goals, things I really want to save for. Specific holidays, trips and home improvements. I’ve set up little pots in Starling to start saving for and I have mapped out exactly what will go into each pot, each month and how much will be in each pot by the end of the year. I’ve kept it realistic and not overcommitted but seeing how many different things I could do if I just spread the cost by saving in advance. I even had a pot for Car Tax/Insurance and Christmas which both come in December for me and I end up overspent - now I’ll put away a little bit each month and it’ll be covered.

Finally, I left myself a small amount of “fun money” to cover ad hoc meals out, the odd coffee, a new pair of shoes, etc. Having seen all the fun things I can do if I am a bit more diligent, I feel way less inclined to fritter!

I spent the month in and out if my overdraft , and it's not a snall one. I have wages, maintenance, UC, and CB go in all at different times. The big stuff goes out first,bills are paid but I need to clear the overdraft really. I also have a substantial credit card bill, which is mostly made up of solicitors fees for my divorce. There's not much I can do about that.

I do have the "i deserve a treat" problem. I need to stop it really. Being not in debt would be a treat!

I've just cancelled several unnecessary subs.

I know this isn’t the point but it blows my mind that there are grown adults out there who don’t have a budgeting spreadsheet. What did you do before? Just get paid and hope for the best?!

I love created a spreadsheet with spending categories and log everything I spend.
it sounds boring but it’s incredibly helpful at keeping me on track - also really makes me think twice about spending money on unnecessary things. I have a sheet for each month and then a sheet that totals and compares each category throughout the year.
it also includes a savings sheet where I keep a note of how much is in my various accounts. This is helpful as it means I’m always making informed decisions if I’m buying something

It blows my mind that people do tbh. I know one person who does. Or at least admits to it. Its not something my parents ever did.

Its only recent years its become an issue, I suppose I could have saved more previously but had no debt so no issue really.

Divorce is taking its toll tbh. In many ways. Although it'll be worth it

I put anything that's not bills on credit card. I pay if off the day before my salary goes in. Because it's separate it helps me keep track of this month's spending. Not sure it helps. I end up at 700 or 800 quid each month just for myself. Includes food shop but still. I keep thinking every month that this month will be lower but I already spent 200 quid less than a week after payday. I think I'd run up 1k if I didn't keep track and keep myself from getting another take away or coffee or thing I don't need.

Use the free version of Snoop. If you take the first month to look at every transaction and categorise correctly, after that it's mostly automatic.

Been there done that!

you have already done the hardest part, identifying the issue. The trick at the most basic level is to be more prepared so you aren’t purchasing as much ready to eat food, that was my undoing too. Carry cans or capri suns (ideally supermarket own brand) in the car and crisps for those begging for snacks occasions and make sure you eat and drink before heading out- the amount we spent on Saturdays because nobody wanted to eat at home was crazy over the year - reserve eating out for something a bit more special than petrol stations. Restrict coffees out to special occasions, instead if you know you are going take a flask of cafetière coffee, tastes better than coffee shops too (if you like strong coffee).

to solve the takeaway problem plaguing so many families start a habit of special meals on the day you would have them that are easy but cost a bit more than everyday but half the price of a takeaway eg make pizza base (so easy, especially in a bread maker) and get the kids to choose toppings, make fajitas or tacos, make sweet and sour chicken (or tofu) by tossing meat into a little soy sauce then cornflour before shallow frying then toss in a sauce - I like an indochinese sauce I make with soy, lime juice, curry powder, star anise red pepper, onion, garlic and ginger.

I’ve never had a budgeting spreadsheet but I’m careful with my spending.
I always bought extra snacks, drinks cartons and ice lollies/ice creams in the summer holidays.
My dc love bagels so I stocked up on those, cut them through the middle and froze them.
I have a cool bag for picnics.
whenever we planned to go anywhere, I’d quickly get drinks, bagels, fruit and snacks together.
I’m really aware of mindless spending. Once you tune into it, you’ll become aware too.

Things like a coffee at work is something I allow for. But just the one.

Look for free or bargains for days out, groupon is good.
Plan your meals and only buy those ingredients. Keep some food like pizza and chips in the freezer for those days you don’t feel like cooking.
Set yourself a goal like being out of your overdraft in 3 months time.

Can you get a zero interest CC for your divorce bill?

Read/listen to Dave Ramsey's Total Money Makeover or google his baby steps.

He's a Christian Republican and we disagree on many things but on money, he's sorted me right out. I'm a year on from being in debt with no budget.

One positive is that I never get acrual takeaways I really do baulk at the cost. There might be an occasional McD for the DC, or Fish and chips at the beach but that's it.

I know I can do this. A few years ago I set myself a no spend month after an unexpected bill abd it was amazing how well I did. Even with the bill I ended the month better off than usual.

Im going to do an online ship and stock up on picnic/snacky stuff for the next couple if weeks.

Overdraft free in 3 months is ambitious , but aim high etc.

I recently did a 0% balance transfer so current legal fees are 0interest but there will be more to come so I guess I need to look for a 0% spends one if they exist?

It’s a complete lack of financial education in schools meaning that only the people who have parents who teach them this stuff have any reasonable level of financial literacy. My parents didn’t really either, I have taught myself a bit through life lessons and now a lot of reading, podcasts etc. And I’m now trying to start educating my children.

I just cant imagine not knowing what’s coming in and out for the month and what’s available to spend and save. I would feel utterly out of control.

Well done taking the first step anyway, it’s never too late to sort out your finances.

how to stop you spending? Save this link to the home screen of your phone and use it when you’re about to spend money. It will demotivate you!

https://www.moneysavingexpert.com/shopping/demotivator/

Ive got a simple spreadsheet with my income, all my bills (and the dates they are due) and then it tallies up what is left for me to spend.

If you don’t know where your money is going, first of all just get a notebook and log all of your spending. Or try and have a couple of no spend days.

I used to be awful with money and got in a lot of debt. Now I save first when I get paid and manage on what’s left.

definitely check out moneyssavingexpert. Great website and their forums are really helpful.

There's a great budgeting spreadsheet on Money Saving Expert you can download. You can enter what you ARE spending now and what you are aiming for.

Make sure you are scrupulously honest about all expenditure - as you've found frequent small spends add up fast. (I realised I was spending £25 a week on coffees & the odd mid morning snack - and that was when coffee was a lot cheaper than it is now. What was more shocking was the penny dropping that was over £1k per year!)

Track spending every month against budget by downloading all card transactions every month, keep all receipts including for cash purchases and assign everything to a budget category. You'll soon see where you can start to cut back.

YNAB works for many people but I gather it is hard to get started with, especially when already going into debt each month. It might be worth going back to it again in future once things stabilise a bit. It's good for forward planning and not getting caught out by unexpected expenses.

Also the Debt Free Wannabe forum on MSE is really great for getting advice & support from other people, many of whom are people who've successfully got out of massive debt or are on that journey, or are simply trying to manage on very low incomes. Start your own diary and keep it up.

@Allnewtometoo when I separated I started using Monzo bank because I hadn’t paid attention to my spending and it was easier to not pay attention when costs are split. I now transfer a set amount each month to live off and that’s it. It’s very helpful because you get a monthly report so it’s very clear to see where your money is going. I would recommend opening an account. You can set up pots etc, but the breakdown of your monthly spending will be helpful to target where you can cut back.

This is exactly what I do. I leave myself about £100 a month, every thing else is in savings or allocated. If I need more I can access it easily but it's a deterrent.