to ask how on earth you budget?

[heraldgerald]

Sorry if posting in the wrong place, really need advice.Endlessly struggling with money no matter what we earn- both d h and I pretty rubbish with money and we have never, ever saved. This is not great, I know. Trying to sort this out, we need to save for a house deposit. How on earth do you do it?

Work out what you 'allow' yourself to spend on without thinking.

For me years ago there were two things that seemed to live outside the budget - train fares to see family/friends, and presents, especially guest presents when I stayed with people. I mean, I HAD to buy these things, I couldn't stop seeing my friends, could I? and I couldn't turn up empty handed, could I?

Well, no; but I could have seen them less often but rung them more, or got better at booking rail tickets in advance and spreading the cost in my budget; I could have asked for wine for my own birthday and squirrelled the bottles away to give to other people.... Most of all, I could have acknowledged that I was going to make these visits and budgeted for them, spending less on other things.

Yes to YNAB it has changed our lives and finances for the better.

1. Find out how much income you have.
2. Work out where money is going.
3. Work out what you want to spend more on.
4. Work out what you are willing to spend less on.
5. Agree limits.
6. Live more frugally.
7. Earn more.

1. Look at your payslips. How much do you both get after deductions? Do you have any other form of income?

1. As others have said, keep a note of what you buy.

Do you have debt? Pay off whichever debt has the highest rate of interest first - usually store cards if you have any. If you have credit card debt see if there are any 0% on balance transfers. The debt wont go away but it wont grow either.

1. You've already said in your OP House Deposit.

1. Depends entirely on your lifestyle. Do you use that gm membership? Do you really need lovefilm subscription? Can you take a packed lunch to work? Can you eat out only when there are offers on like the times 2 courses for £5 (is that still going)? Can you sign up to groupon for cheaper days out?

1. Just that. Discuss how you will keep track of this as a couple.

1. Do you meal plan? If you write a menu, and buy only what you need from the supermarket then you tend to spend less. Or shop online so you dont get tempted by other offers. There is a 2 week meal plan and shopping list on the love food hate waste website.

Stop buying books, start visiting a library.

1. Anything you can sell on ebay or gumtree? Any festivals in your area in need of bar staff - perhaps join a few temp agencies and tell them that you are looking for one off events. Anything earned here either goes in the savings, or paying off debt.

Decide how much you need as a deposit, and how long you want to wait. That will tell you how much you need to save. Set up a savings account (ideally direct from your pay if you can) and put that amount out before you pay the rest. Work out all your bills and direct debits and see what they add up to. See what you can cancel/ cut/ get better value on. Put that amount each month into an account you don't touch, so it just pays the bills. Work out what is left and whether it will cover food/ fares/ clothes/ living. Put something aside for the predictable one offs/ Christmas/ birthdays/ holidays and agree that each of you has a small amount of pocket money. Most importantly, if it isn't in the budget, don't spend it. It will be hard to make the change, but just watch that deposit build.
Or if when you've done the sums your budget doesn't add up you need a rethink.