to ask how you budget/manage your money

[Purplesquare]

-nc but am a regular-

Tomorrow is payday. And Before the money hits my bank I want to get advice on budgeting. DH and I get paid at slight different times but on the whole, we take money required for direct debits from our individual bank accounts, plus an agreed amount each to spend as we wish throughout the month, aswell as bits that are needed such as milk, bread etc. Any money above this is put into our joint account which is used for food shopping, extra bills and savings etc.

For the last few months, I always end up skint by the end of the month. So today, I have no money. Have had no cash since Monday.

So, what is the best way to budget? I'm an impulse buyer. I will think "Oh, it's just a few pounds" and before I know it I've gone in for something for a few pounds and have spent £10 or so.

This is me to a t.I have to get it under control.
So if I get 2000 a month,800 is bills.That leaves me with 1200÷ 5 this month.Which works out at 225 a week.

Do I take out the 1200 altogether and put it in 5 envelopes.

If anyone fancies buddying up with me, I would appreciate it

Purplesquare I'm in!

Not going to do the envelope thing but going to only take in the money I need to a shop etc shall I check in next thurs with how much spent this week? X

I'm in as well.

Shall I start a thread somewhere for the three of us to share?

I plan to have £10 in my purse and leave my bank card at home. Bypass any treats at the shop, getting only the essentials I have gone in for.

I'm sitting down tonight and write down what I have to buy this month.Whatever I have left will just have to do me.

I've just sat and planned what money I get, what I have to spend this month (DH birthday etc) then worked out how much that leaves me per day/week.

@Purplesquare this bit stood out for me:

we take money required for direct debits from our individual bank accounts, plus an agreed amount each to spend as we wish throughout the month, aswell as bits that are needed such as milk, bread etc. Any money above this is put into our joint account which is used for food shopping, extra bills and savings etc .

Do I understand correctly that you prioritise in this order:

1. Direct Debits
2. Spend as you wish money
3. Top up shops (milk and bread)
4. Food shopping
5. Extra bills (I assume one off and/or discretionary spends like birthday presents and days out?)
6. Savings.

If so, I'd say that is one key aspect where you are going wrong.
I would order it thusly:

1. All bills/direct debits INCLUDING regular long term (retirement, house move, new car, whatever) and short term savings (i.e. the birthdays and day out). They're going to happen so may as well budget for them.
2. Food shopping plus extra for top up shops (add up a couple months of these spends to get an idea what to set aside here)
3. Your "spend as we wish" fun money. And if there isn't anything left after 1 and 2, that's tough.

Every month I'm playing catch up and im sick of it.Every Friday I'm taking out a set amount and when it's gone,it's gone.

My plan is as follows:

£200 monthly spend (after bills)

• 20 in to savings account
• 30 for husband's birthday
• 10 for mothers day meal bits
• 10 for day out with son over Easter

£130 remaining. Broken down into £3.93 per week/£32.50 per week.

I will move the above accounted for £70 into another account(s) immediately upon getting paid and draw the £130 out. This will be left in my drawer at home, with my bank card. I will have a maximum of £10 in my purse at one time and will note down what I spend it on and keep my receipts.

I will allow myself, my son and husband a small treat once a week - say around £2 for all 3 of us. That is if that isn't already something treatworthy in the house.

I will ask myself do I NEED or WANT the thing I'm itching to buy. Need meaning it is an essential requirement such as milk top up, or want meaning yes I want it but the world will not stop if I don't have it.

If I want something then I will make a note of what the cost is and leave it for a week. If I still want it in a week, perhaps buy it.

I have a strict budget so we have our salaries minus essentials (bills rent, CT etc.). Some money goes into savings straight away. I then have a set amount to spend weekly - shopping plus luxuries (days out, coffee out whatever). I take this out in cash and when it's gone it's gone.

@purplesquare...

£200 monthly spend (after bills)
- 20 in to savings account
- 30 for husband's birthday
- 10 for mothers day meal bits
- 10 for day out with son over Easter

I strongly suggest you start viewing the bolded expenses as bills just as important to budget for as the gas and council tax. Otherwise it can too easily become negotiable, borrowed from from next month's etc

I have separate accounts for each of those categories which all go out automatically on payday alongside the utilities and other bills (including one which I call my "piss up a wall" fund!) Sometimes the pot will be spent that month, sometimes it rolls over for months and I have an unexpected nest egg! But because it's budgeted for, there's never any robbing Peter to pay Paul.

I say this from a very fortunate financial position, as the firm hand I used when things were not so comfortable has stood me in excellent stead now. If I was in your shoes I'd go pretty hardcore back to basics spending to see what I actually needed and then work forwards from there.

Good luck!

Please can I join you too. I've been planning to have a very low spend month next month. It's not the bills, mortgage or food, but it annoys me how I fritter away money on bits (particularly craft things) from eBay, or books from Amazon, when I have at least 100 unread books waiting for me. Also I have a huge stockpile of toiletries which I need to use up before buying more. I'd like to join you to keep myself on the straight and narrow.

Set up automatic transfers for shortly after you bet paid.

1. Joint account for all direct debits. Maybe leave out gym memberships or other personal ones, if they're unfairly weighted.

I would also leave enough money in there for weekly online shop. That way you know you can live each month. Leave the cards at home, put it in the freezer or buried in a high cupboard.

1. As soon as you get paid, automatic transfer into several saving accounts

• quick access one for ad hoc car costs, white goods repair and replacement, any of those unexpected bills.
• quick access one for holidays
• One or two for longer term savings.

1. Maybe both put some cash aside for bread and milk.

1. Whatever is in your account at the end is yours to play with. Call up the bank and ask for overdraft limits to be put down.

ShotsFired I feel quite proud that I will be putting away £20 towards Christmas, meaning Im not up shit creek with Nov's wage and skint by Christmas. Plus, I might keep up the £10 day out contribution too, that way, it builds up. Some months we don't go anywhere that costs, some months we do and it costs a fair bit.

Filofanny Hop on board!

I have created a thread for those who'd like to buddy up here

When I get paid, I immeidately put some money into a linked savings account.

Sometimes I have to borrow from myself towards the end of the month, eg before Christmas, but usually I know how much money is left in my account and I don't spend more than I've got. Because I've put the money into savings upfront, I don't miss it.

So depending on your income, put £50, £100, whatever, immediately into a savings account so it's out of the way.

It's also useful, if you go to the supermarket for milk, just to take cash so you can't spend more. So if a pint of milk costs £1, take £1 (or maybe £1.50 in case the price has gone up).

Online deliveries are good too as you only get what you order and don't get tempted by impulse buys.

Actually I hope a pint of milk doesn't cost £1! But you know what I mean :)

I started getting milk delivered. Slightly more expensive than Supermarket milk but from a local farm. It's saved me a fortune because I'm not popping to the shops every couple of days and buying extra. I also have a fruit and veg box delivered but I do have four children that eat a lot so I do need to restock mid week. This also saves needless spending. Visit moneysavingexpert for great advice.

I do indeed - that would be a pricey pint of milk!

mummabearfoyrbabybears We live in an apartment so that'd not an option. I usually get a 4pt of milk for £1 from the shop. I'd say we get one a week - there's 3 of us. We probably also get 1/2 loaves of bread a week due to DS having toast and DH taking packed lunches. So on that basis, perhaps £3 a week on milk and bread?

I've recommended Toshl on here before - I have no link with them and other apps are available. But you put in everything you spend and also out of what account (ie. cc or deposit or cash) and you can see where it's going and - how much you have left to the end of the month.

So you put in all your planned expenses and recurring expenses - so while your bank account might say you have £500 it tells you you've really only got £100 left as £400 is already allocated. Great for focusing the mind.

I've been using it since Christmas and I've easily saved money at the end of the month as 1) i'm consciously spending less and 2) I know exactly where I'm up to rather than guessing.

Sit down with your bank statements and go through it line by line for the last three months. Work out how much you spend on bills, transport, food, toiletries, eating out/takeaways, treats, stuff you don't need etc etc - whatever categories work for you. That will give you two things: a reasonable idea of how much you actually should budget for these items and also an idea of where you're over-spending. Then draw up a proper budget based on this. And you have to STICK TO IT. That means if you've spent your takeaway allowance for the month, tough - no more takeaway! We overbudget for the essential things to be on the safe side.

Every month, transfer all your money into a shared account (or better yet get paid into it directly). Put a certain amount into a savings account. (We actually have two savings accounts - one we're allowed to touch, which we use to save for birthdays, holidays, Christmas, car repairs etc) and one we're not, which is for house renovations). Then give yourself and your husband an amount for personal spending. You can spend this on whatever you like - including treats for others at the supermarket like you mentioned - but once it's gone, it's gone. All the rest of your money in that joint account is for bills etc and besides food shopping (I recommend doing it online, so much easier to stick to your budget and not get tempted!) and fuel, payments should pretty much all come out automatically. Don't even take the card out with you - in an emergency you can use your personal spending and transfer it back.

Anything left over at the end of the month you can either put into savings or treat yourselves to a bit of extra personal spending.

Of course this only works if you trust your husband. But it really does work! Husband and I did this and went from saving nothing to saving £1000 a month.

I wish I couldnt do it but it just seems to happen - it makes me, and the recipients happy.

Except it isn't, or you wouldn't be posting here, irritated that you have no money left and wondering how to budget. It's an illusion - we're all conditioned by TV shows, adverts, and social media into thinking that more stuff equals better and happier lives when it just isn't true.

Get your milk delivered. Might be more expensive but you know you have milk being delivered and you have no need to go to the shops.

Identify your latte factor.
I was going for nice heathy walks around 5 times a week but I was spending £2.50 per time on a latte at the cafe. It had become a habit. That's £650 per year on latte.

I don't like budgeting, I track expenses instead. A lot of expenditure is automatic - bills, saving in pension, charitable giving, the more you can make automatic the better as they come out every month before you get to spend the money.

Plan for shopping, take a list, take cash so you feel the pain of spending. Avoid daily top ups.