Please help me budget

[Villanelle123]

We really need help. My Financial Advisor actually asked me today if one of us has a drug problem (jokingly obviously) as on our income he just can’t see why we can’t save any money.

Have set up a joint account and am currently changing over all DDs. Should we be changing the date of all of them to the 1st of the month and if so how does this work? Do you end up making two payments?

I couldn’t even tell you the dates of most of our DDs at the moment but OH gets paid weekly and I get paid monthly so I feel that just having everything come off on the 1st and then allowing the money to build up over the month could work for us ... nothing else is so it’s worth a try!

One thing I’m concerned about is the weekly pays between the 1st and the 1st making me feel like we have money to spend when really we don’t, we need to keep it for the next bill payment day.

We’ve been in denial regarding our finances for years and have been of the mindset of ‘I’d just rather not know’ but now I do want to know. I want to know how much I can spend on the food shop and stick to that rather than just buying whatever I want and worrying about it later.

Sometimes when you change DD you can end up with 2 payments in one month, so unless you really need to then it isn't necessary to change them. We have a joint account and we use it for bills/food/petrol and both transfer an agreed amount to it each month to cover it. We then put an agreed amount in the savings and then what is left is for us to spend as we want. Works for us. It is probably a good idea to go through all your monthly outgoings and agree what is going out of the joint account and how much you will put in there each week/month to cover it. If you don't have a food budget yet then meal planning or making a list of your usual items might be a good start so you get an idea of what you might spend. Some people to one big shop a month and then little top ups, which might work best with the way you get paid. Whereas I spend about the same each week.

You need to know what your income and outgoings are before you can budget.

Download your bank statements for the last 6 months for your current accounts and credit cards and go through and code everything up into categories. Like - rent, tv license, Netflix, petrol, cat tax, supermarket shops, food out, drinks out, meals out, other entertainment, clothes, medical, holidays etc etc etc

Then you can see what you’ve been spending on. Easy to do if you use your debt or credit card for everything.

Much harder if you pay with cash for things.

Systematic how to budget. Also sign up to the weekly newsletter for constant tips on how to manage your money better.

As well as the above, I'd suggest separating your money into several 'pots'

1. An account where all your regular direct debits come out of. Feed this account with a regular monthly amount to pay the direct debits and a little bit spare and don't touch it for anything else.

1. An account for irregular and annual payments like insurance, Christmas, holidays, broken cars, pets and washing machines etc etc. Pay a lump of money in here every month and only spend this money on those things. Depending on what sort of holidays etc you like, you might need to put by a few hundred pounds a month - many people underestimate here, and think they have more money to spend than they actually do.

1. A spends account for food, travel, family days out, DCs expenses etc. It is up to you whether you do discretionary spends for adults separately or from this account but this latter item is the lowest priority. You need to work out what you can afford after everything else has been covered. You also probably want to think about any long term savings, pensions, university costs, major house repairs etc etc.

Also think about where your money is going - food and drink out of the house is something that people often spend a lot on without realising, but also clothes, activities etc.

If you've not done so already you need to work out your expenses every month and separate them into different categories so you can really see what you spend and on what. I have a spreadsheet for each month with fixed expenses (DD's and the like) then variable spends in food, petrol,cash,misc,treats categories. Each one is separately tallied up and then an overall tally.

Allows us to keep track if we overspend and how we are looking for the month. Its taken us a long time to get use to it and budget accordingly.

Do you do a lot of little trips to the shops or once a week fortnight type thing. Those trips for milk and bread always seem to cost £10-20 as you pick up little extras as you go round. Really adds up by the end if the month

Hi all

Have added up all DDs and we do have a big surplus every month ‘to spare’ but WHERE does it go?!

Have moved all DDs to a new joint account and we will pay in enough of OH wages per week to cover the DDs and try to keep within a budget for shopping/eating out every week but it’s not easy!

@Sabbath84, you’re right they’re the worst! We’ll do a big shop but prefer chicken or something else out of a different store so end up spending another £20/30 in there!

We're not very good at sticking to it but a weekly meal planner helps. Same day every week go through the fridge cupboards and freezer, then make a plan for the week using up all the bits. Do a shop based on what you need for that plan. Batch cook. If your making a pie lasagne etc make enough for 2-3 meals portion up and freeze. Perfect for those Wednesday evenings when works been horrendous and you can't be arsed to cook or are tempted by chciken needed from the shops.

Are you takeaway coffee and sandwich's people the add up over the month and can be hard to break away from. I find its not the 6-7 big expenses each month it's the 100 small purchases that erode the spare cash.

If you are the one that is monthly paid then it makes sense for your DDs to come out on your payday.
Look at paying your council tax over 12 months instead of 10. (Some councils will allow this if you are up to date with payments)
Pay road tax by monthly DD rather than waiting for it to expire.
If you have pets, see if you can set up a prepayment arrangement for their flea/worming treatments and annual boosters.
If you pay for your water and sewerage by rateable value rather than metered, look at whether metering would work out cheaper. Some water companies are now allowing payments over 12 months for RV customers rather than the traditional 10.
Start saving in January for next Christmas. (Number of people times budget per person divided by 12 will allow you to work out how much you need to save each month).

Use your OH'S weekly pay for the variable expenses eg days out, food and petrol.

Finally, all the time you are indoors earning money, you won't be out and about spending it.

I hear you! Same position here, healthy salaries, lowish mortgage (for income) should have £3k after all DD's are paid yet broke every month. I know what it's spent on but that doesn't help stopping it.

OP have a look at YNAB (you need a budget). It has an app as well as web-based software and is brilliant for stopping me to lying to myself! It lets you set targets (either for monthly funding amounts for bills, or for annual or long term expenses).
Disclaimer: I'm an accountant but this isn't as financey as I could cope with; it's more a mindset thing.

@LaPufalina I’m just about to start AAT and was starting to worry the accountant life wasn’t for me but you’ve put my mind at rest
I’ll have a look at the app thanks!

It helps to know others are in the same boat.

Anniehm... I appreciate this isn't your point but your post nearly made me cry. We don't start off with 3k never mind have it after bills.

Meal planning is one of the best things you can do. Plan for up to two weeks at a time and make sure there is plenty of variety and quick options so you don't get tempted to get take aways.

Also, if you make a spaghetti Bolognese for example, make twice the amount, freeze one. It will save you money buying in larger portions and save you time.

Make your money work harder for you to give you the best quality of life you can afford.

Another meal planner here. If you know what to buy, what you've got in the cupboards etc. You will do less trips to shop, therefore avoiding buying other stuff you don't need.

You have to add up your 'Other' expenses and see what you are spending money on and above all, Be Honest with Yourself!! If you really do want to save, you will have to make changes.

My wages get paid monthly and my DP gets his weekly into our joint account. So nearly all our bills come out on the 1st, that's all my wages wiped out. Then the other bits and bobs come out of his as the month goes along. But we Always try to save something, even if it's just £50.

Have added up all DDs and we do have a big surplus every month ‘to spare’ but WHERE does it go?!

That was what I was saying, you need to work out where it goes FFS.

Unless you take out a fucking massive wad of cash to spend, you must be able to see on you bank statements what you are spending on?