HOW to get back on track with a budget

[Essie274]

I have used a zero-based budget since I first started earning consistent income as a teenager (thanks, Dad!) and it has always served me really well. Then came the need for incredibly tight budgets to buy/do up our house/covid/mat leave/etc and again, the zero-based budgets worked so well and we just stuck our heads down, followed the budgets and everything worked out okay.

Then, the renovations finished and were paid for, we had an increase in income (me going back to work and DH promotion), we finally moved back closer to family and friends (so had a social life for the first time in years!)... and we're spunking money absolutely everywhere. Literally running out of money every month and saying "Fuck it!". I think we got burnt out from the hardcore saving and penny watching that as soon as we could let go... we did. Big time. And now we need to stop being tits and actually budget properly but I'm struggling. I don't know how to get back on track. We haven't done or followed a budget at all in 2023. I've tried for the last couple of months but it just hasn't worked.

Any advice? I'm fully expecting to get my arse handed to me here but am genuinely struggling to get a grip so probably just need shaming into it.

Have you tried You Need A Budget app? It's a great way to have real control,over what you're spending. It's paid for (about £80pa) but I think you can get a free trial month which might get you on track?

Or what about having a no spend October? That will give you real visibility of all your essential bills, your income and where you could allocate the difference (hols, clothes, gifts etc).

Split your money into different accounts or pots within the same account, using standing orders yo instant access savings accounts that pay a bit of interest, the day after pay day.

For example

Regular monthly direct debits
Savings for annual and irregular expenses eg insurance, Christmas, holidays
Emergency fund savings to cover loss of income etc
Savings for any planned big expenses like new car.
DC costs if relevant, school uniforms, clubs etc
Food, day to day travel, other essentials

Finally after the above is covered, the remaining money goes into spending accounts, eg one each for personal spending.

Only use this account, and the food account for groceries etc. Don't touch the others unless paying for something that the account is designed to cover. When the money in the spending account runs out, stop spending.

Or if you want to do something a bit spendy, eg a fancy meal out or new non essential tech item, you need to do without or reduce spending on other non essentials until you've saved up.

I’ll also recommend YNAB. We’ve had times like you describe where we’ve fallen off the wagon spending-wise, and had to get back up and on it, and YNAB really helps. As PP says, do the trial month and then cancel if it’s not of value - although to me it’s one of the only subscriptions I don’t feel a bit resentful of!

These things happen:We budget, and use different accounts for different purposes,but it's been a bit "loose" for lots of different reasons, not all under our control, about last six months,and last couple off months savings gone from £250 to £50, so we're also targeting October to get it back under control . You can do it,op!

I would say what is working for me is writing down every penny I spend on an app.

I use a gift list app designed for Christmas presents but I find it works for me having all my spending together. I have different categories for each month (one groceries and one for other spends), different household spends, a clothing category for each person, then birthdays/christmas/easter/Halloween. It's really clear exactly how much is being spent on everything.

Eg this week I have really fancied going to buy something nice for dinner and extra treats but I can see we have already reached our groceries budget this month despite my bank showing plenty of money!! Same as I wanted to buy some extra stocking fillers for dd1 but I realised I've reached her budget already so I didn't buy. In the past i would have just got them and then spent more evening up with dd2s gifts!

I put all things I want on there too, eg household stuff then if there's money left in our groceries/days out budget I can buy them.

Also I find having a saving goal helps. A holiday; day out or something that makes it easier when giving up all those little wants as you know its for something better in the end. Its the little spends that add up to alot usually.

I have a Monzo account and within that I have various pots. I have a pot for Christmas - save all year into it, set amount a month. I have about 15 pots for things like car, leisure, birthdays, holiday, a weekly food pot (wk 1, wk2 etc) I worked out my bills and deducted those off my monthly wage and then spread the remaining money across the pots. Any spending comes out of those pots. This is really helping me knuckle down budget wise!