Household cashflow management

[alaskaperry]

Two-income household here, both earn decent salaries. One salary is paid monthly and one weekly. We should not have a balance issue in theory, but recently struggled to keep track of how much and when outgoings will be deducted and frequently deep into our overdraft. We do keep a detailed household spreadsheet with a list of all our expenses but it doesn't do the cashflow projection which seem more tricky to set up. We are able to save money but often move money around to often to manage the cashflow. Too messy and annoying.

So which is the best software out there from your experience to help with cash flow household? We need something that will also help with where and how much money to 'park' for budget figures or one-off large lump-sums deductions which occurring at different times of the yearly cycle (e.g. birthdays budget, Christmas, water bill, car services etc.).

Thank you.

I'd recommend simplifying the dates of income and outgoings. It is really easy to change the date of all DDs to suit you and I would recommend changing them to at least 4 days after the monthly wage date. All money in less all money out = your savings.

All you'd need is a current account, savings account and credit card. Personally, I find having a debit card too difficult to base monthly cashflows on because of dribs and drabs of money going out throughout the month, I prefer a single sum on a credit card that I can accurately budget for.

I would base most of the financial decisions on the monthly wage date, the weekly wage would go into savings until the date the monthly wage is rcvd. If there is a shortfall you can transfer in from savings to cover the outgoings.

For example, monthly wage rcvd on 28th, transfer enough from the savings (from weekly wage built up). Set all DDs to go out on the 1st then anything over is skimmed into savings. Put all normal spending on a credit card that paid in full by DD on the 1st with all other DDs.

I'd set up a cashlow forecast spreadsheet along those lines: eg:

Today's Current Ac Bal : £0

28th Monthly Wage : £2500
Other income: £200
Total in: £2700

Payments out on 1st
Mortgage: £750
Utilities:£ 200
Water £50
Insurance £50
Credit Card £1000
Total out: £ 2050

Total to/from savings :£650

And then continue this from month to month.

I'd add a second forecast underneath for the savings account.

Opening balance £1000
Weekly wages 1 £625
Weekly wages 2 £625
Weekly wages 3 £625
Weekly wages 4 £625
Sum to/ from current account £650
Closing Balance £4150

YNAB is amazing! Yes there is a learning curve but once its set up it does really sort things out, it really helps with my financial anxiety. You can do classes live and ask questions. Sign up for them they are really useful

If you've got a spreadsheet or bank statements with all the transactions, I reckon you could ask ChatGPT to plot it as a cash flow forecast onto another sheet somehow. Would definitely be worth a play.