Advice needed

[GlassCaseOfEmotions]

As some background, DP and I both have reasonably paid jobs. We bring in about £75k between us a year.

I own my home (mortgaged) and DP lives with me. We want to buy somewhere bigger within the next year/ 18 months as DP has children from a previous relationship and we have 1 on the way.

DP and I are finding that money is constantly tight, even though we both bring home (what should be) more than enough to live on.

Majority of the deposit for our next home will come from equity from my house. However, I want us to get some of our own savings behind us (seperately) so that we won't be struggling. We are very fortune that I secured a mortgage before interest rates went crazy, but looking at future repayments it will go up x5 roughly (as it stands now).

How do people set, and stick to, tight budgets every month? What kind of things can we cut back on?

I personally did not like YNAB. I started 0 balanced budgeting before I heard of it and tried it but didn't get in with it.

Thanks everyone.

I'm going to spend today going through my side of the finances (don't have access to DPs and he is at work) and see where I can save.

I have just found a 'spending insights' section on my bank and I'm ashamed to say that, just last month, I paid the equivillant of a shop workers take home salary in supermarkets just from my own account, not including anything that DP bought from his 🤦🏻‍♀️think I can already see a large problem here and how to fix it!!

I will also have a look at all the different budgetting pages/ apps that have been recommended. I'm a bit loathed to spend money to save money if I'm honest!

Decorating/ house costs have probably hit us hardest the last few months as we are slowly sorting the house out for when it comes to sell. No major renovations luckily, but we will need a pot of money for materials in the garden. So we need to now budget for that!

I do save money every month; either standing order to an account I can't withdraw from, to a savings account linked to my bank for emergencies (though whether it stays in there is another matter!) and using Plum (again, doesn't always stay in there!). I think I will start transferring the money from the Plum account each week to the savings I can't access yet. Removes all ability to spend it for the sake of it!

After all bills and putting savings away, I should realistically have in the region of £800 left each month. However, I'm always skint come payday! It's definitely pointless spending that's doing it!

Thanks everyone again 😊

Are you paying interest on your credit card @GlassCaseOfEmotions ? If you are, find a card you can do a balance transfer to a 0% credit card a you'll pay it off much quicker

Re Christmas, I found the one year I got organised and bought presents through the year I ended up forgetting what I'd bought and having too much or stuff I'd bought something because it was a bargain but with no one in particular in mind. Now I save throughout the year for Christmas and by November I've saved enough, everyone has told me what they want, and I so can take advantage of pre-Christmas deals.

It is DPs credit card (I've never had 1, just don't see the point!) so I'm not sure how it is paid/ what the set up is. I just know a rough balance left on it.

I agree that it's too easy to fall in to that trap with Christmas!! I bought things months ahead last year and everyone had more than enough, even stuff I had forgotten I had bought! I think it's a good idea to set aside an amount each month and go from there.

I have just worked out budgetting wise what I am spending each months bills etc with (direct debits/ standing orders) and should have £1000 a month left before food costs. Food costs are what is hitting us hardest, so we need to go back to meal planning etc ASAP.

£1000 after bills and direct debits isn't much on a 75k salary

Say spend £250 on food shop that leaves £750 for everything else that's why it feels tight but...

Take home pay on £75k is £4200 -

Why are your bills and DDS £3200

and if you paying half that makes the £6400???

I might have confused things here, sorry!!

Those calculations are just taking into account my salary and my bills, not DP salary and bills he pays/ his childcare/ fuel etc. He earns the higher proportion of the income compared to me.

My take home pay is £2170 a month. All bills, cosmetics (skin care/ hair care etc), travel costs, pets and monthly savings (the ones I can't withdraw) deducted leaves me with just under £1000 a month as 'extra'. Take food costs off that, and that's how I got to that figure.

Sorry @GlassCaseOfEmotions I missed your OP read it as 75k each!!

You earn about the same as me.

So if you budget £250 for food you will have £750 per month left? Not sure I get that bit either but anyway...

I would separate it into direct debits and spending. So cosmetics (unless a subscription) would be spending.

£750 left for clothes, entertainment, holidays, Christmas, birthdays, household maintenance, car repairs healthcare is do able

I recommend a spending account and use something like a starling account (monzo or chase or revolt are similar but I have a starling) transfer the £750 into that then set up saving spaces for each of these and transfer a set amount into it each months.

I leave £150 in there as a float for things like coffee or dinner out car parking etc but then put the rest into spaces

I have lots of spaces but I'd start with

Petrol and Car Service £150
Gifts £25
Xmas £100
Holiday £100
General Savings £225 (home etc)

Spending £300 on a birthday gift is fine as long as you plan it.

I'd set up a joint account for food costs only and transfer £250 each in there a month (we do 225 each including dog food)

This means the main account is just salary in a Direct debits out.

It can all be set up to be move automatically on pay day.

You have mentioned birthdays and Christmas presents as an area of overspend-
Personally I cut Christmas cards years ago - birthday cards for the kids maybe but maybe only buy cards for special occasions for the adults ( shop around on cost of cards) or buy them in bulk when special offers are on.
Presents - maybe cut adult presents for birthdays except milestone ones
Work out a budget for children's presents and stick to it - maybe one special item and not so many extras. I don't buy clothes as presents now my kids are adults - will get a gift card etc.

I'm going to look at this differently.
Is your house really too small? I know on paper the bedroom to child ratio may not work out, but can you be creative with layout?
If there is any potential at all for this, it would be my plan, as pushing yourself further financially will be difficult ( you don't exactly live the high life by the sounds!)
I'd definitely knock the credit card debt on the head.

£7.25 a month is one shop where you don't buy a pack of biscuits and some other random offer (usually crappy UPF) because you KNOW you have to categorise that shop transaction!! Honestly it's nothing and pays for itself a hundred times over the year

Have you got some affiliation with this app you are going on about??

People may not want to pay a monthly fee for an app when they can easily set up their own budgeting spreadsheet or download the moneysavingexpert one for free.

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