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Money matters

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what is the best way to manage money?

8 replies

cligan · 17/02/2010 16:24

in our household we are rather bad at handling money, and we really dont earn that much, so when we get money we tend to spend it quick in fear of where n when the money is coming from next, has anyone any tips on how to solve our problem?

OP posts:
sarah293 · 17/02/2010 16:28

This reply has been deleted

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sitdownpleasegeorge · 18/02/2010 14:32

Your problem with money management is clearly stated in your opening post.

You say that you don't earn much money and live in fear of where/when the money is coming from next.

Your solution is currently to spend what you do earn quickly.

Do we really need to point out that most people would spend slowly and carefully if they lived in fear of where/when the money is coming from next ?

Simples !

I am however guessing that my response might just be troll-fodder

meatntattypie · 18/02/2010 14:41

Can you clarify as it just does not make any sense.
you say that you spend quickly because you dont know where the next money is coming from. should that not be that you a carful about your money?
Are the peple in your houshold working and earning?

Mousey84 · 19/02/2010 13:49

Are you self employed? (re the not knowing when money coming in)

You do need to sit down and work out exactly what you need each month for essentials, including paying off any debts you have.

Check you are getting all the benefits/tax credits you are entitled to. www.entitledto.com is a good guide, but not always exact.

If money is irregular, try to put aside a little extra each month and DO NOT touch it unless its an emergency.

If you have kids, talk to them about money in a way appropriate to their age. My dd is 7 - she has seen how much money comes in each month, how much all the bills are and we have regular chats about things we want to do/buy and how we will save for them, writing them down.

If feel you are in over your head, you should consider making an appointment with the CAB or similar.

NormaSnorks · 19/02/2010 14:07

Hi cligan
Had a quick peak at your profile, and I see you're quite a new and youthful poster - welcome to MN!

I think when you don't have a lot of money it's really hard to save, but it's very important to get into the habit - even if it's very small amounts.

I think you need to sit down with your partner and think hard about a 'budget' - what are the absolute essentials? - Rent, bills, food, baby items etc.
Look at your receipts over the course of a month or two and write down how much you REALLY spend on these things (it will probably be more than you estimate!)

Then work out how much this is a week/month etc and put this 'aside' - that might be in a separate jar/tin or bank account - consider it 'untouchable' except for paying for the essentials it's meant for.

The you should add othe 'budget lines' so for 'treats' or 'clothes' etc.

When you spend money, what do you spend it on?
Is there some way you can replace what you're spending it on with a cheaper alternative e.g. getting a DVD instead of going to the cinema?

I know it's a terribly easy thing to say, but if at all possible, try to live within your means, and don't be tempted to run up huge credit card bills in the hope that tomorrow some extra cash will just turn up...

There are some really good websites with advice about budgeting and saving money etc - try MoneySavingExpert.com.

Good luck
x

cligan · 19/02/2010 22:23

omg, im very new here and its amazing to hear your responces, tough love but its all good, as i an young, i think im pretty new at the whole managing money thing. i mean its only recently ive had to really think quite deeply into what i spend my money on, i used to earn about 400 a month when i was working as a junior and i now only get 80 pound and my partner is a sparky and he only gets agency work atm because he is not fully qualified and i find myself getting the things we need as soon as we get money before we end up spending it on things we dont need, but i have tried to sort out how we spend our money weekly,

rent - 25 a week (we rent from a relative who is a very nice person indeed!)

food - 30 a week (meats veggies fruits)

towards carinsurance/ phone bill about 40 a week

and also put some money away. things are incredibly tight atm.

we have tried our best and things seem to get better then my partner is out of work again for about 3 months :S

damn the recession.

even with a saturday job im not sure if we will handle our money but i will take it everything you have said and thank you all sooooooooooooooooooooooooooooo much

i am loving mums net will recommend

OP posts:
scottishmummy · 19/02/2010 22:34

in/out spreadsheet.designated accounts for each thing.

mortgage/rent
food
meticilious planning and stick to budget
online groceries delivered so no impulse purchase
get a handle on exactly what comes in/out

NormaSnorks · 19/02/2010 23:02

You sound like a lovely and very switched on young mum!

If things are tight, do consider Freecycle and the charity shops for baby/toddler items (how old is your daughter?) as lots of really good, hardly used stuff gets given away!

I think you'll get lots of good advice on here (and tough love!)

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