Household budgeting

carly burn · March 2017

I'm ashamed to say I never do it and never have. I just seem to have a bit excess in my current account to cover any overspend and just hope for the best.Which worries me as I have a family to support!

I've never been in debt so guess I'm pretty ~~tight~~ Shrewd with money. I'm not really saving any money though
But I've really started to feel the pinch lately and I'm sure if I put a bit of effort in I could save a few quid.
I've had the same bank account for years and it always seems a balls ache to change?

So how many of you do it ?
Do you sit down every week and go through all your receipts or is it a religious monthly thing?
Do you use apps or old fashioned pen and paper?

I'll never get the money together to save the club at this rate!

Ross · March 2017

I set up a simple Microsoft Excel spreadsheet about 2 years ago whilst I was saving up to buy a house.

One column - 'in' (wages). one column - 'out' (rent/mortgage, regular direct debits, fuel, food etc.) and then that gave me my remaining figure that I had to spend myself that month. You can adapt it quite easily by having a 'left over' figure which is added to the wages figure at the start of the next month.

I have adapted it for myself and my girlfriend in our new home and it works perfectly well as long as you know exactly what you've got coming in and going out every month.

NorthStandUltra · March 2017

I do the same as Ross & have an excel spreadsheet, I've gone a bit too far though & itemise how much I spend from the leftover amount & what it's on - can be an eye opener sometimes & makes me think 'did I really need it'

I'm also a born worrier about money so it doesn't help my mental state know I only have £xx amount to spend a month after bills!

robinofottershaw · March 2017

Have done something similar to Ross for nigh on 40 years. But then again, I did start out my working life as an accountant!

Missed It · March 2017

I use a program called "You Need a Budget".

It has been a lifesaver for me as I always used to run out of money before I an out of month and was always scrambling to pay annual bills like water rates, TV licence, insurance etc. It's basically an envelope budgeting system. Everything you spend is accounted for and money gets set aside until its due to be paid. It takes a little bit of discipline to keep it going but once you're in the habit of updating as you go, it's a doddle. You're supposed to budget to zero left over at the end of each month, but I always aim to have some unallocated cash left at the end of the month to put away in savings.

I also don't waste as much money on bits and bobs and random stuff as I now know where every single penny is going.

i_b_b_o_r_g · March 2017

I just budget to give my Mrs 100% of everything I own and she spends it

LoOkOuT · March 2017

Last year, my household fell on rough times. We were aiming high at the beginning of the year, but through a series of unfortunate and disastrous decisions we dropped down into the lower reaches. On the flip side, we began this year with a top six budget. We were planning for elevation to the hoity-toity class, but things haven't worked out. Turns out, we don't have a clue what the hell we're doing.

MrLargo · March 2017

LoOkOuT said:
Last year, my household fell on rough times. We were aiming high at the beginning of the year, but through a series of unfortunate and disastrous decisions we dropped down into the lower reaches. On the flip side, we began this year with a top six budget. We were planning for elevation to the hoity-toity class, but things haven't worked out. Turns out, we don't have a clue what the hell we're doing.

Sounds harsh, but I think your family would be better off without you. I suggest you set them free and move to a country where your crackpot theories on domestic financial management might be more welcome - the North Sea coast of mainland Europe is lovely at this time of year.

Dippenhall · March 2017

Been using Account Tracker for a few years. Simple to use, enter all you budget items. I mainly use it to keep track of standing orders and DDs it's easy to check end of month position. I'm lazy at accounting and only do simple, so if I use it anyone could.

https://grahamhaley.co.uk/accounts/

LargeAddick · March 2017

Use good old pen and paper but know everything going in and out, what the balances should be at any one time and reconcile it to bank account every couple of weeks. Save a set amount every month and if unexpected expenditure comes along dip into the savings. Never go o/d, never pay fees, settle credit card balance in full every month. Then again been in accounting for forty years so to be expected.

man_at_milletts · March 2017

What Large said.

AidenTheAddick · March 2017

NorthStandUltra said:
I do the same as Ross & have an excel spreadsheet, I've gone a bit too far though & itemise how much I spend from the leftover amount & what it's on - can be an eye opener sometimes & makes me think 'did I really need it'

I'm also a born worrier about money so it doesn't help my mental state know I only have £xx amount to spend a month after bills!

This is exactly what I do, including itemising my "spare" cash spend.

I'd say I update my spreadsheet roughly once a week from the receipts that I've kept. I'd definitely recommend doing it if you can spare 20/30 minutes a week. If you have the time, I don't really see any benefit to not doing it.

DaveMehmet · March 2017

We've got a joint account that we both put into each month that the mortgage, bills & shopping come out of. If I'm honest, I haven't got a clue how much is in there, probably not that much as we pay quite a bit extra on our mortgage to get rid of it as quick as. My wife's probably got a much better idea but then she's the sensible one in the relationship (not that she's got much competition).

robroy · March 2017

I go for the spreadsheet like the others, very handy and never run out of cash. Always seem to have left over at the end of the month that roll's onto the next or into my savings.

Beardface · March 2017

carly burn said:
I'm ashamed to say I never do it and never have. I just seem to have a bit excess in my current account to cover any overspend and just hope for the best.Which worries me as I have a family to support!

I've never been in debt so guess I'm pretty ~~tight~~ Shrewd with money. I'm not really saving any money though
But I've really started to feel the pinch lately and I'm sure if I put a bit of effort in I could save a few quid.
I've had the same bank account for years and it always seems a balls ache to change?

So how many of you do it ?
Do you sit down every week and go through all your receipts or is it a religious monthly thing?
Do you use apps or old fashioned pen and paper?

I'll never get the money together to save the club at this rate!

If you've got more going in than coming out then that's a good achievement in itself and you shouldn't be ashamed - it's probably why you've never budgeted properly - you've always done it subconsciously.

If you've got a specific target in mind, whether it's to give you a bit more savings or a big purchase, then I'd suggest the excel trick used above but in reverse. I.e. everything goes to savings except what you need to spend. You should allocate you self a budget from that for entertainment / frivolous spend, but it'll get you in the habit of saving the maximum amount, not a minimum target amount. Also when there's a one off payment you've got the funds to cover a rainy day.

GreenWithEnvy · March 2017

Lots of sage advice from the previous posts. I would also look at websites like Money Saving Expert. com for advice on switiching energy supplier, house insurance, car insurance etc. etc. - can be easier than you expected. It is not sexy but flipping heck you can literally save hundreds of pounds a year and that will kick start you into looking after your home finances a lot more.

LoOkOuT · March 2017

MrLargo said:

LoOkOuT said:
Last year, my household fell on rough times. We were aiming high at the beginning of the year, but through a series of unfortunate and disastrous decisions we dropped down into the lower reaches. On the flip side, we began this year with a top six budget. We were planning for elevation to the hoity-toity class, but things haven't worked out. Turns out, we don't have a clue what the hell we're doing.
Sounds harsh, but I think your family would be better off without you. I suggest you set them free and move to a country where your crackpot theories on domestic financial management might be more welcome - the North Sea coast of mainland Europe is lovely at this time of year.

You've got the wrong end of the stick. You sound like a disgruntled ex-friend! Please stop misrepresenting the situation. I never said the disastrous decisions were our fault! Of course they're not. I am beyond fault. I know this, because I was super successful in the old country. My mum and dad even said so! Since moving here, everyone has done everything to subvert my true worth as a superior being. I've tried to introduce aspects of my superior ways, but you heathens aren't having it! I suggest you recognise, or you'll find yourself without vol-u-vents! When I'm on the local council, there will be changes and you will see...

milo · March 2017

I pay all my money in to the joint account and then my wife spends it on heart shaped cushions

T_C_E · March 2017

i_b_b_o_r_g said:
I just budget to give my Mrs 100% of everything I own and she spends it

Feck, I married her sister.
My Missus has Hayes and Jarvis on *speed dial 1*

eaststandmike · March 2017

Me and the missus have always had a joint account and use software to track it. We are using Banktree at the moment and it does the job.

Our wages are paid straight into the bank, most coming out is done by standing order or DD and we budget with whats left.

You can set Banktree up to debit the account in the software to mirror all the DD's and SO's so all you need to do is reconcile a bank account which we do once a week.

You can also add lines to fool the softwrae so for example we have a line called "holidays" but the date in the box says 31.12.17. We put X amount on this line each month so the software thinks we have spent it however it is just sitting there ready to pay for our hols when we book one.

JoshrewCAFC · March 2017

Currently at Uni I have kept an excel spreadsheet which helps a lot with tracking how much I spend (and I've made categories to show what I spend it on). Everytime I buy anything I get straight on the notes of my phone and write down 5 food or 7.68 going out etc. Then just put it all in the spreadsheet maybe once or twice a week. Its really simple and I do it by week and a new sheet for each year, however now in second year I've found it harder to track as subscriptions to Amazon Prime and Music come yearly and monthly, the same with bills too.

I'd say it's well well worth it for personal spending and I have a separate bank account for bills to keep the money for that and everything else in another account.

It doesn't take much time to set this up.

Just as a side-note: I always look at life in terms of a time-money relationship. If changing bank account and bills providers will take out too much time in your opinion then its worth not bothering as time to relax and not stressing about changing provider is worth money.

Beardface · March 2017

eaststandmike said:
Me and the missus have always had a joint account and use software to track it. We are using Banktree at the moment and it does the job.

Our wages are paid straight into the bank, most coming out is done by standing order or DD and we budget with whats left.

You can set Banktree up to debit the account in the software to mirror all the DD's and SO's so all you need to do is reconcile a bank account which we do once a week.

You can also add lines to fool the softwrae so for example we have a line called "holidays" but the date in the box says 31.12.17. We put X amount on this line each month so the software thinks we have spent it however it is just sitting there ready to pay for our hols when we book one.

that's love right there

charltonkeston · March 2017

Something I always thought I should do but after 35 years at work it might be hard to change my ways. if I have a fiver I'll find something that costs a tenner.
But as both me and my wife have always worked I sort of get away with it.
The only financial thing I ever took seriously was my second mortgage which I paid off years early, then I promptly sold my house and I then hocked myself with another mortgage.

ShootersHillGuru · March 2017

I'm so wealthy that I don't care.

DaveMehmet · March 2017

T.C.E said:

i_b_b_o_r_g said:
I just budget to give my Mrs 100% of everything I own and she spends it
Feck, I married her sister.
My Missus has Hayes and Jarvis on *speed dial 1*

I do hope that's a shop.

T_C_E · March 2017

DaveMehmet said:

T.C.E said:

i_b_b_o_r_g said:
I just budget to give my Mrs 100% of everything I own and she spends it
Feck, I married her sister.
My Missus has Hayes and Jarvis on *speed dial 1*
I do hope that's a shop.

So do I........

McBobbin · March 2017

Because my budget is roughly the same every month I don't check my bank balance very often. Me and the Mrs have our own accounts we are paid into and a joint account. We put some into the joint account to cover all the bills and food etc, the rest is ours. We also have a joint savings we keep a buffer in, and top it up if we have money left over for holidays.

thewolfboy · March 2017

When you start budgeting you are amazed at how much crap you spend your money on! I think Large has given good advice but it takes a while to build discipline to non spending. I quite like going two or three days without spending anything at all. Be aware that the big money secret is compound interest: If you own shares you reinvest (as much as you can) what dividends you earn, so that over the years the shares grow and grow - so long as you select the right shares of course. Good luck.

Cardinal Sin · March 2017

Carly Burn - you're not alone, I just wing it during the month. I'm not particularly extravagant and neither is my Wife but I know I could be saving a decent bit of money if I could be arsed to budget. Saving quite a bit recently as I have stopped wasting it on Charlton.