How many use a system to control finances?

oldwiring · 26 November 2009 at 6:24PM

I realise that there are many reasons people fall in to overdraft: some I am sorry for, those who lose jobs or become ill for example, and some undeserving of sympathy, the spendthrifts. My feelings are that one thing all should be able to do to lessen the chances of going over, is constructing some method of knowing when their outgoings will fall due and when the money to cover will be available.

Nothing complicated is required. Even though I do not need it, I constructed spread sheets that cover a fiscal year, they setting out all regular debits when they fall due minus 2-3 days and all similar regular credits on due dates + 2-3 days. Other matters that are at will or unexpected can be added in as they occur, Thus a better picture of what is likely available to spend at any time is gained. Regularly anything in the list of forecast and other items, that are also on the bank statement are deleted and the current bank balance entered as a new start point for forecasting the future.

There are other methods too of controlling one's finances; computer software and web based. But no matter what method is chosen, I'd suggest deducting a notional margin from what one thinks is money to spend.

I sincerely hope that this OP will be treated as constructive in helping friends here no to get in to (more) trouble.

How many MSEers, who have contributed to the reclaim forum, have or would consider making their own control system?

PROLIANT · 26 November 2009 at 7:23PM

I have my own "basic" system that keeps the wolf from the door so to speak, I use an Excel spread sheet for forecasting and planning giving me access to information like my current 'debt-to-income ratio', available credit lines and bank balance.

With all of this simple set of data I know what I am going to have and when - even 12 months down the line, contingencies are taken care of by means of my credit Cards and small £100 overdraft which I use twice per year max, even my shopping bill and utilities are varied based on the time of year and habits etc.

And to cap it off I check my internet banking every day over breakfast along with my credit reports just to keep on top of things.

Easy.

PROLIANT · 26 November 2009 at 7:39PM

porkmaster wrote: »

i also keep money in my paypal account, seperate, for when i shop online. it's easier than using transfers from my bank account to paypal, as they're erractic too.

I have just got a free PayPal Visa Debit, electronic use only i.e. no raised print for click-clack machines (I used one in a pub last month) linked directly to my PayPal account. I will hunt the link out for you later on.

pie81 · 26 November 2009 at 7:41PM

I don't have a system as such but I make sure all regular bills are paid the day after pay day... if I know I am going to have a large payment going out, or lots of unusual one off expenses, then I transfer extra money in advance from savings... and I keep a large "float" in my account to cover unforeseen outgoings. I admit that is an expensive way of doing things (since I don't earn any real interest on the float) but it's less expensive than incurring charges.

oldwiring · 3 December 2009 at 10:48AM

Whether I'm justified or not, I'll leave to others to judge. For a forum is dedicated to those who have been charged for unauthorised overdrafts and bounced payments, a sign for whatever reason of budgeting problems, the lack of responses other than the few who do budget could be considered revealing.

One conclusion may be that the victims

of charging are, at best to busy beavering at budgeting, or worse too idle to take some responsibility to get out of their mess.

euronorris · 3 December 2009 at 11:05AM

I have a basic system also. I have a spreadsheet which shows my income and outgoings for the month, plus any extras which will be incurred that month. I prepare this usually 6-12 months in advance so that I can save for one off items.

I also check this against my bank statement online and include anything extra that I have spent. For example, I got my haircut this month, so I included it in the spreadsheet. This way, I know that the total left on the spreadsheet is accurate.

This wasn't always the case for me, as you can see from the below. But, lessons have been learnt and moving forward. Although, I rarely incurred bank charges and if I remember correctly, 50% of those I did incur were a mistake by the bank's system (they couldn't even tell me why the last one happened and I've no idea either! There was plenty of money in the account and no DD was due, processed or rejected on the day in question! Go figure!). They did refund them upon request.

However, I don't think that it is fair or right of you to assume that most people who incur charges have failed to respond to your poll because they are poor at budgeting. Many of them are probably still writing on the other threads and simply didn't see the poll. Threads can quickly fall off the first page and then people won't see it unless they look for it. And they aren't going to look for it if they don't know it exists.

oldwiring · 3 December 2009 at 8:16PM

@euronorris
You may be right, but I did put extremes of reasons good and not so good, so that surely indicates I was not making assumptions. I don't know how others act, but personally I look at thread titles and decide which I want to view or ignore for lack of shall we say interest.

euronorris · 4 December 2009 at 9:27AM

True, but it doesn't necessarily mean they are not interested at all. It could just mean that they are more interested in another discussion right now.

I guess, unless they answer you'll never really know for sure.

Perhaps this area isn't the best place for the question. After all, it is pre dominantly about reclaiming charges.

Perhaps it would receive a better response on another part of the forum? Worth a try if you want to get a rounded idea from people.

PS. I have no illusions that some people just can't be @ rsed! I dated someone like that once. His idea of budgeting was simply to spend my money when his ran out. And in the 7 years that have since passed, he has not changed. The last I heard he was living at some poor girl's place rent free.

Dave101t · 4 December 2009 at 9:31AM

to avoid direct debits screwing with your finances, choose one day, and pay all bills on this day. use excel to log everything.
personally, i have all bills in my wifes name (cunning eh?!) and i just pay half direct to her.
no accidental overdraft for me!

euronorris · 4 December 2009 at 9:44AM

Dave101t wrote: »

to avoid direct debits screwing with your finances, choose one day, and pay all bills on this day. use excel to log everything.
personally, i have all bills in my wifes name (cunning eh?!) and i just pay half direct to her.
no accidental overdraft for me!

Haha, cheeky cheeky! (with the bills in wife's name I mean).

Although, in fairness, most bills are in my OH's name as he was in the flat before me and trying to get him to make a simple admin change is like trying to get blood from a stone!

I have very few DD's here actually. But, it's usually a lot easier to pay something that isn't a DD anyway. Dentist bill for example, came with the option to pay via 'giroaccept'. You pay online from your bank account, using the reference number on the form. Simple.

How many use a system to control finances?

Having a system to know my finances 15 votes

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