Budgeting Advice Please

MrsGJM · 22 January 2017 at 10:26PM

Hello

Not sure if I should be posting here as I'm not in debt. But that's not to say I don't understand the struggle....I went through a DMP years ago when my marriage broke up (and I paid for the privilege!) Sorted me out though, so I mustn't complain.

Anyway, I recently posted on the pensions forum about cashing in a small pension pot for totally frivolous reasons in 5 years time, but have now decided it's not a very grown up way to behave! So... I work, I pay the bills, I buy what I want....but I don't really THINK about money.

Having read many of these threads I've now decided that I can fund my frivolous dream if I budget...but there's the catch which I'm hoping someone can help with. I get paid a variable wage on a 4 weekly basis. Outgoing payments are made per calendar month...

How can I organise a workable budget?

[Deleted User] · 22 January 2017 at 10:29PM

I was employed until recently (ill health retirement) and on a 4-weekly paid salary as well. I used to budget my (monthly) bills against my (4-weekly) salary. As a result, the 13th salary every year was always a freebie for me to do what I wanted with.

I suppose it might depend on how expensive your dreams are though ...

MrsGJM · 22 January 2017 at 11:11PM

Hi Sleazy... My dream isn't an impossible dream

I think where I'm struggling most is getting paid, but not all my outgoing fall within the 4 weeks before I get paid again...it just confuses me!

Once upon a time I used excel to keep on top of everything.... That's all forgotten now though... I wouldn't know where to start! So it's back to basics, and pen and paper.

So the way you do it is to deduct outgoings from income, even if they are not actually going ou?

micky2phones · 22 January 2017 at 11:49PM

Hi, pay your out going into another bank account and set up d/d or s/o from there to pay your bills etc

tlc678910 · 23 January 2017 at 10:50AM

Hi,
You could open a new bank account for your wages to be paid into then transfer your wages into your usual bank account (where your direct debits are set up) on the same date every month e.g. the 1st of every month.

As you are paid after four weeks the payment of your wages will always move closer and be waiting for you when the date comes around. As described above once a year there will be 2 x wages in one period and you can decide what to do with this surplus.

Tlc

[Deleted User] · 23 January 2017 at 1:20PM

MrsGJM wrote: »

Hi Sleazy... My dream isn't an impossible dream

I think where I'm struggling most is getting paid, but not all my outgoing fall within the 4 weeks before I get paid again...it just confuses me!

Once upon a time I used excel to keep on top of everything.... That's all forgotten now though... I wouldn't know where to start! So it's back to basics, and pen and paper.

So the way you do it is to deduct outgoings from income, even if they are not actually going ou?

Basically yes (sort of). That way you always think your outgoings are more than they actuaļy are, and as a result end up with the excess in your pocket. Worked for me anyway.

MrsGJM · 23 January 2017 at 7:40PM

Thank you all!

I've just spent my day off trying to work this out... Scribbles everywhere, and still not any further forward! Another bank account makes perfect sense.

Is it possible to have more than one current account? I already have an unused deposit account which I shall use to squirrel away the profits from my newly embraced frugal lifestyle

I've had my main account for more years than I can remember, so have never thought about opening another.

Thanks again

[Deleted User] · 23 January 2017 at 8:02PM

Yes, have more than one (I currently - Pun intended!) have 5 I think.

MrsTinks · 23 January 2017 at 8:38PM

I have 2 - with the same bank

I have one for my self employed work and one for my normal work/outgoings etc. I wanted to make sure I kept 50% aside for tax bills etc just in case (any excess is then a bonus for a treat later in the year LOL)

MrsGJM · 23 January 2017 at 9:37PM

FIVE current accounts??!! Blimey! My brain is sizzling trying to organise just one!!

So...best way forward is to open account for wages and leave DD's set up where they already are?

Can I open an account online these days or should I go into the bank? Are all bank accounts much of a muchness? There isn't a bank where I live, and the last two standing in my nearest town are Lloyds and Natwest. Even my own Barclays has shut up shop! Also building societies do accounts now... Any recommendations?

LabRatty · 24 January 2017 at 9:40AM

Hi,
I use a variant of the scheme described above.

My salary and SOs/DDs are paid into and out of my 'main' account, which I've had for years. Although my salary is variable, I know exactly how much my regular outgoings are. On payday, I transfer everything over that amount (minus another £10 to be sure) out into other accounts for savings, spending etc.

This was the easiest way to set things up when I decided to get more organised about my finances, as it didn't involve moving either salary or regular payments.

I'd suggest a Tesco current account. Very easy to set up online and gives you 3% on anything you keep in there with no conditions attached.

All the best in your endeavours - being more on top of my money has made a big difference to how much I spend, probably because it's so much more visible.

LR

Budgeting Advice Please

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