Why Budget

jazzyjustlaw

Some of you may know that my OH is in debt. He is now going to consolidate. Its non-negotiable even with me.

I say to him all the time - do a budget - he says "whats the point" and "I don't have any money" or "spare money" " I have done one and I cant cut back". Please can you give me some ammunition as to what to say when he says "whats the point etc"

gizmoleeds

If you spend more money than you make your debts will get worse, quickly. By budgeting you can make sure this doesn't happen (eg. if you have budgetted £20 for going out and you reach it then you know to stop).

If you spend less than you make then you will have money left over for nice things or paying off your debts quicker (I would, of course, recommend the latter)

Having a budget identifies where your money goes. You can use this as a guide for trying to cut your expenditure: go through each item and think "could I get this cheaper" - you may be able to get your home phone, electricity etc chaper just with a few phone calls. When you are budgeting, this saving is more noticable as you can then allocate it elsewhere.

You can identify seemingly minor expenses which add up over time and cost you much more than they seem to (eg. shop-bought lunches - £3 a day might not sound much; but £750 a year certainly does).

Queenie

It's all in the FOCUSING!

"Failing to plan; if planning to fail" A budget is simply a financial plan; a state of affairs.

He may *feel* that he can't cut back .. but, he'll never know for sure until he starts tracking his expenditure and income.

Good luck, it's a toughie, but, knowing you ... you'll find the right words.

RAMBLER

When I had to cut back on a few things due to debt, I thought cutting back wasn't an option too. Simply by writing down what you spend on items makes you value what you are already spending and can show up things you don't need. Try it you're got nothing to lose !!!

Darryl

The only people I know who don't budget either:

1. Earn vastly more than they spend each month - so they don't have to worry. (Just a shame I don't know very many of them...)

2. Have big debts and stress. They also find it tough around Xmas and birthday times.

Most other people I know spend just less than they earn each month. They are able to save up for holidays, gifts and other treats. They do this because they have budgets that they (mostly) stick to.

I'm currently in the latter category. About 10 years ago I was a type 2, with debts (that I consolidated once... then again, and again...) Then I realised how much I was paying banks and credit cards in interest/charges. Being selfish, I hated paying banks all this money, and doing a budget helped me change this. A budget helped me see where I could cut back (if I wanted to), but more importantly enabled me to compare what I was paying for things against cheaper suppliers/providers. By switching (and some cutting back) I made big savings.

Now banks fund a small part of my annual holidays, insurances, gifts, etc (through the interest they pay me on my savings) and I love this feeling.

We like a challenge on these boards. If you can post details of your OH's income and expenditure on this board (or the Debt-Free Wannabe one), we'll surely offer a few options for saving money (moneysaving isn't always about cutting back... to quote the great Martin himself)

Darryl.

smarmo

Do it for him....I guess you know his income and can take a fair stab at his expenses.

Present him with your statement of his income / expenses and if he won't have the discussion then it's really a question of how much you love him.

No kidding - people who keep spending money they don't have are a drain and a pain.

S

Jen_Jen_5

a budget is simply a tool to help him know what goes where, unless he has a perfect memory he needs to do a budget