Initial Budgeting plan of action

pollyorange

hello all!

Well, we are starting our budgeting proper this month. We have already got rid of a car loan thanks to a very generous mother in law, switched credit cards to 0% (well I have, DP has applied), cancelled Sky, Ive gone on PAYG on mobile etc etc, cheaper broadband...its the monthly day to day food/grocery shopping etc that I want to get to grips with!

I have never had to do a budget before and as we are in at least £20,000 debt, we need help!!

I have come up with a small (albeit brief!) plan of action to kickstart things starting from 1st Jan. I am already in a huff, as my partner forgets to ask for receipts so I can input all these figures, and he hasn't told me when things are paid for by cash. I can access his online banking to see what he spends on his switch card as well though. But day to day stuff is grinding me down!

Here's my plan of action, I would appreciate it if anyone has anything else that think think would help us on the road to being debt free!!

Plan of Action

1. Keep all receipts in large envelope. Make notes of when you buy something and don’t get a receipt and if you paid cash, switch, credit.

2. I need to know which items/services you paid for items with cash (your cash) or whether money borrowed from parents.

3. Wherever possible, please write a note on the receipt detailing what you bought (if the receipt does not tell me this e.g. newsagents)

4. Don’t buy anything or spend any money on anything unless we both agree to it!!


Many thanks!

Luv Jodi x

bumblebee_3

Jodi,

Well done for taking the first step, a lot of people as you have said above keep a spending diary to see what patterns are forming etc. I would check out the old style money saving forum on mse as well, some great ideas of saving money around the house and tips on menu planning etc.

Well done for taking charge of your situation, I think you are doing really well so far.

kathfisch

Hi! Its sounds like you've already made a lot of good steps towards cutting out costs and paying back your debts! When it comes to budgetting, everybody has to find their own system that suits them. Have you tried things like making weekly meal plans and then the necessary shopping list and then sticking to it (the hardest bit!). Also remember to budget for things that you don't necessarily spend each week (like clothes, petrol etc) but that can add up if forgotten about.

When you've got the budget you need to keep track of your spending. Sounds like you've come up with a good plan to keep track and account for every penny but your partner finds it difficult to remember what is spent etc. I carry a little notebook (or sheet of paper) around with me all the time and make a point of noting down what I spend asap, not only does it keep an accurate record, it confronts me with what i'm spending and makes me feel guilty if its not something I really need!

It sounds as though you are very keen to see this through and reduce your debts but I would gently ask (don't be offended if I'm wrong) whether your partner is as keen as you? It seems as though you have only just started and are having to remind and encourage him, which adds to your own stress. It is bad enough trying to control your own spending without feeling that all your hard work is undone by a partner who isn't committed to it (this is what I have experienced, anyway). Maybe you are the one who's had the "Lightbulb moment" realisation?

Like I say, correct me if I'm wrong and please don't take offence. They're just my thoughts from reading over your post and my own experiences. Take care and good luck x

Conor_3

You've got a computer. I assume you have Exel? (If not, get OpenOffice FREE from https://www.openoffice.org)

Make up a spreadsheet to cover a months income/expenses. Split the income down into weekly.

List all the DDs/set bills in the outgoing and anything else you regularly buy and can put a set figure on. Also then do what you said with the receipts.

At any point in the month, you know exactly where you are with your finances and how much you need to earn/cut back in the remaning weeks to meet a break even point.

Also as it's on one screen instead of in several envelopes, it's easy to see where the money is going.