Grocery Shopping budget thread

sonastin

The Grocery Challenge thread (sticky at the top of the Old Style forum) is really good for indicating what other folks budgets are if you want a nosy but remember its not a competition - you need to set a budget that works for your lifestyle or you'll just fail to stick to it.

I recommend a 2-pronged attack...
Step 1 - work out what you've got coming in and the "pots" that you need to manage your spending. Have a stab at dividing your income between the pots, including a decent chunk for an unallocated savings pot.
Step 2 - make a note of EVERYTHING that you spend on. Figure out where the money actually goes and how much you spend out of each "pot".

Once you have an idea of where the money has been going, compare your spending to your budget and see how they match up. Hopefully you'll be overestimating your spends in some areas to make up for bits where you underestimate. I end up tweaking my budget all through the year as my priorities change - e.g. presents look to be going overbudget for the year so take a bit off the eating-out budget to compensate, gonna need some more tyres but haven't spend as much on petrol so the car maintenance budget can go up and the fuel pot comes down, etc.

As an indicator, for 2 of us (no pets) I budget around £200-220/month for groceries, £100 for eating out, drinks, takeaways, etc, £120/month for car maintenance, £250 for fuel. Other pots I think are approx £25/month for clothes (mostly spent in a couple of £100+ spending sprees over the last couple of months), £30/month for presents, £10/month for haircuts (based on 4 cuts/year - budget can come down because I waited so long to book No.3 that it can be the last this year!), can't-remember-how-much for holidays, books, house improvement bits&bobs, movies&theatre tickets, etc (as examples of my other pots). Plus the big one which is the pot for all my direct debits - over half my income goes into that each month.

HTH

annie123

Well done for clearing your debts :T
May I suggest that you concentrate on building up savings of at least 6 months basic living expenses and a store cupboard.
That way, should either of you find yourselves with out employment you have a breathing space.
I found mine very useful when I unexpectedly needed it!

olivia84

thanks everyone - don't get me wrong, it's not just noseyness that i like to see what other folks spend - it would just be helpfull (i think) to see what other people find acceptable for food/clothing etc as a guide as i genuinely have no clue! as i said, we have a good amount of money left over at the end of the month now but i really want to start saving, so i do not want to squander money just because it's there.

i actually feel a bit guilty having a bit extra money every month, after being in so much debt and not seeing light at the end of the tunnel for so long that i kinda don't know what to do with myself. i also feel bad that other folk (my brother in law, my sister) are struggling with debts and kids but (for now anyway) we are doing ok.

i'd like to save a bit incase things don't go well with my OH's job as he would like to start up himself and for that we need some savings. savings would be no problem as long as i keep the budget on track.

it's also hard to split things up yearly, i think. like, things are fine now, but if we still had all the debts and really had to watch every penny, how do you even start a budget? like, splitting up road tax yearly comes to maybe £18 per month; but you start your budget, stick to it for a couple of months (saving £36 for road tax) then the road tax is due and you only have £36 saved up!

thanks sonastin for the grocery indicator; i just really need some self control and not just think "ach it's fine, i have a few extra hundred pounds anyway this month, i can afford to go out for dinner/ spend some money on clothes" i just feel, during these times and the fact we had so much debt, i should appriciate money a bit more and not squander it for the sake of it or because i can.

tomorrow is budget making day for payday!

thanks everyone and i will defo have a look at the grocery challenge.

sonastin

olivia84 wrote: »

it's also hard to split things up yearly, i think. like, things are fine now, but if we still had all the debts and really had to watch every penny, how do you even start a budget? like, splitting up road tax yearly comes to maybe £18 per month; but you start your budget, stick to it for a couple of months (saving £36 for road tax) then the road tax is due and you only have £36 saved up!

thanks sonastin for the grocery indicator; i just really need some self control and not just think "ach it's fine, i have a few extra hundred pounds anyway this month, i can afford to go out for dinner/ spend some money on clothes" i just feel, during these times and the fact we had so much debt, i should appriciate money a bit more and not squander it for the sake of it or because i can.

I started budgeting when I found that I was spending the extra few quid each month on going out for dinner. And on clothes. And on treating myself to some new gizmo. And on... well you get the idea! I had to start budgeting to work out how much of the "extra" money was really extra and how much was going to be needed later on in the year. And once I knew that I could work out how much I could use to treat myself with (and prioritise the treats and how much went on each treat!)

For me it works by working out an annual budget and dividing it by each month. Some monthly pots are spent each month, others compensate for each other as they aren't all needed in the same months. e.g. for me car tax falls due in April, presents are mostly bought in Nov/Dec (for xmas) so the slice of my wages which should go on presents at the beginning of the year actually goes on car tax, and the car tax allowance at the end of the year pays for xmas presents. The monthly budget is just about making sure that there is enough for everything by the end of the year.

I'm fortunate that there is enough slack in my budget/wages to cover all payments as they come due and I appreciate that not everyone is lucky enough to be in that situation. Two months out of this year I've spent more than I've earned but in the other months I've saved enough to pay for it and then some. That is part of the benefit of building the buffer - which is why savings is one of the pots in the budget too.

btw - the comment about nosiness wasn't judgemental... it was intended to remind you not to take other folks' figures as gospel. I certainly couldn't manage to live on what some people set their budgets at and you shouldn't feel you need to. You need to work out what works for you but feel free to take an interest in what others find works for them

airgead

it's also hard to split things up yearly, i think. like, things are fine now,
but if we still had all the debts and really had to watch every penny, how do
you even start a budget? like, splitting up road tax yearly comes to maybe £18
per month; but you start your budget, stick to it for a couple of months (saving
£36 for road tax) then the road tax is due and you only have £36 saved up!

Whenever you start the budget, work out the number of months til each yearly payment is due, road tax/house insurance etc, and divide the payment by the number of months. It makes the first year a bit tighter, as you might only have 2 or 3 months to save up for a big payment, but after that you will be working on a 12 month budget for that item, so the monthly amount will come right down.

It takes a few months to sort a proper budget, but I can't express just how essential it is. It puts you in control of your money, not the other way around, and when things go off track - as they do from time to time - you will know exactly what you need to do to get back on track. It helps keep down the stress of money worries.

If you haven't done already, change any regular domestic bills, electric etc, to monthly direct debit, which should avoid big single payments, as long as you keep an eye on it. If you find a bill is mounting up, get in touch and up the dd amount. If you're building up a credit, make sure you claim it back (different companies have different guidelines on when and how much credit they will give you back).

Some amounts you will know exactly how much they cost, others you can guestimate for the first while, and tweak as you go. Keeping a spending diary is the best way to work out what things are costing you, as others have said.

I would say a £200 per month/£50 per week budget for food for a couple is a realistic amount. I've got two kids as well and we have a £70 per week budget, which is currently reduced to £50 per week as things are tight at the moment.

Good luck and stick at it, you will be happy you did!

olivia84

not at all sonastin re: the noseyness! i know what u meant. i know i will have to do some tweaking to suit us - it's just good to be able to have even a starting point.

yea, i feel the same about treating ourselves etc and money just frittering away. although technically we can afford it now, but i just feel i shouldn't take money for granted the way i have in the past. plus, i feel i am getting quite stingy now! i hate waste and i just think we should look after our money a bit better and the first step to this is budgeting.

even though we have decent money at the end of the month now, i kinda like the idea of not needing money to feel happy (i know that sounds naff!) like it should be a treat to look forward to having a chinese on a friday night or going clothes shopping every couple of months - the simple things in life should be more important!

i feel meal planning would really help me as well - i'm veggie (and fussy!) so i know i waste alot of money on take aways and junk food.

i'm quite looking forward to making up a budget! i think i will steal your budget, if you don't mind sonastin and tweak it to suit us!! at least its a starting point.

thanks everyone xx

olivia84

thanks airgead - funny enough, i am like a woman possessed when it comes to gas and electric! we are with EDF and they recently tried to up our direct debit and it really bugged me! i was actually thinking of getting prepayment metres just so i know what i am putting in every month! (i know this would be more expensive as a tarriff though) gas and electric are so expensive and the big energy companies are raking it in, i just hate to line their pockets - if i thought i only had £20 electricity left till payday, i'd put a jumper on and put the lights out! but you don't do that when you pay direct debit! it's just pure lazyness on my part! i took meter readings the other day and i intend to really keep an eye on it. i also rang EDF and asked them what i am paying per unit for both. i feel dead sorry for people who have to fork out for gas and electric who are on limited income and have kids - it's ridiculous what they charge.

thanks for the tip airgead about splitting up yearly things. i actually only renewed my car tax at the end of september but my MOT is due in march, so i'll need to put a bit extra away for this.

tomorrow am gonna pinch a load of envelopes from work for all my little pots!

xx

rising_from_the_ashes

airgead wrote: »

Whenever you start the budget, work out the number of months til each yearly payment is due, road tax/house insurance etc, and divide the payment by the number of months. It makes the first year a bit tighter, as you might only have 2 or 3 months to save up for a big payment, but after that you will be working on a 12 month budget for that item, so the monthly amount will come right down.

It takes a few months to sort a proper budget, but I can't express just how essential it is. It puts you in control of your money, not the other way around, and when things go off track - as they do from time to time - you will know exactly what you need to do to get back on track. It helps keep down the stress of money worries.

This is what I did ....... made the 1st year (which I'm just coming to an end of) really difficult but so worth it when there was money aside to pay for stuff.

Have now managed to get the House & Car pots sorted out (which also incl the emergency fund which I missed off earlier) but have been struggling to get the Others ones done too so will be concentrating on getting them sorted next year!;)

sonastin wrote: »

For me it works by working out an annual budget and dividing it by each month. Some monthly pots are spent each month, others compensate for each other as they aren't all needed in the same months. e.g. for me car tax falls due in April, presents are mostly bought in Nov/Dec (for xmas) so the slice of my wages which should go on presents at the beginning of the year actually goes on car tax, and the car tax allowance at the end of the year pays for xmas presents. The monthly budget is just about making sure that there is enough for everything by the end of the year.

This is what I've found really handy with combining some of the pots rather than having them all individually - eg the car insurance pot is currently overspent as I changed car unexpectedly in Sept: I was able to pay in full for the year by being able to "borrow" from the car tax/maintenance part of the budget (nothing due until end March) ....

I keep track of the overall totals in a spreadsheet just so I know what's what - I have a page for each budget in the pot where I log what's spent / been put in (one in / one out each month so not too time consuming) as well as an overall pot totals page:

sonastin

olivia84 wrote: »

thanks airgead - funny enough, i am like a woman possessed when it comes to gas and electric! we are with EDF and they recently tried to up our direct debit and it really bugged me! i was actually thinking of getting prepayment metres just so i know what i am putting in every month! (i know this would be more expensive as a tarriff though) gas and electric are so expensive and the big energy companies are raking it in, i just hate to line their pockets - if i thought i only had £20 electricity left till payday, i'd put a jumper on and put the lights out! but you don't do that when you pay direct debit! it's just pure lazyness on my part! i took meter readings the other day and i intend to really keep an eye on it. i also rang EDF and asked them what i am paying per unit for both. i feel dead sorry for people who have to fork out for gas and electric who are on limited income and have kids - it's ridiculous what they charge.

Don't go pre-payment - that's just lining their pockets even more. Get yourself one of those smartmeter thingies that tells you how much your using. We have one on the electric (gas isn't connected yet) and I tend to get a bit obsessive about turning lights off now! It provides the same motivation to put a jumper on without having to pay the higher tariff

maman

annie123 wrote: »

Well done for clearing your debts :T
May I suggest that you concentrate on building up savings of at least 6 months basic living expenses and a store cupboard.
That way, should either of you find yourselves with out employment you have a breathing space.
I found mine very useful when I unexpectedly needed it!

That's roughly what I'd do (have done).

You've proved to yourselves that you can live frugally as you've done it while clearing your debts.:T If I were you I'd carry on in exactly the same way and save every spare penny you can to really build up a buffer.

While you're doing it, I'd keep the spending diary and write down every single penny that goes out. That'll serve two purposes: you'll know next year how much to budget and when you see entries in there that are a waste of money you'll rein yourself back. I agree £50 is enough for food for a couple (not an expert on felines:)).

We did this years ago (basically had pay rises over time and just saved them) and now we're able to live comfortably on (reduced) money coming in from month to month but with considerable savings available for any unforseeable expenditure.

Good luck.