Weekly spending & Budgeting

shomk

There are two of us and we are not very good at budgeting....at all....and we need to tighten our belts a bit more.

We seldom go out, buy clothes or unnecessary items but I often feel that if we just took out so much money per week in cash and spent only that we may benefit.

So I'm wondering how everyone else budgets their weekly spending and how much you spend???

debtdesperado

I try and live on £50 a week, to cover everything apart from bills, mortgage and savings... it's not particularly successful and often I go over, but not by masses, but having a rough limit that I'm aware of makes me try and eke it out and stops me going crazy spending. It also slows me down on organising too many social events in the one week, and also stops me frittering too much.

Am sure though there are super organised people on here!

savingmummy

Well if you have the spare money work out what you can spare for `spending` and use that as a budget! Only trouble with that is this may increase and then you get used to the spending and it could get out of hand!

Do you have money spare each month after everything is paid?

I don`t work so have no money, DH pays everything and has about £10 a week which he normally spends on the 2 children.

psychopathbabble

I have a set amount of groceries each week, and a set amount for other stuff. This is a tight month so currently its £10 groceries and £15 everything else. If I know I have a big night out planned, that is budgeted for straight out of my wages and kept separate. I withdraw the money each week and try not to use my card. Sometimes this is successful, sometimes it isn't! Spending cash definitely helps though, as it's too easy to hand cards over and not notice!

shomk

I used to keep £20 aside but never really worked out as a budget. Also, our supermarket shopping is very erratic - might go every two weeks, shop daily in between, throw out unused foods......I am not super organised!

in_debt24

Maybe do an SOA and post it here so we can give you some suggestions?

It will also tell you how much money you have to play with after all your essential spending, from which you can start to work out a budget.

savingmummy

soa link here http://www.makesenseofcards.com/soacalc.html

dib-dab

I live abroad so cant really compare how much we spend but in terms of working out the budget I have a spreadsheet which has each month of the year on.
It shows all income and outgoings and I put each category on there - it is useful as I can see when we have months coming up which will be more expensive (car expenses, out for someone's bday etc) and we can put money aside in the months before. We don't have a weekly budget - just a monthly one.
We use cash only for everything now to avoid us spending little bits on cards without us realising - debit and credit cards are banned. We get out all of the cash for the month and then we can see how much we have left. Split into separate envelopes for each week if that is easier. But I find that things can fluctuate each week so I find it easier to work to a monthly budget.

tbourner

Since summer last year we now have more bank accounts and it helps no end with budgeting.

I have a nice spreadsheet with all our money on it. We have 4 bank accounts.
The spreadsheet includes a rough amount each month for things like MOTs and Servicing etc. (although in December I went WAY over budget with that repairing the car. ). All of those important things from mortgage through to mobile phone bills comes out of one joint account via direct debit.
Spreadsheet then works out how much of our salary each month needs to go into that account to cover it all. This is done as soon as we both get paid.
Our own personal accounts (accounts 2 and 3 if you like) have a few direct debits and stuff, just things like for example we have LoveFilm membership (cheapest one £3.99 a month) which comes out of my personal account (account 2). Basically our accounts now are not touched and just go through the motions the same as account 1, mine is paying off my overdraft slowly as well.
Account 4 is another joint account with NO overdraft facility and NO direct debits or standing orders or anything. We pay between us £435 a month into that which is our spending money. To include groceries, clothes, fuel, going out etc. The last week in the month is usually pretty tough and sometimes we've used our personal accounts and gone further into overdraft. December was particularly bad so now from my personal account I also save £20 a month into a savings account for presents.

Sorry for the long post, but we've found this is much easier to keep track of than just having our personal accounts (2 and 3) for spending, as we ALWAYS went over our budget.

lilac_lady

The method that works for me is to have cash only when visiting the supermarket. Also pay yourself first by having a safety net savings account. Treat the monthly payment into it as another bill.

drichard

Shomk

You say you are not good at budgeting/super organised and rarely buy unnecessary items - but you go on to say you throw out food. If you want to save you will have to change. In the decorating world, they say - preperation preperation, preperation. Similar principles apply in savings. You need to prepare and work at it. There is no magic wand.


You need to list and prioritise your outgoings. Write down against each how much you need to allocate. Something like this ...

1. Taxes (incl TV license)
2. Rent
3. Utilities
4. Professional subscriptions
5. Insurances (life, car, house)
6. Transport
7. Clothing
8. Food/drink

Now, write down how much you spend each month against each of the following. Again, write down against each how much you spend.

1. Pub/Eating out/ready meals
2. Newspapers/Magazines
3. Subscriptions - eg LoveFilm, contact lenses
4. Alcohol at home
5. Smoking
6. Gambling (eg national lottery)
7. Snacking/comfort eating
8. Lunch
9. Transport
10. Mobile Phone
11. TV subscription - eg Sky

If you don't know how much you are spending, get a small notebook and carry it with you. Evertime you spend, write in it what it was, where from and how much. It will surprise you. Look at where you can cut back

Now, write down your total income. Include any savings interest, tax credits, benefits etc. Is this less than the sum of the 2 lists you have made? If so - you need to cut back and quickly.

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Let's help with the groceries, one thing my wife and I have found is that it pays to be organised. To start with saving money (in the grocery shops), you have to know where you are coming from. So make an inventory of the fridge, freezer and cupboards.

Next, look at this inventory and see if you can make meals with what you have in.

Then make a meal plan for the week (The important bit is to WRITE IT DOWN AND STICK IT UP SOMEWHERE VISIBLE!!! - oh yes, don't forget to stick to it)

Then write a shopping list for the items required to make up the rest of the meal plan.

Next, consider where to shop. From my experience, Tesco/sainsbug/Asda/<other supermarkets do exist> are not the cheapest. For example, my local butcher does 30x local free range eggs for £3, a local farmers market does very good chicken breast fillet at £7 per kg (vs £12 in Tesco). There are many other examples I could give - and not all at the top end of goods either.

There is a price comparison website for supermarkets available, I suggest you find and use it - I found milk @ £1 for 3l, vs £1.53 for own brand 2l that way. I dare say you will find many to help you.

Finally, never forget to take the coupons with you. But do check that the reduced price is less than a similar item from a different brand. You might find that for coupons for items you don't buy, you can sell them on. Check Eb*y for examples.


With travel, can you save by walking?, getting off the bus a fare stage earlier (so cheaper ticket), car share?

Clothing, shop around - I buy my shoes from Eb*y, and pay about £35 instead of £65. Learn to sew to make simple repairs. Most of the shirts I wear for work are 10 years old!

$ky - say no more

Pub/eating out. If you want to have a good night out, in is the new out. Work out how much you WOULD spend going out, and spend half of that on a slap-up home cooked meal - set the table, dress up, turn the lights down, take the 'phone off the hook and put some music on. Make an effort. Pay for this from the "Good times" fund (see below).

With ready meals - very expensive. If you don't know how to cook then now is a good time to learn. Get a half decent book (second hand if you want), Delia Smiths's complete cookery course is OK, but those aimed at students are a much better place to start. There is much good advice/recipies on the internet

Newspapers/magazines - cut, many are now available online for free. Join your local library.

Smoking - my pet hate - cut

Alcohol at home - reduce/cut. But stick with quality, I think they taste better so you enjoy/savour more rather than "Knocking it back".

Try to wean yourself off credit cards (unless you totally and unwaveringly clear them each month). If you can clear them each month, then get a "cash back" credit card. It's not too difficult to get £100pa back with one.

Set up a "Rainy Day" fund, and save regularly into it. Then whan the washing m/c breaks, the car needs a fix etc, it's at least partly covered.

Finally, set up a "Good times" fund, and save regularly into it. this is money you can spend with a clear conscience.

Hopefully I've given you some pointers and places to start. many of us here have been to the school for hard knocks, and will pass on the lessons learned to those willing to listen and take heed. As I said, there is no magic wand, but hopefully you will reach your goal.