Help! I lack the life skill of money managment =(

dmg83

Hi guys, some advice would be really appreciated, I've found myself in a situation where in my late 20's I don't have the necessary skills to be able to properly manage my money, which is shameful I know. But the thing is I've never been taught this.. I can't be alone in this surely? But I have a desire to learn, but just don't know where to start as it seems that there is just so much to learn.

Basically I've been out of work for the last 6 years (health issues..) but have recently started a new job that pays 4 weekly.

In that time of unemployment I got in to around £1500 of expensive debt, which I've transferred on to a 0% credit card, thereby starting with a clean slate.

Now, I have no idea how to manage my money, I have one debit card which both wages are payed and direct debits are taken. I'm also using it for spends. I'm thinking I need to separate these, but how and on what basis?

I'm feeling a bit lost and like I'm not in control of this. Any advise is much appreciated

12bdebt3

If you are computer literate the best thing to do would be set up online banking, best way to manage your money.

Also if you could put a statement of finance on here would could help you find ways to manage your money and cut spending on things you don't need and afford to pay your debts.

dmg83

Whats a statement of finance?

I use online banking, but it seems pretty useless since it tells me how much I have to spend including overdraft.. which (maybe..) subconsciously leads me to believe I have more money that I actually have!

Lokolo

http://www.makesenseofcards.com/soacalc.html

Do this!

12bdebt3

A statement of finance is your ingoings and outgoings, how much you earn and how much you spend.

The next best thing would be to keep a spreadsheet of your purchases. If you know how to use Excel formula that will help. Input your current bank details. Obviously showing that if you go into your overdraft then it will bring up a minus balance. Work out your money on this spreadsheet, how much you earn - how much you spend, account for everything even small transactions. This will show you how much you have left.

jackieb

What works for us is having 2 bank accounts. We have a current account into which we get our pay. Then we have a separate account for our direct debits and standing orders. On pay day (25th of each month) we have a standing order that takes money out of the current account into our direct debit bill paying one. Then you know whatever you have left is yours as all your bills have been taken care of. It doesn't matter if your direct debits all fall on different days as all the money to pay them was transferred on the day you were paid.

Hope this makes some sense.

tellmeitsfriday

What Jackie said

Remember to include the repayment of your 0% credit card on your list of bills

I do recommend doing that list of incomings and outgoings. It will give you a good idea of how much "spare" money you have for things like food, clothes, petrol, fun

Best of luck xx

opinions4u

Discipline.

Save first.
Then ensure the bills are paid.
Then set aside your spending money for the month.
Then save anything left over.

Write everything down (paper or spreadsheet) and get to know and love every bit of money that comes in to your account or out of your account.