How to make Budgeting work??

skroggins

Take a packed-lunch to work and a flask.Do not take cash. Can you save on your commute? car share or public transport,my local bus company does a weekly saver that they dont advertise.

Plumjam

My salary, any government allowances (DLA, WTC) and my OH's salary all go into one joint account. He has an allowance each month from which he tries to save but he does have work expenses (which he claims and which go back into the joint account as 'extra income'). I work on the assumption that he will have a flat month (no overtime) so that any OT is extra. Everything over the year is budgeted for and either paid monthly or piggy banked. I work out how much I will spend on Christmas and birthday presents, clothes, haircuts, speech therapy for DS, after school clubs - you name it - and divide it by 12. Food shopping, petrol and my spending goes into a separate account (happens to be Mr T's Clubcard Plus as I get extra Mr T points when shopping with Mr T and can get cash from cashpoints). I live on that. I try to set a weekly budget but if I go slightly over then I need to go slightly under the following week. DH and I both try to keep some for the end of the month so that we can treat outselves and the children to a take away. It works for us - we don't have bills that we can't pay and we still manage to have the occasional treat.

JamieLol

halesy wrote: »

You might not like multiple bank accounts but it really works for me and I've seen my credit card usage drop a lot. My accounts are...

* One where money comes and where my cash spend comes out
* One for bills
* One for my car expenses
* One for holidays
* One for groceries
* One for savings

By creating a budget based on this you can manage your money effectively. By seeing my bills come and go I've been able to reduce spend on that. While the yearly MOT/service/tax for my car is always a hassle, at least I now have money put aside for it.

Each week I take out money to last me that week and don't (?) go back for more.

I've also stopped buying coffee's in the morning, have my jar of coffee at work, and now bring in lunches most of the time. Both of these have helped save at least £40/week, that's £2k/year!

I like the idea of using cash for groceries, haven't got around to trying it yet though.

Hello ! Thanks for your helpful and interesting post. I am just in the initial stages of sorting out my budget. I want to set up multiple bank accounts as you have done, but my bank First Direct will only let me have one extra account and I could really do with three more to do it properly. Can you advise who you went to to get your accounts and what you asked for? FD say my account must have my wage going into it which only applies to one account. I could do with Direct Debit facilities and a Debit card but no O/D is required. I'm thinking of trying the basic bank accounts that Martin recommends... Barclays and COOP, but if you have a recommendation it would be very useful.

Many thanks, James.

nearlyrich

I bank with First Direct too as does my DH, we have a joint account also which is just for joint (house) expenses, I have a DD from my own account that my salary goes in to pay my share, as does my DH . We work out our annual budget every April when we get the Council Tax and water rates bills. The DD's go out as soon as possible after payday and the money in the joint account is not for spending even if there is some surplus because it takes into account winter fuel bills etc.

I do use a credit card but I have a dd set up for the full amount so I don't pay interest, that mens I can't spend more than I have coming in or I get O/D charges which also upset me!

Even with a resonable surplus I still find I feel better if I budget, it is good to be in control and it's really easy to get in a mess if you don't ...

headoutthesand

Remember that if you're just realising that you are spending more than you earn, it will take you a while to realise where all your money is going (and agreeing where to cut back).

I was reluctant to open new bank accounts when I first started but it soon became aparent that it was something OI needed to do.

I do it like this:

Account 1
Wages, tax credits, child benefit and CSA payments go in here. also used for general spends but not food.

Account 2
ALL DD come off this account. It has no over draft facility and is very rarely used for anything other than DD. I also use this account for bill payments to CC/NEXT and family members

Account 3
Food shopping only

Account 4
Savings account with a different bank which has a passbook only. I tranfer money into this account to cover car/home insurance, christmas, TV licence, birthdays, school uniforms etc.

I also round the balance on my accounts down to the nearest ten by paying the odds to my outstanding credit.

Maybe you should have an account where both your salaries are paid into then a seperate account for your "pocket money". That way your OH will see exactly where they money is going when he has so little lol.

rising_from_the_ashes

icklepiggle wrote: »

Thanks for your posts :A
I think we will try the monthly envelopes for food & clothes & keep the debit card for big things like fuel. Then give ourselves a bit of cash pocket money budgeted each week so we have a limit on buying coffee/ crisps etc. at work

Re buying bits & pieces at work, I LOVE coffee and we have a canteen that does fab latte's. I started off, one for a treat on Monday, one on Friday as it's the end of the week, ohh it's Wednesday let's celebrate the middle of the week - pretty soon I was having one nearly everyday and realised I was spending a fortune!

I have a "proper" coffee every morning with my breakfast.. I now make an extra one and put it into a flask and take to work with me.

Cost is around 35p compared to £1.45 at the canteen so I have one every day! (and I have to use a specialised milk that costs £1.30/litre compared to around £0.85 for "normal" milk so you would be able to do it much cheaper than me).

If you can't live without crisps - but a multipak at the supermarket and take in with you.

do_it_today!

Hi all :hello:
great thread I shall keep checking with interest we are failed budgeters but will have to make a start!
Most bills are on DD which is good but shopping/petrol and Misc are a problem - I think we will try the weekly envelope approach