New to Budgeting.

Angel_Jenny

I have never really had a budget before which is terrible at my age! One of my New Year's Resolutions for next year is to have a proper budget and to stick to it. I am trying to get a bit of a head start!

Ideally, how much of my wage should I be looking to save?

I don't have a house as I live with my parents but I pay (pretty minimal) rent and 1/4 of the bills.

I am not really bad with money but I do buy pretty much whatever I want. Fortunately, my tastes run to books and craft stuff rather than super expensive hobbies!

Most of the budgeting advice I have seen is for people that are in debt. I don't have any debt and I don't want any! I want a nice nest egg for the future.

Any other money advice from all you sensible people is very welcome!

Lokolo

How much of your wage should you save would be good if we knew how much your wage was

Ideally - do one of these:

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

Post it here, and people can comment and make suggestions about how you can budget and save some money.

Angel_Jenny

Summary

Monthly Budget Summary Amount(£)
Total monthly income 1,050
Monthly expenses (incl. HP & secured loans) 560
Available for debt repayments 490
UNsecured debt repayments 0
Amount left after debt repayments 490

Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 5,000
Total Secured & HP Debt -0
Total Unsecured Debt -0
Net Assets 5,000
Household Information

Number of adults in household 4
Number of children in household
Number of cars owned 1
Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 1050
Partners monthly income 0
Benefits 0
Other income 0
Total monthly income 1050
Expenses Amount(£)
Mortgage 0
Secured/HP loan payments 0
Rent 250
Management charge (leasehold property) 0
Council tax 0
Electricity 20
Gas 20
Oil 0
Water Rates 20
Telephone (land line) 0
Mobile phone 20
TV Licence 0
Satellite/Cable TV 10
Internet services 0
Groceries etc. 50
Clothing 40
Petrol/diesel 0
Road tax 0
Car Insurance 0
Car maintenance (including MOT) 0
Car Parking 0
Other travel 10
Childcare/nursery 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 0
Pet Insurance/Vet bills 0
Buildings Insurance 0
Contents Insurance 0
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 20
Haircuts 0
Entertainment 100
Holiday 0
Emergency Fund 0
Total monthly expenses 560

Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 0 (0) 0
Secured & HP Debt totals 0 - -
Unsecured Debt Description Debt(£) Monthly(£) APR(%)
Unsecured Debt totals 0 0 -

Asset Description Value (£)
Cash 5000
House Value (Gross) 0
Shares and bonds 0
Car(s) 0
Other assets (e.g. endowments, jewellery etc) 0
Total Assets 5000

Lokolo

OK now you have done that. You can see you have £490 left over each month.

If I were you, I'd start off slowly with £300 a month and gradually rise it to £450 (say +£10 a month).

Open up a savings account and whenever you get paid, deposit £300 into the savings account straight away. Next month do £310.

You may struggle for first few months, getting used to it. You may also find, if you haven't done this before, that £100 on entertainment is too little and you actually spend more than this.

Do you buy your own food or is this the contribution towards parents? (the groceries)

Linton

One suggestion......

Set up a savings account and put a % of your pay into it as soon as you are paid, then live off what remains. This savings account is your emergency fund and should amount to 25-50% of your annual pay. This should cover any unexpected costs, even temporary redundancy.

When the emergency fund is complete, set up another savings account to hold your long term savings and pay your % into that.

As to what that % is, dont know, depends on your circumstances and how motivated you are to save.

Angel_Jenny

I buy my own food as I don't eat what my parents do and I get eat at different times.

I never have £490 left at the end of the month! I just buy books - my weakness is Victorian and 1950's books.

I don't want to be too strict with myself as I like treats and I am not actively saving for something.

I think I have £5000 ish in my isa and my parents gave me £2000 when I turned 18 which I put straight into premium bonds. Can't remember exactly what is in my isa - am off to find my book!

timnicebutdim_2

Hi, how about aiming to save circa 250 per month (roughly 25% of your salary)? You currently spend approx 50% on living costs, so the remaining 25% could go towards a 'treats'/entertainment/random budget? That way you're saving pretty hard, spending comfortably and living within your means.

Angel_Jenny

timnicebutdim wrote: »

Hi, how about aiming to save circa 250 per month (roughly 25% of your salary)? You currently spend approx 50% on living costs, so the remaining 25% could go towards a 'treats'/entertainment/random budget? That way you're saving pretty hard, spending comfortably and living within your means.

I like that idea! 50% living costs, 25% savings and 25% books!

I am not really bad with money - just found my ISA book and there is £8000 not £5000 in it which was a nice surprise. Plus I have been paying into a pension for 6 years.

getmore4less

The key to budgeting is having a plan.

THink 1 year in detail ,5 years medium, liftime long term.

Set up some long term goals and work back, like retire at 50.

Medium goals might be a car, holiday house new big item.

the 1 year budget need to be much more detailed.

Start with the essential spends, then the medium,long term savings.

That will leave the discretionary spends if there is anything left.
If not go back and adust the longer term stuff.

What stands out on your SOA is only £10 transport costs.
walk to work and when going out?


Any plans to leave home they may form an initial focus for goals.

CabSave

It is imperative that the management team with the objective of putting in a computerized maintenance management system. To me the objective is an effective, proactive, planned maintenance system.

olly300

Angel_Jenny wrote: »

I like that idea! 50% living costs, 25% savings and 25% books!
.

There is an issue with having so many books even if you can afford it - space and the fact they are very heavy to move.

I presume you want to move out of your parents home at some point? Even if they are happy for you to leave the books at their house what's the point?

I suggest you actually go through the books you have and be very honest with yourself and see which ones you haven't read, touched or looked at in years. Then sell them off.