What do you put in a spending diary?

smiler34

Is it just anything that isn't a dd? Do you include groceries?

Thanks xx

GeorgeUK

Basically any time you spend something, this should go in the diary. Every time you entere a shop, buy a magazine or paper, just a loaf or pint of milk, getting a kitkat etc

Every single penny should be accounted for - this is really hard to do, but if you manage it for a month, you will see exactly where your money is going and if there is a better way to manage it.

Asiacat

I've recorded every single baht (I live in Thailand) I've spent for the last seven years. Once you get into the habit it's really easy I don't think I could ever stop doing it.

The first month is the biggest eye opener when you see where your money really goes.

I was shocked to see that I was spending B5000(about a 100 quid) a month on books.

Once you have your figures you can then set about setting budgets for each individual category.

I now limit myself to B1000 a month for books.

determined_new_ms

its so hard to record everything! I always think I'm doing it but more money goes out and then it gets confusing! I'm really trying this month to keep every receipt and keep receipts in 2 envelops one for hosehold items & one for personal. I have a spreadsheet and a little book to record spends in but still it elludes me! I will do it!

Asiacat

determined_new_ms wrote: »

its so hard to record everything! I always think I'm doing it but more money goes out and then it gets confusing! I'm really trying this month to keep every receipt and keep receipts in 2 envelops one for hosehold items & one for personal. I have a spreadsheet and a little book to record spends in but still it elludes me! I will do it!

I find it easy. Rather than bother with keeping receipts etc. I simply carry around an A5 diary for the current year with 1 page to a day. Two or three times a day I simply take a couple of minutes or so to write down what I've spent in the last 2-3 hours or so.

Another technique is to keep a running total of wastage for the current year and write that at the bottom of each page each day.

You define wastage for yourself but they could such things as money lost, late payment penalties, money squandered as a result of not buying in bulk, library fines, books not read,food thrown out because it is past it's sell by date etc. The fact that you have got to keep a running total makes you aware of it and you actually go out of your way to use cash with near perfect efficiency.

isy1011

Record everything. Just keep receipts and do at end of the day. I dont record when I get cash out of cashpoint just when anything is spent.

Swampmonster

Asiacat wrote: »

I find it easy. Rather than bother with keeping receipts etc. I simply carry around an A5 diary for the current year with 1 page to a day. Two or three times a day I simply take a couple of minutes or so to write down what I've spent in the last 2-3 hours or so.

Another technique is to keep a running total of wastage for the current year and write that at the bottom of each page each day.

You define wastage for yourself but they could such things as money lost, late payment penalties, money squandered as a result of not buying in bulk, library fines, books not read,food thrown out because it is past it's sell by date etc. The fact that you have got to keep a running total makes you aware of it and you actually go out of your way to use cash with near perfect efficiency.

I really like the idea of recording wastage because it makes you acknowledge where you are going wrong and where improvements can be made.

Well done for that idea!

Bambywamby

Like Asia Cat I carry a small notepad around with me in my bag and as soon as I spend anything I note it down and during the evening I transfer it across to my "proper" cash book.
Doing this prevents me from forgetting any small outgoings.

determined_new_ms

Asiacat wrote: »

I find it easy. Rather than bother with keeping receipts etc. I simply carry around an A5 diary for the current year with 1 page to a day. Two or three times a day I simply take a couple of minutes or so to write down what I've spent in the last 2-3 hours or so.

Another technique is to keep a running total of wastage for the current year and write that at the bottom of each page each day.

You define wastage for yourself but they could such things as money lost, late payment penalties, money squandered as a result of not buying in bulk, library fines, books not read,food thrown out because it is past it's sell by date etc. The fact that you have got to keep a running total makes you aware of it and you actually go out of your way to use cash with near perfect efficiency.

I'm trying and hope I can do it over the next month.... we'll see I always start out well after payday and as the month progresses...

come over to the "what small dfw things will you do today" thread it really keeps me on track (and the others I know) I haven't had any late payments, library fines etc for over 6 months and I now through away very little food . putting down the small things ur going to do is excellent for reminding you what you need to do, ppl give u a nudge to remind you as well

david_hellier

The real function of a budget and spending diary is to prevent overspend. The encouragement of overspending by the banks is the main problem with the economy, and they will look for ways to perpetuate this, for example by the introduction of contactless cards. The complete elimination of paper money is their long term aim so we as consumers must pay hawkish attention to exactly how much is available to spend.

One of the best ways to tackle this is to use the weekly subtraction method. Firstly work out all your income. If your income is monthly then divide this by 4.33, this will give you your weekly income. Note it.

Then work out your monthly essential outgoings, but exclude food (more later). Divide this by 4.33 to give you your weekly out goings. Note it.

Take the outgoing figure from the incoming figure. This is the weekly Start amount available to spend on anything else including food.

Get any little notebook ( a spending diary) and write the Start figure in it at the start of the week. As you spend or withdraw cash deduct it as you go. Try to get to the end of the week with some left in it and carry this forward to the next week and add it to the new Start figure.

Using this method ensures you do not overspend. I suggest you include food in the Start figure because the amount we spend on it can vary widely. My personal experience shows allowing a specific amount for food is impractical, however, it's up to you.

This method also requires you to effectively ignore your bank balance, because it is meaningless on a day to day basis. What you should see is it increasing steadily.

Also remember to include any OD charges, interest or other fees in the essential outgoing list, otherwise overspending will continue.

Other top tips: stop using credit cards for further spending and make FIXED repayments, never the minimum.

I have an excel spreadsheet which can work out the Start figure if you PM me with an email address.

Wishing you all a happy new, prosperous, debt free New Year.

Dave

Al1x

once you get into a spending diary its really hard to stop lol its like an addiction. I've got an excel spreadsheet with all my spending going back for years! I record everything i spend from dds to stamps!