Where is my money going?

minnie2

oh and maggie well done on the 6k credit card!!!! how the hell did you do it? I have 6k to clear too!!

bluebag

Going to cash only may help, so often it's the paying for things by debit card and then forgetting all about it that messes things up.

I shop once a week online so I can stick to my grocery budget, all my bills are paid by DD and I draw a regular weekly amount out for all the rest of the stuff, when I run out of cash...well that's it!

Ben84

It's not just you at all who this happens to. Happened to me when I first made a budget and it seems to happen to most everyone else too. My discovery was that a lot of the outgoings are not the big things you remember but the little things that accumulate in to surprising amounts of money over the month or the year.

For me it was often bus tickets, mobile phone tops ups that seemed small at the time, small but frequent items from the local shop, coffee and cake while out, that type of thing. I really didn't believe it at first, but assumed it had to be this stuff so wrote it all down for a while and quickly realised I was turning hundreds of pounds in to stuff I didn't even remember at the end of the month. That shocked me.

I'm working on ways to reduce the seemingly small spending that adds up, but it takes a while to figure out what it is you need to do differently. The most important first thing was to note down all spending, no matter how small it seemed for a few weeks.

Buddingblonde

Cash only is a great way to do things
I used to make up envelopes for every week and seal them and at the beginning of the week I would open the envelope and put that weeks money in my purse. Then I knew that all my shopping, travelling, entertainment etc had to come out of that.

bluebag

Buddingblonde wrote: »

Cash only is a great way to do things
I used to make up envelopes for every week and seal them and at the beginning of the week I would open the envelope and put that weeks money in my purse. Then I knew that all my shopping, travelling, entertainment etc had to come out of that.

Yes, that's how I do it , the kids know to hit me up for money on a wednesday, as that's bank day! LOL.

angelavdavis

You definitely need to keep a spending diary - I did it 7 years ago and found it enlightening where my money was going, I discovered I had been spending £75 per month on coffee and lunches in the canteen!!! You spend £2 here and there and then when you add it up it is a real surprise - I was really shocked!!!

I would also recommend leaving the bank cards/credit cards at home and leaving an emergency £10 note in your handbag (not your purse), then follow buddingblonde's recommendations, keeping every receipt, etc. Note down every night when you get home from work all your spends in a little notebook.

rozmister

I'm in the same boat as you, the old disappearing money game!

I found a money diary I'd bought in a fit of believing I'd take control (it's so pretty and if I remember rightly cost £10) and I've started only using cash. On Saturday I take out my weekly 'allowance' and that's it then everytime I buy something, even something little, I make sure I get a receipt and pop it safely in my purse. Every evening I take the receipts out and write down the debt, cost and what it was. I managed to only spend £36 (including my food shop) last week when before I was dropping £100 on cards in a week easily. Knowing I'll have to look at my spending really makes me think more to because I know I'll have to face my irresponsible spending again later. I think my money wasn't going anywhere specific just on whimsical card purchases!

Unfortunately I have £5,600 worth of debt to clear still (was £6,000 until December) so I really need to stick to this new system!!

Gemmy_2

This year, i've started using a money diary itemising every single item that i am purchasing or spending money on.

the_cat

Well if you are spending money you haven't accounted for then a spending diary will definately work

I wonder though if there is a more simple explanation. You say you have paid off £6K in debts over the last year...... perhaps that is why you feel you don't have any money. It has been used for debt reduction and therefore you still feel 'poor' as the money you have spare in your budget has all been used for debt repayment

Bloomberg

maggiecon wrote: »

So my new years resolution is to sort my fianances out once and for all. I do be on this site every now and then and take little bits of advice from it and have reduced my spending significantly. I even managed to get rid of a £6k credit card debt last year

However, I just used the budget planner on here and have noticed that I should have 46% of my income left after all my bills etc. So can someone explain to me why I am always broke. I havent bought new clothes for over a year. I never go out, I dont drink or smoke, and according to the budgeting tool I should have over £1000 in spare cash every month!! :eek: yet when I check my bank balance yes you guessed it £200 overdrawn.

Does anyone else have this problem of unexplained disappearing money.

To sort the problem out I have decided to keep a money diary and see if that will shed any new light for me. I have also started doing a menu planner to help reduce my grocery bill.

I am also selling my car. I only travel 1 mile to work everyday. so I dont need a fancy car. this will save me £250 a month, and it should leave me with 3K to buy a nice wee run around.

So my goal is to be able to go shopping at Easter and buy some new clothes - without feeling guilty.

2011 is the year I will sort myself

Have an account just for monthly outgoings, when you get paid put sufficient money in this account to cover your bills. Believe it or not, if used properly the best spending diary is a credit card. You do however need to ensure that you pay it off every month to ensure that no interest is applied.

Make sure that everything you buy is put on the credit card and do not use cash at all. Beware of using the credit card as well as spending the left over money in your current account. Good luck