Sticking to you budget!

OneHubbyOneSon4Debts

Hi, I haven't posted here for a long time, first posted on the banckruptcy board things were that bad!!!

Luckily in the past few months things have changed for the better, finally got rid of 2 debts, I'm now left with 2! I've also manged to find a part-time job which is a great relief.

I've done all the right things, changing gas/electricity supplier, broadband and phone etc to get the best deals I possibly could.

I've worked out if I stick to my budget I will be debt free December 2012 :T

I've thought about christmas and birthdays etc, things that will hamper my budget but hopefully I've got them covered by buying the odd £5 argos voucher through the year and adding a few extra pounds on my savings card in Asda when I go shopping! I haven't got a big family so don't need to spend oodles of money at christmas.

Right sorry for rambling my question being.........will I be able to stick to my budget, I certainly hope so. My biggest incentive is looking forward to next Christmas with no debts! How do others manage to stick to their budget and what happens if you fall off the wagon so to speak lol!

May2013

Sounds like you're doing really well so far, a new job and 2 debts cleared - brilliant!!! Below are my suggestions to help keep you on track but I'm sure there will lots more to follow from the good people on here....

1. Never lose sight of your debt free date....every time you spend outside of your budget you're putting that date back!!
2. Set up spending pots..or use cash - when it's gone it's gone!
3. Keep a spending diary, I set myself up with a tight budget but have been approx £50 below each month just by keeping track of every penny I spend
4. Xmas/Birthdays - have you set aside budget for this? If so piggy bank the money and pick up bargains through the year
5. If you fall off the 'wagon'... get yourself up, brush yourself down and pick up where you left off....it might set you back but it won't be insurmountable
6. Most importantly...keep logging on to the DFW board - you are not alone, there are so many people here who are ready and willing to give their help and support...your success will help motivate others :T

You can do it ...good luck!!

bottleofred

Hi onehubbyoneson4debts,

I don't always succeed with this, but I usually stick to my budget by doing a list when shopping, paying only with cash so I can see how much it's going to cost (paying by debit card doesn't feel real sometimes) and only taking money out of the bank once a week (for me it's a Friday, but it could be whatever day suits you). I always keep a spending Diary so I know where the money has been spent.

Good luck

Red

OneHubbyOneSon4Debts

Thank you ver much for your replies May and fred, I will take your tips on board!

It really does make a difference when you actually sit down and think 'what am I spending my money on'. I was one of those people that just went into auto mode when I went the supermarket, buying what I usually buy, not looking at the special offers etc. Since I've thought it through a bit more and take my time when out shopping I am now saving roughly £8 to £15 a week on food.

I also had a mobile phone contract which thankfully finished last month (what a waste of money that was!). I have now got a Virgin sim only on a rolling contract, month to month, for £5 a month, 100 mins and unlimited texts, which works out fine for me! It was a special offer because I'm already with Virign. Truthfully I wouldn't have even bothered with that but my mum has no landline only mobile so really needed it to keep in touch with her.

Just by being a bit more careful when I'm food shopping and my mobile contract coming to an end I'm roughly about £40/£70 a month better off. Amazing how small things add up!

Another thing I was terrible for was going upstairs in Asda were all the clothes/electrical/household stuff is and thinking ohhhhh that looks nice and throwing it in the trolley without thinking, then getting to the till and paying for it on the dreaded credit card lol! Now I just pretend that Asda hasn't got an upstairs and walk past the escalator! :rotfl:

I've now only got the one credit card, tis in my name only but I've given it to hubby to lock away! Can only be used in dire, dire emergencies now!

Now if I could just sleep till December 2012 everything would be fine!

Once again thanks for your replies and will certainly keep posting, every month that goes by is another month nearer to being debt free :beer:

gettingbackontrack

I'm another one who finds it easier to stay on budget if I use cash for everything. It's just too easy to whip out the debit card without thinking of the cost. I also have a PAYG mobile and put a set amount on it each month - if I use it too much, I run out of credit. I'm also saving cash in a sealed pot and in another money box. It's amazing how quikcly you can rack up £20 from 50p pieces or pound coins! Best of luck with your budgetting.

Amber07

Well done, sounds like you're doing really well so far - determination is everything!

To help stay on budget, I check my online bank balance every day, that way I can pay by Debit card but still keep track of the money in my account.

Lists before going shopping help, as does keeping track of 'extra' (but sometiems necessary)spending.

climbgirl

I find turning it into a challenge or a game helps - can I do the groceries this week for under £20 (or whatever your budget is!). Can I get creative presents for people for under a fiver? That kind of thing.

I also find it motivational to think of the bigger picture - "if I spend this fiver on [insert name of stuff you don't need] then I'll be another few days away from reaching my goal." When I'm saving up for something in particular, I put a photo of it in my wallet. So every time I reach for my cards, it's a reminder to ask myself if I really need it.

Sounds like you're off to a good start!

clowe1

This thread has been most useful.

Good luck to OP

And thanks to everyone else for your tips.

steerpiker

May2013 wrote: »

Sounds like you're doing really well so far, a new job and 2 debts cleared - brilliant!!! Below are my suggestions to help keep you on track but I'm sure there will lots more to follow from the good people on here....

1. Never lose sight of your debt free date....every time you spend outside of your budget you're putting that date back!!
2. Set up spending pots..or use cash - when it's gone it's gone!
3. Keep a spending diary, I set myself up with a tight budget but have been approx £50 below each month just by keeping track of every penny I spend
4. Xmas/Birthdays - have you set aside budget for this? If so piggy bank the money and pick up bargains through the year
5. If you fall off the 'wagon'... get yourself up, brush yourself down and pick up where you left off....it might set you back but it won't be insurmountable
6. Most importantly...keep logging on to the DFW board - you are not alone, there are so many people here who are ready and willing to give their help and support...your success will help motivate others :T

You can do it ...good luck!!

Many Thanks May2013. I look at my online spending diary and snowball several times a week! My debt free date is July 2014! Seems so far away at the moment! But it took years to accumulate the debt, so I guess I should be glad that it's going to take just over 3 years to finish paying it off

david_hellier

Plan a spending diary 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.

andrea1968_2

Like the others I'm still obsessed with checking my account even though I'm now debt free - now I look at my growing savings instead of the debits going out though.

I'll still continue to use the DFW board to keep myself on the straight and narrow and use it as a reminder how easy it is to build debt up again.

My tips - never go shopping just for something to do, take a list and stick to it, pay for everything with cash - I try not to even use my debit card because it doesn't seem like real money, ask yourself if you do really need those jeans, top shoes etc and then ask yourself again a week later if you can survive a week without them you can survive 2 and 3 and 4 by which time they'll have all gone anyway.

I can't tell you how good a feeling it is to not owe a single penny so let that be your inspiration, your debt free day will be here before you know it and it is so worth all the hard slog.