The importance of budgeting

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The importance of budgeting

edited 17 May 2011 at 6:19PM in Debt-Free Wannabe
41 replies 12.6K views
Million_PercentMillion_Percent Forumite
188 posts
edited 17 May 2011 at 6:19PM in Debt-Free Wannabe
I've just been looking back at some old bank statements and I can't believe how much money I used to throw away. There was one month where I'd had a massive bonus from work which had wiped out my overdraft and still left me with considerably more than a month's salary in credit. To my amazement, when I scrolled down I had still managed to be almost £500 overdrawn by the end of the same month. It was all spent on eating out, weekends away etc. - nothing of any necessity or value.

Part of the problem with bonuses is that mentally you tell yourself, "It's OK I've got my bonus this month so I can afford it". Before you know it, you've spent it several times over.

Just goes to show that it is impossible to mentally keep track of your money. Nowadays I have a detailed spreadsheet to track all spending and I log in to my online banking every day to check status. I'll never go back to my old ways.

DFD, here we come!



  • Jules28Jules28 Forumite
    265 posts
    So true, I rely on my spreadsheet nowadays, my old ways will never make a return appearance I hope!
    Proud to be dealing with my debt!
    LBM & started DMP in February 2010.
  • lilly81lilly81 Forumite
    588 posts
    Part of the Furniture 500 Posts Combo Breaker
    What I love most about my budget is that I can allow for treats, and I enjoy them more knowing I can afford them (and search for the cheapest deals :money:)
    My Car has its MOT next month, and as long as there are no majoy faults, I dont have to stress about the cost!
    Debt 03/08/08 [strike]£4805.26[/strike] :(
    Debt free date 23rd march 2009 :T
  • Thanks Jules. It's amazing to compare your pre and post LBM attitude to money. I'd be overjoyed to get a bonus now that cleared my overdraft and left me with a surplus. I just can't believe that I could have wasted so much money in one month.

    Totally agree Lilly, treats are much more enjoyable when you know you can afford them and you feel like you've really earned it. I get more pleasure now from a simple treat than blowing a big pile of cash on something extravagant.
    4.9K posts
    Tenth Anniversary 1,000 Posts
    So true. For me its not just about budgeting its keeping records of what I am spending too. I make myself check my online banking every morning while I am eating my breakfast and make sure I keep my spending spreadsheet up to date. I know that I am less likely to fall off the wagon this way. In the old days I used to keep my head firmly in the sand and when I went to use my debit card I didnt always know if the payment would go through because I had no idea what was in the bank. I shudder now to think how stupid I was.
  • nicnacnoonicnacnoo Forumite
    408 posts
    Debt-free and Proud!
    i was looking at my old posts yesterday from when i first started to tackle my debts, i thought i had good debt ha ha, but no debt is good debt!
    I live by a budget now and bore my frends to death with it!! but im really going on at them in the hope they get themselves sorted and realise how fulfilling it is to be in control of money :)
  • Budgeting boring? NO WAY!!!! I can fritter away endless, happy hours tweaking my budgets to my heart's content.

    What if I shaved £25 quid off this? What if I shopped every 10 days instead of 7, etc, etc ad nauseum!!

    Online banking checked every day AT LEAST!!

    Gone from not having a clue regarding my bank balance to knowing it to the exact penny!

    I love my spreadsheet!

    DF :grin:
  • JLLJLL Forumite
    92 posts
    I've got to the point that i seem to know what's cheapest in what supermarket and the very sad things is i have Mt T's near work and my mates at work ask me what deals are there, cause they know i'll know.
  • ixiaixia Forumite
    1.3K posts
    JLL- had a laugh at that one my workmates do the same with me.
  • canidothiscanidothis Forumite
    226 posts
    BIB!! :jWe share the same passion :j- I love my spreadsheet and snipping here and there - Ive learnt conditional formatting so that if I go under budget a cell will turn 'pink' (because its a happy colour:)) and if a cell turns a nasty (!) red I will snip away until it turns pink!!

    You can imagine my pure joy and excitement when I reduced my gas maintenance contract last night and straightaway entered the new amount into my spreadsheet.

    Knowing my outgoings is a revelation and not keeping fingers crossed at the checkout is just a fab feeling:beer:
    LBM March 2011 (what on earth took me so long?)
    overdraft (1) -2950 overdraft (2) -246.00
    total CC £12,661 :eek:
    loan £5000
    DFD 2016:eek::eek: (cant come soon enough)
  • edited 10 May 2011 at 9:38PM
    PalemaPalema Forumite
    1.9K posts
    edited 10 May 2011 at 9:38PM
    I don't use a spread sheet - I use an iPhone app called accounts. It took me a couple of months of things not balancing for me to realise if I added an account in there just for cash things would work better! I record every penny I spend or put into savings and can see the totals of each. Other than Facebook it is probably my most used app and I couldn't be without it!
    ~ VSP 2013 member #1 (AKA The speedway season ticket fund :D ) £92.69
    ~ Sealed Pot Challenge 2013 #1030 £23.98
    ~ £2 Coin Savers Club #4 £24.00
    ~ Gift Fund £120

    :www:Moved into my own flat on 22nd February 2013!! :www:

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