The importance of budgeting

braken2000

This is going to sound like an odd question but I really don't know how to do this. I am trying to set up a budget an need some advice. Firstly, at the moment I have no control over my spending I.e I dont put aside money for groceries etc. What or how do I work out what my living costs should be? Also does anyone have a good spreadsheet template for putting all this in?

tbourner

braken2000 wrote: »

This is going to sound like an odd question but I really don't know how to do this. I am trying to set up a budget an need some advice. Firstly, at the moment I have no control over my spending I.e I dont put aside money for groceries etc. What or how do I work out what my living costs should be? Also does anyone have a good spreadsheet template for putting all this in?

You don't have to have a spreadsheet.

Have you read this:
https://forums.moneysavingexpert.com/discussion/2976812
Particularly post #13 as well.

I can't trust myself to follow the budget, so I have bank accounts for each level, so I know once I've spent the money in the daily spending account that's it and at least the bills and important bills accounts are covered.

braken2000

I am going to do that with the bank accounts like have one for petrol. What I'm getting stuck on however is how much I should put aside for food etc. ATM I couldn't say how much I spend because I don't know. But a budget sheet asks for it. :-/

tbourner

Start a spending diary now, either by keeping receipts for whatever you can (I write non-receipted items on other receipts! ), or keep a notepad with you, or if you have a new smartphone you can do it on there in various ways.
I then transfer to a spreadsheet, I try to put groceries in one column with abnormal shopping next to it, then columns for fags/alcohol, fuel, car bills, household stuff, clothes, toiletries, gifts, pet stuff, takeaways, entertainment. Down the left is the date in column A and location (Tesco, Halfords etc.) in column B.

After a month you'll have a rough idea from the 'groceries' column in column C, and after a few months you can start working out yearly costs for other stuff as well.

For now, base it on how many people you are and your lifestyle. Me and the wife with 2 dogs and 1 car, we give ourselves £100 a week for all shopping including pet food and fuel, toiletries, clothes, going out, takeaways etc. So we transfer £435 a month into our 'spending' account.

david_hellier

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lizzieloo21 wrote: »

Would anyone be kind enough to send me a copy of the spreadsheets they use (a template / blank one)? As since doing my SOA I have cut back on things like cancelling gym, batch cooking to bring food bills etc however it is the unplanned things, the little trips to shops buying mags, chocolate, things for my daughter that are eating my budget now - I have tried a spending diary but still not writing things down, I have got into the habit of checking account online every morning - but its building the will power, drive, ambition in me to become debt free as so use to it - old habits die hard!!! I have about £6k in total on a 20 month interest free credit card from this month and I really really want to pay it off in that time, as a few months after that my loan finishes too - so although seems a way off I need to be debt free by 2014 so I can consider moving to a better area for better schools as want to move before my daughter starts secondary school as bad in my area.

Hi if you (or anyone) PM me with an email address, I can send you an Excel sheet which has a simple budget on one tab and an 84 page spending diary on the other.

sinnoc00

...And I thought it was just me that was obsessed with updating my budget spreadsheet every day!!

Seriously though, putting together that spreadsheet was the best thing I ever did - when I was in debt it let me easily track what was left to pay, but now I'm debt free it's helping me to keep track of my savings (I'm saving up for a house deposit - £14,000 saved so far!!). I have a section for regular outgoings (rent, mobile phone, broadband etc.) and a section for spending which I keep up to date daily. I've then got the totals at the bottom with total amount spent, then total amount remaining and finally (and I find this the most useful) the total amount available to spend per week until the next pay day. This shows me how much, after all bills etc. have been taken out, I've got as surplus to spend if I so choose each week. This is easy to do - on pay day, the total remaining is divided by 4 (as I'm paid monthly), then you divide by 3 with 3 weeks left and so on..

I'm a bit obsessed with updating it now I must admit, but I suppose it's a natural thing to do after finally becoming debt free as there's no way I want to get into debt again (other than the unavoidable mortgage that is!!). Thanks to the spreadsheet - and the help from moneysavingexpert of course, I've got a new attitude to money and am never overdrawn and instead of worrying, I now enjoy watching my savings grow!

Sam

cjp1802

Hi

Does anyone use an app on their blackberry to keep track?
many thanks

Swampmonster

Hello, I don't know if anyone can help me, I would really like to start using a spreadsheet to keep track of my finances but have never used one before.

I have only got the works spreadsheet on my computer and can't make head nor tale of it.

Can anyone recommend one I can buy that is for beginners?

Many Thanks :T:T:T

tbourner

If you can't make head nor tale of a normal spreadsheet, you'll get in trouble trying to make your own. TBH it's not a problem if you're not a spreadsheet wizard, just use pen and paper instead!

happycrafter_2

Love my spreadsheets for keeping me on track with spending, also use mine with the help of pivot tables to work out my shopping lists from my meal plans also done on a spreadsheet.

call me a geek but I will be a debt free organised geek!