Where does the excess money go?????

Catslovelycats

I've seen several comments on this forum from people who, like me, on paper should have £X left at the end of the month, but who in reality don't. Like me, these people often don't know where it's going.


What I'm going to do is:
1. Keep a spending diary so I can see where my money actually goes.
2. Get back on track with my expenditure spreadsheet so I can see what's happening with all my money.
3. Make a really really conscious effort to question before I buy things.
4. Save anything I have left over in a special savings account for this purpose (this will help me to save £3K in 2012 :rotfl:).
5. Pay off my credit card balances by end of 2011 so that all balances are on £0 and I have a clear slate.

Anyone else with me in trying to keep that extra money each month? :cool:

I can't think of what else I could do. But look forward to hearing your ideas.



MSE Official Insert:

Don't forget to use the Budget Planner. Many thanks to catslovelycats for starting the discussion.

[threadbanner]box[/threadbanner]

Angel84

I'm in. Think you saw my thread earlier....I have started a spending diary so reckon I should be able to see where it's all going. :eek:

Bored

I think it would be a good idea if people could maybe report back on where their excess money goes after using a spending diary for a couple of weeks. It seems like everyone's SOA has some form of disappearing cash!

Cherryjack

This is so true.. ive resorted to writing it all down.. i cant be trusted!

Catslovelycats

Hi Angel84. Yes indeed - you're one of my inspirations for this thread! :rotfl:

Catslovelycats

Good idea, Bored!

MrGreen

catslovelycats wrote: »

4. Save anything I have left over in a special savings account for this purpose (this will help me to save £3K in 2012 :rotfl:).
I can't think of what else I could do. But look forward to hearing your ideas.

If you have a budget try and stick to it, if you have planned to save some money transfer it into your savings account when you get paid, that way you are less likely to spend it

foxgloves

What has really helped us is budgeting properly. It's boring, yes, but I make sure I do a big session (with loads of coffee at the ready!) when wages go into our account, then a couple of smaller follow-ups during the month. Everyone works their money differently, but we were terrible 'fritterers', you know, going to cashpoint, withdrawing 20 or 30 then it's gone in a flash & what waas there to show for it? We track our different budgets for thngs much better now. Each month, we set the household budget (currently £250) & keep that money in a separate purse. If I need to get milk, or any grocery bits & bobs when I'm out & about, I use that money so we can keep on top of what we're spending. Each month, we both have £50 'spends' which is to spend on whatever we like. For instance, I'd get make-up out of that, or a magazine, etc. We draw that money out as cash at the beginning of the month & because it has to last, it's amazing how it concentrates your mind on not wasting it! My partner has really taken to the competitive element of this. He wanted a rock magazine at the weekend, which costs £8. He put off buying it then found the exact one still on sale in WHS on the magaine man's stall (on the local market) for £1.50.......it also makes us careful about spending on those routine things like lattes & a cake in coffee shops, as that has to come out of our 'spends'. We really are reformed characters & became debt-free this May after 20 years of over-spending & failure to budget but one month, I found my spending money had gone by the end of the first week & I had absolutely nothing to show for it.....a quick tot-up showed it was all coffee shops and yes, I HAD spent it all! I was so cross with myself, but I didn't withdraw any mroe money. Partner sometimes ends the month with £20 to £30 left!! However, you work your finances, it's ;learning how to budget which is absolutely KEY & I wish I'd discovered this 20 years ago!! Best of luck with it all x

xyellowx

me and wife put £100 for each week in a tin on payday all bills go out d/d, car filled up on wifes work card, have one big shop ,so we then have £100 a week cash to spend on bread milk /going out etc
we plan our tea for the week and buy the bits accordingly
we found the following expensive and the reason for the cash going so fast
1 takeaways ( late back from work so chippy/chinese) now have 1 on a sat night
2 haircuts (when due was every 4 weeks now every 6)
3 going in butchers or any shop with no list i.e 4 of them 4 of them etc
4. buying things for the sake of it for the 2 boys everytime we went out even(now they get things for being especially good)
we now look at things and say it a quarter of the weekly budget rather than just hand over £25 for a curry
hope it helps

EssexHebridean

Something which stands out for me from personal experience is that if you have very little money, you don't fritter it. I wrote a blog-post on this subject recently - the definition of "a treat" and how it changes depending on how much disposable cash you have. Two years ago a treat would have been a pair of shoes, a bag, or a splurge in Boots on cosmetics etc. The thing that prompted the blog post was being on a long train journey, having a 45 minute wait between trains, and deciding the "treat myself" to a £1.69 cup of tea. I appreciated that lovely hot cuppa FAR more than the bags, shoes etc were appreciated at the time of buying them!

Try limiting your disposable cash by budgeting as suggested above - separate money out into different pots (or online accounts) at the start of your month, and then see how long you can make a set amount of spending money last. There are sometimes various challenges on here around that theme too so keep your eyes peeled!

timbstoke

One approach is this:

Open a spreadsheet. In column A put down all the categories in your SOA (i.e. all the places you *think* you're spending money. In column B write down the amount you think you're spending. Column C is all zeros to start. Every time you spend money, add the amount to column C. If there isn't an entry in your SOA for it, add a new one at the bottom.

After a month, you'll see where you underestimated your SOA, and where the money's gone that wasn't counted for.