Where does it go?

Seanymph

I don't know if I'm in the right place - but I have worked out our standing orders and income, and really we should have money left over, but never seem to.

I need to know the next step to get it under control please?

euronorris

Do a SOA (Statement of Affairs) and then start keeping a spending diary.

Like most of us, your disposable cash is most likely being spent on small things that add up very quickly. A couple of drinks bought 'on the go' here and there, lunches at work, the odd evening out etc. Each item isn't bad by itself, but they add up quickly!

At least, that has been my experience.

WestonDave

You need to keep a money diary - so that you can record every penny you spend. Once you've done this for a month or maybe two, you'll have a track on all the "I'll just grab one of those" moments that you miss when you sit down to think where its gone. Plus, the very fact that you have to write it down often makes you think again about spending it.

ETA - Credit Action do a mobile phone based budgeting tool - http://www.spendometer.co.uk/

squeaky

Hi,

A good place to start would be our Debt Free Wannabe Board. Even if you're not in debt, if you post a Statement Of Affairs (SOA) they'll be able to help point you at reductions.

Then you wander back here and join our Grocery Challenge, which is a sticky at the top of the board; not forgetting to browse and make use of the various links in the first post and the recipe ideas collected in the early posts there.

Good luck, and have fun

Seanymph

probably too technical for me - in fact certainly too technical for me.

I'm not sure I have the discipline for a spending diary.

How do you account for things? Write it down whenyou take it out of the bank? Or when you buy stuff?

soon2bjobless

It takes a bit of getting used to but having a small notebook on you and just write down what you spend in there......or you could just always get receipts for things (even if its just a coffee) or a mini statement when you get cash from a bank and pop them all in a box and add them up at the end of the week to see whats going out. Its quite amazing how little things here and there add up!

BitterAndTwisted

What would I do? What I did a while ago. It does take some self-discipline but it's worth the effort: keep a spending diary each. Write down in the note-book every time you spend any money and what you've spent it on. Keep every receipt. For instance: "Greengrocer £15" is self-explanatory but you do need to keep a mental note if you've splurged on out of season luxuries. A mental note on whether they've gone off and been chucked out unused as well is very useful.

Then, at the end of the month go through every receipt with a highlighter and note every item that wasn't absolutely necessary. And then tot them up. If you're one of a couple you may not agree on what those are and that's a thing to discuss and agree on. Even that discussion can be an eye-opener. Totting up the non-essentials certainly is and it then gives you a starting-point to see where you could either get cheaper alternatives or cut things out altogether to have money left unspent to get some savings behind you, pay down debts or just spend on alternative, fun stuff.

Knowledge is power!

lizzyb1812

Seanymph wrote: »

probably too technical for me - in fact certainly too technical for me.

I'm sure it's not - as loads of people who have used these methods on here would testify

I'm not sure I have the discipline for a spending diary.

Do you have the discipline to ask for a receipt for EVERYTHING you spend money on - cash or card? That works too. Do it for one month and you'll have a record of where it all goes.

How do you account for things? Write it down whenyou take it out of the bank? Or when you buy stuff?

When I buy it - the money is committed then, until then it's in my purse/account. I don't take out too much cash at a time and try to use cash not cards for most purchases.

Bottom line - if you want to know where it all goes you will have to record it somehow - find a method you can stick to for a month then go from there.

sonastin

For me, recording when I took money out of the bank wouldn't have worked - it was understanding why, when I took £100 out last weekend and I "haven't spent anything", there's only £50 in there this weekend.

My trouble was, I think, similar to yours. I felt like I had a decent wage coming in so there should be plenty to spare. But I was finding that I had less and less left each month to pay off the credit card in full. I found that there was a lot of small spends on unnecessary stuff that I allowed myself to buy because I had a decent wage and plenty to spare, and all those small spends added up to more than the plenty spare that I had.

Just taking a few minutes to note down every spend each day (I use a spreadsheet and it usually gets updated while I'm having my first cuppa the following morning at work!) showed me that the majority of my leaky purse went on take-out food and drink - a cup of coffee out shopping in town, a bacon butty from the canteen mid-morning, take-aways when I can't be bothered to cook, lunch from sub-way when I went to the bank instead of subsidised canteen sandwiches, bottles of drink when I'm out anywhere, meals out with friends more often than I can afford, etc.

And in correcting that, I've found the motivation/inspiration to cut some of the other spending as well. Grocery budget has come down, and laterly thanks to the grocery challenge it is coming down even further. Utility bills and mobile contract was switched. Other purchases are given more consideration now so there is less impulse spending "because I can afford it".

So now I am back to being comfortable in what I can afford and can put a bit of savings away each month too.

Just wish I could afford more of those meals out with friends!

HTH

BitterAndTwisted

Keeping a note of your spending isn't "too technical" at all. You probably have more taxing exercises to complete in your job.

Until and unless you understand well how that half-decent income is slipping through your fingers you probably won't be able to have an accurate idea of where it's all going and on what. Unless you are acquainted with that you can't make a sensible decision about what can be done without and what's strictly necessary for a comfortable life.

I would warn you against deciding to cut all spending right down to the bone on everything as it's disheartening and you'll give it up as too harsh and unpleasant and be back to square one almost immediately. Life should be enjoyable and keeping a tight hold on the purse-strings should be seen as a challenge, a way of beating the system so to speak not a penance for having been profligate or foolish. Control brings its own freedoms.

Any

Seanymph wrote: »

probably too technical for me - in fact certainly too technical for me.

I'm not sure I have the discipline for a spending diary.

How do you account for things? Write it down whenyou take it out of the bank? Or when you buy stuff?

Do you have a diary? Small one in your handbag?
You can just write in at the end of the day, or next morning (but no longer then that, don't leave it days!!!) everything you spent that day.
No small thing omitted. Everything. Including "£1 Red Nose day"..

It doesn't need to be precise either. Just closest to the nearest pound. I used to do it at work with my lunch... quick note of previous day spend.