How do you manage your finances?

eschaton

Been using Microsoft Money for years. All accounts are on it and updated as transactions take place.

All balances are part of a budget account which also includes each area of expenditure which are updated as spending takes place.

Every area of expenditure has a fixed budget each 4 week pay period.

All budgets are very tight are are normally kept to or under budget.

It also tracks all bills so that I know when they are payable so that I can ensure money is in the current account in time to maximise interest income elsewhere.

All annual bills or ongoing costs such as car maintenance are part of individual reserves and put aside within these reserves each pay period. That means that once the bill becomes due, the money is there to pay for it without taking it out of actual savings balance.

Very rarely spend cash unless at pub or similar. Most spending is either credit/debit card or direct debit. Credit card is preferable.

All this means that spending it tightly controlled and when savings gets high enough, I go out and buy another new car :rotfl:

jonmcclelland

allthingsmustpass wrote: »

Don't you find you just spend that amount just because its there,

not really, but it's there just in case. i rarely spend that money but it allows an emergency cup of coffee in the morning or a quick paper, if I need it. £30 in my wallet is ambitious but i suppose you never know.

hadahardyear

pqrdef wrote: »

The trick is not to spend the money. If 6 coffees a day are in the budget, I know I can afford 6 coffees. If they aren't, well, the money isn't going to appear from nowhere.

And the rest of the month is the worst thing to borrow money from, because it comes knocking every day wanting some of its money back, and it won't even wait till payday.

A lot of people don't manage their budgets at all, only their cashflow, as if that were the same thing.

This practically guarantees overspending. In a low-cost month. the surplus cash will be spent just because it's there. Then when the car needs fixing, how unlucky, wasn't expecting that, not my fault, it'll just have to go on the never-never credit card.

That comment about your coffees is exactly what ive been looking to hear. Its so true.

I have just set a budget for the next 3 months as im going away on holiday so looking to clear off as many debts as i can before i go so i less to come home to x

Vaughan

madgagoo wrote: »

...
I use a bit of software called 'you need a budget' to allocate money to envelopes and track spending. I use my debit card for everything possible, although I think I shall change to a cashback credit card soon.

I can't recommend it highly enough! It makes you keep track of every penny and plan for the unexpected/annual bills.

I too have started using YNAB. There are plenty of training videos, and live training sessions (which I still have to "attend") . I am about to purchase the licensed version when, or before, the trial expires.

allthingsmustpass

Vaughan wrote: »

I too have started using YNAB. There are plenty of training videos, and live training sessions (which I still have to "attend") . I am about to purchase the licensed version when, or before, the trial expires.

Sounds like a lot of work, that iphone spending log app does me!

money_grows

Pen and paper works for me, with a highlighter pen to confirm bills paid etc. Nice and simple.

Bloomberg

Citygirl1 wrote: »

Just wondering how do manage your finances these days, do you use cash or cards?

I draw out all the money I need for the week and pay for any expenses like dentists, monthly bus pass, any clothes etc with my card but everything else is cash.

Since I lost my purse about a month ago I have started leaving my weeks money at home and taking out what I need each day, prior to that I carried the full lot in my purse. I can't seem to draw out of the cash machine as and when I need it as I would get overdrawn doing that.

Do you draw out money each day and how do you keep track of it? I do use online banking but I'd still find it hard to keep track of my money if I drew out of the cash machine every day or so.

I use my Barclaycard for everything and then clear the balance each month. Credit cards are excellent spending diaries and they offer a lot of protection. I find using cash very fiddle and hard to keep track of. It is also worth noting that a recent study found that ATMs are dirtier than toilets - they have more germs and bacteria.

bengal-stripe

Bloomberg wrote: »

It is also worth noting that a recent study found that ATMs are dirtier than toilets - they have more germs and bacteria.

Those 'chip and pin terminals', touched by thousands of dirty fingers during a busy day in a store, must be at least equally dirty.