Why you find it hard to budget?

TheSenSibleOne

I am 20 years old and can honestly say I have never struggled with budgeting.

I was always taught as a child to only spend what you have (mortgages aside) and was rarely lent money etc from parents.

For me, I know how much I want to save (that comes out straightaway so im not tempted). Wages go into one account, all bills come out of there and I have a standing order to send money for food and luxuries to another card account that we use for spending.

Budgeting is really very easy when you sit down and work out what you can afford to spend and what you can afford to save.

Oh and iv never had a credit card, can't stand the things.

Good luck, if you need any help I'd be glad to help out budgeting if something I enjoy doing lol (sad I know)

budgetbunny

nonnatus wrote: »

This month, for the first time, I have physically taken £200 from my account in cash and frozen my cards (credit and debit) in a plastic container in the freezer. There is NO WAY of exceeding my budget without first thawing out the ice, which I figure will provide enough time to think first of a way around the problem.

Day 4 and I have spent around £8. (this is for all food etc for me and two kids). Not going out today and have enough things in for the long weekend, so fingers crossed it will still be only £8 spent by tuesday.

I know it's all a bit extreme but I have no other way of resisiting temptation.

That is hardcore!!! Best of luck!

budgetbunny

TheSenSibleOne wrote: »

Good luck, if you need any help I'd be glad to help out budgeting if something I enjoy doing lol (sad I know)

Thanks very much, appreciate it!

MPH80

TheSenSibleOne wrote: »

Oh and iv never had a credit card, can't stand the things.

See - I find a CC the complete opposite with regards budgeting - they help me budget and they maximise the money I earn.

By having a direct debit which takes the full amount from my account, I'm forced into paying for everything, so there's no temptation to let it slide. But I also get some space in case a cost comes in unexpectedly high - like my car service the other week where a major problem with the brakes was uncovered. No worrying about how much is in the current account, just take the credit card out and transfer from savings to cover.

Equally - I'm getting my 50-odd interest free days ... and I'm getting my cashback.

So - let's assume I put £1000 through every month, just for selecting a different card - I'll be earning myself £10 cashback and £4 interest (assuming 3% interest).

£14 for doing no more than selecting a different card is good for me thanks.

And on top of all of that - Section 75 cover.

Having said everything here - you do need to be in a good budgeting place first before using a credit card or you will simply run up a debt, but once you're there, they are very useful.

getmore4less

budgetbunny wrote: »

For me, I find it difficult to maintain updating a budget each month because I'm scared to look through my spending for the previous month!

You should find it more scary knowing that you don't have a clue where your money goes.


If you want to stop wasting money you need to know where you spend it.

Get a copy of MSMoney it's now free.

Chrisblue1962

nonnatus wrote: »

...This month, for the first time, I have physically taken £200 from my account in cash and frozen my cards (credit and debit) in a plastic container in the freezer. There is NO WAY of exceeding my budget without first thawing out the ice, which I figure will provide enough time to think first of a way around the problem.

I know it's all a bit extreme but I have no other way of resisiting temptation.

This is very brave. I am on a dmp (July 2009) and have to keep a tight reign on my budget. The hardest thing I find about budgeting is if I manage to come in under budget at the month end, what do with the spare cash, not that this happens very often ..

If I spend it I feel guilty that I should have saved it or paid off something...

If I save it, I feel guilty that I should have paid off something or had a small treat to maintain morale...

If I pay off something I feel slightly cheated that I'm not getting any benefit.. (even though I am)...

Anyway, I'll get back to budgeting..

• This forum is FULL of lots of little budgeting tips, so take some time to read a few threads and make some notes of ones that may work with you.
• Use your existing bank account for variable spending, such as food and petrol BUT try and set a specific amount each week / month for these things, such as £5.00 per day for petrol x 22 working days = £110.00 per month.
• Get a second bank account e.g. basic bank account, no overdraft, that is ONLY used for your fixed / semi-fixed bills. This means essential bills expenditure is "ringfenced" from variable spending, such as food and petrol.
• Set up a spreadsheet so that you can work out what you can not only do a monthly budget but also monitor your spending as the month proceeds.

Budgeting is hard but is essential if you are to stay in control but being in control of your finances is good for your health and allows you to plan for the future and some nice things in life.. Good Luck

Martian_Lewis

Budgeting is something that comes quite easily to me, but there are no complicated spreadsheets. I simply write down my income (which is fairly fixed) and outgoings on a piece of paper for about 6 months ahead.

It does require a fair bit of discipline initially, but gets a lot easier as you go on, especially if you can manage to achieve living within your means.

One small tip I use when preparing my budgets are to always round each item up to the next pound, or even five pounds rather than down. Those odd pennies will add up to a couple of pounds by the end of the month.

DCFC79

Years ago when i had the paper statements in the post i would start to write down any spending on the statements but id not bother purely because i just didnt want to. Now i get the statements on screen i regulary look maybe once or twice a week and check the debits that have been made are true eg onse ive made as opposed to fraudulant ones. I suppose when im paying more bills i might end up checking it more often or even create a spreadsheet.

TheSenSibleOne

MPH80 wrote: »

See - I find a CC the complete opposite with regards budgeting - they help me budget and they maximise the money I earn.

By having a direct debit which takes the full amount from my account, I'm forced into paying for everything, so there's no temptation to let it slide. But I also get some space in case a cost comes in unexpectedly high - like my car service the other week where a major problem with the brakes was uncovered. No worrying about how much is in the current account, just take the credit card out and transfer from savings to cover.

Equally - I'm getting my 50-odd interest free days ... and I'm getting my cashback.

So - let's assume I put £1000 through every month, just for selecting a different card - I'll be earning myself £10 cashback and £4 interest (assuming 3% interest).

£14 for doing no more than selecting a different card is good for me thanks.

And on top of all of that - Section 75 cover.

Having said everything here - you do need to be in a good budgeting place first before using a credit card or you will simply run up a debt, but once you're there, they are very useful.

each to their own, but I probably will never get a CC. I dont need one, any money I need, I have avaliable to me by a linked savings account and current account (just transfer money from savings to current on my phone)

credit cards are too easy to just pile anything on, Iv no doubt I could manage it very easily as Im exceptionally disciplined with money but I feel I will never need one due to the reason above.