How long did it take you to be able to manage your money?

bexiboo92

For those of you who have lived independently for a while or even those of you who in the first stages of being independent, how long did it take you to be able to manage your money?

Me and my OH have been living together on our own for just after 18 months and we're still struggling to get the balance right! Some months we're great and then we've got months like this one where we're 2 weeks into the month and absolutely skint.

Do you still have good and bad months? Did it just click one day how to do things better or was it a gradual process?

marisco_2

My light bulb moment came in my mid twenties. I had been married for a couple of years and we had recently bought our first home. Our budget got thrown at times when quarterly bills came in for utilities, phones etc.

I went to the bank for a financial review and to get some advice and the lady was really helpful. She advised me to have three accounts. One where our income is paid into.

The second account was for all bills which we would have no cash card for. From this all our bills were to be set up on direct debit and we could put enough in each month to cover this. By doing this we also benefitted from discounts from utility companies.

The third account was our spends account for food, petrol, clothes, hair cuts, entertainment etc.

I still use this set up now and it definately helps in keeping to the monthly budget. Other techniques I use are to withdraw the amount of cash I want to spend in the week and when it is gone it is gone. I also meal plan and stick to a shopping list.

Doing a SOA (statement of affairs) can help you see where your income goes and areas where you can make cut backs. I realised I was wasting so much money on my phone calls. So I looked into a way to greatly reduce this expense. I now pay a third of what I use to for my phone bills.

The debt free wannabe board are fantastic for giving advice. Not saying you are in debt but they could help you find ways to stay that way. Also the 'old style' board on here have lots of very useful advice too.

thehappybutterfly

I moved out of the family home at 16 (with one brief return at 21 when my dad died) and it wasn't until I had my son when I was 23 before I became half way financially responsible. Not very responsible - I never paid my rent or Council Tax and my stepmum had to keep baling me out but I didn't squander my money on clothes and stuff at that time. I just didn't shop around or plan for the future etc. Granted, I was on benefits for a couple of years.

It wasn't until I met my hubby that I learnt how to budget etc. But I was still very irresponsible in terms of my credit-card-financed retail therapy until a year ago. I'm 43 by the way.

Katexx

I've honestly never had a problem. I moved in with my boyfriend when we were 20 and earning a combined £18-20k depending on how many hours he could fit in - he was still a student and I'd just got my first full-time permanent job. For the first 6 months or so my mom kept asking me if I'd forgotten to pay some bills because she had no idea how we were managing to afford everything and still save for a holiday! I think it's partly because neither of us are big spenders or have any expensive hobbies (no kids, cheap 1 bed flat, didn't spend much on petrol, boyfriend doesn't go out or drink much, didn't have a TV, good at cooking from scratch and no expensive food/drink preferences, etc), and partly because I've always been a bit of a money-hoarder so I totally took control of the finances and just always knew what was going on.

I think in general it's pretty common for it to take a while to settle in to managing your own money, especially if it's a big change for what you were used to before. For most of my life my mom has had money worries and difficulties so from quite a young age I was 'exposed' to that and I think that has helped me be more careful with my money.

Hermia

I never had a problem, but my parents did a fantastic job of preparing me for it. One of the lessons I was taught is that should be very careful for the three weeks after payday and then if there are any treats you want you can get them with any spare cash before payday.

busy_mom_2

totally agree with marisco we do exactly the same but we have spending money account, bills and then short term saving. I move the money around each one. Still have months were unexpected bills take over but I think that is normal for everyone.

System

I'm 26 and still crap with money. It's just never clicked with me. Trying really hard to save at the minute though. I can't carry on like this. I don't know why i'm so terrible. My mum always knows exactly how much she spends down the to pence, and sticks to her budget. But i tend to live from one payday to the next. (also doesn't help when i'm ill and have manic spending sprees >:mad: )

nickj_2

i've been self employed since i was 21 , i'm now 47 and have always had an emergency rainy day fund , however touch wood , i've never had to use it , i think if you 're a saver , you will always be able to afford the things you want without getting into debt

Owain_Moneysaver

I had a deposit account at the age of 5 for christmas money.

I had a PO savings account and a Girobank current account at 15.

Credit cards at 18, only ever not been paid off in total every month after major purchases (I guess fewer than five times ever).

Even when unemployed I saved money into my ISA out of my JSA.

pearl123

I think I learned my lesson regarding how to manage money by the time I was aged 22. Save it you've got it - spend it you've had it.

mulberrytree

I am 20 (and on benefits at the moment) but I am getting more sensible at the moment- I have put all my change in a (breakable only) money box instead of spending it on sweets and fizzy drinks (helps my diet as well). End of the year I will break into it and go to the coincash machines in ASDA and cash it all in- nothing I want? Will go into my savings account.
I don't touch my bank account until all payment have come (2x JSA 1x DLA) and work out what I need to pay out- car insurance, petrol (I set aside £40 a week in a separate bank account) and college fees. Then I work out if I need anything that month- books, repairs etc and whatever is left goes into a bank account.
Received my last chunk of money for the month today and as I had no outgoings aside for petrol, insurance and college I put the rest in a savings account. I don't have online access to it- meaning I have to go out of my way to get the money, I can't just spend it on impulse. I did the same with my christmas money so I have £320 sitting in a savings account.
At first I gave my mum my cards to look after but I only had to do that for two months and I am sticking to it.
I am dieting at the moment so not buying clothes- but something my friend does is save every month and goes clothes shopping once a year in the January sales and then anything she gets for selling her old clothes on eBay she puts towards buying herself a few little luxuries and I will be doing the same when I get there.

***

When I am at university in September:
I will get loan and allowance from my parents- I will ask my parents to give me the allowance the same day as my loan.
My rent will go out for halls, I will save 12x25 for food, 4x150 for clothes/accessories etc (may seem extreme but I like nice clothes). The clothes money will go into one account (which I will have to open) and I won't have a card for. The money will be save Sept-June and I will withdraw it the day after the last payment and spend it.
Food money will go into one account and I will limit myself to £12.50 2x a week.
I will also have an account for leisure- £25 a week.
Then my main bank account (where everything is paid into) will have any other money to spend however.

Second year when I move into a flat- I will be paying £103 a week rent first year and second year it will be more around £73 a week so I will save the difference.