Budgeting on DMP qu...

Sea78

Hi all!:hello:

I've been on a DMP for a couple of months now and although I'm saving all the required bits and pieces for car tax, christmas, dentist etc etc. I still feel like I have no control over money!! I have certain budgeted amounts for the main areas of life - food etc but I STILL haven't got my head round doing it all...I have (a little) money left at the end of the month but honestly am not sure what is happening with the money, except that it's ok!

Sounds a stupid question I know, and sorry about it!, but was wonderign if anyone else found tihs and what you'd done to rectify it. I read IA's diary in amazed wonder and admiration but feel like having that much knowledge of my money is just beyond me!!:rolleyes:

I have the book - get out of debt and live prosperously (sp?) - somewhere, perhaps I should dig that out for help and advice. I think I've been justifying not sorting this out due to other problems in my life, but I don't think that's really a good enough reason!

Any hints and tips? I know you've probably written them a thousand times before, but sometimes I just need to read them again! Thanks in advance!

Sea xx

newlywed

I've opened up 3 accounts - soon to be 4.

My current account for bills and food shopping.
One for car savings (tax, servicing, extra fuel money left over etc).
One for my savings (prescriptions, clothing money etc).
One (soon to be opened) for my gas electric money to go into (prepayment meter so need to save for bad weather heating).

That way the money is out of my main account and easily recognised as what budget it is for and where the "extra" came from (with A&L online banking you can rename your accounts so you know what your savings account is for).

Only just starting my DMP but this is the theory!!

Sea78

Thanks I actually have 10 ING Direct accounts for all the savings, all nicely named and they are building up nicely. I think it's that I actually feel richer now than I have in a long time (not using credit cards to survive etc) and as such I'm frittering away money. Not really a problem as I can afford all the bits and bobs, but am not really sure why I'm doing it!!

Sea xx

gemsaysdontdodebtkids

Firstly, how much do you have to play with per month, once you've removed rent, bills and DMP?

I have approx £350 now. That's about £150 for food, £80 for travel, and the rest for everything else that crops up (mobile, pet, prescriptions etc etc)!

It's not much, but, with careful planning, it's enough. I suggest checking your current account online every three days or so.

newlywed

Sea78 wrote: »

Thanks I actually have 10 ING Direct accounts for all the savings, all nicely named and they are building up nicely. I think it's that I actually feel richer now than I have in a long time (not using credit cards to survive etc) and as such I'm frittering away money. Not really a problem as I can afford all the bits and bobs, but am not really sure why I'm doing it!!

Sea xx

Yeah I feel like I have more money than - erm - a very long time! But I have to keep reminding myself that there will never be a credit card to pay for emergencies so I need to keep some back just in case.

Sea78

I think it is the shock of actually having enough money to live off (when OH gets his self in gear and pays for stuff too!!) and I'm now reacting to it with panic after living so long on CCs!! I have more than enough food budget for example but I am spending all because it is there iyswim. I would love to do some other things witht he extra, but seem to spend what there is...

D'oh!! Just realised the answer to my problem is a spending diary - honestly, what has happened to my brain?? I swear I gave birth to it while having my kids as it's just not there anymore.

Sorry!!!

Gemmzie

You'll see the difference when you realise your car tax is due and you have the money aside for it without having to worry that you need to cut it out of the month's food budget :eek:

And yeah, a spending diary is a great idea

Sea78

Thanks - I have a spreadsheet but all that is is the amounts budgeted for different things - so when the £5 goes into ING for dentists for example, I put in £5 so it's not actually what I'm spending, or I enter £35 for food shopping and add it to the food shopping section to check I'm not going over but not actually checking what I'm spending on in the supermarket etc.

NekoZombie

Sea78 wrote: »

Not really a problem as I can afford all the bits and bobs, but am not really sure why I'm doing it!!

Sea xx

I do so know what you mean, but surely you're doing it so you don't get into debt ever again. If you have an account labelled 'Clothing' and you spend everything in there, at least you know there's no more money available, and stops you overspending on any one thing.

It means you have a much greater handle on your money - a good thing surely:A

Sea78

Yes NekoZombie - I agree - thank goodness there is an end to it - not there? Can't spend it!! But I want to get into really good habits - frightened of being 'bad' again in the future I think! So I'll do the spedning diary - may show me that I'm actually all fine and not wasting money, but little things are creeping back in like a mag here, a treat for the kids there and I'd rather save it up and do something really good if I do have speare cash.

Sea xx

RAS

Sea

Do you have a "little bit of a treat fund". Yes, you need to be tough with money, but sometime, once in a while it is OK to buy an icecream without feeling guilty.

So budget for a small amount of spontaneous spend money, and when that's gone. Well, gone until next month.