Developments and a request for help.

alisonjs

I've had my suggested budget through from CCCS. And I've got my new bank account set up. I've started the transfer process to move my DDs and standing orders and salary across, but I'm guessing it will take a good 3-4 weeks to get it all done.

The budget looks manageable, and once I've moved banks and stop getting my salary swallowed by overdraft and overdrawn fees, I should be able to manage so much better - with some seriously imposed limits on spending .

I feel more positive about it all.

But I've got a question for you.

This budget allows specific amounts per type of spend - food, haircuts, sports and hobbies, newspapers, prescriptions, charity, etc. All these amounts are manageable, but how do you 'manage' these amounts? I mean, do you physically withdraw a set amount for each of these and put them in a pot? Or do you calculate it in your head - seemingly impossible to me.

How do you actually put into practice spending only these set amounts each month? And carrying over anything to the next month if need be?

I can't think of a way to actually control and keep track of these amounts each month.

I was thinking of MS Money, but that seems like overkill. Is there an online tool?

Ideally my bank would allow me to put my set amounts into 'virtual pots' through their internet banking site. But they don't.

Can you help me?

Snaggles

What about a spending diary, with a seperate page for each 'pot'? You can carry it around with you so you can check it before you spend anything and update it as soon as you hand the money over.

whatatwit

How about setting up an ISA and doing a standing order across when you get paid, then you are not tempted to use that money.
Obviously this will only work for those things that are not needed every week, such as haircuts.
You may then find that when an expense is due ie: haircuts, there is money left in the current a/c to cover that.
Which bank are you with, i know that Halifax lets you do web savers and you can have as many as you want and name them accordingly.

alisonjs

Oo that's an idea!!! Both of them actually!

There are things that the budget factors in, monthly but which aren't spent monthly. For example haircuts - I only get my haircut once every 3 months or so. I could transfer this money across to a savings account each month until it's needed. And use a spreadsheet to keep track of what the money in there is for, and how much of it has been spent so far etc.

I could create an excel spreadsheet to track monthly money. I could use the spending diary on a daily basis, and update the spreadsheet each night (or so) to keep track of what's been spent etc.

Does that sound manageable? Or overkill - or not likely to work at all...?

whatatwit

Sounds like it should work.
Also, if you don't spend money that has been budgetted for during that month..scripts/papers, then move that across, as we all know, it will just vanish otherwise. :rotfl:

james32_uk

The above are all great ideas. In the end though, it all comes down to spending what you have to cover everything you want to buy. They'll be no more credit so if you spend an extra £10 on food that's £10 less you'll have to get something else!

Good luck

Sea78

I have actual accounts for the savings - car tax named acc, hair/prescription/dentist account, christmas, clothes acc etc. I have the 10 ING direct accounts for this and have set up DDs from my acc on payday so the money goes out. If I spend the money I immediately transfer it back, or if I know in advance (eg hair or prescription etc) I swap it before. I couldn't manage it any other way!!

Sea xx

Ytaya

I use spreadsheets to keep track of my 'bill' money. When I get money (currently quarterly, student), I immediately transfer enough money for all my budgetted expenditure to a savings account. I keep a small float in my spending account and my bill direct-debit account. Then when my mobile DD is about to go out, I transfer the money from savings to bill account. When I buy groceries, I transfer the money from savings to spending account. Etc, etc. It helps that I'm a bit anally retentive about checking my online banking daily