Blinkers are off

Eyes_wide_open

Have done a bit of thinking recently and decided that I didn't want the debt of my lap top hanging around me. I know it was on interest free and i know I have the money in my account to pay it off but its debt. I know logical I could have made a bit of interest on the money in my account but it debt. It all comes down to DEBT and i really don't want to be there again.

I therefore paid it off - savings took a big hit but that was what it was there for. So this month and next month will be basic spending to get my savings back up to pre laptop payment.

I also realised that I don't have a budget. Yes I can cover everything with my salary and spend a bit and still have a bit to put away but where is that going to get me?? I have long term goals, and spending unconsciously isn't going to get me there.

Next problem is where do I start with a budget. When I was in debt I knew I only had a certain amount to spend on shopping, going out etc. Now there isn't those limits so how do i decide what is the right budget for me? I don't want to live by the regimes of when I was in debt but neither do I want a carte blanch attitude.

I have googled budgets, looked at guidance regarding acceptable limits if filling out a SOA for an IVA/bankruptcy. I am still no further forward. Can't ask parents as mum has never had a budget for anything and I don't talk about money with the majority of my family as financially we are poles apart.

I think it will be trial and error to begin with but I have another couple of days to mull things over.

Any tips greatly received xx

DreamerHelen

Well with your Budget start with the things that don't change the amount every month - So Rent/Mortgage, Electricity, Council Tax and things like that....


Then you know you need extra for Food, Travel (either Petrol or Train/Bus costs), going out, birthday presents, Christmas presents....


So just decide what you want to spend on the second bit....and then stick to it.....


I'm sure that's probably not much help...but I just wanted to try and help if I could. Good Luck!!

Mara_uk7

Good advice Helen, is that how you do it ? Hope things are going better for you this year. X

DreamerHelen

Hey Mara hun....Well it's how I try to do it...I dont' always manage to stick to it but I am getting MUCH better....


Things going well this Year, very well actually....Hope things are good for you x

Eyes_wide_open

Thank you for your advice. The problem is that I don't know what is a reasonable budget to allow myself so I think its going to be a suck it and see type of approach.

Using the internet I have established that £330 is the maximum allowance for a single person to live on ( if your on an IVA) per month for everything bar bills. It seems quite generous but whether it will feel like that whilst I'm trying to stick to it this month......time will tell.

I know some of you may think its generous but I'm not in debt, Im not frantically saving for anything all i want to do is get some type of control.

Shall update during the month to let you know how i am getting on xx