How DO you budget exactly?

Beetle

I know that may sound like a stupid question, but I would love to know just how you budget.
I have never been shown, and this is the first time that I have asked.
I just don't know where to start, as myself and my Husband have just admitted to each other that we are crap with money so need a bit of a helping hand.
Thanks!

midnight_caller2002

on the site martin has put up a great budgeting tool... enter honsestly what you spend on everything and you will see how much you have left each month... or like me how much you are over spending every month....

People budget differently .. whatever suits you basically. some use spreadsheets... other use a scapbook and note every purchase down. One tip that really helped m,e was to go on a cash diet for a month. i worked out what i had would left after all my DD's had gone out then i drew a wodge of cash out my account. divided it into four weeks. I wouldnt allow my self to use the next weeks jar as i knew that would leave me short....
basically i had to get to sunday without running out of money. when you pay for everything on debit card or visit the cashpoint 4 times a day you really dont see how much money is passing through your hands.

hope this helps.

Mark7799

I certainly don't think it's a stupid question and it's one that a lot of people haven't addressed themselves judging by some posts I have read;) .

As well as what was mentioned by the previous poster, you also need to keep a tight control on your finances by reconciling your Bank account regularly - use internet banking if your account offers it.

Golden rules

1. Check your accounts regularly - banks can make mistakes as well.
2. Assume debit card/cheque payments have been taken from your account immediately you spend the money
3. Keep a close eye on your direct debits if you have any. KNow when they are being taken and how much is due
4. Following on from this, always make sure moeny is in your account the working day BEFORE any payments are due out.
5. Get a small overdraft limit on your account - it's there for emergencies only and is a limit - NOT a target:D
6. Keep bank statements and bills

HTH

moanymoany

We found ourselves in the position of finding an extra £500 a month to ensure that our mortgage was paid when my DH was 60. We went through every way we could cut back but couldn't make it.

In the end I said we should take the money out of the account and live on what was left. If we got to the end of the month we would pay the £500 off the mortgage. It was very tight, we were living on value stuff, but most months we did it. So, our way of budgeting is to take what we want to save out of the account and live on what's left.

It works for us. Our mortgage is paid next month and we will have a little left over to go into the retirement fund.:rotfl: :rotfl: :rotfl: