A really good family budget?

Tink_04

Hi, I've been on this site back and forth for a few years, the things I've learned have changed my life. We have no new debt, but are still paying off our old one on a drastically reduced income! I need to do a tight solid budget that will keep us on track but im so confused.

Does anyone have a example of a budget I can look at? Or can list some things ( not bills) that is on and how they are budgeted for? It's these other things where we are loosing the money and although i have bills (separate account all dd) and shopping ( separate account again) I'm struggling so much with "other" - it's all blending into one and I feel I could scrape back some money in this area.

Thanks

National_Debtline

Hello there,

We have a brand new, interactive financial statement on our website. It allows you to save and download the completed information too. Here it is: https://www.nationaldebtline.org/EW/steps/step2/Pages/Step_2_11.aspx

Best wishes,

David @ NDL.

runforlife

Try looking at You Need A Budget. There is a free 34 day trial and after that it's about £30 although there are occasions when there is a sale and it's as cheap as £7.99 ! It offers a new approach to budgeting. A bit mindblowing at first to be honest but the ideals are excellent. There are tutorial videos which I would recommend you watch before starting your budget. I'd happily PM you my budget but I can't see how seeing someones individual budget will help your personal circs. Get yourself a cuppa and spend an hour on YNAB to start with.

http://www.youneedabudget.com/

FireWyrm

Or you could use this spreadsheet:

https://www.dropbox.com/sh/58m07i0jklqny0e/n3c1E0QUVw

As for a budget that is workable, I guess it is really specific to you and how you run your finances.

Mine is here : https://dl.dropboxusercontent.com/u/7789396/Sample%20Budget.png

It is a screenshot from YNAB which has this month's spread. The categories that really matter are the Rainy Day funds. These are reasonably long term savings goals which encompass stuff like Car Tax, Car Insurance, Dental Bills, clothes etc.

Tink_04

Thanks for your replies - I've been looking at some to get ideas. Can I just ask how you separate the different categories? Things like long term bills etc? I'm not sure how I'd keep track if everything was I the only account, so for example in my account after the dd money has gone to that account and the shopping to the other account I just have money left in my account and im not sure how to separate it. Shall I just do separate save gs accounts? I don't want anymore current accounts as I have 3. Is this how people do it?

Sorry I'm just really confused

cam6278

Seems that people have either a lot of current accounts and savings accounts or use envelopes ...
I think the current account with no overdraft facility would work best

FireWyrm

Tink_04 wrote: »

Thanks for your replies - I've been looking at some to get ideas. Can I just ask how you separate the different categories? Things like long term bills etc?

I personally use a bunch of accounts. They dont have to be current accounts, the likes of Natwest allow multiple piggy bank pots which hang off a main current account. They are little more than account number/sort-code combinations and nothing else. Each one of my 'rainy day' funds actually corresponds to one of those pots. There is no reason why you cannot do it via YNAB, because an accurate account of what is in an account is as good as a seperated account. However, the temptation to spend that money, even accidentally is much reduced if you are continually reminded that this pot is for CarTax, this for CarInsurance and this for Xmas etc.

Tink_04 wrote: »

I'm not sure how I'd keep track if everything was I the only account, so for example in my account after the dd money has gone to that account and the shopping to the other account I just have money left in my account and im not sure how to separate it. Shall I just do separate save gs accounts? I don't want anymore current accounts as I have 3. Is this how people do it?

Sorry I'm just really confused

Piggy banking, in my opinion is the way to do it. Other people have said "how do you keep all the plates spinning" but in reality, once it is set up and running, you dont need to keep an eye on all the plates, just the main ones like 'food' and 'fuel' which change daily. The rest take care of themselves. Eventually, once you have confidence in your budget, it simply runs and at appropriate times of the year, you find you need a certain amount of money for something, and you have it, all ready. You are not scratching to find the car tax, or the car insurance renewals - they are just there.

Tink_04

That sounds great I'm with natwest but I've never seen an account that does that, do you know what the account is called? Will look into it - if not ill set up savings accounts as should only need another 2 or 3

FireWyrm

Natwest, Lloyds and RBS all do it. Just open a current account and then a bunch of e-accounts. You'll find all your accounts listed in the online banking. You can transfer between them and they'll all have unique account/sort-code combinations so you can standing order to them.

Tink_04

Ah ok ill look online - I've got online banking but not seen e accounts . Thanks

Bublin1

I bank with Natwest.
I have 2 current accounts and 6 savings accounts (e savings).
When you log in they are all listed together with their balances.
They all have separete account and sort codes.
You can change the names of them....mine are CAR, HOUSEHOLD, GYMNASTICS, HOLIDAY FUND, EMERGENCY FUND, CHRISTMAS.
My current accounts are called CURRENT ACCOUNT and EVERYDAY SPENDING.
You cam transfer money around with just a few clicks.
If I need to spend from one of those categories I transfer the exact amount I need to my EVERYDAY SPENDING account and either withdraw the cash or use my debt card. I've actually put a sticky label on that debit card wih the name of account so I don't get my current a/c cards mixed up. I had to hand it to bank teller recently and she was staring at it but didn't ask!!

I also have cash envelopes at home. I fill those (and my online accounts) on payday. I will soon be creating more online savings accounts as as my budget has evolved I can see I don't need that cash in my house. So at the moment my cash envelopes are labelled as GIFTS, KIDS BIRTHDAY, GROCERIES, MY FUN MONEY, FAMILY DAYS OUT, CLOTHES FOR KIDS, CLOTHES FOR ME, SCHOOL(a recently created envelope because I realised I hadn't budgeted for those £5 school trip contributions, cake sales, sponsor money, photos etc) DENTIST.

Some of those envelopes only get £5 month but they are slowly building up and it is a great feeling when the kids ask for cake money to just go to an envelope and have the money to hand.

If I need to buy say, kids clothes online, I will use my EVERY DAY SPENDING debit card and the next day I will take the cash out of the KIDS CLOTHES envelope and deposit it in the bank.

So the current account that gets the most movement is the EVERYDAY SPENDING one. The other one has all my regular payments come out of it.
At the end of each month if you still have money in the envelope you either carry it over to the next month (most of them I do) or you can put it towards debt/savings.

This may sound complicated but once it's all set up it's easy and you get used to it.