Help on a monthly budget to stay on track

TopCat1978

Hi All!

I am new to all this although I have been watching on the sidelines for a while but thought I would start posting! :j

We are in the process of remortgaging (have had the offer letter and passed everything back to the solicitor) so shall be able to clear our debts for the first time ever! :beer:

I am trying to set a budget for the household as I want to keep control of our spending and try and save some pennies to take the boys to Legoland etc. However, due to our debts etc we have always bought most things on credit (which is probably how we got into the mess we are in) so don't know what is reasonable to budget for.

I just need some advice on:

What would you suggest is a reasonable monthly shopping budget for a family of 2 adults and 2 children (7+4year old boys)? My thoughts were £400 per month for food but not sure if this is reasonable or excessive.

Also we have a Santander 123 account as our joint account which pays all the household bills each month which I want to keep (I like the cashback! :T) but I also want to set up new accounts for other things.

What do people have other accounts for? My thoughts were to have two accounts:

1 account for food and petrol (my petrol is £100 per month and Hubby's is paid for from the business)

2 account for other expenses such as renovating the house (we are 90% of the way), holidays, days out etc etc

Does this sound about right? Is this how other people do it? Sorry for so many questions, I tried to talk about this with hubby last night and all I got as a reply was 'whatever you think is best'.

Thanks in advance for any help and sorry for so many questions. :j

grumbler

Topcat1978 wrote: »

I am trying to set a budget for the household as I want to keep control of our spending and try and save some pennies to take the boys to Legoland etc. However, due to our debts etc we have always bought most things on credit (which is probably how we got into the mess we are in) so don't know what is reasonable to budget for.

It's worth posting on Debt-Free Wannabe board:
DFW Newbies: Where to start, Challenges, SOAs, Nerds & Debt Free Roll of Honour!

See also this Statement of Affairs calculator.

What would you suggest is a reasonable monthly shopping budget for a family of 2 adults and 2 children (7+4year old boys)? My thoughts were £400 per month for food but not sure if this is reasonable or excessive.

IMHO (for your position) £300 is easily achievable, if not £250. I mean food and the most essential things, not, say, clothes.

Also we have a Santander 123 account as our joint account which pays all the household bills each month which I want to keep (I like the cashback! :T) but I also want to set up new accounts for other things.

What do people have other accounts for? My thoughts were to have two accounts:

1 account for food and petrol (my petrol is £100 per month and Hubby's is paid for from the business)

2 account for other expenses such as renovating the house (we are 90% of the way), holidays, days out etc etc

It's entirely up to you. Personally, I have 'other' accounts only for the benefits they offer or ever offered (higher interest, free travel insurance, free currency transactions, joining incentive etc.).

That said, it's a norm to have a spare account with another bank for emergencies like, say, the main bank meltdown or waiting for a new debit card if you lose one.

TopCat1978

Thank you grumbler. Will look at the links you've posted.

The main reason for the other accounts is to keep the money separate to the bills we pay, so enough is left to pay the bills each month plus a bit to build up a reserve. Then the rest is left for spending.

£250 would be great. I guess there is somewhere for a deal thread. I am hoping to shop in aldi as they have good deals and there isn't the temptation of clothes, toys and houses things like the other shops!

Thanks! :beer: