Budgeting and bogofs

soappie

Hello,

Newbie here, so be gentle with me please! Not sure if this is the right forum but you all seem so nice and helpful on this one that I thought I'd try here (the budget and current accounts forum seems to be full of woes about bank accounts). I've also tried to search for the answer to my question but not found an easy answer so here goes:

How do you account for bogofs/x% off in your budgets? I'm in a fortunate position in that I not quite so hard up as some so can spend a little more on bargains in a week than those who are really up against it. Twice recently, I've spent more on my weekly shop because there was a good deal on things. One week there was a deal on dog food so I bought about 6 months supply, saving me about £10.00 overall.

The next week there was a bogof deal on a health product I buy. That saved me about £25.00 and I now have enough for a year.

So how do I account for those savings? Do I count them as a saving THAT WEEK - even though I spend more than I would have done normally or do I spread the saving across the following 6/12 months' weekly budgets as I won't have to buy them again for that length of time?

Do people do an six monthly/annual budget to see the 'spread' savings or what?

LittleVoice

Hi and welcome.

I would just say be careful about buying a year's supply of something which is perishable (in the sense of having a best before date). Though you may have "saved" £25 on the supply of one item, you have lost access to that money or the chance to earn interest on it (though I know you wouldn't achieve an equivalent interest rate as the apparent saving!!) However, you generally find that retailers have similar offers on more than once in a year - but this would be a chance you might not want to take.

As far as accounting for it in your budget, then you could take an annual view if you wanted for items that you can stock up on in this way. Then you can have a monthly budget for other spending. This may work for you as you appear not to be too constrained in your spending pattern.

nealallen

I would work out how much you spent and work out what it would have saved you over a year. Depending on how long the product lasts.

I got Tesco's bleach. In all I got 10 and paid for 5. Saved me about 5.00, not much but I won't need anymroe for a few months

Dobie

I think to make it work you need to spread the saving over whatever period you don't need to buy any more of the item.
It doesn't have to be complocated if you create a spreadsheet & update it every time you shop.
Depending on whether you budget weekly or monthly you've savd 48p per week or £2.08 per month on the healthcare product so I'd calculate that into my budget.

Linda32

Hello, and welcome to OS,

I see what you mean about accounting for your saving, and its a good idea :beer:

What I do, is buy in bulk but only a months supply of somthing. I've oftern said, that buying in bulk works but only if you have bulk money in the frst place.

For instance, you can taylor it to you own circumstances - Tesco washing up liquid is fine for my needs, so I buy that, from memory its about 56p so I buy three bottles at a time. My local shop is a co-op, I'm willing to bet that there cheapest is a bit more than that, of course, if you nip to your local shop for that, you ae bound to buy more as well.

So shopping lists come into play now.

You can of course spread such savings over six months if you wish, but I only buy a months worth of "stuff", don't forget that you can leave you dosh in your savings and get the interest.

beemuzed

Hi! I 've never really thought about accounting for the savings, but I suppose the logical way would be just to spread it over the time you've covered by buying extra. I used to buy anything on offer, but now only if I'm sure I really will use it within a reasonable time, unless it's something that keeps - like loo-rolls!

soappie

Thanks all for your answers.

The items I saved on have a far enough away BB date (the health product is dated September 2009 and the dog food is fine until June 2008 so I have no worries on shelf lifel.

LV, you're right in that I'm not currently constrained in my spending habits so am fortunate enough to be able to buy bulk (and I agree with Linda's view that it seems only the 'rich' can afford the multipacks and their savings!).

I think I will spread the savings across the months on the budget sheet I'm about to create.

And why am I about to create one? I work as a freelance and am extremely well paid. However, my age is against me and I'm very conscious of the clock of life ticking away. I want to be able pay off my mortgage in the next five years. I've never really bothered about budgetting before and feel now is the time to get into the habit ready for retirement. (Or, if I manage to pay off the mortgage - consider early retirement - or at least getting off the highly paid stressful treadmill and do something part time or less demanding).

So I think I'll create an annual budget. Essentially, I've 'borrowed' the cost of the health products over the next 12 months from the budget for each of the next 6 months as they were bogof. So, I'll put the appropriate 'spent' amount in the next six months and show it as a saving in the six months after that.

As I know that I will save £25.00 over the final six months of my annual budget I shall put that in an interest earning account now. I might have an extra few pence at the end of the 12 months!

Does that all make sense? :huh: