A Diary of Reinventing Ourselves

Forward_thinking

Apologies for being so needy - can't believe how helpful people have been and how much time people are prepared to spend on a stranger, especially one who has got into this mess through being so irresponsible and naive.

Forward_thinking

Aha, thanks matchbox - that's what I wanted to hear - that I wasn't being naive. I have a savings account that is hardly used - just one direct debit each month. I think I will move the money saved from each pot into there each month.

Have to admit though, it goes against natural instinct to budget and put money aside as opposed to throwing every last penny onto paying off the credit cards. This learning curve is steep. Maths never was my strength!!!

Forward_thinking

I am presuming that I just subconsiously remember that the xmas pot isn't £250 because of big spending at xmas/birthdays. That the clothes pot isn't the max this month because I have uniform to buy in September etc. Do I just keep a mental note of this? It feels messy.

Forward_thinking

To summarise (mainly for me): my questions are:

1) Do I move the unspent money in each category into my savings account each month and not just throw everything onto the cards which are killing us!

2) Do I just consciously remember that the various pots are not always representative ie. I don't have £250 each month to spend on gifts because I have to remember xmas/birthdays?

I'm getting there. Be patient with me.....

matchboxfull

Forward_thinking wrote: »

Thanks as usual getmore. Great last sentence - so that means £350 automatically in the pot for an AI holiday (I speak in jest).

The fog is beginning to clear. I suspect all will become clear once I get my teeth into one of the recommended budget tools. What I am worried about is that if we underspend one month eg. no clothes bought, the cash in that pot will disappear unless I put it in another area so it doesn't get absorbed in our debt/day to day life. The second area of confusion for me is that I have a monthly pot of £250 for presents but that isn't at all representative as I have allowed in my mind £1000 for Xmas. So I worry that we will get carried away spending each month knowing there is £250 in the presents category when in reality it is very small. Do I just remember in the back of my mind that this is the case?

As I said, I am sure/hope that everything will become less murky when I have collated all the figures onto a budget tracker.

Then don't have a 'presents' category. Have a 'Christmas' pot, a birthday pot for each child, whatever else you need...

Remember that if you want £1000 this Christmas you'll need to save £100 a month between now and November, which is when you'll probably want to start buying presents (or could dip into the pot sooner if you see a bargain).

All our pots are in one savings account and are kept track off with a spreadsheet. Due to the annual costs arriving in various months sometimes these pots need to 'borrow' from the overall savings, but over a 12 month cycle it works itself out.

Forward_thinking

Thanks matchbox. Question two defogged. Onto question one.......it feels wrong saving and putting aside when we have so much debt to pay.....

matchboxfull

Forward_thinking wrote: »

To summarise (mainly for me): my questions are:

1) Do I move the unspent money in each category into my savings account each month and not just throw everything onto the cards which are killing us!

2) Do I just consciously remember that the various pots are not always representative ie. I don't have £250 each month to spend on gifts because I have to remember xmas/birthdays?

I'm getting there. Be patient with me.....

Similarly, have 'kids clothes', 'back to school' etc..

In answer to 1, I'd work out a reasonable cost of all the essentials without being lavish and then put the rest on reapying the cards. You need to lock those cards up and make them 'hands off' so you get out of the habit of just popping things on them. Otherwise you'll never keep track of what you've paid off because you'll be re-spending.

Forward_thinking

What on earth would I do without you.....

matchboxfull

Forward_thinking wrote: »

Thanks matchbox. Question two defogged. Onto question one.......it feels wrong saving and putting aside when we have so much debt to pay.....

I agree, but this is not saving, these are annual costs that are payable anyway.

If you don't have a pot for kid's clothes, say, and you are anything like past-me, you'll just spend hundreds on your Next account in one hit because the total doesn't really matter when it's not your money and 'how else am I going to do it?'

Forward_thinking

Absolutely, got that. Got everything. Tonight is going to be fun. Really looking forward to getting it all down and tracked. Feeling so much more in control and can only imagine this will get even better as I see it there in front of me.

Now to decide - Brain Budget, the old expired MSE tool or have a dabble with the YNAB whilst I have the trial in place. Wish me luck!!