A Diary of Reinventing Ourselves

Forward_thinking

I have thought of doing my own spreadsheet after valued posters recommended this above YNAB. However, I kind of like the idea of having something polished, something I know works correctly and something with a bit of hand holding. I'm going to keep an open mind because of various comments I have had. But I'm going to give YNAB a whirl so I know if it is the right tool for me or not.

brizzledfw

You can manually adjust YNAB Forward Thinking, by forcing a reconciliation and inputting the figure so that it all tallies. Do this if you forget a transaction or if you'd like to put the transactions in from February..but for my part I just like to agree a start date (even if part way through and not the 1st of the month) and then be meticulous on accounting for every penny from then on.

pelirocco

Forward_thinking wrote: »

Ok. So a partial fog has cleared. We are showing as -£4,000 for this month in YNAB. However, I have just realised (told you I was slow in this area) that we are half way through the month and I haven't put in all the money we have spent so far. This includes about £4k we have already spent on direct debits, groceries, credit card payments. I also asked OH why we have only taken £4,500 from the company so far this month and it turns out we haven't had the rent of £2,300 go out. So I am feeling actually really happy - can't believe how much of a kick I am getting out of all this budgeting. It's so addictive - I'm driving OH crazy.

OH says he doesn't want to take all the money out in one go each month as we have to pay tax on it as soon as it leaves the company. He says it isn't much - only about £30 a month but it works best to do it gradually with flow like a river. He has agreed to do it for me if I can only deal with it mentally this way but isn't so happy.

One good bit of news - OH came home with our week's shopping for £95 from Lidls. We will only need a couple of top ups within the week although children will probably eat me out of house and home this week.

Looking forward to tonight to putting the recent transactions into YNAB. What has happened to me? This is really addictive.

No you don't pay tax on it as soon as it leaves the company ,tax is calculated annually

Plus I don't understand the rest of your post , YNAB shows you are already down -£4000 , you say you haven't added in what you've spent ? Wouldn't that make it worse ?
When does your rent normally go out

lucielle

Hi FT, just read both threads and wanted to wish you the best. I've got 4 chaps (older than yours) and had a lot of debt which we've managed to bust. Also my OH went from employed to self employed as well so know how difficult things can be.


Just want to wish you all the best.


L

Forward_thinking

pelirocco - thanks for that, will question him further. Re YNAB it states I am -£4k because it is looking at the current balance and assuming I also have to budget for all items/bills this month. But we have already paid out almost £4k this month on bills/direct debits/groceries/cc repayments. Just have the rent to go out and then Feb is covered. But YNAB hasn't recognised this because I have started mid-month. Not sure if that makes sense.

Forward_thinking

Yep, OH says we definitely pay tax as soon as it leaves the company due to the way we take it out. Says it is complex and difficult to explain but if we take it all out earlier it costs marginal more tax. I have no reason not to believe him although I don't understand this. He reckons he read up all the HMRC guidelines for ages and it is a complex old business. Obvously, he pays his company taxes each year - but there are other factors that impact when we take it out. However, he is prepared to do it for me if it helps me to track and is important to me.

Forward_thinking

Lucielle, thank you!!!! Means a lot.

thegreenone

Your DH seems to work in a different way to mine. My DH has to put aside any money, due to HMRC, every week but it doesn't go straight away. It has to be put aside for the yearly tax return. When Pelirocco says you don't pay tax on any money leaving the company at that point. No you don't, the money doesn't physically leave the account but the contractor has to imagine that it has. Think YNAB where you move money into other pots. It's the same thing.


My DH pays himself every Friday. I make sure all the standing orders are in place for Monday from my account and Tuesday from his account. The money left in my account pays for food/misc.


We pay almost everything weekly. Only our life insurance, British Gas service plan and just recently BG gas and electricity are paid monthly.

scotdebs

FW can I just say I am in awe of you - not only are you trying to get to grips with the debt you owe and get your head round a world of finance MSE. Etc that is new to you - also you are trying to get an OH on board who seems to think he understands finance but if he did .... Well I wouldn't be writing this post would I you have come to a lot of realisations sooner then me - in particular it's not what you earn it's what you spend :eek:

Anyway point of this post was to say you have done amazing be prepared for set backs and road blocks on the way but never doubt you can do this

Dolphin1

Forward_thinking wrote: »

Re YNAB it states I am -£4k because it is looking at the current balance and assuming I also have to budget for all items/bills this month. But we have already paid out almost £4k this month on bills/direct debits/groceries/cc repayments. Just have the rent to go out and then Feb is covered. But YNAB hasn't recognised this because I have started mid-month. Not sure if that makes sense.

Hi FT

Just delurking to see if I can help with YNAB. As your opening balance is mid month, it will already include anything that you have paid to that date so for February you will only need to add in anything from that date, for example the rent and anything else that you spend on groceries, fuel and other expenses. You can then input everything from March onwards. Hope that helps.

You are doing really well so far, keep it up!

Dolphin1