I need to budget

Hayley33

I cut down to part time working 7 years ago now as I chose to be around more while my little girl was small & to work around my Hubbys long shifts etc. So my pay took a big hit. I basically just kept on spending etc we haven't saved etc. It isn't too bad though. Looked at all my finances last week, and got a very low rate loan to clear credit cards that weren't going anywhere and my overdraft so now this will be paid off by October 2019. Within 3 years, our car loan will be finished, this debt we have taken out, plus my sofa payment etc, so we will have £400 per month extra to live off again provided I stay in the black within this time. I have a food budget I stick to now and I do lists. I have a spending budget (roughly) and I use different purses etc. I'm determined to pay all this off and stay OUT of my overdraft plus I also want to start up a small saving each month so that by the end of this debt we are not living month to month again.
Does anybody have any tips or any savings advice? How do you stay within your budget and not go into your overdraft etc? How do you stick to a food budget?

National_Debtline

Hi

If you haven’t already done so it’s a good idea to complete a statement of affairs (budget) using the following link. If you fill it in realistically it will give you an overview of your monthly income and outgoings so you can make sure that you live within your means.

www.stoozing.com/calculator/soa.php

James
@natdebtline

andyfromotley

Hi Hayley, i and many others on here swear by a budgeting program called You Need A budget (ynab). Its not free but it has revolutionised my finances in a way that many others have failed to do. Check it out, i think they do a free trial.

But the priciples are simple enough. you start off and allocate all of your money to catagories, there is no spare or left over cash, every single pound is given a job to do. so this will include rent, food, gas, car servicing, kids clubs, debt repayment, etc etc You then try your damndest to spend ONLY what you have in that catagory. If you spend more you have to move it from another catgory as there is no spare cash just lying about. This really focuses your spending. After a few months you become very accurate at knowing how much you spend in each catagory and planning for things like birthdays, holidays and christmas. Becuse if you didnt plan and save cash to that catagory then guess what? It aint happening!! Dont ask me why it jsut works..!

I agree with James above post an SOA as a starting point, i'd be amazed is the savvey savers on here couldnt squeeze another few quid out of your budget!

SpekySquarehead

1 word/anagram = YNAB.

DD265

Another vote for YNAB. I believe if you join the tutorials there's a chance to win a free copy, but it's not that expensive in the grand scheme of things.

MrsSave

I'm another vote for YNAB as well as posting an SOA.

Hayley33

Thanks for all the responses. I don't really want to do ynab I've worked out my budget/ what we have left and I've worked out its 3 years til we are really back on our feet.

I was just looking for some tips on how you budget shopping, stick to your spending limits when there's always something to buy etc.

Westie983

Will power and cash withdrawals for the week and spend what you have, till the next week withdrawal.

tallyhoh

With food shopping I allocate a set amount per day, mine is £5 (for2) but it depends on the family size.

enjoyyourshoes

How to stick within allocation: accurately calculate monthly accrual for none daily/monthly costs then put this in a high interest account. Reconcile your bank account daily with ALL spends and all DD/SO etc.

How to save, start a regular saver and allocate the SO against your monthly bank reconciliation

copperjar

YNAB has changed my spending/savings habits too. I managed to save £6k last year and on track to do so again - mainly thanks to that app.

If you don't want an app like that or to pay for it there are numerous budget apps for free that will help you keep track of things. After a couple of months recording, you'll be able to see what your allocated food/petrol/living/fun money should be and go from there. Putting money aside for birthdays, Christmas and other expenses you KNOW will happen is also so important. £50 a month into a Christmas fund is easier than trying to find £600 in December.

I really do think it's all about recording it down and making a budget and sticking to it. If you find you spend more in some areas than others, then realign your budget headings. If you prefer working in cash, then several purses with your weekly/monthly budget in each one. The key is to know what you spend on now and be honest! I used to pretend I could live on £100 per week for everything other than mortgage and household bills (I smoked back then too!) and wondered why my debts were going up and up. My budget just wasn't realistic.