Newbie needing advice.. don't know where to start with my finances!!

tia88

Hi There,

So, i'm like the MOST disorganised person ever, but i'm trying to get there and geting there,got great routine with the kids (7y, 5y and 2y) Slowly progressing regarding housework and meal planning is generally all good... the biggest trouble that i want to work on this year is managing bills and finances..

Hubby and I are self employed, i just about manage to keep ontop of things regarding the paperwork for that but i'm always late and behind with bills.. can never find a bit of paper i need. I can't seem to budget and i do have a slight habit of spending on things when i kind of feel like it (little things, and always for the kids)

Due to being behind with bills we did get into debt and but have been on an IVA (payplan) for a couple of years now, which is great, but i don't want to get in the same mess as before...

I'm really needing pratical advice, get so behind with bills that we no longer have a phone line (borrowing neighbours internet lol (with their permission)) and its not always that we cant afford it (we do claim certain benefits though) its just that i'm not organised...

So just wondering how you do it, do you set aside some time to focus on bills, what do you find the best way of being organised especially self employed....

Or simply...WHERE DO I START????

Thanks xxx

Angry_Bear

In my experience the Debt Free Wannabe bits of the forums are truly excellent at this sort of advice - partly because most people who are a bit disorganized with money end up in debt, but you'll get great advice even if you're deft free .

Best advice is to work out your budget with something like: http://www.stoozing.com/calculator/soa.php. It's best if you can go through last few months bank statements and be as honest and accurate as possible.

Then track your spending either with a spreadsheet, and app like YNAB (You Need A Budget) or even pen and paper . After a while you'll get to understand where you have a habit of over or underestimating your budget and where you waste money. Once you hit a routine you'll probably stop tracking every penny, but it's a good discipline to get into at least for a while.

CuppaTea

I have a filing system where each important document goes in on the same day it came through the post. That way I can find anything to hand quite easily.

I also divide up my income into "pots" which I monitor on a spreadsheet. So I have Bills, Food, Car (tax, mot, service), Fuel, Haircuts and medical, clothes, holidays, house maintenance, school and kids clubs. Each month each pot gets its allocation, so when bills come on, the money is there. I have the yearly bills covered in advance, so I don't have to worry about finding the money.

Does that make sense?

SmlSave

The debt free boards are amazing and some of the diaries are really motivational.

But first - you need to know where your money goes. Get at least six months of bank statements to work it out, it's not fun but is a real eye opener.

Re your bills: direct debits mean you have to pay them. I have a separate account just for direct debits and that gets 'paid' before anything else. But there are loads of different ways to manage your money, it's finding a way that suits you.

Lots of luck

pogofish

The financial boards are where you need to be This board is for family issues - To second the above advice, there is a large amount of very valuable info there and time spent just reading will be very rewarding.

I started here with a ton of debt and in serious need of some budgeting tactics in 2008 and I'd got shot of the lot by three years ago - in no small part due to the good advice in these forums.

foxyloxy11

Hi Tia88! like someone else suggested I buy those plastic binders that have clear wallet pages in them(cheap from Mr t or wilkies about 99p). in one binder/folder I keep all household bills such as poll tax, electric, insurance, water, TV licence etc. and in another I keep all debt related bills/statements such as credit cards, loans, mortgage. Then as a new one comes in I just put it to the front in the corresponding page so I can grab them at any time I need them. on the bills I write on the front when I've paid too eg 21st feb £20. Then if ever anything is queried you've got it to hand.
As I am quite sad (obsessive )in the organisation of finances I have a book. I keep a list of all monthly bills that come out of my bank and the dates they come out, also I write in how much money is coming in/ going out and work out my food and monthly spend/ debt payment budgets.
it really helps if you can just keep track of everything. been able to visualise it and know how much you have keeps everything organised.
you'll get there. just start with one thing and keep adding.