Budgeting with different paydays. What do you do?

ChasingtheWelshdream

So I am going to start piggybanking and am getting a bit overwhelmed!

When doing a budget with a view to transferring funds to various accounts, how do you work with varying paydates?

I have two jobs with different, but fixed, paydays near month end.

My husband is self-employed receiving various payments throughout the month.

Child Benefit and Child Tax Credits are on different days, every 4 weeks - so variable.

Most of our DDs are taken on the same day near the beginning of each month.

I was thinking of transferring money in order of priority to cover respective outgoings. Eg - DDs from my wages on payday, ready for them to be taken shortly afterwards.

Then as payments come in, transfer across to account for the following in this order: food; petrol; annual bills; clothes/uniform/school trips etc.; annual savings (holiday, Xmas etc.); savings; luxuries. We still need to refine these categories but it's a start.

Does that sound about right or am I over complicating things?

I'm new to piggy banking so am open to all suggestions!

Dobbibill

That's going to be the best order given that there are different pay days.

Don't forget about personal spends.

Review again after month 1, 3, 6 & 12. It may require tweaking.

ChasingtheWelshdream

Mmm, I haven't thought about personal spends. That's a good idea. We were just talking about giving the kids proper pocket money rather than constantly dipping into our pockets for sweets etc. Maybe we should do the same for the grown ups. Then I won't feel guilty if I buy a coffee at work.

And reviewing - good idea. Thanks. :-)

Dobbibill

Depending how old your kiddies are......they sound quite young if they have money for 'sweets', a bank account can help them learn to budget and give them a little independence. (I'm talking if they are above 11 ish)

DeterminedSingleMummy

I budget everything weekly...

So as long as my weekly spend equals my weekly income I know I've got enough money in my account.

To figure out weekly Income I find out how much I will get for the year for each income/benefit /tax credit/(whatever other income source you have) divide that by 52 for your weekly total income.

Same with budgets. Find out how much you will spend over the year and divide by 52. Total weekly budget.

I have two bank accounts.

One for income and one for expenses/bills

When there is money in the income account I transfer the weekly amount each week into the bills. To keep track of which week I've transfered I put the date of the Monday as the pence.

E.g. if weekly budget is £500 I would transfer £500.28 for 28th August and then £500.04 for 4th Sept. It allows me to keep track of which week I've sent across to the bills account. Sometimes I'll be two weeks ahead and others a week behind as some of my money comes 4 weekly and some monthly...

Hope that makes sense

ChasingtheWelshdream

Dobbibill wrote: »

Depending how old your kiddies are......they sound quite young if they have money for 'sweets', a bank account can help them learn to budget and give them a little independence. (I'm talking if they are above 11 ish)

They are all under 10. Their school has just opened pocket money accounts to encourage saving, and I have been giving them 50p a week to pay in, and we give them 50p a week for the sweet shop, but still end up buying other bits and bobs. I thought if they had say £2 a week, it's up to them how they spend it. But that would need to cover the week. They do also have bank accounts, they just don't know about them...:D

DeterminedSingleMummy wrote: »

I budget everything weekly...

So as long as my weekly spend equals my weekly income I know I've got enough money in my account.

To figure out weekly Income I find out how much I will get for the year for each income/benefit /tax credit/(whatever other income source you have) divide that by 52 for your weekly total income.

Same with budgets. Find out how much you will spend over the year and divide by 52. Total weekly budget.

I have two bank accounts.

One for income and one for expenses/bills

When there is money in the income account I transfer the weekly amount each week into the bills. To keep track of which week I've transfered I put the date of the Monday as the pence.

E.g. if weekly budget is £500 I would transfer £500.28 for 28th August and then £500.04 for 4th Sept. It allows me to keep track of which week I've sent across to the bills account. Sometimes I'll be two weeks ahead and others a week behind as some of my money comes 4 weekly and some monthly...

Hope that makes sense

It does, thanks. :-D