How do you budget?

RG2015

This is a spontaneous post following a user saying that there was not enough budgeting on the budgeting board.

My question is; "How do you budget?"

My budgeting process involves setting out my basic income and expenditure on a monthly and yearly basis. I also look forward several years to ensure that I have a plan to allow for foreseeable events.

Budgeting is basically a financial discipline but it is also a psychological lifestyle and goal achieving exercise. Hopefully, sharing ideas and experiences will produce a thought provoking thread.

agrinnall

It seems a bit odd that you'd start a thread complaining about budgeting being on this board at all, and then start a thread about budgeting. Not very consistent is it?

RG2015

agrinnall wrote: »

It seems a bit odd that you'd start a thread complaining about budgeting being on this board at all, and then start a thread about budgeting. Not very consistent is it?

Are you really saying that it is not consistent to start a thread on budgeting on the “correct” board because I don’t think it is the correct board? :rotfl:

At least no one can recommend that I post this on a different board.

No_6

What do you mean by 'budget' ?
If you write down every thing you spend each week/month/year
You will have a figure/amount !
If your INCOME ! will not cover it, you are not on a budget.
You are over spending.

Get MS money for pc's only and input all your data, every spend
to all the accounts you set up....then you will have spread sheets
to show if you are on a budget or are spending tooooo much.

If you are a phone thing type then get a CHEAP laptop or PC
and add MS money, then load all your data.


That's the only way you will know what YOU spend.
Not rocket/science, it's up to you, record it

RG2015

No_6,

Thank you for your reply but you have misunderstood my post. It is a general question asking you how you budget not how do I budget.

I am trying to find out the various methods that different people use to plan and control their income and expenditure.

fira

For around 30 years I’ve used an excel sheet with columns through from January to December. The first column though is for items I will be spending on i.e. electricity/gas, council tax, insurance, Christmas spending, food, clothing etc. The first time, many years ago, I totalled up what I thought the year ahead spend for each would be, added a 'buffer' category of £250 then divided by 12. I transferred the monthly figure to a second account, which had and still has an overdraft of £500, where all the items are paid from.

What helps me most is keeping the excel sheet up to date with the outgoings. Usually I’m in credit by the end of the 12 months. When it’s time to do the new sheet for the year ahead I increase every item’s forecast by 10% and increase the monthly transfer.

It’s exactly the same idea of what my bank used to call a Budget Account. For me, doing it this way highlights what might be an overspend in one category and I can then reduce the balance in the buffer category to cover.

Lomcevak

RG2015 wrote: »

I am trying to find out the various methods that different people use to plan and control their income and expenditure.

I use YNAB ("classic" as it is now called, i'm less of a fan of the new online version so sticking with classic until it dies) - so virtual 'pots', spend last month's income, budget to zero, and save ahead for the bigger annual items.

Brilliant system, at any point I know exactly what I have available to spend - because i'm only spending money I already have - and when pop-up's happen (which are rare, after seven years with YNAB I have a very good idea what's coming up) then it is easy to 'roll with the punches' and redistribute to cope.

Zola.

I use Google Sheets. Basically excel but it auto saves and is in the cloud effectively, so easy accessed anywhere, anytime.

I have an overall Finance sheet which lists all fixed costs, variable costs.

I have another sheet where every each month of the year is down the left with categories totalled up for that months spending. I am updating the data almost every day and track every item of spending, which normally flow into the following categories:

Investing
Fixed Debits (Mortgage, etc.)
Mortgage Overpayment
Car Loan
Groceries & General Shopping
Fuel
Dining & Socialising
Takeaways
Furnishing, DIY, Housework etc.
Misc

Each month is displayed with a pie chart to show monthly breakdowns... the year's spending is summarised in a bar chart, where I can keep an eye and try to make adjustments, targets etc.

Drp8713

I use the notes section on my iPhone.

Net Salary £xxxx

Bills

Rent £xxx
Travelcard £xxx
Food Shopping £xxx (this includes Wine, Cigarettes for the month as well)
Phone £xx

Savings

Investments £xxx
Holiday, Xmas, birthdays fund £xxx
Cash Savings £xxx

Spending

Unallocated amount left for days out, takeaways, treats etc £xxx



Then I just spread the money out on payday to where it needs to go.

I know the number of my bills is quite short as my wife pays a lot of smaller bills as I pay all the rent, but it is easily scalable.

Would be good for those who overspend usually, as you could take out the spending money in cash at the start of the month and when its gone its gone.

getmore4less

Budget == plan

No plan then you don't budget.

People confuse tracking as budgeting.

RG2015

getmore4less wrote: »

Budget == plan

No plan then you don't budget.

People confuse tracking as budgeting.

Yes, there are many synonyms that are often confused.

Budget
Plan
Projection
Forecast
Allowance
Cashflow