Where am I going wrong?

Legacy_user

OH gets paid weekly for 50 weeks of the year. Doesn't get paid for 2 weeks over Christmas. I have totalled our monthly direct debits, rounded them up, multiplied them by 12 and divided by 50. This month we didn't have enough to pay the direct debits. Where am I going wrong?

I am awful at maths, truly awful.

Working_Mum

The reason you are short is that there are 12 calendar months and accumulated fiftieths of the bill will not fall in the same cycle if the direct debits go out on the same date each month.

Do you use a separate account to pay your bills out of?? This may help you be able to be better prepared for payments each month.

Do you prepare for price increases through the year for your bills i.. you've been saving £1 per week for a £50 annual bill but the price goes up on week 15?

These little things could have a big cumulative impact by the end of the year and leave you short.

If you want to post your figures/bills someone will have a look and advise what you should be setting aside each week.

How do you budget for the 2 weeks when your husband doesn't get paid??

System

This is really annoying. I can't see what you've written to respond to everything

I do have seperate account for everything. Spending, bills, insurance payments, personal (clothes/hair/dentist), christmas/birthdays, extras (bill rises/extra payments and savings.

I stop saving September-December and use it for Christmas.

If I multiply monthly payments by 13 instead of 12 will that work?

Working_Mum

Hi DebtFreeDreams,
Have you got an Excel spreadsheet you can use to map out your income over the 50 weeks and then below that WHEN the direct debits go out? You'd then be able to map where the shortfalls are and be able to budget accordingly.

I tried to paste a spreadsheet for you but I can't do it.

UncannyScot

Hi :hello:

The link below is for the MSE Budget Planner, hope that helps

https://www.moneysavingexpert.com/banking/Budget-planning/

It's difficult at first trying to work things out but you'll soon crack it.

If you need any info or advice, just post up and we'll help you out where we can... yes, we're nice like that

System

I don't because due to my mathematical incompetence I don't understand Excel. I do know exactly when DD leaves my account off the top of my head. I know how much each DD is and how much is in each bank account.

Although I'm new to DFW I am not new to budgeting. Started my Debt free journey in January. I just need to establish a different budget which will help us cover those 2 weeks off. Our budget works everywhere else but not to pay those DD. My goal is to have l

Willing2Learn

DebtFreeDreams wrote: »

OH gets paid weekly for 50 weeks of the year. Doesn't get paid for 2 weeks over Christmas. I have totalled our monthly direct debits, rounded them up, multiplied them by 12 and divided by 50. This month we didn't have enough to pay the direct debits. Where am I going wrong?

I am awful at maths, truly awful.

Instead of doing it that way, why not try this:

Take your OHs 50 week total salary and divide that by 12 to get an average monthly wage packet. Then work out your monthly budget from that.

System

Thanks for the advice so far. Will speak to OH about spreadsheet as he will know exactly what to do. Perhaps we can sit down weekly and he can help. He has no idea about how money matters work. May be a team project.

Will also try budget planner, thanks

Willing2Learn, you might literally have solved my dilemma. Will work it out this way.

I really want to try YNAB but want to keep the free trial period for a later date as his pay may become monthly soon.

System

UncannyScot, the budget planner no longer exists. Off to find one online while I have 5 minutes.

Working_Mum

Good luck DDD!
Make sure you accrue enough money in the account so that when the direct debits go out they will be covered as unauthorised overdraft fees etc are eye-watering and can knock you off balance hugely.

System

Thanks Working Mum,
I check online banking every day so I can avoid this happening. Doesn't mean I haven't been stung a few times.

Been working hard this year to level our bank accounts, I really don't want to undo all the hard work because of my poor budgeting.