How to Log Spending

baggins11

Hi All

We are in a posiiton that we have been spending more than we earn for the last year and I need to take control of our finances and live a more frugal life. Our savings are now zero so cannot carry on along that track. We are living as we always have but last year our salary reduced by a third.

I have done the budgeting tool and looking at the real basics we can just about cover ourselves but doesn't include any entertainment out or unnecessary clothes or nice to have stuff that we don't need.

So I think the best way forward is to have some sort or spending spreadsheet so I can track every penny and then I am less likely to shop for the sake of it.

I have always made the most of our money and get the best deals etc but some of it is unnecessary. I am embarrassed to admit that some days I browse the internet because I just want to find something nice and shiny to buy

So does anyone have a spreadsheet template they use or method they find the best for tracking everyday spending? I have not worked in an office for years so I can happily use excel but would be rusty at making my own template.

retiredinfrance

I used to use a small handbag size diary as it was always with me and I could note a spend before I forgot - or cheated! I, too, like nice things ,but now I have a charity shop habit which is a lot cheaper, helps reducing and recycling and takes time and gets you out and about. I am now appalled at the price of stuff in the shops. best wishes.

Farway

I use MS Money, the old 2005 version for UK.

The only draw back is that it no longer connects to your bank as the facilities were withdrawn some years back, so I enter manually

You can set your own labels, for instance under Grocery you could add say, bread, milk, eggs etc

Read about it here, links are near bottom of the page for free download https://www.garethjmsaunders.co.uk/tag/microsoft-money/

MovingForwards

I just set up a basic spreadsheet listing everything I spend on, it's set up for the year, all info is added in advance, then I zero the figure when it's paid and adjust the current account figure to what's in my account.

rent
utility bills
council tax
phone
bus pass/travel
Union Subs
S&S ISA
Credit card (13th)
eBay
savings
Food
Car
TOTAL

Current Account Balance

baggins11

I like the idea of handbag diary but I am thinking excel might work better for me so I can have loads of columns and over the year could work out exactly where the overspending goes. But to stop the unnecessary spends in the first place a small diary is a really good idea. I could try both and see what works.

I think the charity shop habit is the way to go! I imagine you get a great buzz from finding something special. My daughter loves charity shops but she jokes that I am allergic to them. I must admit I don't like the smelly ones but I am sure I am missing out on lots of bargains.

As a kid we only ever got charity shop things and I had to spend hours in them every week with my mum. I think I have just rebelled against it in adulthood. Now is time to get real and get over my charity shop mental block.

baggins11

MS Money sounds good I will look into that. I know people prefer ones that connect to your bank but I would rather not. I think we are far too exposed to fraud as it is. Same reason I don't pay for things with my phone. I am a bit of a dinosaur when it comes to these things.

Mistral001

I would not rule out doing it by hand. A notebook or exercise book with broad categories such as groceries, electricity and heating etc.as suggested by Movingforwards. Round up or down to nearest pound helps keeping it simple and does not affect the overall picture at the end of the month/year.

Copy it into a spreadsheet if you want to, to help with the adding up.

baggins11

Farway do you use the budget bit of MS money? I can't seem to change the categories in that bit - is that correct or am I missing something?

I have tailored the expenses in cash account and that looks good. I can track all variable monthly spends such as groceries, entertainment, clothes etc. Does that link up with regular monthly outgoings in the budget section for all the bills that stay the same each month?

As well as tracking the variable discretionary spend I want to add on the monthly bills etc to work out my total monthly spend.

Also another question if anyone else uses MS Money and knows, I have put my partners monthly income in but I am self employed and mine varies from month to month. Is there any way of adding variable income in?

If not it still looks a great tool for tracking the variable spends each month!

PasturesNew

I kept every receipt and tossed it into a small box when I got in, then I'd fill out a spreadsheet.

I created columns for each "type" of spend, which grew as I wanted to drill down deeper.

Spreadsheet was just:
Date. Shop. Item1. Item2. Price.

Item1 and Item2 were so I could expand on some items' descriptions if I wished.

Columns were: Food, Drinks, Household, Car, Fuel, Bills
Household was things like loo roll, washing up liquid, cleaning cloths.
Bills was Electricity, Gas, water, TV License, House Insurances
Car was MoT, repairs, insurance, tax.

There is no point putting down £100 for groceries if you've actually spent £30 on food, £20 on 2 cushions you fancied, £30 on a wine offer and £10 on bleach and loo roll....

Spending breaks down to need and want.

I need a loaf of bread. A loaf of bread costs 36p, a nicer one costs 55p.
I want a really nice one that costs £2. Look at your choices.

PollyWollyDoodle

I use YNAB - if you search the forum you’ll find lots of threads about it. I very reluctantly signed up to the subscription service earlier this year, because I use a Mac and the “old“ version will no longer work with future updates. You do have to pay a monthly fee, but I have found it to be an absolute game changer in terms of setting goals for savings, and being aware of exactly how much is in my bank accounts. I reconcile my bank accounts every Monday morning (I’m self employed so I have a business bank account and business expenses too).

I will say however that I have always been quite good with money. It’s all very well knowing what you have available, but if you have spending habits that tend to run away with you then just logging your spending won’t help. I avoid going to the supermarket for one item, because I know I will end up spending £10 when I only went in for a pint of milk, and it’s changing habits like this that’s had the biggest result for me.

dreaming

PasturesNew wrote: »

There is no point putting down £100 for groceries if you've actually spent £30 on food, £20 on 2 cushions you fancied, £30 on a wine offer and £10 on bleach and loo roll....

.

Yes I started to do this a couple of years ago when I couldn't understand why my Morrisons shop was getting so expensive. When I broke it down I realised that I had gotten into the habit of buying magazines and books there, plus the odd clothing item. So I started to split it down into more categories and saw that my food spend was quite reasonable but the others weren't so much. I also started recording cat food separately so I could se how much the little darling was costing me!
I first started with a notebook. At the front of the book I would put the month's starting balance of the bank account, then each time I used my card (whether to pay or draw cash) I would debit the account. I also put the month's direct debits down as a total amount. At the back of the book, using a page a month, I would write down the category (food,entertainment, bill etc.) and the amount (as a credit). I could then use the front pages to reconcile to my bank account, and the back pages to track the spending in each category.
Nowadays I do use excel spreadsheets as I have multiple bank accounts and credit cards. and they are used not only to track what I have already spent but also to plan any future spending. It does sound quite complicated but actually I spend very little time per month looking at it as it is second nature now. Having said that I have set aside tomorrow (3rd) to review last year's spending and plan this year's but there will be plenty of tea breaks. I am the opposite of many here in that I actually use my cards more than cash as I can't "fool" myself about what I have spent on. I do have a set amount of cash each month for the odd cup of tea out etc. but don't account for that on the spreadsheet other than as "mad money". Once the cash is gone though then that's it until next month but as I am quite disciplined I don't often run out. Any surplus is just carried over till the following month.