How to get back on my feet with my finances

Jami74

This is what I do: 

blue.peter

Thanks, @Jami74 . I did toy with the idea of producing a diagrammatic representation of my suggested modus operandi. It's gratifying to see that yours looks very similar to mine - and obviates any need for me to put in the effort.

[Deleted User]

• Bills account and separate spends account for items like food
• Changing payment dates to suit your income
• Using Topcashback or Quidco for purchases
• Unless totally skint have some money for small niceties like meeting a friend for coffee/drink etc
• Credit card can be useful for budgeting but will depend on your willpower

enthusiasticsaver

ledge97 said:

Hi, I'm after some help and advice. Since covid I've found it hard to get on top of my finances. I used alot of my savings through lockdown to make sure bills were paid and finding it difficult now to get back on my feet with budgeting etc. 

Being self-employed, the savings I had, although not alot, was essential as it was a safety net to fall back on. Looking back I've realised that I was spending alot of money on rubbish, but never realised the impact it had on my finances untill now. 

Now I feel like I'm living week to week and just making sure bills are paid, but if I'm honest I'm still lacking a bit of discipline when it comes to saving money. 

So I'm just after a bit of guidance really as I dont really know where to start.

Firstly well done on having some savings to get through what has been a difficult time particularly for self employed or those with erratic incomes. 

I would agree that having some sort of financial software may help firstly in telling you where your money is going and helping you to budget moving forward.  There are lots of free software out there or you can just do a spreadsheet on excel.  I use the free version  of clear checkbook just for agreeing bank balances and seeing where we are over spending.

Having a system for budgeting is imperative for those with erratic income.  Distinguishing wants from needs as others have said is the first thing to work out.  Unavoidable monthly costs are rent/mortgage, council tax/utilities, food and fuel if you run a car, childcare costs, insurances, debt repayments and tax/NI  if you are self employed. Try and aim to get a months worth of those essential bills into an account and arrange all direct debits from there. The next thing is to set aside a certain amount into savings.  Emergency savings, saving for annual costs like insurances, car maintenance/service, holiday/xmas and any other regular costs you have.  The remainder is disposable income for you to spend/save as you wish. 

I think if money is tight it is better not to use credit cards. Having a weekly spends limit may help you keep some discipline and a good start is to have a  month with as little spends as possible so you can see what the minimum is that you need to live off.