Changing how I Budget

Peterxxxxxx

I want to change how I budget. I am single and will be 73 next month. I use an app to manage my finances. My belief is that I need to rewrite my my budget. I know what would do. But, I would love to hear from anyone that has done the same.

Additionally, this is my first post. I want to see what happens.

Thank you

Rob5342

If you want any advice it would be helpful to know why you want to change it and what you want to achieve

I change mine virtually every month as there is always a new supplier for something that I've switched to or other elements I want to change.

jasonwatkins

I've always personally found it better to separate my outgoing payments away from my main balance.   Starling have recently introduced Virtual Cards which will finally allow me to do this all under one roof using their bill paying pots.

I used to have a very defined list of what came in and went out each month - rent, bills, daily allowance etc, and each time I'd get home I'd work out what i'd spent that day and deduct it from my remaining balance.

That all went out of the window when things started getting more expensive.   I still separate the bills away from the main balance and manually pay my rent each month but I tend to have a 'loose' amount per week and just see what happens.

Eco_Miser

I'm about a month younger than you, and I gave up budgeting years ago. Now I just use a spreadsheet to plan my cashflow / record actual income and spending.

Why do you believe that you need to change your budget?

MalMonroe

Hello and welcome. I'm 72 and I have been through debt, and a DRO and I came out at the end of it all determined to manage my money better. That was in 2019 and I'm managing very well, so far. The best thing I ever learned was how to budget - it seems such a simple thing but it wasn't for me. 

However, I did have help with all my financial problems and worries from StepChange - a free debt help agency. You could do worse than contact them for any financial advice - and I'd recommend phoning rather than trying to do it online. The person I spoke to initially when I was so very desperate was really kind, very understanding, non-judgemental and knowledgeable. 

I realise that you have not yet reached a desperate stage but in order not to, it'd be good to have a chat with someone who can help before you reach that stage. They can give you a personal action plan too. And there is no obligation to accept any of their advice if you don't feel it's right for you. 

There's also National Debtline and Citizens Advice. But StepChange helped me, so that's the one I recommend.

It wouldn't be too extreme to contact any of those. Obviously, you will need to write a budget in order to start a conversation with one of the advisers but once that's done, they can help you so much. Just a list of your incomings and outgoings.

People on this forum will no doubt ask you to prepare a Statement of Account anyway before they can offer any suitable help, so it's something that's well worth doing. You will receive lots of good information from people here too. 

StepChange link - https://www.stepchange.org/

And if you don't already, it might be a good idea to have a look at your free credit reports from Experian, Equifax and TransUnion. Just to check that the information they hold about you is correct and up-to-date. Always best to be on top of all your finances. 

I hope that is of some help, obviously it's just my own opinion/s - I wish you good luck with everything. 

stuartp2000

I use excel for all income and expenses set over a period of normally a rolling 14 month period, this way I can see ahead on any fluctuations i.e. birthdays, Xmas, insurances and start to plan ahead with setting aside what I need to.

I don’t under forecast anything like the groceries as use the excess to either have treats or build up the credit balances.
really hard to say without knowing the position anyone is in but rolling 14 months has really helped me plan ahead better.
nowhere near perfect and have too much unsecured debt, mortgage and not enough rainy day money but without the planning I am sure I would have been a lot worse off.

gd55

Why do you believe you need to rewrite your budget? What is it about your current method of budgeting that's not working for you?

The answers will help you determine suitable alternatives, and also generate many helpful tips from others.

Peterxxxxxx

There a number of factors contributing to my situation. Single, retired, low income, spiriting costs, prioritising essential payments and age 72.
Paying for essential items. Calculating what is the total. What money is leftover for nonessential items.
Keeping accurate records of income and expenditure. This would be to have an account financial picture. Also, supporting my personal health.

Thank you for your feedback.
🙂🙏

enthusiasticsaver

Before you can do a budget you need to know what you actually spend.  Do you keep a spending diary? I personally use an app only bank account now as it does not involve me having to enter information on a spreadsheet or any sort of finance software as I have done in the past.  

App bank accounts like Monzo and Starling are great for keeping track of your spending as it does it all for you.  On logging in it shows the spending to date and disposable income available if you set it up the way I have and many others too.  

You can set up spending spaces in the bank account so the amount committed for bills etc and saving for larger items is not shown as available to spend.  On payday or pension day you can do automated transfers to savings spaces (mine are monthly bills, christmas, car expenses and house maintenance)  and what is left is then available to spend. 

Peterxxxxxx

Deleted as per OP request due to over quoting. 

Peterxxxxxx

Dear enthusiastic saver 
Thank you for your feedback. Also my apology about the crazy post.

In what context would it be appropriate to use the quote function?

Can I respond to individual post?

🙂🙏