Changing how I Budget

ZeroSum

badger09 said:

OP
May I throw in a random suggestion? 

If your figure for November Water Rates was just for that month, I would think about switching to a water meter. 

We are 3 adults (2 in their 70s & 1 40s) at home all day in a 4 bed, 3 bath/shower bungalow. Were careful not to waste any water and my bill for the 12 months to mid December was less than £140. I have no idea what we would pay in unmetered supply but I know it would be way more expensive. 

That's ridiculously cheap mind.
I'm on a meter & my standing charge is about £125 a year alone.

Was paying neatly £400 for the year with just the 2 of us. Had a baby recently, so no doubt that'll go up a bit more

[Deleted User]

Just wanted to say how refreshing to actually have a post about budgeting on this thread! Most posters discuss bank accounts and switching. Perhaps time to split into two threads or sections. One for budgeting and one concerning bank  accounts.

The methods you use for budgeting will differ depending on whether or not you are debt free, mortgage free or rent free and what your financial targets are for the future. Whether or not you are saving for something specific or general security.

I am in the fortunate position of being debt free and mortgage free. I am semi retired as I currently work part time but to aim to finish completely by August. I do not need to work but enjoy what I am doing. I will be 66 in July 2024.

My budgeting is very simple. I put together a budget for the year and then allocate my expected income as necessary. This year I am expecting to spend about £22000. That includes everything including two holidays. I do share some bills with another relative, but I pay the greater amount as my income is greater. My expected income is £24000 to £28000 depending on when enter I full retirement. So a surplus is expected this year.

About £250 a month is allocated to an account that pays all the annual bills. I service a second current account with £150 a month that acts as a back up as well as covering birthdays, clothing, Christmas and dentist. Money is also put into regular savers to cover travel and holidays. I share one current account with another relative from which we pay all regular bills, food and petrol. Presently I contribute £550 a month to that account.

I also have a sheet that has a monthly breakdown of my income, spending and savings/investments. This I adjust and update as needed. This way I’m able to know exactly what  I am worth on any given day! Sad but true!😏

In addition put about £100 a month into a S&S ISA for longer term savings. I also have a few thousand in Premium Bonds and a couple of fixed longer savings bonds. I also have a healthy emergency savings account.

I do not have huge amounts of money but find I can cover all my costs and have a comfortable life.
Not having to pay a mortgage or rent really does make a difference though.

From age 66 my annual income at current prices will be about £31000 a year before tax or about £2300 a month after. Hopefully my budgeting methods will continue to work for me.

For those that are interested, I and many others have contributed to a thread in the Over 50s Money Saving Section under the thread name How Much To Live On. Loads of advice and experiences there about budgeting etc… for those on various incomes after 50 and into retirement. It is quite a long thread now but worth the read.

The link below

https://forums.moneysavingexpert.com/discussion/6228191/how-much-to-live-on/p1

Best wishes.

[Deleted User]

Just a comment about the cost of your printer ink. It seems very expensive. I have a contract with HP and currently pay £3 a month. Cartridges are sent automatically as and when needed. Under my agreement I can print about 50 to 60 pages a month which is fine for my needs. Even if I wanted to print a few hundred a month the cost would only be about £12 a month. 

Your rent is also taking a large part of your income. Are you able to downsize or move to a less expensive area? I assume your annual income is State Pension, workplace or private pension and income from savings/investments. Are you able to provide any figures that may help others assist with budgeting?

Peterxxxxxx

Baron_Dale said:

“Just a comment about the cost of your printer ink. It seems very expensive. I have a contract with HP and currently pay £3 a month. Cartridges are sent automatically as and when needed. Under my agreement I can print about 50 to 60 pages a month which is fine for my needs. Even if I wanted to print a few hundred a month the cost would only be about £12 a month. “

Dear Baron Dale 
Thank you for your comments.
Regarding printers. I have shop bought cartridges. The ink levels are at the same height. I would sign up for HP Instant lnk. Change the cartridges. Load 50 sheets of paper, and start printing.
Anything I’ve left out ???

Peterxxxxxx

[Deleted User] said:

Just wanted to say how refreshing to actually have a post about budgeting on this thread! Most posters discuss bank accounts and switching. Perhaps time to split into two threads or sections. 

I’m intrigued by what Baron Dale finds refreshing about the budgeting thread. What else would he like to see.
I know what I like.

[Deleted User]

Peterxxxxxx said:

Baron_Dale said:

“Just a comment about the cost of your printer ink. It seems very expensive. I have a contract with HP and currently pay £3 a month. Cartridges are sent automatically as and when needed. Under my agreement I can print about 50 to 60 pages a month which is fine for my needs. Even if I wanted to print a few hundred a month the cost would only be about £12 a month. “

Dear Baron Dale 
Thank you for your comments.
Regarding printers. I have shop bought cartridges. The ink levels are at the same height. I would sign up for HP Instant lnk. Change the cartridges. Load 50 sheets of paper, and start printing.
Anything I’ve left out ???

You need to have a HP Printer. I joined the cartridge scheme as part of the printer set up process. The machine lets HP know when you need ink and how many pages you have
printed.

[Deleted User]

Peterxxxxxx said:

[Deleted User] said:

Just wanted to say how refreshing to actually have a post about budgeting on this thread! Most posters discuss bank accounts and switching. Perhaps time to split into two threads or sections. 

I’m intrigued by what Baron Dale finds refreshing about the budgeting thread. What else would he like to see.
I know what I like.

   What I meant was that most of the posts are about bank account switching and bank accounts. Rarely do you come across posts that actually discuss budgeting with examples. I like to read about the actual budgets of real people with figures. That way people can learn from them or offer their opinions and make suggestions which are hopefully helpful. 

Peterxxxxxx

[Deleted User] said:

   What I meant was that most of the posts are about bank account switching and bank accounts. Rarely do you come across posts that actually discuss budgeting with examples. I like to read about the actual budgets of real people with figures. That way people can learn from them or offer their opinions and make suggestions which are hopefully helpful. 

Baron Dale
Thank you for the explanation. Being able to talk to someone on this subject is something I appreciate. Additionally, being able to post calculations, tables of figures and graphs on this subject would be helpful in many way.
I can thing of some interesting side roads on this subject.
🙂🙏

Peterxxxxxx

Baron Dale
For me this is for amusement and interest. 

Instagram #budgeting
Search using this tag. They have some well designed budgets. Visually well designed budgets.
🙂

RG2015

Sometimes the danger is focussing on the process rather than the outcome.

You need to constantly ask yourself what you are trying to achieve and if the action is contributing to the goal.