Money In Vs Money Out 17 March at 4:24PM in Budgeting & bank accounts 7 replies 438 views

financiallyfreeby30

I am not too sure if this is the correct category for this question, so if it is not please feel free to move. 

I have recently been taking a closer look at my most recent bank statement and have noticed that my "money in" is lower than my "money out" and i cannot understand why Does anyone know why this could be?
The difference between the two is about £500, so it's a significant amount of money. 
I do i have a CC and a loan through the bank that i use and I didn't think this could be the reason, but now im second guessing everything..

I have also noticed that my "experian boost" says that the "money in" is less than the "money out" but this is only about a £150 difference. 

I'm just really confused, so hoping someone may know the answer  

blue.peter

I don't think that it's really possible to answer this without seeing the statement in question. Looking at the one before and the one after might also be useful. On the face of it, you've simply spent more in the statement period than you've received.

There are all sorts of reasons why this might happen, starting with straightforward overspending. Or maybe it comes down to the start and end date of the statement period - perhaps it started just after you were paid and ended just before your next payday? Those are just the first couple that come off the top of my head. I'm sure that there are many other possibilities.

Do you use a money management app of some sort? Using one to plan ahead can be helpful. I use AceMoney, but others are available and well worth considering. The scheduling function allows me to look ahead, so that I can always see how much there should be in my accounts at any given time, and ensure that I don't go overdrawn.

eskbanker

financiallyfreeby30 said:

I have recently been taking a closer look at my most recent bank statement and have noticed that my "money in" is lower than my "money out" and i cannot understand why Does anyone know why this could be?

Because you've spent more than you've earned, presumably?  How does the closing balance compare with the opening balance?

Rob5342

The statement will show you exactly why.

financiallyfreeby30

blue.peter said:

I don't think that it's really possible to answer this without seeing the statement in question. Looking at the one before and the one after might also be useful. On the face of it, you've simply spent more in the statement period than you've received.

There are all sorts of reasons why this might happen, starting with straightforward overspending. Or maybe it comes down to the start and end date of the statement period - perhaps it started just after you were paid and ended just before your next payday? Those are just the first couple that come off the top of my head. I'm sure that there are many other possibilities.

Do you use a money management app of some sort? Using one to plan ahead can be helpful. I use AceMoney, but others are available and well worth considering. The scheduling function allows me to look ahead, so that I can always see how much there should be in my accounts at any given time, and ensure that I don't go overdrawn.

It’s actually exactly the same on the last one, but at no point on either statement has my balance ever gone to £0 or below, this is why I am confused! 

I don’t use apps, but I do have a budget tracker on excel and I’ve recently opened a Monzo account that I was only planning to use for saving, but I’m debating switching to it
I think I’ll have a look into AceMoney though, thank you! 

financiallyfreeby30

eskbanker said:

financiallyfreeby30 said:

I have recently been taking a closer look at my most recent bank statement and have noticed that my "money in" is lower than my "money out" and i cannot understand why Does anyone know why this could be?

Because you've spent more than you've earned, presumably?  How does the closing balance compare with the opening balance?

At no point has my balance gone near, or below 0 though which is why I’m confused. Looks like the statement period runs from payday/just after I’m paid to just before, so it could be the dates that it’s being generated. 

eskbanker

financiallyfreeby30 said:

eskbanker said:

financiallyfreeby30 said:

I have recently been taking a closer look at my most recent bank statement and have noticed that my "money in" is lower than my "money out" and i cannot understand why Does anyone know why this could be?

Because you've spent more than you've earned, presumably?  How does the closing balance compare with the opening balance?

At no point has my balance gone near, or below 0 though which is why I’m confused. Looks like the statement period runs from payday/just after I’m paid to just before, so it could be the dates that it’s being generated. 

I wasn't suggesting that the balance had gone anywhere near zero, just that the opening balance at the start of the period is presumably higher than the closing balance at the end.  The dates are critical - if the statement starts just after payday but finishes just before the next one then you'd expect money out to exceed money in over that statement period....

Rob5342

Apps are very useful but I really cant understand why you can't see what's going on just from looking at the statement. If the period you budget over is different from the period the statement runs over then there is obviously going to be a difference in incomings and outgoings.

A crude example:

20th Feb - paid £100

25th Feb - spend £50 in Asda

5th March - save £50

20th March - paid £100

25th March - spend £70 in Asda

5th April - save £30

A statement showing 1st March to 31st March would show £100 in and £120 out even though income equalled outgoings over your budget period.