Facing up and moving forward

Ordinary_Yet_Unique

Isn’t YNAB fairly expensive now? Personally I use a very simple spreadsheet and a notebook which works for me and costs nothing. However, I appreciate that tools such as YNAB are helpful to many.

AnnieQ79

Ordinary_Yet_Unique said:

Isn’t YNAB fairly expensive now? Personally I use a very simple spreadsheet and a notebook which works for me and costs nothing. However, I appreciate that tools such as YNAB are helpful to many.

Yes, it's $109 dollars a year or you can pay monthly which I think works out to be about a tenner.  Spending money to save money seems a bit counter-intuitive so I might give it a miss.  Can you tell me about your spreadsheet, do you allocate amounts for things coming up and then keep a track on your spending that way?

Ordinary_Yet_Unique

My spreadsheet is very simple and not as automated as it could be lol.

I keep a record of income each month in one section.

The area for my current account lists all the outgoings from my current account each month to the end of the year. This includes everything plus the total possible for personal spends and savings. I just check to see it balances with income lol. Figures can be easily adjusted in their columns.

As I am retired income is predictable, one state pension and two occupational pensions each month. One month a year there is the 13th state pension payment which is a useful bonus lol.

Sometimes there are little extras like small PB wins and reward payments from the BS.

I also have a savings account that has virtual pots for annual spends. About £500 a month is added and distributed to the pots.

I also have another account for travel that I established this year. I plan to have some holidays next year. This year travel is curtailed owing to some caring responsibilities. On my spreadsheet I just keep the target for this account and update it. Current target is £5000 by October. Currently on track.

Finally, there is my cash ISA which contains my long term savings. I am replenishing this account after changing my car last year and a couple of house improvements. I have set a target to be met by December. Currently on track. 

On my spreadsheet I keep a note of, payments in, current total and the target for these accounts.

I have one credit card which I use occasionally to keep active and pay off in full each month.

The only other money I have is in PBs, and no way near the maximum amount! However I  seem to make about £200 a year from them. You never know a big prize could be happening one day lol.

I gave up on the uncertainties of S&S ISAs. At my age I am content to have a bit of interest each year and plod along lol. 

I am fortunate in having no debt nor mortgage.

In my notebook I have started to record my personal spends just to check I am using them wisely.

I can’t say I am particularly frugal, but do manage my money so I can live without having to worry about it.

Personally I believe  the key is to budget realistically and not set ridiculous targets that will only dishearten you. Accept that things happen and that the plan may have to be adjusted lol.

Sorry I have gone on a bit. Hope you find it a little useful.

Ordinary_Yet_Unique

I also meant to say well done on starting to tackle the debt. Perhaps post an SOA so we can make suggestions to help you on your debt free journey. I am sure the link to the proforma is somewhere on the site or another poster can provide the link.

Sarahwithlove

I think ynab can be a useful worthwhile tool if you are going to religiously use it to get the benefit of paying for it. I personally use a spreadsheet and monzo pots as I find that works best for me. Definitely complete a SOA for yourself even if its just you that sees it. 

AnnieQ79

Thank you @Ordinary_Yet_Unique for explaining your method, that is really useful!  One day I hope to be as organised as you are!  And thank you @Sarahwithlove, I am so in two minds about YNAB but I haven't looked into Monzo pots yet, I think I'll do that now!

OopsIdiditagain1

Hi Annie

Hello from a fellow newbie to posting on the boards (albeit a lurker for some time!).

I can relate to your comments about buying things to help you feel better. It is something I have done for many, many years. My shopping addiction (and it is an addiction), especially clothes, has been linked to self esteem, self worth, dealing with childhood trauma. I've also tried to find the answers at the bottom of a wine bottle. Unfortunately the only thing I have found is drowning debt which I'm determined to tackle. 

I am using YNAB and finding it really helpful to give every pound a job and create a budget for spend categories. One of my problems has been not having a budget and living within it, and an attitude of "if I haven't got the money, I can't have it", rather than relying on credit to get the fix.

I have also opened a Monzo account and set up different pots aligned with YNAB categories, to double down on learning budgeting skills. I think that will be really helpful too.

I wish you well on your journey