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  • FIRST POST
    • Million Percent
    • By Million Percent 10th May 11, 10:52 AM
    • 188Posts
    • 206Thanks
    Million Percent
    The importance of budgeting
    • #1
    • 10th May 11, 10:52 AM
    The importance of budgeting 10th May 11 at 10:52 AM
    I've just been looking back at some old bank statements and I can't believe how much money I used to throw away. There was one month where I'd had a massive bonus from work which had wiped out my overdraft and still left me with considerably more than a month's salary in credit. To my amazement, when I scrolled down I had still managed to be almost 500 overdrawn by the end of the same month. It was all spent on eating out, weekends away etc. - nothing of any necessity or value.

    Part of the problem with bonuses is that mentally you tell yourself, "It's OK I've got my bonus this month so I can afford it". Before you know it, you've spent it several times over.

    Just goes to show that it is impossible to mentally keep track of your money. Nowadays I have a detailed spreadsheet to track all spending and I log in to my online banking every day to check status. I'll never go back to my old ways.

    DFD, here we come!




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    Last edited by MSE Andrea; 17-05-2011 at 6:19 PM.
Page 1
  • Jules28
    • #2
    • 10th May 11, 11:10 AM
    • #2
    • 10th May 11, 11:10 AM
    So true, I rely on my spreadsheet nowadays, my old ways will never make a return appearance I hope!
    Proud to be dealing with my debt!
    LBM & started DMP in February 2010.
    • lilly81
    • By lilly81 10th May 11, 11:16 AM
    • 582 Posts
    • 2,293 Thanks
    lilly81
    • #3
    • 10th May 11, 11:16 AM
    • #3
    • 10th May 11, 11:16 AM
    What I love most about my budget is that I can allow for treats, and I enjoy them more knowing I can afford them (and search for the cheapest deals )
    My Car has its MOT next month, and as long as there are no majoy faults, I dont have to stress about the cost!
    Debt 03/08/08 4805.26
    Debt free date 23rd march 2009

    Make 2018 in 2018 challenge
    45.08 /2018
    • Million Percent
    • By Million Percent 10th May 11, 11:24 AM
    • 188 Posts
    • 206 Thanks
    Million Percent
    • #4
    • 10th May 11, 11:24 AM
    • #4
    • 10th May 11, 11:24 AM
    Thanks Jules. It's amazing to compare your pre and post LBM attitude to money. I'd be overjoyed to get a bonus now that cleared my overdraft and left me with a surplus. I just can't believe that I could have wasted so much money in one month.

    Totally agree Lilly, treats are much more enjoyable when you know you can afford them and you feel like you've really earned it. I get more pleasure now from a simple treat than blowing a big pile of cash on something extravagant.
    • YORKSHIRELASS
    • By YORKSHIRELASS 10th May 11, 2:33 PM
    • 4,621 Posts
    • 38,708 Thanks
    YORKSHIRELASS
    • #5
    • 10th May 11, 2:33 PM
    • #5
    • 10th May 11, 2:33 PM
    So true. For me its not just about budgeting its keeping records of what I am spending too. I make myself check my online banking every morning while I am eating my breakfast and make sure I keep my spending spreadsheet up to date. I know that I am less likely to fall off the wagon this way. In the old days I used to keep my head firmly in the sand and when I went to use my debit card I didnt always know if the payment would go through because I had no idea what was in the bank. I shudder now to think how stupid I was.
    • nicnacnoo
    • By nicnacnoo 10th May 11, 2:47 PM
    • 405 Posts
    • 1,343 Thanks
    nicnacnoo
    • #6
    • 10th May 11, 2:47 PM
    • #6
    • 10th May 11, 2:47 PM
    i was looking at my old posts yesterday from when i first started to tackle my debts, i thought i had good debt ha ha, but no debt is good debt!
    I live by a budget now and bore my frends to death with it!! but im really going on at them in the hope they get themselves sorted and realise how fulfilling it is to be in control of money
    Nic
    • backinbusiness
    • By backinbusiness 10th May 11, 4:57 PM
    • 738 Posts
    • 1,117 Thanks
    backinbusiness
    • #7
    • 10th May 11, 4:57 PM
    • #7
    • 10th May 11, 4:57 PM
    Budgeting boring? NO WAY!!!! I can fritter away endless, happy hours tweaking my budgets to my heart's content.

    What if I shaved 25 quid off this? What if I shopped every 10 days instead of 7, etc, etc ad nauseum!!

    Online banking checked every day AT LEAST!!

    Gone from not having a clue regarding my bank balance to knowing it to the exact penny!

    I love my spreadsheet!

    BiB
    DF
  • JLL
    • #8
    • 10th May 11, 6:52 PM
    • #8
    • 10th May 11, 6:52 PM
    I've got to the point that i seem to know what's cheapest in what supermarket and the very sad things is i have Mt T's near work and my mates at work ask me what deals are there, cause they know i'll know.
    • ixia
    • By ixia 10th May 11, 8:50 PM
    • 1,324 Posts
    • 5,413 Thanks
    ixia
    • #9
    • 10th May 11, 8:50 PM
    • #9
    • 10th May 11, 8:50 PM
    JLL- had a laugh at that one my workmates do the same with me.
  • canidothis
    BIB!! We share the same passion - I love my spreadsheet and snipping here and there - Ive learnt conditional formatting so that if I go under budget a cell will turn 'pink' (because its a happy colour) and if a cell turns a nasty (!) red I will snip away until it turns pink!!

    You can imagine my pure joy and excitement when I reduced my gas maintenance contract last night and straightaway entered the new amount into my spreadsheet.

    Knowing my outgoings is a revelation and not keeping fingers crossed at the checkout is just a fab feeling
    LBM March 2011 (what on earth took me so long?)
    overdraft (1) -2950 overdraft (2) -246.00
    total CC 12,661
    loan 5000
    DFD 2016 (cant come soon enough)
  • Palema
    I don't use a spread sheet - I use an iPhone app called accounts. It took me a couple of months of things not balancing for me to realise if I added an account in there just for cash things would work better! I record every penny I spend or put into savings and can see the totals of each. Other than Facebook it is probably my most used app and I couldn't be without it!
    P
    X
    Last edited by Palema; 10-05-2011 at 9:38 PM.
    ~ VSP 2013 member #1 (AKA The speedway season ticket fund ) 92.69
    ~
    Sealed Pot Challenge 2013 #1030 23.98
    ~ 2 Coin Savers Club #4 24.00
    ~ Gift Fund 120

    Moved into my own flat on 22nd February 2013!!

  • FuzzyCub
    I don't use a spread sheet - I use an iPhone app called accounts. It took me a couple of months of things not balancing for me to realise if I added an account in there just for cash things would work better! I record every penny I spend or put into savings and can see the totals of each. Other than Facebook it is probably my most used app and I couldn't be without it!
    P
    X
    Originally posted by Palema
    I use this app too. It's the best 1.19 I've spent this year. When I phoned up the bank the other day one of the security questions was "can you tell me the approximate balance of the account." - nope I can tell you to the penny!

    I never leave a checkout without popping in the details of my spending, seeing the balance reduce is a real disincentive to spending!
    Empty pockets never held anyone back! Only empty heads and empty hearts can do that! ~Norman Vincent Peale
    BR 12/03/2010 ED 12/08/2010
    BSC #338
    • vka1
    • By vka1 10th May 11, 10:40 PM
    • 107 Posts
    • 235 Thanks
    vka1
    I can only agree with all of the above. It's lovely to feel in control.

    I'm only in month 2 of spreadsheet obsession....when I have das where I don't feel like, reading here give me the kick I need to crunch the numbers. I read this, sorted my spreadsheet, now Im replying....i'll get there.

    I have a question though. I've made some overpayments and when I do it throws my month's budget for that account out of sync, and looks like my actual 'spending' for that month look way over bduget. How do you record things or manage this soyour total doesn't look depressing 'red'?!

    V
  • throughtherain
    I echo all of the above. I am in utter disbelief when I look back and realise how much I buried my head in the sand! I didn't even know the login details to several credit cards! As a result I had no idea how much debt I had, which is unbelievable. I also never checked my online banking or statements so never really knew how overdrawn I was either. When I did check every few months I used to have palpitations waiting for the balances page to load :S

    Now I too have a spreadsheet and check every day, and I feel much more in control even though I am more aware of my debt problems. It's great to be doing something about them at least!
    • chevalier
    • By chevalier 11th May 11, 1:07 AM
    • 7,761 Posts
    • 18,056 Thanks
    chevalier
    thank you for reminding me that i have a spreadsheet. this is just the distraction i need today so i will get it up to date
    I want a job that is less than an hour driving away from my house! Are you listening universe?
  • canidothis
    I can only agree with all of the above. It's lovely to feel in control.

    I'm only in month 2 of spreadsheet obsession....when I have das where I don't feel like, reading here give me the kick I need to crunch the numbers. I read this, sorted my spreadsheet, now Im replying....i'll get there.

    I have a question though. I've made some overpayments and when I do it throws my month's budget for that account out of sync, and looks like my actual 'spending' for that month look way over bduget. How do you record things or manage this soyour total doesn't look depressing 'red'?!

    V
    Originally posted by vka1
    I have to make sure that my monthly spends are lower than my income, so if there is not one item on my spreadsheet that I can shave down then I wouldnt make overpayments that would turn my spreadsheet red. With my fixed income Ive already worked out what my maximum overpayment can be.

    If one of my cells turns red eg Food or Fuel then I would reduce my pocket money allowance to compensate. I guess if I got really stuck I would transfer some money back into the account - not my preferred choice tho. So it would be looking at each outgoing to see which one could be reduced and put the reduced amount into the cell that turned red (not keen on red )
    LBM March 2011 (what on earth took me so long?)
    overdraft (1) -2950 overdraft (2) -246.00
    total CC 12,661
    loan 5000
    DFD 2016 (cant come soon enough)
    • lilly81
    • By lilly81 11th May 11, 8:30 AM
    • 582 Posts
    • 2,293 Thanks
    lilly81
    2 months after meeting my boyfriend I sat him down and got him to do a budget!

    Im proud to say 6 months on he's cleared his car loan and creditcard debt

    He now buys a 5 pack of chocolate bars at the supermarket to take to work instead of using the vending machine, because I pointed out that just because u have money doesn't mean you should get ripped off!

    The funny thing about my friends is that they turn to me for money advice/best deals and say I should right a book, to which I say sorry but Martin Lewis beat me to it
    Debt 03/08/08 4805.26
    Debt free date 23rd march 2009

    Make 2018 in 2018 challenge
    45.08 /2018
    • SpendlessKaren
    • By SpendlessKaren 11th May 11, 8:35 AM
    • 312 Posts
    • 883 Thanks
    SpendlessKaren
    Can anyone recommend an easy spreadsheet to use as I would really like to give this a try ? thanks
    • Million Percent
    • By Million Percent 11th May 11, 9:52 AM
    • 188 Posts
    • 206 Thanks
    Million Percent
    Can anyone recommend an easy spreadsheet to use as I would really like to give this a try ? thanks
    Originally posted by SpendlessKaren
    Hi Karen,

    The best option would be the Open Office Suite. This is an open-source (free) software bundle which is comparable in features to Microsoft Office and is more than sufficient for home needs. It contains a word processor, spreadsheet etc.
    www.openoffice.org

    Another option would be Google docs. This is a 'cloud' based option so your documents aren't stored on your computer but are accessed via your web browser. It's free and there is no software to install - you set up an account with Google and get started. The advantage of this is that you can access your files from any PC with internet acccess.
    www.google.com/docs

    Hope that helps.
    • foxgloves
    • By foxgloves 11th May 11, 12:26 PM
    • 4,394 Posts
    • 23,445 Thanks
    foxgloves
    As reformed 'spenders', we are completely sold on budgeting. It's a word that would have once made me think it was all about 'not having stuff', but actually, the reverse is true, as if we stick to our budget for all the boring stuff, it makes sure we have a bit of money spare for holidays & things. We will be debt-free (apart from the mortgage) for the first time this month. We are both in our 40s & estimate that we have been in debt since we were about 19. better late than never! It's a great feeling. All the card-tarting, finding cheaper providers, etc, is very worthwhile but in itself won't attack debt & prevent it reoccurring....the only way to do that is making a realistic budget & sticking to it. So I hold my hand up to being a budget anorak & join the rest of you!! :-)
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