I'm cr@p at budgeting. Were going backwards and I have to get control of it. There's no point in us having a savings account as we have a mortgage offset and that's where excess cash sits.
So I need to set the spendings aside but not sure what the best way is, interested to hear how others organise it. I just don't really know where to start! Like I said, cr@p at budgeting :/
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13-08-2012 18:17 #1
Tell me your budgeting strategy...
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13-08-2012 18:47 #2
DP and I have our own accounts and a joint account for bills. We sat down and worked out what all the house costs were...food, power, insurace, etc, anything for the house to run being joint used. We split those costs 50/50 and that goes in the joint account with direct debits coming from that to pay all the bills. We put the same amount direct from our pay each fortnight, after working out the average yearly costs for things, that way we always have the bills covered.
From our own accounts we pay our own vehicle costs (DP has 2bikes and his car) have our own savings....(not including house) so we can save for gifts, treats etc and basically can do what we want with our own money. As long as the house and living costs are all covered, we are free to save or spend our earnings as we like.
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13-08-2012 19:11 #3
I pay all my bills each pay period so I never have to worry about a bill arriving in the mail and not having the money for it. I'm one of those who couldn't just put money in to a 'bills' account for when the bills arrive as I'd just keep 'borrowing' from it, so yeah it's easier for me to pay a little bit each fortnight and not have to worry about it.
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13-08-2012 19:37 #4
Each fortnight, I withdraw 'x' amount from my bank account. This cash is put aside in envelopes,
Anything left in my bank account is mine to spend, I use this money for clothes for the girls and I, lunches out, presents for friends and family, you get what I mean.
For this to work, you need to have a good grasp of how much you need for bills and food each fortnight, then be disciplined enough not to 'borrow' from your rent or bill money.
This works for me.
13-08-2012 20:25 #5Senior Member
- Join Date
- Feb 2012
I have a budgeting spreadsheet and I "put away" money for each bill and expense - I have worked these out based on what we have spent in the past plus a percentage divided into a fortnightly amount. The money actually just sits in the offset but I keep track of it through the spreadsheet by accumulating what we are putting aside each fortnight and then deducting the bill/expense amount as it comes due. I reevaluate everything annually to ensure we budget enough.
I track absolutely EVERYTHING that comes in, EVERYTHING that goes out and any money we can manage to put away as "savings". We only spend what we have budgeted and if it ain't in the budget then there better be a bloody good reason why we need it.
DH knows I control the money and knows he has to ask before spending anything. It has to be this way otherwise we'd be going backwards too. We are finally in an awesome place right now. It is hard work and you have to be disciplined but you will see the light at the end of that dark, dark tunnel eventually. Best of luck!
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13-08-2012 20:41 #6
We have a spreadsheet that has everything we spend on monthly on it. This is bills, mortgage, annual costs such as ambo, car insurance, etc, and money to spend on food, petrol, clothes, hair, sports etc. Each expense tallys up as either cash or debit and the totals at the bottom tell us how much we need to take out in cash (which is then put in our cash divider, some which accumulate over time (such as our car repair budget) and others that are fully spent each month (such as food); the other total tells us how much to put into our bills account. We NEVER borrow money for it, and try to overestimate our bills so that once a year we can take the cream off the top ($900 this year! ).
I have recently put a formula into the spreadsheet that means each month me and DH put in what we earned and it is automatically calculated how much each of us has to pay towards bills. This works for us as DH earns about twice as much as me, so it is unfair if we pay the same each. It generally works out that he pays 70% and I pay 30%
In theory it sounds a little complicated, but in reality it is very simple and means we hardly even have to think about our budget these days! We just put in our salaries each month and it spits out a figure for us to pay
13-08-2012 20:43 #7
Direct debit bills out of my pay each fortnight. My pay covers most bills and not much of a big bill to pay when it arrives in mail.
13-08-2012 20:45 #8
Ring all your companies to find out over a 12 month period how much you will need to pay each fn.
I rang my phone company for my home phone and internet, my mobile phone company, my gas company and my power company. I worked out with them how much it was costing over each fn in a 12 month period, then initially put $50 on each one, then rounded up per fn on the bills, so if it was $31/fn I would pay $35/fn. The $50 gave a head start, so in the last 5 years I have never had big bills at all, I have either been ahead or owed (like now on my phone bill) silly amounts like $4 for the month which will be covered in this week's direct debit.
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13-08-2012 20:55 #9
I get everything but my phone bill direct debited the night before pay day aka Thursday night as I get paid Friday fortnightly. I pay an agreed amount on my electricity, 1/2 phone bill each fortnight plus a lil extra. Usually whatever is left is used for food and whatever else we may need plus some put into savings for short pays such as this coming fortnight plus for our holiday in a few years. My before and after school care fees come from my FTB payment but it comes out before hand like my rent, electricity etc.
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13-08-2012 21:34 #10
I control the finances in our home (DH knows everything about it as well) but I pay the bills etc. I pay toward all the bills each month so for phones etc a set amount (everything on a plan) then bigger bills like electricity I have taken previous years and divided into monthly payments. We never owe more then the monthly amount. I then pay mortgage and move a huge chunk into offset account which we use for holidays/Christmas/new furniture etc. I then leave in account enough to cover a month of groceries and petrol (we are paid monthly) and take out whatever is left as spending money, which i give a chunk to dh and rest for kiddies and i. Dh knows not to touch what is left in account (as its for groceries and petrol) and only spends from his share of the spending money. Once it is gone it is gone. We have no credit or loans apart from mortgage and this system ensures we always have money in savings for holiday etc. it also ensures that we don't just waste all our money buying crap we don't need. (that's what spending money is for)
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