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  1. #1
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    Default Budgeting and managing money

    I have recently rejoined the work force and up trying to set up a new budget to maximise our income and save for the long term. I bought the book the barefoot investor which has given me some great ideas however I need to fine tune it to make it work for us.

    So if your comfortable sharing, how do you manage your money? Cash, separate accounts, multiple accounts etc?

    Any saving money tips you have would be greatly appreciated too

  2. #2
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    Separate direct debit account & put allocated money into savings account first as soon as we get paid. Work out bills for 12mths and allocate according to pay cycles. Whatever is left is for food fuel and miscellaneous like outings, clothes, shoes gifts etc

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    Our pays go into a joint account on alternating fortnights. Firstly the mortgage gets paid (we transfer that over as its with a different bank), and we pay extra which is our 'savings'. It sits in the redraw until we need it. We have a 'bills account' and deposit a certain amount in there every week (all our monthly bills like Internet, insurances, Foxtel etc, added up over the year then divided into a weekly amount), and all bills get paid out of that. On DP's pay week, as his pay is bigger, we have direct debits set up through BPay for power, water and rates. $150 gets set aside for groceries and we split the rest 50/50 into our own separate accounts to do with as we please.

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    MrsMummaButterfly  (27-04-2018)

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    Mortgage offset account has everything in it. We 'save' more money in the long run by paying less interest on the mortgage.

    We have our own accounts where we put 'fun' money in.

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    DH pays the mortgage, joint credit card and savings, he gets paid monthly with quarterly bonuses. We pay the credit card off every month. I transfer $200 a week into a joint account for groceries, direct debit a weekly amount for bills (electricity, water, gas, phone), pay the daycare fees from my smaller weekly pay. We each keep an agreed amount from our pays in a personal account to do what we like with - about $50 a week.
    We have 2 savings accounts - one for fun stuff like meals out, weekends away, birthday presents etc and a "big" savings account, our current goal is to go to U.K. for Christmas 2019 and have a decent buffer left over for emergencies. We have been saving a lot better since we decided to have a goal to save towards.
    We also deposit a small amount each month into our kids savings accounts.

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    Similar to PP I've worked out bills for the year and worked out how much I need to put aside each fortnight. This goes into our bills account which is separate from the rest of our accounts.

    Set savings, mortgage repayments and then groceries are then transferred into our offset account.

    We have a bit of a credit card debt so I pay a big chunk off.

    For the past few pay periods I've taken my 'spending' money out on cash with a view to spending no more money cause once its gone its gone. I've also been tracking where its going on the app 'Track my spend'

  8. #7
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    Default Budgeting and managing money

    I just read that book! I love it. I am planning on setting up three accounts:
    Offset account
    Fun account
    Everyday account.

    Pay will go into the offset account and each week a set amount will go into the fun and everyday accounts. Everyday account will be for groceries, meals out, clothes etc. Fun account will be for holidays, new furniture, birthday/Xmas presents etc. All set bills (power, rates, mortgage, rego, insurance) will come out of the offset account, the excess will be our savings.
    I did up a massive spreadsheet with absolutely all of our expenses so know that there will be a chunk leftover in the offset for savings.

    We are also setting up a savings / share account thing (forgot what it's called, it's in the book) for each of the kids and will put a set amount in each month.
    Last edited by babyno1onboard; 19-02-2017 at 20:30.

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    We do a lot of similar things to what PPs have said. Some things that have worked for me/us over the years...

    - always save a minimum of 10% of your wage. This was advice from my dad when I first got a job at 16 and has stuck with me. Whether you put it aside as "rainy day" savings, or a targeted saving eg holiday, new car etc. My savings helped me pay my uni fees and as such I was able to pay all my fees upfront and never had a HECS debt. I also went on a month holiday to the U.K. when I was 21.

    - DH and I get paid $200 into our own private "spendings" account each fortnight when my pay comes in. We can use this money for whatever we want without guilt or need to discuss with the other party. I have used mine for work lunches, massages (just a $30-40 one from the Chinese acupressure places in shopping centres), movies with friends, guilty takeaway cravings like KFC chicken tenders etc

    - when we were trying to pay off our wedding debt, we followed a principle called "PYF" which was pay yourself first. It's a similar concept to what we do now, we just don't call it that. But it's about making sure you pay yourself money first before you pay all your other expenses etc. You set the percentage and it means you still have money for things like going out for dinner, date nights, holidays etc without feeling the stress and strain on whether you can afford it or not. By doing this we paid off our wedding debt within a year, got rid of credit cards and now we have decent savings sitting in our bank offsetting the mortgage.

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    Our pays going into our own separate accounts. We both get paid fortnightly.
    From there DH transfers money for the mortgage payment into our joint account and money into another joint account for all our bills. I've worked out how much all our 'bills' cost (council/water rates, insurances, car rego, childcare fees, electricity, gas, family gifts, internet etc) and divided by 26 so that's how much we set aside each fortnight for bills. He keeps quite a bit of his pay for his hobbies but whatever is left/overtime/built up in his own account gets transferred into our mortgage.
    We don't have a savings account everything goes to our mortgage. We don't buy a lot of big ticket stuff and everything else is accounted for in our day to day budget. If we wanted to go on a holiday, buy a new car etc we'd redraw funds from the mortgage.
    From my pay I take out cash to pay for everyday expenses like groceries, take away, buying stuff for dd, trips to bunnings, pet supplies etc. I prefer to pay that stuff in cash as this is where I feel that little bits and everyday spending can get out of hand and add up to a lot of money.
    I keep some of my pay for my own spending money (mainly expensive trips to hair salon, treats for dd, occasional lunch) and whatever is left goes in our mortgage.
    We are pretty disciplined but I think that one of the best things you can do is write down every cent you spend for a few months. I'm too scared to do that at the moment as DH would figure out how much I really spend on dd

  12. #10
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    We share money, we have a few accounts that help us manage our money and budget effectively.

    One account is for all the bills, direct debits, home loan etc. It's also our offset account and always has the most money in it. We have a separate spending account we transfer a set $ into each week which is for groceries, petrol, entertainment and other day to day expenses. A set amount per week, once that is gone we have to wait until the next week!
    We also transfer a set $ into our personal (separate) accounts which is our play money - allows us to buy stuff without checking with each other, can spend it on whatever we want etc.

    We have an extensive budget in an excel spreadsheet that we revisit often, it lists everything we spend money on and each is worked out as a 'monthly' expense whether it be a weekly expense or an annual bill, we just work out what it costs us per month on average. That way we know what our monthly income is, what our monthly expense is, and what's left over. Which isn't much as I am currently on mat leave.

    We have lived this way for 4 years now and it works really well, and makes it easy to see where our money is going etc. And adjust when needed.


 

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