Do you work from a budget?

[Two_Sheds]

We get a set budget for luxuries and treats (plants or seeds in my case) and it has to come out of our own budget.

We do that too: Himself has his PaddyPower account which he uses for a flutter once a week. He never puts money in it, but any profit he makes (he's actually pretty good) can be used for treats.
I do the same with my eBay account: the money from anything I sell is used to buy treats like plants, seeds, shoes & dress patterns

[chris]

My single largest problem is I have an incredible, incredible sweet tooth. I'll goto the shop and blow �5 minimum at a time, on biscuits or chocolate. I'll eat the lot in 1 sitting. It's pretty gross really, considering how healthy we eat and active I am otherwise. All these �5s add up, which over the course of a month can be quite shocking.

I can't seem to curb it, even if I eat fruit instead (which is just as expensive!).

I've increased our mortgage payments by over double, which have taken over 30 years off our mortgage, which I didn't want to post in my first post to come across like I was gloating, but I'm sure that I can increase the payments even more. My goal was to be mortgage free by the time I'm 40, drop out of the busy life of being a programmer, take a pay cut and bumble along in life.

That's sort of changed now, I've pushed my goal down to being mortgage free by 35 (Ideally, I want to be rid of it by 33) - as I posted in the other thread about my career in 5 years I want to get out of this rat-race, I'm convinced the stress of this place isn't doing me any favours.......... which is why I've posted this. If we can really cut back (and I really do mean REALLY!) I think I can half the current term again. I know it'll be tough, and as silly as it sounds my sweet tooth (anyone would think I'm preggo!) is going to be the hardest hurdle - quite lame, hey?

Alongside this pipe dream I'm having (of paying mortgage off) I'd then want to increase the mortgage payment amount to the next �10/�100 depending on what it is and our situation) and bank it... hopefully then to use to jump up to the next size house, with a larger garden!

It's a tough call mind. We have an emergency fund, which at a push could see us through a year if I lost my job. We wanted to do some more work to the house, which would be knocking through the kitchen wall into the dining room, then blanking the archway between the dining and living room up..... new kitchen, new downstairs floor throughout, decorate everything - and I think off the top of my head due to the amount of work we'd be looking at easily �10k.. if not more like �15k [depending on how much I could do myself]. I think that work would give our house the edge over the others the same around us, and with the plans I have for the garden I'm hoping that then selling the house would be easier than if we don't do the work. That said, when we moved here, we took a hit of �14k I think on our last house, and managed to knock these chaps down �8k for our current house. So in effect, we're still in that shortfall, of where we could be. Through the chain, that �6k could have helped bump our next purchase up by that much, or at least be a �6k buffer. I'm probably getting ahead of myself, and waffling.

I was very fortunate in that we lived abroad when I was growing up.. my father worked for an airline so we only had to pay 10% of the airfare - which enabled us to travel to a lot of places. I'd love to be able to offer my kids the same experience in life, as well as my wife.. Perhaps not so much in terms of flying all over the world, but at least being able to plan for a holiday and know that it could be in reach.. and not have to worry where the next lot of money is coming from. It may not happen, it may do - I don't know whats around the corner, but at least I can dream

[chris]

(oh yes, thanks for all the replies - some very useful and helpful points in them!)

[CaroltheCarrot]

I dont budget as such,but then i am a bit older as well, I do overpay the mortgage every month,not to pay it off early (its only got a couple of years left) but come December I have a mortgage free month so I can splash a bit more.
I keep all my receipts and write in a diary what I spend any cash I take out the bank on (this was because youngest had a habit of helping himself)
Himself has a seperate savings account which I take nothing to do with.
Everything is d/d or s/o right down to tv license and local football lottery

[chris]

but then hey, we are lucky enough to live somewhere where loads of people come on holiday to, so we holiday at home! (In fact, the house next door (identical to ours) is a holiday cottage, and so we pretend ours is too!)

I've been looking at places around, and near to you - it's crazy the amount of land you get for the same (or approx) money you get a house with a tiny garden around me. Like 7 odd acres! Bit too much for me I'd have thought, but that does sound amazing mind.

[Two_Sheds]

All these �5s add up, which over the course of a month can be quite shocking

My extravagance is flat whites, for other people it's the pub, or fags, or the cinema. Could you train yourself to have one bar of quality choc and eat it s-l-o-w-l-y instead of a fiver's worth?
Here's a savings calculator, if anyone's interested: Top Savings Accounts: 3.1% easy access or 3.55% for a year...

[northepaul]

One thing I have found to stop those odd bits of money mounting up, is having a little book which I have to write everything down I spend on non essentials - once you see it in black and white, it does make you stop and think.....

[its hilly]

You can get rid of a sweet tooth permenantly if you are b****y determined.
Simply cut out ALL sugar from your diet for at least three weeks. You'll be surprised at how much sugar there is hidden in things like cereals and fizzy drinks. At the end of that time you wont be bothered by cravings for sweet stuff (it's only an addiction) If you are then try a bit longer.
Its good to get it under control as binging on sweeties like that will not help keep your blood sugar stable.
Sorry, not meant as a lecture, but having worked in nursing homes I've seen some of the nastier results of diabeties.

[reetnproper]

We've been budgeting for 7 years now.

We have a yearly spreadsheet set up showing:

Balance in bank at start of each month (as of close of business, the day before OHs salary goes in);
OHs salary in; which leaves us with the
Starting balance at open of business in payday, or, if you like, the money we have left to spend (A)

Then we have all the DD/SO type payments listed on the next few rows and totalled; (B)

Then, on the next set of rows, we have amounts we've budgeted for everything else such as groceries, diesel, coal/wood etc but these are only estimates, based on previous months, to give us an idea where we are likely to be at the end of the current month and this is totalled as well (C).

These amounts have been input for the whole year, so we have a rough idea as to where we could be at the end of any month during the year.

However, as the month progresses, each purchase made is recorded against the relevant budget heading (i.e. groceries, diesel etc) and is then taken off the budgeted amount for that particular budget. For example, say we budgeted �100 for food per month (in my dreams perhaps ) and spent �75, then the amount in (C) would reduce to �25. Anyway all the receipts are then totalled (D).

Finally, B, C and D are added together and taken away from A and the new total is carried forward to the start of the next month. It sounds complicated and OTT but it works and it means that we can see what is happening to our money, not only now but in the future and can take steps to tighten the belt even further if we need to.

I also sit down each month, with my cook books and work out a menu for ALL the meals up to next pay day and then what ingredients are needed. I can then check the cupboards to see we have in the way of gravy, spices, herbs etc and only buy what we need. Obviously fresh produce is bought weekly but I only go into town once each week. Also, seven years on, I have a pretty good idea about the volume of toiletries and cleaning products we use each month and so get only what we require.

It�s an absolute pain having to do this, as it takes a good couple of hours each month but before we tried this approach our shopping bill was huge. Now it is about 1/3 of what it was because we only get what we need. It also means that there is less wastage overall.

Don�t get me wrong, we do have treats but we are fully aware of where are finances are before hand.

Reet
x

[SarzWix]

Microsoft Money. Earlier versions are better than the current one IMO. But you set it up with all of your bank account details, all of your scheduled spending, and it gives you a running cash-flow forecast, you can get reports on what you spend your money on, set savings goals, loads of stuff. I used to use it all the time, but there's little point at the moment, not having 2 brass farthings to spend on anything anyway

This is the version I have: Money 2004: Amazon.co.uk: Software

[jackie j]

We do have a budget, well at least I do lol. OH pays for everything. He pays x amount into our joint account which cover all the DD's, The family allowance and tax credits are also paid into this account, and that goes towards daughters trips, school dinner etc. He then pays the mortgage, his car ( everything ) any extra's I pay for from my little bit of wages. We dont have holidays as such, we dont drink or smoke, and we very raley go out, not cos we cant afford to go out we just dont want to unless its a special occasion.
We ( he ) shops weekly and also pays for all the food. I get 10 % off any thing bought where I work, ( limit of just over �7000 spend a year ) we only buy what we need. There never seems to be any or much left over but OH tends to buy stuff without thinking about weather we can afford it or need it.

[Two_Sheds]

I also sit down each month, with my cook books and work out a menu for ALL the meals ... and only buy what we need.
It’s an absolute pain having to do this, as it takes a good couple of hours each month

I guess I have a similar system, but it's in my head. I base our meals around what's ready on the lotty (at the moment we're having salads & stir fries).
I keep a shopping list taped on the wall, it's added to only when something runs out, then I only buy what's on the list. If Himself goes shopping he buys what he fancies, not what we need and he never checks prices (I keep drumming into him, check the price per kilo).

OH tends to buy stuff without thinking about weather we can afford it or need it.

Same here. He's always been the same, can't get rid of his money fast enough. I'm completely the other way, tight as a camel's wotsit in a sandstorm. Between us we do OK: he still buys something on eBay or Amazon every week, and he has 11 bottles of shampoo upstairs because he keeps buying the two-for-one offers in bulk. He's now talking about a new bike because he can't be bothered to clean & oil the old one (which is only 3 years old & not much used anyway lol) ... give me strength lol

[chris]

You can get rid of a sweet tooth permenantly if you are b****y determined.
Simply cut out ALL sugar from your diet for at least three weeks. You'll be surprised at how much sugar there is hidden in things like cereals and fizzy drinks. At the end of that time you wont be bothered by cravings for sweet stuff (it's only an addiction) If you are then try a bit longer.
Its good to get it under control as binging on sweeties like that will not help keep your blood sugar stable.
Sorry, not meant as a lecture, but having worked in nursing homes I've seen some of the nastier results of diabeties.

I had not thought of diabeties! Perhaps that's the kick up the backside I need! Thank you.

Well, step #1 is underway.. moving everything to monthly D/D. That's the utlitilies & tv license.. so rather than a �300 bill + �145 in one go it'll be a bit easier.

That said, my wife has mentioned she'd be happy to get rid of the telly. Thinking about doing this.. the only issue is, I download / watch on demand online what I want to watch, and like to watch it on the TV. Perhaps if I remove the cable from the dish... then if they do call around at least they'll see it's not connected up - and with no skybox/whatever by the telly

[jackie j]

We have a shopping list on the computer with everything we buy ( eats, drinks, clean, ) Print it off and just tick what we want, so easy to do.
For example on OH spending, last month he decided he wanted a pressure washer for Fathers day but he would pay for it then daughter ( me ) would give him money towards it ( it was on offer ), he also bought a new wireless printer / scanner now that I can and have used and so has daughter. Pressure washer is still in the box and not something we were desperate for.
Next month it will be some fencing for lottie.

[Two_Sheds]

Pressure washer is still in the box

We've got one of those too - I didn't realise they were meant to come out of the box We also have in the garage a Workmate (used once) and a canoe (used twice), chiminea (four times), gas BBQ (3 times), a box of super-shiny 'things' to make the car shiny (never used). Wellies (never used). Walking stick (used once, by me, for picking sloes). Let's not start with the brand new stuff in the house ...

What is it with (some) men & toys? I guess it's like (some) women and shoes