How do you budget?

[lylabellablueyes]

My partner has 2 jobs, so 2 paydays. But one job monthly pay and the second is fortnightly. I get paid end of each month, plus tax credits each week. Our household costs 1600 a month, which includes everything. Nursery fees, car, food and all household bills like petrol etc.

I find by the end of the month that I don't have enough to cover bills as I'm all over the place at the minute, I think I have more money and so spend it.

I know the best thing to probably do is to leave it all in the bank till he end of the month, but I need to buy food weekly etc.

How do you do it? I need tips. Also, do you pay your bills in front or just as they come. I have a new baby due in October and don't fancy struggling :/)

[JonnyBoy12]

I have finally balanced the budget. I owe as many people as I do not owe.

[sherrardk]

I found doing my shopping on line saved me loads of money - if the total went over £100 I would go back and change it till it seemed more reasonable. I don't pay bills monthly but I should as you don't have a mad scramble trying to find the money to pay the bills when they come in. Add all your wages up for the month and divide by the number of weeks/days it has to cover and be really strict with yourself about what treats, etc you buy. I know you work but try not to buy ready meals, they work out really expensive and don't even taste very nice. Some of Aldi's own brand stuff is really good (one of my children is a tomato sauce fiend and prefers Aldi's to Heinz).

[lylabellablueyes]

What did you do to make it easier? As we have so many paydates, it gets awkward!

[lylabellablueyes]

How do you pay your bills then sherrardk. Think I'll try online shopping for food then.

[ummmm]

You add up the cost of bills and just put that amount, or just above, in an account.

The rest of the money goes into a separate account and can be spent on day to things like food...

[sherrardk]

Hi lyla - we made ourselves bankrupt three and a half years ago and went from a life of good incomes and credit cards (!) to being on benefits (you so don't want to be in that position). It took me a while to get my head around it but you can do it. I make a list of all the meals for the week and stick to it. The food shopping costs less than £100 for seven of us. I am really frugal even though things are looking up. There are always treats for the kids and things like fizzy drinks, etc. We eat proper meals but then I don't work so I have got the time to make them. I am super organised though and can consider things that are coming up in the future (school trips, birthdays, etc). The first couple of months will be difficult as you feel the squeeze but just take a step back and look at the money coming in, what has to go out and what is left. You will be really surprised how little you need to spend on food, etc without eating just bread and water.

[annie0000]

Do you have internet banking? That can make it easier as you can see it all in one place - what's coming in when and what's going out when. If you set up all your bils on Direct Debit monthly too then it becomes a lot easier. It might be worth arranging for a few accounts for different purposes. e.g. savings for holidays/christmas/treats kept seperate from what you need on a monthly basis e.g. your £1600

[lylabellablueyes]

It sounds like a dumb question I know. I'm just so bad at budgeting. Thanks x

[albaqwerty]

Pay the big bills from the monthly wage (rent/mortgage/insurances/utilities)

Pay for food, petrol and nursery fees from the fortnightly wage.

Anything left from the monthly wage after deductions divide by 5 (not 4 as there are months with 5 weeks in them, obviously).

Sit down with a pencil and paper (not a pen!) to see if you can juggle it that way.

Hope all goes well with the new babby x

[sherrardk]

My husband now has his own business so we have more money coming in so the bills get paid out of that - I just haven't got out of my 'frugal' mind set (and never will again!). Being dependent on benefits is the pits and I am so glad we are out of all of that.

[annie0000]

it's not a stupid question. There are many people who could benefit from at least being aware that they need to learn about it. My parents were not well off when I grew up and my mum used to sit with their cash wages on a Friday and divide it all into little piles of what was need for what and would peg it together or keep it in little plastic bags. She would write what the money was for on the corner f the notes so she didn't forget, like Electric, Gas etc. I think that taught me a good lesson from a young age. Still to this day, the kids will get money given to them by my Mum and it'll have their name and birthday or christmas or holiday written on it.

[lylabellablueyes]

Sherrardk. So lovely that you got out of a difficult position and are now back on your feet. I just seem to struggle all the time and I'm a bit fed up of it.

I'll take all tips on board and work something out. Think I'll probably keep it all in one account for the bills and another for he rest. Thanks again x

[sherrardk]

I also only deal in cash - you soon notice how much you are spending when your purse is empty. Really hammers it home - I hate splitting a note as i know it will just disappear even faster. You'll get it sorted and you will feel like a weight has been lifted.

[pussnboots]

It's really difficult to start but as the yearly bills come in like car tax, car insurance, house insurance, TV licence etc etc and you have paid them, then open a savings account at your bank and put 1 twelve of the amount away eg. if your car tax is £125 per year put about £10 per week away, and so on with all other bills, it's a pain to start with but if you do this over the year you will always have the money for those very boring (everybody pays them bills) it will take some of the pressure off.

[pussnboots]

Sorry my eg.about car tax should have read £10 a month not a week.

[welshlibranr]

well, I pay most bills by DD the day after my pay is in the bank (I am paid monthly, my partner is weekly paid) so then all of the big outlay goes out then, and it's just living expenses etc from his weekly pay, seems to work for us!.....

[lylabellablueyes]

I know I should get it sorted. I'm just fed up worrying about bills all the time. Plus I'm behind on most things, so really need to get my arse it gear :-)

[sherrardk]

Do it, have a positive day, get it sorted (easier said than done I know) but you will feel so much better. Whey you get good at it, any money left over at the end of the week you can squirrel away for a family treat of some sort. X

[ELVIS68]

I move £1400 to a basic account every payday to cover bills, what`s left in the current account is used for shopping and spending money.

Doing this stops us getting bank charges every month