How do you manage your money ?
Discussion
Last Jan I decided to get on top of my finances, wasn't in debt, just wanted a tighter reign on it so I set up a spreadsheet which had the months across the top
with the outgoings down the left hand side and where they met, an amount for that particular outgoing, for that month, I allocated amounts for expenses like shopping and fuel.
This worked quite well, at any point in the month I could check my online banking and see what had gone out so I got a feel of what I could save or spend, I cant help thinking there may be a better, less manual way ?
I found I didnt go overdrawn and I managed better to save for stuff, didnt have any nasty surprises in terms of bills popping up unexpectedly.
How do you chaps do it ?
with the outgoings down the left hand side and where they met, an amount for that particular outgoing, for that month, I allocated amounts for expenses like shopping and fuel.
This worked quite well, at any point in the month I could check my online banking and see what had gone out so I got a feel of what I could save or spend, I cant help thinking there may be a better, less manual way ?
I found I didnt go overdrawn and I managed better to save for stuff, didnt have any nasty surprises in terms of bills popping up unexpectedly.
How do you chaps do it ?
I use spreadsheets in the same way as you. I've also got another one for paying down my offset mortgage.
It is a fairly manual process however I find that the very act of having to maintain a spreadsheet forces me to look at the numbers on a regular basis and I can stay on top of things better that way.
It is a fairly manual process however I find that the very act of having to maintain a spreadsheet forces me to look at the numbers on a regular basis and I can stay on top of things better that way.
All of my spending goes on the credit cards (drinks at the pub, oyster top-ups, coffee's, anything else I fancy etc.)which are then direct debited for the payment date 5-6 weeks later.
When my pay comes in I then look at my standing orders and expected direct debits and remove the calculated excess to my shares ISA to leave a £50 contingency should I need cash over the course of the month and to cover my phone bill.
When my pay comes in I then look at my standing orders and expected direct debits and remove the calculated excess to my shares ISA to leave a £50 contingency should I need cash over the course of the month and to cover my phone bill.
I know I don't have the discipline to budget individual items or groups like petrol, food shopping etc, although I have a rough idea how much each costs.
I do my finances at the end of each month, in a spreadsheet with a chart, where I can see my net cash as well as savings. This lets me see whether I've saved anything that month, or whether I need to cut back.
I then take the average monthly profit/loss, and plot it into the future. I note any big expenses like car insurance for the months in which they're due. This gives me a heads up as to where I'm going.
I could probably chop out the numbers and make it available if it'll help anyone.
I do my finances at the end of each month, in a spreadsheet with a chart, where I can see my net cash as well as savings. This lets me see whether I've saved anything that month, or whether I need to cut back.
I then take the average monthly profit/loss, and plot it into the future. I note any big expenses like car insurance for the months in which they're due. This gives me a heads up as to where I'm going.
I could probably chop out the numbers and make it available if it'll help anyone.
My wife says I am a bit geeky when it comes to our finances but I do a monthly spreadsheet of all incomings and outgoings, plus a balance sheet of all our assets and debts.
I then prepare relevant statistics such as cash coverage i.e. how many months would our current cash balance cover average expenses, debt %, net worth excluding house etc.
I do graphs and all.
It makes me feel warm and happy inside.
I then prepare relevant statistics such as cash coverage i.e. how many months would our current cash balance cover average expenses, debt %, net worth excluding house etc.
I do graphs and all.
It makes me feel warm and happy inside.
Two bank accounts: House & Current
House account has all known fixed costs coming out of it.
Salary paid into current account.
I worked out and maintain a monthly budget to cover all my fixed costs, including savings. Current account funds house account to cover fixed costs. That leaves me with money left over to spend as I wish.
House account has all known fixed costs coming out of it.
Salary paid into current account.
I worked out and maintain a monthly budget to cover all my fixed costs, including savings. Current account funds house account to cover fixed costs. That leaves me with money left over to spend as I wish.
I have a very good spreadsheet with everything on. I check my online banking every week and copy and paste the detail into it. Everything else is automated to the point where if I've gone over budget on anything be it a bill or shopping, etc. it flags up in red. I have a very good summary sheet with a breakdown month by month of bills, spending, etc on. I have savings and total debt figures in too. My partner thinks it's a bit nerdy but I don't make any financial decision without consulting it first.
So, sounds like what I do is the norm then, have to agree I find it quite enjoyable as well and the point about it being manual making you look is a good one.
I think I am doing ok and have say £1500 spare over the month but as others have said, wives tend to have other ideas, my missus is very cute with money, she has her own account to which I have no access, the joint account is mine out of which all the bills and shopping come out of, yet she still went out for a coffee with her mates earlier and took twenty quid out of the joint account ! I am making a point of noticing each time but she remains unrepentant.
I think I am doing ok and have say £1500 spare over the month but as others have said, wives tend to have other ideas, my missus is very cute with money, she has her own account to which I have no access, the joint account is mine out of which all the bills and shopping come out of, yet she still went out for a coffee with her mates earlier and took twenty quid out of the joint account ! I am making a point of noticing each time but she remains unrepentant.
J4CKO said:
So, sounds like what I do is the norm then, have to agree I find it quite enjoyable as well and the point about it being manual making you look is a good one.
I think I am doing ok and have say £1500 spare over the month but as others have said, wives tend to have other ideas, my missus is very cute with money, she has her own account to which I have no access, the joint account is mine out of which all the bills and shopping come out of, yet she still went out for a coffee with her mates earlier and took twenty quid out of the joint account ! I am making a point of noticing each time but she remains unrepentant.
I started with this approach last year after at least 15 years of running out of money (I'm 36) and so far it's gone well. This is the first year in most of my adult life where I'm starting with money instead of debt. I've got a £2000 credit card balance which I hope to clear down in the next 4/5 months as well. Feels good!I think I am doing ok and have say £1500 spare over the month but as others have said, wives tend to have other ideas, my missus is very cute with money, she has her own account to which I have no access, the joint account is mine out of which all the bills and shopping come out of, yet she still went out for a coffee with her mates earlier and took twenty quid out of the joint account ! I am making a point of noticing each time but she remains unrepentant.
amancalledrob said:
J4CKO said:
So, sounds like what I do is the norm then, have to agree I find it quite enjoyable as well and the point about it being manual making you look is a good one.
I think I am doing ok and have say £1500 spare over the month but as others have said, wives tend to have other ideas, my missus is very cute with money, she has her own account to which I have no access, the joint account is mine out of which all the bills and shopping come out of, yet she still went out for a coffee with her mates earlier and took twenty quid out of the joint account ! I am making a point of noticing each time but she remains unrepentant.
I started with this approach last year after at least 15 years of running out of money (I'm 36) and so far it's gone well. This is the first year in most of my adult life where I'm starting with money instead of debt. I've got a £2000 credit card balance which I hope to clear down in the next 4/5 months as well. Feels good!I think I am doing ok and have say £1500 spare over the month but as others have said, wives tend to have other ideas, my missus is very cute with money, she has her own account to which I have no access, the joint account is mine out of which all the bills and shopping come out of, yet she still went out for a coffee with her mates earlier and took twenty quid out of the joint account ! I am making a point of noticing each time but she remains unrepentant.
I think a lot of people have pretty shonky finances and just spend until it runs out, then go into overdraft or spend on a card, never doing that proper management, its a bit like dieting in that it takes discipline to get results.
The link between earning and spending has got a little muddied, I can go and buy pretty much anything I want from savings, or I can put it on one of two credit cards, I can go overdrawn but realistically I know when I can afford something, a lot seem to forget to pay basics and it is a bit unpopular these days to admit to being skint, like its a bit Infra Dig, so people spend more to maintain an image, an illusion when, just like dieting is food versus activity, its wages versus spending.
Took me a while to "get it", also like dieting, when you are solvent you like to keep it that way, sometimes, when you are in debt you just think sod it, a bit like me and what I have been eating and drinking the last few weeks.....
What's really kicked this off for me as that I've started harbouring thoughts of marriage and home ownership with my girlfriend, which of course means saving up a sizeable deposit - so I had to break the earn/spend cycle. This is the first Christmas I can recall where I've actually got money left after food/bills etc. Hardly any, but at least I'm in the black. Long may it continue 
Does anyone feel like making their Excel sheet available (taking out the detailed numbers of course)? I would quite like to use something myself as we are buying a house and we'll probably need to tighten our belts a little. I could devise something myself, but it would get me started and may also help others.
Legend83 said:
My wife says I am a bit geeky when it comes to our finances but I do a monthly spreadsheet of all incomings and outgoings, plus a balance sheet of all our assets and debts.
I then prepare relevant statistics such as cash coverage i.e. how many months would our current cash balance cover average expenses, debt %, net worth excluding house etc.
I do graphs and all.
It makes me feel warm and happy inside.
Marcus, is that you? I then prepare relevant statistics such as cash coverage i.e. how many months would our current cash balance cover average expenses, debt %, net worth excluding house etc.
I do graphs and all.
It makes me feel warm and happy inside.
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