Spending most of what I earn monthly on bills and hobbies -

[Z064life]

Hi All,
I've noticed that when I get paid, most of the money goes out of my account on expenses and buying things.

I have no dependents and am single. I do drive a high performance car but believe it or not, this has costed me nothing but petrol (which is good). It seems like the money adds up on nights out with friends, getting taxis and ubers back, eating out for lunch, etc, but I am surprised just how much things add up.

Are there any online apps etc that can help enforce a spending budget? I bank with HSBC if that helps.

Thanks

[anonymous-user]

https://www.mrmoneymustache.com/

[Benbay001]

Have you created a budget?

https://www.moneyadviceservice.org.uk/en/tools/bud...

If you know what youre supposed to spend, its much easier to notice why you miss.

[The Mad Monk]

Z064life said:

I've noticed that when I get paid, most of the money goes out of my account on expenses and buying things.

That's strange!

My situation is very similar. I seem to find, for some unaccountable reason that most of my money is going on bills and buying things and stuff?

Any idea what might be causing this?

[mikeiow]

Benbay001 said:

Have you created a budget?

https://www.moneyadviceservice.org.uk/en/tools/bud...

If you know what you're supposed to spend, its much easier to notice why you miss.

^
This!

Gotta figure out what you should be spending (*and* saving - how would you deal with unexpected bills on that motor?!).
Then you get to a budget for the misc “food and ents” part of the week: the daily spending.

My “kids” both use a Monzo card for their daily spending.
Did this at Uni: if they had £50 to spend in a week, they would move 50 from their main acct (where the grant, or your wages in this case, lives!) to the card.
Towards the end of the week, if they’ve spent up, they wouldn’t go out! Imagine that: self control for students!!
If, as was usually the case, they had some money left, say £5-15, then next week they would just move £35-45 in, to get it back to 50.
Their idea.....but does seem to work well.

Obvs lots of options to reduce your outgoings.....taking own lunch in and limited cafe coffees is an easy start....perhaps limiting nights out - heck, evenings out and Ubers can smash through a budget like a hot knife through butter!

[hotchy]

Same. One day I get paid, the next day Bill's come out. What a horrible cycle.

[sparks_190e]

Go out less, make a packed lunch for work. If you are paying more than a few hundred pounds for car insurance ditch it for something cheaper to insure, I know this is PH but having an expensive car to run without the funds to match isn't fun.

[Shnozz]

It’s easy to fall into that trap, especially when single with no kids - like you, I’m out 5-6 nights a week and found it was easy to go through £2k a month on food, drink, shots, entry fees and taxis.

You really need to start the month saving, not looking what’s left after the spending. Have a separate account that sweeps aside a proportion of your salary on pay day. You will just adjust to spending the remainder instead.

If you want to go a step further, have numerous accounts. I have a house bills account, a car account, a tax account, an ISA account etc etc. Can progress to that in due course perhaps - for now just plonk a chunk away from your ‘spends’ account.

If you find yourself dipping into it when temptation arises, consider making it a harder to access account such as one you must give notice on. Or just shred the PIN number when the card comes through the post.

Edited by Shnozz on Thursday 24th October 09:32

[Z064life]

sparks_190e said:

Go out less, make a packed lunch for work. If you are paying more than a few hundred pounds for car insurance ditch it for something cheaper to insure, I know this is PH but having an expensive car to run without the funds to match isn't fun.

I'm starting to do the packed lunch thing more now and cutting some monthly bills that I don't need (related to learning resources etc).

The car insurance is £1000 (went up froom £650, due to "statistics", buggers) but I've found some cheaper policies (with better coverage) for next year. The car isn't really the problem and will be my only luxury.

[anonymous-user]

Shnozz said:

It’s easy to fall into that trap, especially when single with no kids - like you, I’m out 5-6 nights a week and found it was easy to go through £2k a month on food, drink, shots, entry fees and taxis.

Wow, I know this is Pistonheads but that is a serious amount of money, some people don't even take that home a month. Funnily enough I had a similar conversation with a guy at work yesterday and he was complaining that he never had any money and had no idea where it went. He then went on to tell me that he sent £95 a month on sky, always bought lunch rather than sandwiches, spent £120 a month on a cleaner and £100 every weekend on lunch and bits and pieces when out with his wife and son.

I am very careful with my money (most would say tight...) and here is what I do.

1)Make sure you are paying the minimum you can for gas, electric, car insurance, mortgage etc.
2)I have a £10 a month EE sim card.
3)Never buy anything on credit, if I don't have cash then I cannot afford it.
4)Have one credit card for when I need hire cars or buy something online. The balance is always zero
5)Drive a shed, this is a personal preference so I actually prefer this than having a brand new car.
6)Eat out as little as possible, I can make much better food at home for a fraction of the cost.
7)Rarely drink, again this is a personal preference I just don't particularly enjoy it that much.
8)Don't impulse buy anything, take a second to think do I need it, rather than I want it?

I think it helps that I have never been a party animal and prefer to stay in and never feel I am missing out. One of the big things I do before I buy something is work out how long I have to work for to pay for it and is the trade worth it?

I must admit not caring if I have the latest car/iphone/laptop/TV etc. is a big part of it too. It's all the £10 and £20 you spend without thinking, add them all up and it comes to hundreds.

I suspect the average person who is always in their overdraft is spending £1k a month on car payments, eating out/drinking/smoking/lunch and general 5 minute wonder purchases they don't need.

[RichTT]

If you're will to spend the time have a look into something like Money Dashboard. There's both a web page and an app.

https://my.moneydashboard.com/landing

I use this frequently through the month to keep an eye on spending, plan a few months ahead and also to look back at what I do spend. I can then budget for the coming month. I'm fortunate to not have to set budgets for general food/fuel/going out, but I do keep an eye on it.

I also set my self savings targets each month (currently 15% outwith pension contributions). These are usually ISAs or savings accounts and are set up for DD as soon as I get paid. This means that I don't even miss it.

Good financial rule of thumb is to have 3 months 'outgoings' (not just bills but food & petrol included) in a readily accessible savings account in case of emergency. Then pay down high rate debt, then build on savings/pensions etc. Whilst of course maintaining a decent level of lifestyle which I think is a good compromise between prudence and frivolity

[BoRED S2upid]

If you can’t manage your spending electronically take it out in cold hard cash (yes the folding stuff it still exists) that way you can see how much you are spending per day / week. Give yourself a weekly budget £100 or something see how far it goes.

[SpunkyGlory]

Z064life said:

Hi All,
I've noticed that when I get paid, most of the money goes out of my account on expenses and buying things.

I have no dependents and am single. I do drive a high performance car but believe it or not, this has costed me nothing but petrol (which is good). It seems like the money adds up on nights out with friends, getting taxis and ubers back, eating out for lunch, etc, but I am surprised just how much things add up.

Are there any online apps etc that can help enforce a spending budget? I bank with HSBC if that helps.

Thanks

Does your car not also cost you insurance, servicing, MOT and so on?

[Shnozz]

Joey Deacon said:

Wow, I know this is Pistonheads but that is a serious amount of money, some people don't even take that home a month. Funnily enough I had a similar conversation with a guy at work yesterday and he was complaining that he never had any money and had no idea where it went. He then went on to tell me that he sent £95 a month on sky, always bought lunch rather than sandwiches, spent £120 a month on a cleaner and £100 every weekend on lunch and bits and pieces when out with his wife and son.

I am very careful with my money (most would say tight...) and here is what I do.

1)Make sure you are paying the minimum you can for gas, electric, car insurance, mortgage etc.
2)I have a £10 a month EE sim card.
3)Never buy anything on credit, if I don't have cash then I cannot afford it.
4)Have one credit card for when I need hire cars or buy something online. The balance is always zero
5)Drive a shed, this is a personal preference so I actually prefer this than having a brand new car.
6)Eat out as little as possible, I can make much better food at home for a fraction of the cost.
7)Rarely drink, again this is a personal preference I just don't particularly enjoy it that much.
8)Don't impulse buy anything, take a second to think do I need it, rather than I want it?

I think it helps that I have never been a party animal and prefer to stay in and never feel I am missing out. One of the big things I do before I buy something is work out how long I have to work for to pay for it and is the trade worth it?

I must admit not caring if I have the latest car/iphone/laptop/TV etc. is a big part of it too. It's all the £10 and £20 you spend without thinking, add them all up and it comes to hundreds.

I suspect the average person who is always in their overdraft is spending £1k a month on car payments, eating out/drinking/smoking/lunch and general 5 minute wonder purchases they don't need.

I admit I was shocked myself when I sat down and looked at the cold hard figures. £10 on a sandwich and a coffee work hours, packet of smokes another £10, easy £30 of a weekday in the bar (I actually sat down properly to look at things when it was a £50 spend on a non-imaginative Monday night in a local bar - far from "extreme"). Add in a £100 night Friday and Saturday most weeks and a bit of dinner here and there and it was around £500 a week. Shocking and pleased to say very much reigned in now.

I am, however, almost the polar opposite insofar as I am a party animal and feel like I am missing out if I am not out! Funnily enough, on the other points you mention, I am far more similar to you in being cautious, enjoying best rates for electric, broadband etc, a cheap but all-inclusive SIM deal, no credit, no finance, rarely impulse buy etc etc. Just far too impulsive on lifestyle living and admit its not big and clever, just a pattern I fell into being single, childless, city centre living and also commuting on foot which was all too easy to do works drinks, or last minute friend drinks, or dinner out etc etc. There were few evenings I had a reason to head off home, so I didn't.

As I say, I think the best mechanism is to front load the saving element. For many, a mortgage is an enforced savings vehicle by the fact it has to be paid and its not optional like an ISA or such like. Treat an ISA in a similar manner and one way or another you learn to live on what is left, the same way you learn to spend more when you deposit more in your account..

[dirtbiker]

I've been using Plum via Facebook messenger which links to your current account and shows where you're spending.

It also gives the option to save small amounts based on thresholds you set which I've found very painless as a way to build savings. I've got them invested through Plum in a few Stocks and Shares which are currently giving an OK return.

Worth a look: https://friends.withplum.com/r/sKjfjP (they have a referral programme too, £25 credit if you get three successful sign-ups).

[Sheepshanks]

Z064life said:

Hi All,
I've noticed that when I get paid, most of the money goes out of my account on expenses and buying things.

I have no dependents and am single.

Money's for spending. You seem to be doing it right.

[Mazinbrum]

dirtbiker said:

I've been using Plum via Facebook messenger which links to your current account and shows where you're spending.

It also gives the option to save small amounts based on thresholds you set which I've found very painless as a way to build savings. I've got them invested through Plum in a few Stocks and Shares which are currently giving an OK return.

Worth a look: https://friends.withplum.com/r/sKjfjP (they have a referral programme too, £25 credit if you get three successful sign-ups).

Or just get a Monzo account. You can set up a bills pot, savings pot, car pot etc. You can also set yourself a spending limit after your money has gone into the various pots and it shows you a chart letting you know if your on target or you've spent too much.

[budgie smuggler]

Mazinbrum said:

Or just get a Monzo account. You can set up a bills pot, savings pot, car pot etc. You can also set yourself a spending limit after your money has gone into the various pots and it shows you a chart letting you know if your on target or you've spent too much.

Thanks for this, I've been hunting for an account with this feature for years.

[Sebastian Tombs]

Z064life said:

Hi All,
I've noticed that when I get paid, most of the money goes out of my account on expenses and buying things.

I have no dependents and am single. I do drive a high performance car but believe it or not, this has costed me nothing but petrol (which is good). It seems like the money adds up on nights out with friends, getting taxis and ubers back, eating out for lunch, etc, but I am surprised just how much things add up.

Are there any online apps etc that can help enforce a spending budget? I bank with HSBC if that helps.

Thanks

So most of your money goes on things you need and things you want. So there is some left over after that?
Congratulations. You are earning more than you spend. You literally have more money than you know what to do with.

I'm not sure why you feel the need to change this. Sounds like you are doing life right.

[DonkeyApple]

Going out five times a week:

Option A: only go to Samuel Smith pubs, swap all friends out for traditional, tight fisted Yorkshiremen and walk everywhere.

Option B: Go gay and find yourself a richer older man. This is traditionally the only way to go partying 5 times a week on a normal income.

Option C: Avoid going gay or Yorkshire and find the common sense middle ground that fills the enormous void between the two extremes. You know exactly what the issue is and you have absolutely no need of an app to impart the common sense that you already have.

Sometimes the best solution is to not budget per se but to pay into your savings the amount you want to save on the same day you get paid and all the other important bills are paid and then it becomes remarkably easy to budget as for the first few months you’ll be skint within the week and living on beans for the next three until you next get paid. Nothing really focusses the mind quite as well as the 5th can of beans.