Monthly Budgeting

This is a category of my blog which I would like to like to expand as it drives me mad that it isn’t taught in schools and yet is so so important, how to handle monthly household budgeting. I am by no means an expert, but I do try to keep on top of things as much as budget allows at any point in my life and I am very proud to say that I managed to pay off all of my CC debt before my boys were born, an achievement which I am very  proud of, as we all now how much of a slippery slope CC’s can be. The purpose of this post is to share with you my top tips for managing a tight budget in the best way I know how and to share with you the template of the monthly spending spreadsheet which I have developed and I use to manage my money monthly and keep track of spending.

So here are my top tips:

1.  Know what is coming in and what is going out: sounds simple but its so important, as it is very easy these days, when we operate in electronic money most of the time, whether that be through card payments or PayPal, to be really disconnect from your bank balance and what it actually means, and what is left to spend, this is why I keep track on a spreadsheet which allows me to plan my spending in three simple categories; 1. Monthly Income, 2. Regular Monthly Outgoings/Bills & 3. Other Spending, at the bottom of each box is a total, which automatically calculates so that I can see what I have left to spend easily and quickly.
2. Saving a little is always better than not saving at all: I currently save by having around 10 mini savings accounts (or e-savers) attached to my current account and for anything which I need to save up for and I put a little aside each month towards them all so that I have a little pot of money to use as and when the expense comes up… examples: Dentist Saver (gets £10 a month), Medical Saver (gets £10 a month), Car Saver, which covers the cost of Tax, MOT, Service and £100 Emergency (gets £45 a month) etc etc… the goal of these accounts is not really to accrue lots of interest or to save for the long term, but is simply to put a little away each month so that when I get a big bill for some reason or another (as always seems to happen in life) I have a pot of money to pay for it or at least contribute a good proportion to. This is something which I started when I was an office temp, being paid monthly without any sickness pay, and I knew I couldn’t afford a day off sick, so I started putting £10 of my weekly wage into a saver so if I was sick then I would be able to cover the shortfall.
3. Same principle goes to paying off any debt, better to do some than not any at all:  Living in your overdraft for most of the month seems to be normal for most people I know, but it is always worthwhile to chip away at debts like this wherever you can, I just put £10 a month aside, when I can, and then get immense satisfaction in at the end of the year reducing my total overdraft by £120. This sort of thing really does make a difference to the interest which your bank will charge you each month, I’ve managed to go from paying around £6.50 interest to paying under £2 most months now, every little really does help 🙂
4. Go with Banks who make your life easier with user friendly on the go apps: Our current banks of choice are Barclays for our joint stuff, First for my own stuff and PayPal – all of these have some of the best banking apps which I have come across, and are constantly updating features so you are able to bank on the go on your mobile without having to log on to your laptop or PC to authorize, this is definitely the way forward, you want, quick, easy and on the go all the way, no mess, no fuss. 
5. Get your kids into saving right from the start: I have already set up each of my boys with a Junior ISA, we decided to go with Shepherds Friendly, from out Bounty Pack, and we just set up £10 a month for now, as that’s what we can do right now, I still feel proud of that though because it is a start and it does add up and we will increase it when budget allows so that the boys have a nice little nest egg to start adult life at 18. As soon as they get old enough to receive pocket money I plan to teach them about the need to earn it and save it as well as how to spend it sensibly.    

Right that’s it really for my top tips, I’d love to hear yours in the comments below. Please find my monthly budget sheet template below, I hope you find it as useful as I have in managing your money, please do let me know if you have any questions too. Happy thrifting until next time. 🙂

Monthly Spending Template