Budgeting sounds really simple and easy - spend less than you make - but it's tough to do. Summed up by the Micawber Principle:
"Annual income twenty pounds, annual expenditure nineteen, nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery".
Here some things I want to do in 2016 to help me spend less and save more:
Follow the Money.
The app in the picture - Spending - is a spending diary and helps me track what I've spent. It also helps me identify where I can cut back and save. It's a really useful tool and I recommend it or a similar app.
Divide money up into needs, wants and savings:
- Needs: Rent / mortgage, utilities, groceries, any loans.
- Wants: Eating out, shopping, holidays, clothes
- Savings: Retirement, emergency fund, future purchases. If you don't have a savings account, open one!
Having read a few money sites, the ideal spending spending breakdown is omething like 50% on needs, 30% on wants and 20% savings. (The 50% on needs may be difficult to achieve given the price of housing and train transport in the UK).
We have a separate account for the mortgage and all of our bills (and an allowance for food) which we have budgeted and transfer a set amount of money into it on payday. This way we don't need to worry about accidentally spending too much and not being able to pay the mortgage! I've also set all of our direct debits so that they leave the account within a week of payday - then when it's the second half of the month we can see how much we have left to spend solely on food, and budget that way.
ReplyDeleteOur major vice is eating out. We have managed to cut down considerably though just by making sure we remind each other of how much more it ends up costing when we do eat out, every time we are tempted to do it! #marvmondays
That's what we do too. It works reasonably well.
DeleteEating out is a big one for us too, but we're working to cut down and identify places to go that aren't quite so spendy.
Some lovely tips, a clear account is a clear mind and being in the black is so much more relaxing! #Sharethejoy
ReplyDeleteTrue and I love the idea of a clear account is a clear mind. We're pretty good but I want us to be better in 2016.
DeleteTrying to add more to savings is something that I'm currently working on. Its a hard but necessary process
ReplyDeleteIt is hard but worth-while. Good luck with adding more to your savings too
DeleteI don't manage my money! I love these tips though, immediately going to implement three day rule and no cash day. #fartglitter
ReplyDeleteAll the best with the no spend days and the three day rule. I find them really helpful an hope they work for you too
DeleteI like the 3 day rule, I really need to put that in place to stop needless spending! Mich x
ReplyDeleteIt is really helpful. I've found it does make a difference provided I remember to do it. I'm still learning too :)
DeleteI have learned to manage our family finances the hard way, getting them in order was the best thing I ever did. Our eldest daughter is a student and just getting to grips with managing her budget, she is doing well but I'm going to send her this link, then she might not think I'm nagging. She needs to save to fulfil her summer dreams. Thank you for sharing xx #mg
ReplyDeleteThank you for sharing your experiences. It's always good to know that you're not the only one trying to do this and people do manage it! I hope your daughter enjoys the post and finds it helpful
DeleteGreat tips here. I definitely need to enforce the 3-day rule. I am a massive impulse buyer/very impatient so I think that could really help me! #TwinklyTuesday
ReplyDeleteGood luck! Hope it works for you. I found it really helped me with the same issue.
DeleteThanks for these great money saving tips. I'm always looking for new ways to save some dough, or spend less!
ReplyDeleteSarah xx
http://whimsicalmumblings.blogspot.co.uk
I hope they help you :) Thank you for commenting
DeleteI really like the idea of 3 Days rule. I will give that a try. Thanks for sharing.
ReplyDeleteMy pleasure. I hope it works for you as well as it worked for me.
DeleteI can't actually remember the last time we were in the black. Certainly before we were married. I can't wait until we don't have nursery fees anymore! #twinklytuesday
ReplyDeleteI remember those days too. It's hard when they're small and you've got childcare fees to pay. It makes me cross it's so expensive
DeleteBeing on holidays we have been spending too much, with gift shops everywhere and 3 cute kids wanting things, plus yummy meals out. But usually we are pretty good at saving so hopefully we'll get back on track soon. I totally agree with making food rather than buying, eating out is so expensive #mg
ReplyDeleteEnjoy your holiday! I'm sure you'll be back to normal when you're home and I can't wait to see photos!
DeleteSensible advice and like eating sensibly, if I record what I spend I know I'll spend less. Buying lunches is something we've been meaning to cut back on for ages now and it's really making a difference, and the food we make is nicer too. Totally agree on a little treat every now and again too, it's a real boost and when it's occasional you really appreciate it. #sharethejoy
ReplyDeleteThank you for the lovely comment and good luck with the money saving :)
DeleteLove the 3 day rule - if I fancy something on Amazon that isn't absolutely necessary I often pop it in my basket and then leave it there for a couple of days. Often when I come back to the basket later on I realise I didn't really want it after all! Great tips, thanks for linking up at #sharethejoy x (Michelle from The Joy Chaser and The Essex Barn)
ReplyDeleteThat's such a good idea! I'll give that one a go. Thank you for hosting each week
DeleteGreat post filled with lots of great tips! Saving and cutting down on spending is definitely something I need to get better at this year, especially with a second little one on the way so Ill definitely give a few of these a go! Thanks for linking this up to #MarvMondays. Emily
ReplyDeleteHope they help you save s bit of money during what will be a wonderful adventure! Congratulations to you all and thank you for hosting.
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