Any tips on budgeting, anyone?

noahwilson

Hi, I'm trying to perfectly manage my budget starting this month. Been having unnecessary expenses lately. :confused:

Do you have any tips on budgeting?

Reply 1

Reue

Original post by noahwilson

Hi, I'm trying to perfectly manage my budget starting this month. Been having unnecessary expenses lately. :confused:

Do you have any tips on budgeting?

Track your expenses for a month, catagorise them and then set limits on each area.

Reply 2

doodle_333

use cash as its easier to track what you spend, for example if your total budget for the week is £50 you get that out and then put your debit card away til next week and you can't forget little expenditures which add up quickly

Reply 3

username1456920

Save first. Spend what you have left.

Reply 4

vineyard13

Calculate your outgoing money in a certain time period like a week or month (e.g. rent, bills, food, spending money, travel etc.) and compare it to how much money you have coming in (e.g. job, loan, money from parents etc.) and try to keep it balanced. If you want to save some money as well, add a "savings" bit to your outgoings e.g. £20 per month. The best way to do it is on an excel spreadsheet. Also, try to be realistic about how much money you spend on each thing and leave some room for manoeuvre.

Reply 5

Pippa1992

http://itsnotperfectblog.wordpress.com/2014/08/13/how-to-budget-for-university-a-guide-to-budgeting-cash-back-and-bargain-hunting/

I actually just posted a pretty cool blog about this! :smile:

Its really simple! :smile:

Reply 6

Stinkum

Live within your means. There's no point in tracking your daily/weekly/monthly spending, it's a futile exercise. I'll repeat - live within your means.

Reply 7

Reue

Original post by Stinkum

There's no point in tracking your daily/weekly/monthly spending

I disagree. For someone very new to personal finance and budgeting it can be a great tool to demonstrate the effect of 'minor' daily/weekly purchases.

Reply 8

Pippa1992

Original post by Stinkum

Live within your means. There's no point in tracking your daily/weekly/monthly spending, it's a futile exercise. I'll repeat - live within your means.

How are they supposed to know their means if they don't know exactly what they've got and when? i don't know a single student who wouldn't want to budget to make sure they have all their bills paid and can still buy christmas presents, a new outfit for their birthday, and plenty of food.

If they don't know what is disposable, then they don't know their means.

Reply 9

Stinkum

Original post by Pippa1992

Original post by Reue

I disagree. For someone very new to personal finance and budgeting it can be a great tool to demonstrate the effect of 'minor' daily/weekly purchases.

It has never worked for me. Tracking receipts, bank statements, direct debits and things like that...it's extremely stressful. You have to spend so much time doing this, tracking your expenses is a very time consuming process. And the whole time, you're constantly stressing over every little thing. A £30 shopping bill at the supermarket, £20 worth of petrol at the gas station, £10 on fast food, monthly rent...etc...it gets very stressful when you're constantly tracking every single place where your money is going.

All you need is good sense, as long as you're not wasting money and making an effort to look for good deals, you shouldn't need to worry about budgeting, unless you're having serious financial troubles. I hate looking at bank statements, I'm very reluctant to even use internet banking. It causes me hassle and stress.

Unless you're someone who owns multiple properties, multiple cars, a business of some sort (no matter how small or how big) or if you have several people who are financially dependent on you...you really don't need the hassle of worrying about budgeting. Yes, the cost of living is expensive in this country, but it is manageable.

If at any point you realise you're struggling financially, then you need to cut your expenses.

(edited 9 years ago)

Reply 10

concretemother

Original post by Stinkum

Live within your means. There's no point in tracking your daily/weekly/monthly spending, it's a futile exercise. I'll repeat - live within your means.

Terrible terrible advice, this doesn't build up good practical knowledge about spending habits, basic needs, necessary/unnecessary luxuries, forecasting for potential good and bad periods, developing a saving plan and identifying a good deal when you see one.

Budgeting doesn't have to be over the top, but I would encourage every young adult to begin by identifying every last one of their outgoings for a period of maybe about two months. Being frugal without any awareness of what your actual means are will only lead to misery and little understanding of the way money truely functions.

Reply 11

richardbkirch

May following tips will be helpful for you:
# Decide from where to start.
# Save money for everyday expenses.
# Use extra money to help your budget.
# cement good budgeting habits.