Can I ask which system people out there use for budgeting (I was going to write which “software” but changed it to “system” because I guess it doesn’t have to be computerized – a paper system could work well too).
How does your system work?
Does it work well or are you looking for other ways to improve on it.
PS I currently don’t use anything which means I constantly spend too much – I know its got to change!
Thanks in advance,
What? No one has a budget? LOL?
Someone, anyone?
Quicken? MS Money? Spreadsheet? other?
Thanks
Hello Karate
I would just start by producing a spreadsheet and listing all of your expenses and incomes. Then you could have a column for estimated expeses and one for actual. Try to make everything come in under expected and just keep monitoring it. Just by monitoring it it will have an affect on your – you will be thinking do I really need this expensive lunch today? and you will tend to cut back on expenses.
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My budget strategy is staying away from teh shops, unfortunately doesn't always work!!
I did start writing down everything that i spent money on, it does make you notice the unnecessary purchases. My biggest unknowns are all the things that the chidlren are asked to pay for at school. There is not a single week when we are not asked to pay for something. I should raise this with the school. being a teacher myself, my children are asked to pay for a whole lot more than the children that I teach.
Cheers
Sonya
Budget is a very important class they should place in the school economic system.
Budget, I don't write down a budget of such I just use common sense when I use my money, I ask myself ,"do I need this or want this', 'can I afford it', and not to be an impulsive buyer as usually it will be on special the next week or so. But i know everyone isn't like that. Make money work for you not the other way round, eg,check different bank accounts and fees, pay your credit card in full every time, have a rewards systems set up against it to benefit from. If you are in debt always pay the higher debt off first. If you have a mortgage make sure it is in an off-set account, so this reduces your principal (more so your home) you want this paid off faster than your investment first.
From your income – bank it first so you can't touch it, pay your bills on time, keep a small percentage of it as "pocket money" you could start at 10% for pocket money(if you are able), but you need to have change mentally to save and spend wisely.
This works well for me.
KCM wrote:Budget is a very important class they should place in the school economic system.100% agree.
They teach kids at school how to fill in a credit card application but not the fact that all they’re doing is spending their own money that they are yet to earn (sounds obvious but they need to be taught this)
It's amazing how kids are taught about money these days. You see young kids with eftpos cards that their parents top up, so the kids spend it, ps some kids this may be their work money so that's cool. But I know I am old school and the old bank book system is pretty much out the door and going to the bank to withdraw money, now it's too convenient to get and spend, I can see why young teenagers and young adults are the highest in debt. Because they haven't been taught how to treat money and make it work for them, to save for something big, even it is their first car, or overseas trip or deposit towards a home. I know not all kids/young adults are like this, some have a good sense of finances and guidance.
Good on you for realising your spending has to change that's a good start.
You could either hand write or spread sheet to see where you are putting your money each week/month/yearly. Start by writing down all your income, then think of all your expenses and write them down, to find your profit or loss each week. Or if you are curious to see how you spend your money weekly, you could take a money diary for maybe a month or less and write down everything you are spending your money on, this might show areas which you can improve on and also where your money is going, and enter your money income and expenses into categories to see where you are spending it on eg; columns rent/mortgage, phone, electricity, grocery, takeaways, alcohol, outings, gifts, health, insurances, etc. i know this can sound a bit of a pain, but it could be interesting.
Change is always difficult but the rewards are endless, all the best.
My system is:
- Walk through the house room-by-room and write down every single thing, no matter how small that you like to do in each room, same for the exterior & garden.
- Group expenses per trade or type (eg. all electrical, painting, total number of door handles to replace. You must end up with the list of thing to do for each trade and a list for yourself (if you do any work yourself)
- Arrange each group in order of work to be completed (egg. pest treatment, remove carpet, remove kitchen, builder to open up wall & replace windows, electrician, bathroom, kitchen, painting…)
- It helps a lot is you measure the house and draw a plan, as well as site plan. Sketch all your improvements, like wall openings, kitchen, bathroom and landscape.
- Go through the list again with your plans – you most likely will notice something you overlooked at first (eg. rubbish removal, fly screens, lawn fertiliser)
- Try to get few quotes for each trade. If you do not know traders ask your friends, family for referrals. If you are in a new area – simply ask the agent you bought a property from. Use his name when you contact a trade. Have a chat with each trade about what you can do to cut the cost down, and not just in their trade – you always will get some good ideas. Ask them if they noticed anything else you missed in your list.
- Work out the list of materials for things you want to go yourself and get a price.
- Add everything together and add at least 30% contingency. Something will always go wrong and will cost more. For the rubbish removal count at least triple of what you think it will cost – there always will be more rubbish then you can ever imagine.
After this – just try to stick with your budget. Small projects are easy. With large one, like major extension – it is easy to get carried away. Remind yourself constantly, just because you spent a huge amount of money $1000 is still the same value as it always was and will take you the same amount of work to earn it
Keep it simple, track your netbank…. refer to the bottom line. if the balance increases- invest more. When the net balance decreases, cut back on coffee, take out, beer, holidays or like. Alternatively, I make decisions to increase tax deductions and increase real cashflow that will then increase the balance as opposed to cutting back on lifestyle choices.
I have an iPhone app iXpense it. Only a few bucks, portable and easy to use. Just punch in the data take 1 min after a purchase and has easy to track monthly expenses. Great for personal expenses or a basic business expense app.
Hi, I have tried all of the above approaches. and none of them worked for me, (i know its my fault) im just not disciplined enough. So i use a lazy man's approach. I look at what i am earning per month and at the start, i put a percentage away or an amount away.
The rest i use to pay bills, ( all on time) spend, go out, eat out as much as i want.
Say i make between my wife and i $6000 per month, I might put $3000 away in a online savings account and just watch it grow. Over one year i have a deposit on an investment property.This is by no means the best way but it works for me, so look at your monthly income. put 20% away and spend the 80%.
Comeon TLC, you need to get a wriggle on if you want to have another 5 CFIPs by December 2010
Where are you looking to buy?Gooday
I have a couple of Budget Templates (spreadsheets) that I have used. You are welcome to a copy. Haven't posted here for ages and am unsure whether I can send direct to your email address.
Ian
Ian Again
I am presuming you are talking 'everyday budget' not one specific to developing……
Ian
Thanks for all the posts. Yes I mean every day budget (not developing/reno)
I like the iPhone app idea but I don’t own an iPhone (resisting the expense).
Looks like it’ll be spreadsheet then. Please email any templates to chiz AATT factplanet.com (and I’ll stick them on my server for anyone to download – assuming they’re not huge)
Cheers
Always keeping a record how much you can spend on groceries or going out is depressing! Takes all fun away!
Try to record for a week (honestly) all of your expenses. Sounds silly. But you will be surprised every single time you do it! It will show you where your money are waisted, so you know where to discipline yourself.
If you straggle with putting money aside at the end of a week – do it at the beginning of the week. Put 20% of whatever you are comfortable with on separate bank account that you never touch other then for investment reason.
Remind yourself what are you are saving for and do something about your goal every day (other then saving). It keeps your mind on track and helps you reach you goal.
Where are you looking to buy?
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