Dear Cheeky Chums I’ve finally got a new house of my own with my girlfriend.Shes pregnant and wont stop spending now I’m overdrawn in the bank how can we manage our money better ?
This week we are focusing on Debt and managing money better for a family so today we look at Budgeting Better.
Put the following Budget plan into practice and you wont go wrong in future with all you spend.
- you need a few sheets of scrap paper ,2 note books 3 empty tins. and a fridge magnet.
budget plan notebook 1
what comes in
- List every income amount that comes into the household.It could be a wage,income support, Job seekers allowance, Child benefit or child tax credit etc.
- write down where the money comes from, on the left hand side of the notebook and on the right ,write down the amount. work it out on a weekly or monthly basis.Even if some are paid fortnightly split it up
- for example wage 200.oo net a week child benefit 18.00 a week (even if its paid monthly)
- when you have included every amount tot up the total.
budget plan notebook 2
what goes out
scrap of paper
both of you need to write down every single item you spend a week even if its newspapers delivered,dinners at the works canteen,shampoos, clothes, credit cards, sky tv,mobile phone top ups,gas bills ,electric and so on. you can always add to this list if you think of something later.then write down a typical cost ie shampoo 3.00 a bottle
now that you have written everything down on the second notebook list the most important items first these are
budgeting List A (urgent ones that must be paid before anything else) these include items such as
- rent,council tax or mortgage if you have one
- then TV licence if you have a tv in the house.
budgeting list B
- all utility bills these will be gas,electric, water.
- then food and clothes.
these are the essentials that you need to physically live on. If you owe money or debts all the items listed above will always take priority over anything else that needs to be paid off.
Budgeting list c
covers things such as insurance for the house, bricks and mortar household insurance pension plans,Life insurance.
budgeting list D luxury goods
then add any item such as regular payments from the bank such as sky tv package,mobile phone contracts etc.
Budgeting List E DEBTS
these are items you may fall behind with a lot such as a catalogue,car on finance credit cards.
when you compare the 2 notebooks and the scrap paper you can look at items you don’t really need to cut cost and budget better always remember list A and b first .No matter if you have so much debt creditors cannot make you pay a debt first before the top ones.
if you find you have more going out than you have coming in, then you are overspending and must take a look what you can cut back on. borrowing money from a loan company just to pay a utility bill will not help you long term.
the tins in the 3 tins you can keep urgent letters
important items you don’t want to lose such as a birth certificate, marriage ,license etc.
tin 2 for keeping this years bills
tin 3 for how to work kettle leaflets,guarantee bills for a Hoover etc,keeping these together future reference means you know where they are just in case.
tin 3 for bargain coupons money off vouchers etc.
the fridge magnet
you make 2 copies of what goes out of the bank so you know which bills need paying every week at a glance on the fridge so as a bill comes in it’s not missed or lost.
Tomorrow we look at hiding debt letters and not facing up to money worries ….there is a way out of debt