Powered by Blogger.

Budgeting my money

In the last few years I have really got into tracking my finances, and while I was good with money to begin with, I can really see a difference in my money and how I spend and save it. About 6 years ago I went from part time wages to full time wages and I was able to save so much money in the beginning, it really was such an amazing opportunity, but since then our circumstances have changed a lot and my savings and spending have changed too. 

I currently use software called 'You need a budget' or YNAB and I input all my bank transaction and everything I do with my bank card, all my  direct debits and bills that automatically come out of my account register on it and I can easily see how much I have spend on each category, for instance £147.28 on groceries for the month, or £36 on takeaways. It really helps me to see my live budget as I go through the month as to know what expenses I have. I also love that it draws me up a chart of where my money has gone, 50% bills 20% savings etc. 

I always have a money saving tin that I use and let it collect together until it is full, then I cut it open and count it in order to see how much I have saved. I have had the tin I am currently using a little longer than I wanted to, but that is because I stopped using cash when the pandemic hit and so I haven't had the change to put in it at the moment. I am making more of an effort to make up for it and add extra bits from here and there to my savings in my normal bank account. I did one of these a while back and I saved only £1 coins which made around £320, all from loose change that would have been in my wallet and just got spent without thinking about it. I didn't miss any of it and managed to treat myself to something nice with the cash. 

Recently I have been drawn back into watching people budget and talk about money and savings challenges on YouTube and its really making me want to give the cash envelope challenge a go and see how I get along with it. This involves using envelopes to split up your money each month or each payday, such as groceries, takeaways, spending money, gym etc and then you can only use the money in that envelope for that purpose. I am curious to give it a go as it seems to really help people stick to a budget, as well as saving money as sinking funds in lots of different envelopes each week. I love the way you see the cash building up, and you don't get that disconnection from the money like you do when you use your card or contactless. 

In 2020 I was on maternity pay for the full 12 months, and was so lucky to be able to take the time off work and enjoy the whole year off with my little boy when he was born. I fell pregnant very quickly with my second child and while I have gone back to work and I am on full pay for a while longer, I know my money is going to drop drastically around Christmas time and I will need to be strict with my money from there on out. I am currently in the early stages of planning how cash envelopes would look for me and what I would do as cash and what I would rather keep on my bank card. 

I feel like money is such a personal topic, and I feel like if you start giving precises figures or showing people what you spend and how it opens it up to a lot of criticism, but I do find it interesting and I think it is so personal but I have picked up so many tips and ideas from watching other people budget that I definitely think it is important to share and talk about. I am in no way any sort of financial advisor and I can only tell you either what I am doing or what has worked for me, I cannot advise you to try anything whatsoever, but I do think it is good to share tips, tricks and ideas with others as we can all learn a little bit of something along the way!

No comments