budgeting - how?
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24hr-mum:
Hi 24hr Mum,do any of u guys do mthly budgeting?
how to do? any formula or spreadsheet?
i dont. just keep counting the cts n $ when spending time
sometimes not sure whr to spend or not cos not sure if spend too much that mth
I do monthly budgeting and below is something that works for me. Hopefully, it can be useful for you too.
1. Plan
For a start, I think we need to have a plan. That can be easily done on a spreadsheet.
Decide how much of your household takehome pay is going to the various expenses/savings for the month. These expenses/savings can be lumped into big groups such as: Children Education Fund, Retirement account, Loans, Groceries, Fun and Others.
This step also depends on how couples choose to contribute towards household expenses/savings. For example, some couples prefer to contribute a sum towards household expenses/savings every month. Others may prefer to pay for certain items individually. I guess it is really a case of what works best for you.
This plan will ensure that you know how much you intend to spend and will serve as a good check when you overspend.
2. Divide the Money
Once you have decided how you would be spending the household income, the next step is to draw the money out and place your money into the various envelopes. With internet banking, you can easily transfer the money to various bank/savings accounts so physical envelopes are not needed.
3. Spend according to Plan
If you are using envelopes, you can tell how much you have left every time you draw out a sum of money from it.
With various credit cards linked to different bank accounts, you can tell how much you have spent through the bill statements online anytime.
4. Review at the end of the month
You may want look through the areas that you have overspend and decide if you can cut down or allocate more money to it. -
thanks, i seldom use credit card cos lazy to pay the bills
the different timing of expenditure makes it quite complicated. -
Yes I do monthly budgetting using spreadsheet.
I usually forecast my expenses 3 months ahead. I will list down the following :
Income
Forecasted detailed expenses (fees, insurance, maint, parents, loans, living expenses, road tax, estimated credit bills by credit card). Most of the items are predictable but some fees are paid on a term rather than monthly basis.
Balance in bank
I would update the actual credit card bill outstanding and the due date so that I can monitor the funds to know what is in or not. I've 2 bank accounts so I need to manage the cashflow between the 2. On the same spreadsheet, I also monitor my shares portfolio so that I know my total cash potential. So I update my spreadsheet everyday to know my latest position.
I have been doing this religiously for years so that I know my financial situation and whether I can afford to spend or not. Sounds too overboard :? That is my profession so maybe that's why it's easy for me to do it. -
wow, its very disciplined of u, MMM.
it will be hard to keep track of petty expenses esp those without receipts.
since DH and I share same acct, i wld hv to ask him everyday how much he spent.
do u also update the expenses made by ur hubby?
he will remember them?? -
24hr-mum:
Fortunately or unfortunately, my hubby is also in the same profession so he manages his own finances. He will give me a lump sum each month so I will manage all the fees payment and items that we both have a share. I suppose each family is different. Eg. i recently sent him the detailed expenses that we've to share for 2011 so that we can align on the cost that each person has to contribute. If not... he will keep questioning me throughout the year why must he contribute so much,etc.... Then I will show him the proof of emailwow, its very disciplined of u, MMM.
it will be hard to keep track of petty expenses esp those without receipts.
since DH and I share same acct, i wld hv to ask him everyday how much he spent.
do u also update the expenses made by ur hubby?
he will remember them??
I've a lump sum budget for those misc items or living expenses. But for credit card spending, yes, I do update in my spreadsheet the anticipated charges by card. But I also based on past trend. Eg. during my forecast, I will include eg. 1k on misc credit card charges so when actual spending happen, i will offset against this estimate. This also allows me to know how much I've charged and whether have i blown my budget.
Yes, my spreadsheet ties to bank balances.
Actually, I like this exercise as it allows me to have a cashflow projection in few months time, etc.... It also allows me to analyse my spending eg. how % goes into savings and where my money went to. -
MMM:
Wow very good leh! Can share with me the excel sheel you have a not?Yes I do monthly budgetting using spreadsheet.
I usually forecast my expenses 3 months ahead. I will list down the following :
Income
Forecasted detailed expenses (fees, insurance, maint, parents, loans, living expenses, road tax, estimated credit bills by credit card). Most of the items are predictable but some fees are paid on a term rather than monthly basis.
Balance in bank
I would update the actual credit card bill outstanding and the due date so that I can monitor the funds to know what is in or not. I've 2 bank accounts so I need to manage the cashflow between the 2. On the same spreadsheet, I also monitor my shares portfolio so that I know my total cash potential. So I update my spreadsheet everyday to know my latest position.
I have been doing this religiously for years so that I know my financial situation and whether I can afford to spend or not. Sounds too overboard :? That is my profession so maybe that's why it's easy for me to do it. -
titank:
Wow very good leh! Can share with me the excel sheel you have a not?
PM me your email
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I dont count to the cents. Basically, set aside the amount you want to save or not to be touched, then you can use the rest.
Or: salary goes into account A and transfer $x into account B. That a/c B is up to you to spend. -
MMM:
titank:
Wow very good leh! Can share with me the excel sheel you have a not?
PM me your email
Can share with me too? -
I am a dad and I do simple budgeting every month not 3 months ahead though.
My wife is SAHM and she couldnt be bothered.
I calculate what is needed minus off savings (very hard to save these days). After taking all the necessary stuff like food, transport and now baby expenses and insurance and wife pocket money...very often I don't even have pocket $$. I do have MIO TV to watch my favourite EPL soccer though which is part of monthly expense.
After I allocate lets say $300 for my baby diaper and baby milk powder/food that month than usually we don't count the $ and cents when shopping. If more, she keep. If not enough than review again next month.
I show her the budget to her every beginning of the month and she glanced through. Many times asked her to suggest things I overlook she would reply nothing else...:roll:
Thats why she dont scared I keep mistress because no $ at all to do that... :lol: Exact words that she told me...
Oh yes...I also switch to debit card. Credit card only when go overseas only for special promotional movie or dinner.
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