How do you budget?

LeanneTomkins · Post by **LeanneTomkins** » Wed Dec 07, 2011 8:26 am

We're looking for people to share their budgeting ideas with C&M and our readers in an upcoming feature article. We're interested in your stories and how you manage to live the dream without eating into your nest egg.

How much do you budget to live on each week?
And how do you plan your spending?
Free-camping is an obvious way to keep a bit of cash in your pocket, but how else do you manage to experience it all and keep to your budget?

Crazyhorse · Post by **Crazyhorse** » Wed Dec 07, 2011 10:12 am

Hi Leanne

I have a spreadsheet of all my costs, debts and income that includes insurances, rego's, fuel, food, clothes medicines, telephone, internet, rates...etc in fact ALL my costs. I found at first that I had to add more and more as I discovered them as months went by. Now sometimes I am at home, sometimes on the road and sometimes I am with relatives. Each situation has different costs so I have scenarios that encompass all of them.

I also have a mortgage, income from rent and my allocated pension (plus currently a fortnightly salary) on the sheet.

So at any time I know exactly my financial situation and can make informed decisions on what I will do that week.

One trick, as the above is commonsense...electricity will be 4 times a year, insurances are often annual as are rego's etc...I work on a fortnightly cycle and as part of my costs are these I work out how much per fortnight I would need to cover these, and pay that money into my mortgage. Most mortgages these days allow free redraw so bills can be paid from my loan, but if they don't, as I am in advance if I get a bill, say my rates, I just don't pay the mortgage that fortnight. Or at least the mortgage less the rate amount.

That advantages of this are less interest paid on my loan and money to pay my bill is always available.

And my medicines are also paid this way, I get 6 months worth of pills at a time under Reg24 and pay much less at Chemist Warehouse (only one dispensing fee) and make a fortnightly allowance for the pills as above.

By the way guys and gals, if anyone wants to do this PM me with your email and I can give you a starter sheet...

Boroma577 · Post by **Boroma577** » Wed Dec 07, 2011 1:25 pm

LeanneTomkins wrote: keep a bit of cash in your pocket, but how else do you manage to experience it all and keep to your budget?

Roadside stalls for produce too, often better quality and fresher (read tastier) than you buy in the shops and definitely cheaper.

Les Arnold · Post by **Les Arnold** » Fri Dec 09, 2011 10:16 am

Hi Leanne

I totally agree with Crazyhorse and have done the exact same thing with one addition. We have an income from our self managed super fund from which we draw a monthly income, we have calculated our TOTAL annual fixed costs, ie rates, insurances, home power, water etc. regos, phones, internet anything which needs to be paid throughout the year, the total sum is divided by 12 and that amount is paid into a separate bank account from which the payments are automatically deducted when they are due. That way we don't need to worry about when bills are due and if there is enough money to make the payments, and the remainder is left to use as we please.

A simple method of peace of mind.

Regards Les A ( Buggawurkin)

Crazyhorse · Post by **Crazyhorse** » Fri Dec 09, 2011 11:55 am

That's another good way also, and if you want, it is acceptable to pay (monthly) Bpay payments to your council, telephony provider, electricity provider etc as well. The only problem is bank charges but MEB (Members Equity Bank) who were in the news lately charge nuffin' for on-line transactions, works well for me.

These ideas aren't just for old people like me...my daughter bought a house some time ago and I set up a similar payment to her mortgage to cover all her expected debts. She is now $36000 in front and doesn't worry about her finances at all. By the way the trick with a 25 year old girl is selling it...I have her withdrawing a set amount of her pay each fortnight for clothes and partying which she puts in a jar...she LOVES it...

Last thing, for those that asked for and got my spreadsheet, any questions email me, happy to help.

gearing up · Post by **gearing up** » Fri Feb 10, 2012 9:27 pm

I learnt from my mum at an early stage in my life how to budget and still use a system similar to MUM'S today albeit i have added a few extra;s. Crazyhorse i believe you to are on a winner. Bloody shame they don't teach kid's in high school how to budget then again the goverment prefers us all to be in debt!!. CHEERS............

BruDi · Post by **BruDi** » Sat May 16, 2015 5:02 pm

We do the same as Crazy Horse.

We have a spreadsheet that works on a monthly cycle as well as the year and includes everything we do. It means that we collect all receipts as they inform us fully of our spending. We also have a contingency amount as who knows when an expense not budgeted for will arise. As we are self funded retirees we definitely want to know where our money is going. We have an estimate as well as actuals. We also pay most things by direct debit as that way we can go away and not be concerned about missing a payment.

BruDi

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