spend less than I earn

The setup of Simplybudgets was done beautifully (did it on Sunday) then in the next morning my pay rolled in and some transactions which happened during the weekend updated (I totally forgot to take this into account) which actually messed up the “opening balance” of the budgeting system (It is actually a predicting system rather than recording system so the opening balance is very important) so I had to calculate manually and amend the figures. Then I wanted to print out the new details but the printer stopped working!! Anyway took a couple of screenshots and sent it off to the maker. I tell myself “Troubles and obstacles exist so that you can rise above them.”!!!!

I’ve pulled out Simply Budget software that I purchased long time ago & didn’t like. After Simply Budget I tried a couple of different money managing methods including my own excel spreadsheet etc and learnt that Simply Budget is superior system and found that the reason why it didn’t click with me initially is because I was using it incorrectly… so I started again and this time the set up was smooth (because I’ve done it before) and I have a really good feeling about it. It’s definitely going to help me spend less than I earn in a fun way. So looking forward to sticking with it!

One way that works for me: set up an account with no ATM, and rather troublesome to draw from. Usually banks have this kind of account. Then each month, on salary day, I’ll transfer the amount I want to save into that account, and live on the rest of the money. It actually feels good :)

.... backdated to June. This means my immediate problems are gone, just as long as I don’t act the goat too much. Having successfully negotiated Christmas (well, without going overdrawn, anyway). I can count this as now much more under control and withdraw this goal.

The last I checked up on this goal, I was attempting (futilely) to budget, and to balance my income and expenses each month. However, this was a total pain in the ass, so I fell way behind on doing it.

Well, today I forced myself to sit down and actually do some financial paperwork, simply starting from a blank spreadsheet. I did a Balance Sheet first, which is a snapshot of your accounts at this point in time. You add up all your assets (savings, retirement accounts), and compare that to your liabilities (credit cards, mortgage), which will give you your Net Worth. Luckily I am on the positive-side there.

Next, I did a cash flow statement, and that will show you which way you are trending. What is frightening is that, even though my accounts and spending feel like they are in order, this exercise proved beyond a doubt that I am spending more than I earn. However, I am really glad I did this now, cause I feel like I have the time to fix it.

While this was fairly tough, it really helped that I had the majority of my financial transactions recorded in Quicken, cause it allowed me to easily pull down different categories of spending. For instance, I can say “for this year so far, give me a report that tallies all my spending for Medical:Vision or Dining or Cell Phone.”

Looks like I overspent again – by a terrifying £37.79. Impressive considering that I paid off All Tomorrow’s Parties this month … and, come to think of it … I still haven’t had my last payment for that! Best remind A. Bought a couple of luxuries that I could have skipped—most notably a book about gardening and some clothes from M&S. Becoming aware of wasting money because I need to make change for bus fare. Need to change this (but not sure how).

Initial view suggests I did not do well, spending 52.53 more than I earned. Bum, I thought I’d been living more frugally. Given that my credit card bill last month was 67-ish, how did this happen???

Ah. I have an automated savings sweep, and boy, did it sweep!

So, my savings are now looking much healthier (a good thing, for reasons which will later emerge) and I had an effective underspend of hmmm -52.53 + 464.66 = 412.13.

I guess that’s what you get for not going onh holiday :(

I can’t believe how much difference it’s made to focus on my spending, follow the steps of Your Money Or Your Life (doing that less now, though . . . ) However, I just had some medical things, so now I might blow this goal. That’s unforeseen, though, and I have a bit of a cushion now, so hopefully it won’t mean veering off my plan too much. I said in January if I could do this for six months I’d check it off. And I have! So I am.

I’d been hoping to do something epensive that I didn’t do in the end, so no really big surprises in June—£147 underspend, give or take. This was the month with the mortgage switch over in it, too and I managed that well enough. I’m still spending too much on flowers, music, food, living up to the epectations of others.

Another credit card bill of doom, lots of birthdays (including the bill from Tim’s birthday), a comics convention and an accidental withdrawal of too much money. Oh, and I finally bought some clothes, which cost me all of 80. The money is (still) mostly going on food and other necessities, including the 590 protection plans I legally need in order to own a house. Although I suppose I could cut gigs, music and media purchses, which would probably save me about 60. So there you go. No clothes or entertainment and I can start saving money.