Really good post from Frugal Queen today about budgeting.
Froogs is discussing how she budgets. She has multiple accounts to save for various different things, like washing machine blow ups, car tyre failures and clothes for growing children.
I do some of those things, not all, and I do other things. The way I budget is to sit down with an Excel spreadsheet (spreadsheet queen me!) and work out everything coming in and going out, averaging out the irregular stuff like car tax over 12 months. I run a Cahoot savings account for us and into it every month goes one twelfth of the budgeted expenses, except groceries. All the regular bills that can be are set up as a direct debit from it, the rest are paid as they come up. The peace of mind for me is knowing that so long as I keep that money going in, the bills are taken care of, as is anything I want to accumulate money for, some big expense or something.
I’m not a great fan of insurance. I much prefer to put aside cash to deal with the event that insurance would cover, because the entire premise of insurance companies is that most of their policy holders will not claim. If they did, the insurance company couldn’t make a profit. So I would much rather pay £x to myself into a savings account than to Huge Ins Co. Inc. on the off-chance that horrible event Y may happen.
Do you have a technique that works well for you? Would love to hear about it. I might even steal it and do it myself!
When I price things for this blog, I use 50p for main meals, 20p for breakfast and lunch and 10p for a cakey treat. Although that is flexible, so long as a day adds up to £1.
I really must do another weekly plan, but I keep getting distracted by interesting things to try, I have been thinking about pancakes and things to stuff them with today.