There is a new government website, I saw on TV last night, to inform consumers. It is a confusing world. I know I dread buying phone credit and comparing plans.
In my family I was the spender, but frugality was beaten into me with meager allowances ($1 a week from which I had to put half in the bank and give 10% to church so that only left 40cents to actually spend) followed by meagre fast food pay rates, and family jokes about my spending habits ("fashion victim", which I wasn't). As a result, I am now pretty frugal. Pay cheap rent, don't get a credit card debt, shop the sale racks, never update technology, avoid takeaways… it's hardwired into me now. I have confess I do need to fight to be generous, because it's easy to feed your frugality with greed.
Anyway, I've never been disciplined with actual budgeting, cos it's so fiddly. I did once force myself to live off $400 per month (by instantly transferring out my rent, saving and giving). It didn't last very long. But it was nice in a way.
Moneysmart.gov.au has an excellent excel budget. I like that you can put your different expenses in weekly/monthly/quarterly/annually. Rent is monthly, haircuts are quarterly, don't make me do maths! It's all done for me. I also like that you can see instantly how much something costs over a year. Like eating out once a fortnight or so: the annual total is significant. Good thing we eat in Kingsford! So at least I have a budget to work off now. If I can follow it that would be nice.
Actually—what would be nice would be if you could divide your bank account into dozens of sub-sections, flow your pay into them in designated amounts, and then when you get money out or use your card you choose which pool it comes from: entertainment, clothes, medical, travel etc. When your clothes pool is empty, no more clothes. If you have any left over let it accumulate, or if really good designate another pool to switch it into like holiday saving or appeal giving. I shall write to a bank about that.
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I've often thought that last point would be so handy! I'm never able to keep track of where I'm up to (no matter what programs or spreadsheets I use) and it would be nice to be able to sort it out when the pay comes in and know that whatever is in that section is all you can spend on that thing.
ReplyDeleteIt's like the envelope system only you don't have all your cash lying around your house. (my issue with the envelopes is I'd have to carry them around with me all the time to make it work and that just seems inefficient)
Also budgeting tools never seem to take into account that you might not make the same amount on a regular basis (ie, if you're a freelancer). I know that the principle of budgeting should become even more important then, to make sure you're able to cover all your bills, but I find it impossible.
ReplyDeleteExactly like the envelope system! I've sent my suggestion to 2 banks. It's so obvious, it surely wouldn't be impossible and it would be fantastically helpful.
ReplyDeleteI know what you mean. Irregular income and those irregular expenses like braces muck everything up.