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New baby, new budget


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#1 lil chicken

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Posted 14 September 2010 - 11:50 AM

We are good with our money, our financial advisor always tells us we're in a great position and we must be very good with budgeting.... we actually don't and never have had a budget before.
I guess we've both been working fulltime for a long time without kids and while we don't splurge alot we definitely don't think enough about what we do spend. We have a 'sensible' mortgage repayment so we haven't bitten off more than we can chew but in the last few weeks we've spent a big chunk of our savings on a baby friendly car, airconditioning and finishing off our garden, we've just been given got our obs bill, income protection bill, our council rates bill, and all our car/house insurance rego's due..not to mention xmas!
I've only got 2.5 weeks of income left to come and no holiday pay on top when I leave for unpaid mat leave.

If you've made it this far....my questions is...what exactly IS a budget? is it just watching your money, is it working out what expenses you'll have over the year versus how much you earn or is it working out how much you will spend each month and when certain bills will come in so you can be extra careful that month etc.

I've worked out before what we will outlay over a year and what month each bill is due, which I can do again for the coming year... but I'm kinda stuck as to where to go from there...

What do you suggest?


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#2 mango

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Posted 14 September 2010 - 12:05 PM

Budgeting to me is working out exactly what comes in, and what goes out and making sure your outs aren't higher then your ins, and if it is working out how to change it, but by the sounds of it you haven't really needed to worry, but having a look at how you will go on one wage makes sense. Good Luck.

I would suggest working out how much all your bills are for the year and divide it by 12, 26 or 52 depending on how often your/DH's pay comes in. That is how much I would be putting away so when the big bills roll in its already there and you don't need to try and change your spending to allow for it.
I would then look at the remaining amount and decide how much is spending and how much is savings money.


#3 sarah2010

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Posted 14 September 2010 - 12:39 PM

while we are on two incomes we have been trying to pay everything annually. (land rates x 2, comp. car insurance, home & contents insurance, etc) and working out what our bills have been this year for all our major uses (electricity, gas, phone, water etc) and trying to put away all the money we can to have bill money in the bank for when I am not working. We have also worked out each month how much we need to save to pay for them next year to try and put away that money each week in a separate account to lighten the load next year.

So far we have paid all our baby bills, land rates, car rego, insurances for the next 12 months and we also have money saved away for the same bills for next year (so if they cost $6,000 then we have $6,000 ready now to pay them again for 2011) and we are also trying to save for all our other regular quarterly bills to have the money ready for them also.

Hopefully that means we can try and save the cost of those bills again on DH's wages and our rental income and be adding to our saving and not depleting them too much next year. I would like to be off work as long as possible and this is the only way we think we can do that with two mortgages. Have the bill money saved and then save it again each week/month ontop of it to ensure we are in front.

We will then re evaulate mid next year to see how we are going, I may need to go back to work but it just really depends on how well we are going.

Also, we have hidden away our credit cards. We never ever use them now and it MUST MUST stay that way.
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#4 *Ms Jessica*

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Posted 14 September 2010 - 12:49 PM

QUOTE(Jazy84 @ Sep 14 2010, 12:05 PM) View Post

Budgeting to me is working out exactly what comes in, and what goes out and making sure your outs aren't higher then your ins, and if it is working out how to change it, but by the sounds of it you haven't really needed to worry, but having a look at how you will go on one wage makes sense. Good Luck.

I would suggest working out how much all your bills are for the year and divide it by 12, 26 or 52 depending on how often your/DH's pay comes in. That is how much I would be putting away so when the big bills roll in its already there and you don't need to try and change your spending to allow for it.
I would then look at the remaining amount and decide how much is spending and how much is savings money.



This.

We budget for everything, every fortnight we put away into our bills account more than enough to cover our bills. We never have to worry about where we are going to find money to pay for insurance, rego etc because it's already there. We also have a very sensible mortgage and although we could have borrowed more, we didn't want to over extend ourselves and things be tight when we have interest rate rises.

Though, we were lucky in that we have been living off DH's income since before K was born, so we didn't have to factor in lose of my income.
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#5 scary_girl

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Posted 14 September 2010 - 01:42 PM

I calculate exactly how much is coming in and do estimates on the monthly expenses. I then have a separate bank account that is used for all bills, a savings account where I pretend to actually save money (bit hard on the single parent payment) and my "spendings" account for incidentals.

I put money aside for groceries, rent, mobile phone, electricity and gas - as they are my only constant expenses.

The rest of the money is split between my savings and my spendings account. Hope that helps smile.gif

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#6 Thelma

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Posted 14 September 2010 - 03:05 PM

what the other girls said. It's easy to calculate your bills etc, so I recommend keeping all your receipts for a month and see where all the incidental money is being spent (coffee, lunches, clothes, magazines, presents) etc as it really can add up if you're not keeping track of it.

Having said all that, we're really crap with budgeting! DH works for himself so we don't have a regular income (ie, money come in every fortnight etc). But we do have a fair idea what we spend, and pretty much all the incidental spendiing gets done on my credit card so where can see where it is all going. We just know how to live within our means

#7 lil chicken

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Posted 15 September 2010 - 09:58 AM

great advice, I now have a place to start! thanks guys smile.gif
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