What's your budgeting process like?

can never stick to a budget ... every month theres something or the other thats a big ticket items which screws up the budget...

no to say im living out of my means or anything ...
 
Reckon we should all be thinking along these lines: i.e. the 'Pay Yourself First' principle. Many posters say they will save what's left. I used to do this, but it's futile. There's always too much month left at the end of my money - and not the other way round(!).
It's only a slight attitude change, but over the long term makes a big difference to how you view your saving discipline.
 
Do you use budgeting software? Apps? Excel?

My pre-determined budget is all in Coda and then I use 22Seven just to keep track of actual spend.

Come the first of the month I've got stuck that needs to be manually paid that I then just tick off and it auto-updates and like dynamic things like Rates & Taxes and such I just update with the value paid this month.

Then it automatically calculates what should be left based on the average income etc. I usually leave any overtime, standby etc out of the "income" and that's more of a bonus modifier.


Do you save a fixed amount or whatever is left?


Everything static is fixed and either paid on the 1st with debit orders or manually (mostly for eBucks reasons).

On the odd occasion if there is a large excess at the end of the month like during tax season or a batch of overtime etc I pay that into my Home Loan and it goes into the "bonus" fund (wife and I pay our own bonuses) and that gets drawn out every six months or for specific big ticket stuff.

How do you deal with big ticket items? Emergencies? Holidays?


Massive excess in my home loan for if the **** were to really hit the fan. Holidays I've started funding from the Bank-your-change money generated through swiping and has made it surprisingly simple to put a couple of hundred bucks away every month but outside of that holidays would come from the bonus.


Using credit cards or not?

Nope switched to the FNB Fusion account so no credit card any more. Once in a blue moon will go into the overdraft a day or three before pay day but it's really just a cash flow thing.
 
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I pay all the bills on payday, whack 25% into savings/investments and then spend the rest until the card runs out or payday happens again, whichever is first. LOL.
 
I wrote my own simple CakePHP app many years back which I still use for managing my budget (used spreadsheets before that).

Being self employed (well, in a partnership) I don't earn a fixed amount so my budget needs some flexibility. I've worked it out on a combination of fixed amounts and percentages. Basically I have a few fixed categories for normal living expenses and stuff that obviously cannot be changed on a whim e.g., Internet sub - while not something I wouldn't downgrade or outright cancel if needed I can't do it overnight so I need to be able to pay it, these fixed costs also include my basic RA.

The whole lot adds up to an amount which is usually more than 50% of my earnings, on bumper months it could be considerably less and on crappy months it's often more (i.e., I didn't earn enough). To cover that I have an emergency budget which is a fixed lump of saved money (stored in a reasonably liquid account) that equals exactly 4 times my fixed monthly budgets. So in theory I could go 4 months with zero income before I'd need to start selling shares or something, however I also use my emergency budget for any, well, emergencies. My rule for 'refilling' my emergency budget is that if it's below 75% at the end of any given month, I top it up as much as I can (up to 75%) after settling my fixed budgets. If it's more than 75% full I add to it as I can but not less than 10% (of outstanding) per month. I also have a second pre-saved budget which I manage similarly to my emergency budget which is strictly for any medical costs (doctor visits, prescriptions and so on) as I only have hospital cover.

Once that's all out of the way, I divide any remaining earnings into percentages, 50% goes to investments (TFSA, Allan Gray or whatever). The rest is chopped into a few other categories such as spending allowance (money I can spend on anything, like steam games :p ) and 'lifestyle' savings which I might use for holidays or something, currently I'm learning to fly so most of it's going into that (only about 5 more hours flying till I can do my Pilot license test :D ).

I don't personally use a credit card, although I have one in my name which we use for my business partnership, gets zeroed every month, so no actual interest paid.
 
I use some bank account combiner apps to loosely monitor my net worth (not all accounts work). Apart from that my budgeting mentality (shared by my wife, fortunately) is simply "don't buy anything stupid". We don't really have any big ticket items - house and car are fully paid off, and a vacation isn't a big ticket item for us.
 
Do you use budgeting software? Apps? Excel?

For my budget I use an excel spreadsheet in a yearly view mode (so all monthly budgets are visible for the current year). Similar to something like this: https://cdn.vertex42.com/Calculators/Images/yearly-budget-calculator.png

For potential income and expenses, I tend to project forward (based on previous circumstances/months), but only consider the values when I'm in that particular month. My yearly and regular expenses move from spreadsheet to spreadsheet each year (make a copy). Things like insurance, car service, domain renewal, etc.. I always have and are never forgotten. If circumstances change, I will forward modify.

I always know, at least in a monthly context, what's coming in and what's going out. After each bill is paid, I strike-through each item to make sure ALL bills are paid or debited. Then any free money is mine to do with as I wish, no surprises.

Do you save a fixed amount or whatever is left?

I need to save at least 50% of my nett income in any particular month. I don't intend to need to work over 40, so that's my personal plan for FIRE. This excludes my RA which is already deducted by my employer, but inaccessible until 55.

How do you deal with big ticket items? Emergencies? Holidays?

I'm a simple man. I read books, surf the net and play video games. You know, stuff that made me happy in my teenage years. I tend not to acquire much and lead a life of minimalism.

I have an emergency fund for unforeseen situations.

Using credit cards or not?

I do for the eBucks. I clear it out every month as part of my expenses. No interest paid.
 
rietrot said:
Lol, but if this is true, you will most likely benifit greatly from a more structured budget.
Click to expand...
100% true :)

After trying everything and still being broke before the end of the month, I've learned a few things.

1. Pay your future self first <- this is the most important! And make sure that you're in a good, generous mood when you make these payments. I usually do mine when I have a few skuimkoppe in my gat.
2. Don't make debt, ever!!!
3. Pay your bills on time, which should only be your bond/rent, utilities and medical cover.
4. Phuck a car. If I need to go somewhere and the wife is full of schit about her car, I use a ride-share service.
5. Don't ever sign a cellphone, or for that matter, any contract
6. Do you really need that 100Mbps uncapped fibre line? Hell no! The only reason I have a HUUUUGE 10Mbps pipe is because it's the minimum for two decentish Netflix feeds
7. Please, you don't need DSTV Premium
8. Don't let your wife or partner freeload. I earn multiples of what my wife does, so she only pays the kids' schoolfees, and buys food and clothes. Oh and her car's insurance and petrol. I paid up the car 4 years ago.
9. Buy schit from pawnshops and haggle the schit out of that deal.
10. And last, but not least, remember that money stays behind when you leave, so live your life and if you have kids, FFS make memories

I pretty much live by the above
 
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Honey Badger said:
100% true :)

After trying everything and still being broke at the end of the month, I've learned a few things.

1. Pay your future self first <- this is the most important! And make sure that you're in a good, generous mood when you make these payments. I usually do mine when I have a few skuimkoppe in my gat.
2. Don't make debt, ever!!!
3. Pay your bills on time, which should only be your bond/rent, utilities and medical cover.
4. Phuck a car. If I need to go somewhere and the wife is full of schit about her car, I use a ride-share service.
5. Don't ever sign a cellphone, or for that matter, any contract
6. Do you really need that 100Mbps uncapped fibre line? Hell no! The only reason I have a HUUUUGE 10Mbps pipe is because it's the minimum for two decentish Netflix feeds
7. Please, you don't need DSTV Premium
8. Don't let your wife or partner freeload. Mine pays the kids' schoolfees, and buys food and clothes
9. Buy schit from pawnshops and haggle the schit out of that deal.
10. And last, but not least, remember that money stays behind when you leave, so live your life and if you have kids, FFS make memories

I pretty much live by the above
Click to expand...

Besides the language I pretty much agree. :p:p
 
Honey Badger said:
What budget

/checks last SMS from bank.
/panics
Click to expand...

Pretty much this.

Wait for the debit orders to go off (normally this entails waking up at night when the phone starts going ape **** and me breaking out in a cold sweat because I know what is happening at that very moment) ... then waiting for my petrol cheque to come in from the boss for my travels to customers, rushing to the bank to cash it ... then heading to my bank to deposit it ... then pay my rent .... then scratching under the couch for any loose coins to pay the minimum due on credit card .... then I see how many packets of 2 minute noodles I can afford to get me through .... if I am really lucky ... I might be able to get a can of tuna. ROFL

Savings ...... what is that? Is that some kind of new ponzi scheme? :p

OK .... that is a bit of a dramatisation .... but that is pretty much where I am heading right now the way things are going.......and similar for many others from what I am surmising from the news.
 
Do you use budgeting software? Apps? Excel?
Yup, You Need A Budget www.ynab.com

Do you save a fixed amount or whatever is left?
what ever is left, if anything

How do you deal with big ticket items? Emergencies? Holidays?
Some savings, some credit

Using credit cards or not?
Use credit cards for everything and try (succeed about 95%) to settle entire outstanding amount before the due date.
 
I don't use a budgeting app or Excell, but I go threw my statements at least once per week to keep track of things, coupled to SMS's from the bank.
Pretty much how it goes, after the 1st and 2nd all the fixed stuff has gone off, rent, medical aid, RA etc. After that I split the rest more or less in 2.
The first half is for living expenses which I know will happen like food, fuel etc. and the other half is for entertainment like going out, restaurants, drink, buying something nice for myself etc.
The mission is to spend as little as possible of the entertainment half, because what's left of it at the end of the month goes towards savings.
The savings account covers imergencies, holidays and from time to time I'll also use it to splurge on something nice for myself as a treet.
 
Ockie said:
Pretty much this.

Wait for the debit orders to go off (normally this entails waking up at night when the phone starts going ape **** and me breaking out in a cold sweat because I know what is happening at that very moment) ... then waiting for my petrol cheque to come in from the boss for my travels to customers, rushing to the bank to cash it ... then heading to my bank to deposit it ... then pay my rent .... then scratching under the couch for any loose coins to pay the minimum due on credit card .... then I see how many packets of 2 minute noodles I can afford to get me through .... if I am really lucky ... I might be able to get a can of tuna. ROFL

Savings ...... what is that? Is that some kind of new ponzi scheme? :p

OK .... that is a bit of a dramatisation .... but that is pretty much where I am heading right now the way things are going.......and similar for many others from what I am surmising from the news.
Click to expand...

You need Do Not Disturb in your life Sir.
 
Do you use budgeting software? Apps? Excel?

Started doing it in Excel. I find that you can get a fair idea of spending habits if you separate recurring expenses from those that happen during the month. I tend to another column for tagging purposes, so I know how much goes towards "groceries/takeaways/etc".

I don't obsess over it because the intent is to get an indicator of where money is going.

Do you save a fixed amount or whatever is left?

I try to save a fixed amount. I started off small and then increased it as time went buy.

There's a half decent 50/30/20 rule. Spend 50% on necessities, 30% on want you want and save 20%. Came across it on one of the 24.com sites and thought it was a decent model to use.

How do you deal with big ticket items? Emergencies? Holidays?

I usually run with an emergency fund for emergencies. You can define it as whatever you need it to be. On reddit personalFinance it's defined as either 3-6 months worth of monthly expenses.

For bigger items, i set a goal and save up for it over time (includes holidays). The reason for saving up over time is mostly for finding the best deal.

Using credit cards or not?

Use credit card but pay it off at the end of the month.
 
Phone: beep beep
<--Checks phone, FNB app notification, money has been paid...

Me: damn okay, I'll put this into my savings
<--Next day

<--Phone call to fiance

Me: babe I'm taking you out for lunch guess where...?
Her: awwwww, simply asia?
Me: damn you know me too well
Her: I'll go get ready then.

<--at 8pm, damn I don't have petrol in my car.
:D

Used to be my life, saving 2k per month for emergencies, not much. Long term savings gets +R550pm
No credit cards, no software, no savings for holidays.
 
Do you use budgeting software? Apps? Excel?

No software, been meaning to but never get around to it.

Do you save a fixed amount or whatever is left?

Try for a fixed amount at the beginning of each month, varies if I have unexpected expenses but the goal is to be left with as close to zero in the current account at the end of each month just before salary hits. Pay as much as possible on credit card to be able to get an detailed accounting of where my money goes but always ensure to pay off in full a few times a month.

How do you deal with big ticket items? Emergencies? Holidays?

From current account, will sometimes use from savings...

Using credit cards or not?

Yes, but always diligent to pay off during the same month so no interest charged.
 
I go through cycles of: Start a budget.. put everything in Excel (format and colour code - very professional like :))

few weeks later.. think YOLO and go on a spending spree

next few days.. depressed about my lack of self control... plan a budget.. rinse and repeat ...
 
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