Category: Budgeting

New Budget

~ Rob

Yes you guessed it. It’s new Budget Time. Yes I know the budget screenshot is missing because it had some errors in it. Let us pretend it all went well. I warned you I suck at budgets. My slide line incomes seem to have hidden that the budget was out on the columns. I suck at using Excel too :-). Luckily all the stats in my left box are accurate and correct.

I’ve had a great few months, all my debts are paid apart from my student loan which has £40,110.44 still owing, the last bit of my 2nd credit card and £3,500 to Mum and Dad. They have no idea what a mess I was in financially. I want to surprise then by paying them back the whole amount in cash.

Now that I’ve nearly paid off my credit card and the car loan is gone I feel I can tell my family what I’ve been up to in the last eighteen months or so. I still have my credit card but the balance will soon be £0 and I’ll use the card to track expenses and pay it off in full each month.

I have undergone an incredible change over the last year. This simple life and frugal living is the way forward. Life seems much easier, as my debt goes down I’m starting to feel “free”.

I’ve outgrown overspending and feel ready to settle down. My budgeting isn’t perfect or tracks every single penny. Nothing is concrete but I can work with it and keep on track.

I’m happy to have made a start. Try it yourself and see what feels right and see what comes next. My next targets are to finally start saving. So that’s the plan for the next 12 months.

Budgets Comparing Old to New

~ Rob
Old budget and new budget

I’ve been launching a couple of other websites and being working on them other the last month or two and I realised I haven’t published a budget on here for a while so here is the latest version compared to my first one. (sorry it’s a bit squashed)

As you can see lots of changes and saving having taken place and debts have been taken off the debt section. I’ve paid off the expensive credit card, car loan and my overdraft.

Entertainment is finally back on the list but I went over budget by -£66.00. Naughty, Naughty…but I think I’ve earned it.

Budget Strip Club

~ Rob

No, this post isn’t about how to get lower strip club prices or where you can get hold of discount lap dancing coupons. Sorry to disappoint you.

Over the last few months I’ve cut costs and stripped down my budget which has lead me to wonder if I could reduce it even further. Is it possible to bring my outgoings down to frugal fractions.

What is the bare minimum you could survive on in areas like food, travel, entertainment? By going frugal and been more financially reserved would it be possible to shave even more off my budget.

You can have fun without spending much on entertainment and going to the club. Going out drinking costs a bomb and isn’t economically when you can party cheaper at home for 75% less dosh.

When I explained to friends that I didn’t what go out partying and drinking because I was on a tight budget they laughed and mocked me for using discount stores and going shopping in cheap shops and labelled me a bore.

It’s funny when people look down at you for doing something they don’t understand? It may seem like madness when I have a workable budget but I want to push the budget limit and see how frugal I can you go to pay off my debt faster.

Of course I would like to go out for a drink but I knew one thing would lead to another and the night would end up costing a fortune and they would try and drag me to a strip club somewhere so I said “no I can’t afford it”.

They offered to buy me drinks and sub me yet I still declined. The last thing I want is to get into debt with my mates again. I know that saying “no thanks” was the right thing to do.

While my friends are out partying drinking pitchers, spending their money and partying I’ll be saving money and keeping to my budget. I’m still figuring it all out and at times I feel a money mentor would help keep me on track and hold myself accountable.

If you want to get ahead you need to hold yourself accountable and if you can’t afford something then say “no”. Saying no is a good budgeting habit.

Let’s see them make fun and mock me for being a loser when my debt is paid off and I’m financially free. Once your debt is gone you can work towards early retirement and that’s when the fun really starts. The fun of doing what you want every day without any financial pressures or stress.

Many of my friends don’t seem that interested in their personal finances or dealing with their debt or pensions. I’ve tried to tell them that if they’re not careful they’ll be The Leftovers. While it’s important to live in the moment you never know what fate and misfortune may bring you. So live for today and plan for tomorrow which may include sacrificing nights out, staying in days and cutting back on things.

Millennial Money

~ Rob

The millennial money debate seems to cause a stir in the media. I hate stirs and  stereotypes when it comes to young people and money. Being born between early 1980 and the early 2000s we have witnessed massive changes and grown up in the digital age which is always switched on.

Most millennial articles discuss how generation X, Y, Z or whatever letter we’re on spend money, the brands we buy, are average salaries and their view points about finance.

We are told millennials aren’t saving, aren’t investing and are handling our millennial money and futures all wrong.

My Leftovers post clearly examines my own fears of a millennial who feels angry and afraid of the future. Who in their twenties doesn’t worry about their careers, cash flow, condoms and the price of cashew nuts?

Today money troubles seem to hit the young with a slap in the face. It’s the school of hard knocks. After college and university tuition fees we are stacked up to our eyeballs in debt, unable to afford our own home and saving and investing for our financial future is a laughable joke.

If you don’t have spare money at your disposal how can you save anything? Right now poor millenials don’t have enough money to invest and there is too much conflicting financial advice on how to do it.

How can millennials do any financial planning when your money disappears on high rents, student loans, travel, utility bills and food? Are very lives are built on instability and insecurity. Not much can be planned or saved for when it’s a case of living pay cheque to pay cheque.

Many millennials experienced the great recession and watch their parents pension plan sink into the toilet when markets crashed and struggled to find high paying work during austerity.

The fact is money sucks for all civilisations and we all deal and think about money in different ways. When it comes to millennial finance there is a belief we are crazy wasteful spenders. Everyone is quick to judge and jumping to conclusions about millenials. Older generations always complain about youth, they think we are lazy, materialistic and a bunch of narcissist rebels. They forget they were young once.

This attitude, like the stereotyping of students is a big generalisation of how we handle our money and lifestyle. Millennials can be dizzy with our money but the reality is many are hard up and not all of them are in a position to save money.

What more surprising is the people complaining about “the youth of today” are the very people who we pay the rent to every month. Some millennials still have no choice but to live at home with their parents.

I lack brand loyalty because the brands don’t have any loyalty or faith in us. How can we engage with a capitalist economy that wants us to buy all the time. The only reason they engage with us at all on social media is because they want us to spend money with them. If business can’t capture the attention of Generation Y they can’t sell to us.

We are disengaged because right now it seems hopeless. How can we feel part of an economy and system that demands so much of us? Where the best financial advice we get is “make a budget”. I publish my own budgets on here and they weren’t always happy reading. Crippled by debt for my education and further disadvantaged by own silly money mistakes. A fool at both ends – not saving and not managing my money as well as I should.

Luckily things are changing. I’m budgeting, have imposed spending cuts, become more frugal and aware of my money. They are lots of financial pressures facing millennials and sound financial guidance that you trust isn’t easy to come by.

Every generation past, present and future will bitch about the “youth of today” and “how it was when I was a kid”. The thing that they forget is the youth is the future of human-kind. The future always rest on the next generation, it’s them that will find the cure for cancer and engineer technology to advance the species.

Each generation needs to improve the world in some way. Maybe in the future wealth won’t matter and people will laugh at the concept of money and personal finance. After all money and its value is a socially constructed system. When the economy sucks everybody complains, everybody suffers.

Past generations blame millennial money management on the failing economy. For millennials the retirement age will be so high we’ll just about be able to claim our first state pension on our death beds.

We don’t enjoy the struggle for survival. It’s easy to criticise us when our optimism, finances and choices have dried up. Our generation are a bunch of financial refugees.

There is no doubt young people need help with their finances. Me included.

Budgeting Leftovers

~ Rob

I’ve change my budget and added a leftover column. The idea with the new budget is to put a few quid aside. Anything extra that’s leftover I can use towards paying my debt or placing it in the kitty.

I’ll repeat until the balance hits zero, starting with the credits cards. I’ve made some big saving by reducing my food bill further, switching energy providers and now my mobile phone contact has ended I’ve change to pay as you go.

The bad budgeting news is my eBay wheeler dealing has ended. Selling on there was as a welcomed cash boost. I’ve managed to get rid of a lot of junk and unwanted items. It would be nice to replace this lost income which has helped get me through so I’m considering putting some advertising on this site.

The good news thanks to my sales I have managed to amass a total of £1948 in the kitty. I’m so proud I’ve managed to do this. Now should I put that straight into my credit card debts or clear the overdraft?