This is me handing our last $20 to CrashHubby so he could go back down to the petrol station and make good on an IOU so they wouldn’t call the police!
We have never run out of money before. I guess there’s a first for everything! Luckily we’ll only be without funds for two days.
However, luck has nothing to do with it. It was sheer stupidity.
I forgot to pay our credit card bill and the card was declined at the petrol station. I also didn’t keep a close eye on the bank balance this month. Meanwhile we had some unusually high expenses. I should have known better.
So, guess who’s been furiously Googling budgeting tips and ways to save money?!?!?
Controlling our finances is something we’ve both been meaning to do. Sunday night’s episode is bloody good motivation to . . .
I’d love you to share in the comments if you’ve ever run out of money, or even better your best budgeting tips!
Laney x
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We desperately need a budget in our house as we’re both terrible with money in different ways. I will be watching this with interest
Workingwomenaus’s last post..What are you thankful for?
We were suffering a little from ‘head in the sand’ syndrome! I hope I can come up with some great tips and strategies we can all benefit from :)
That was us last month, Laney. Some stupid unexpected bills destroyed our bank balance. We are two days out from pay day this month and the bank balance still looks healthy. Next month might be a different story. Our rates are due as well as a bazillion other expenses coming in.
Amy @ MahliMoo’s last post..DIY: Table Top Pressing Board
Hi Amy – thanks for dropping by! Yep, it was a crazy month for us. Good on you for having a good month this month! Rates are a killer – as is the associated mortgage! At least we have a roof over our head and a cupboard full of food :).
I’m TERRIBLE with money, to the stage that we have someone else manage our money for us and we get a ‘weekly allowance”. It works great for us but I’m sure its not everyone’s cup of tea!
Good luck with the budgeting. Look forward to hearing how you go :)
Beck @ The Rambling Mummy’s last post..247/365
Hmmm, interesting idea. Maybe we can give ourselves an allowance! The problem is, I don’t know how much we need! Time for some scare-ious budgeting!
Oh hon… i know that feeling, the sickening in the pit of your stomach as it feels like its going to drop out. Please remember to keep breathing, and know that one step at a time it will get better. Like you said, bigger expenses can totally kill a month and blindside you unexpectedly. I lived most of my early 20′s like that… and then swung massively the other way, and now i feel like i am starting to find some sort of balance. Just know that each day is literally a new day, and you do your best with where you are at in that day – and that is enough xx
Lyndal’s last post..its a new day
I was hyperventilating last night Lyndal! Feeling more in control today though and ready to make some tough changes. Thanks for your support x
oooooh!!!! Thats not good sweety!!!! Budgeting is so hard no matter how old you are or how many kids you have!!! We got into trouble a few months back with only $100 on the credit card left plus not getting paid for another week.. I call it Pantry week – and we eat whatever we have in the cupboard and freezer – only using the money for essentials like Milk. These things happen… alot.. and we’re all need to pull in our belt buckle every now and then… I am on a mission this week to sort out my cupboard and freezer and make do with meals from there because its overflowing and needs to be eaten!!
Would love to do a Crash Test Cash Challenge!! What a great idea!
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“Pantry Week” is a pretty regular occurrence around here, but I probably need to be a bit better about meal planning. We’ve been eating too much meat which gets really expensive! I’m not sure what Crash Ca$h is going to look like yet. Need some advice first and then perhaps I’ll set up a challenge that everyone can follow :)
Oh no, Laney! It’s not a nice feeling at all. Whilst growing up I was never taught to budget – it’s really affected my adult life. Thankfully I’ve married a guy who is good at it and taught me a lot. Still, so hard.
Deb @ Bright and Precious’s last post..The Mark of a Man
It was the kick up the pants we both needed Deb. Time to do something about it now!
We only just got a credit card (for NYC as we felt we should really go with some sort of back up in place) and we won’t be keeping it beyond our trip to SA next March. I tell you that because, yes – we have had to be really careful about this before and have certainly have been there. We have noticed a HUGE increase in all our utility bills this month which has caught us out a bit too – looking forward to this new series!
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I hate that we have a credit card (two actually). We’ve just about paid one of them off and then it’s toast! I know what you mean about utilities too. I’m going to be on a mission to get those under control too!
Oh budgeting is hard even if you are anal about money like I am!
And everything has gone up lately… our food budget not longer stretches as far as it used to and lets not talk about the electricity bill.. that is too scary to contemplate, but we’re about to have our first bill after getting solar panels so we are hoping to see at least a little relief!
As far as tips… we work monthly and use the old fashioned ‘cash in the envelope’ deal or something similar. For me I need to be able to see how much money is there… in real dollars, otherwise I get behind or don’t add things up correctly. So at the start of the month the food/grocery money goes into the box and I can see how much I’ve got left each time I dip into it so I know if we have to life of beans and rice for the rest of the month or if I can splurge a little!
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I would love to have solar. Our gas bills aren’t too bad, but our electricity is insane and we don’t even use it for heating the house or the water! I would seriously like to know what is using up all our electricity. Actually there’s probably a way to figure that out, right?!?!?
I like your tip about having a grocery kitty. Thanks Kate :)
I am rubbish at budgeting…rubbish! I’ll be waiting on your tips Laney! x
Catherine Rodie Blagg’s last post..The happy meal
Good, we’ll both benefit then! Time for action!
I used to be the budget guru – for about 25 years. And this year, there was the holiday we HAD to have (personally I think I was having an odd grief manifestation) and we have gone pay to pay since. Our cash situation has been nil at some points but fortunately not the credit card. Amazing how many places only take cash when you need to use card!!
Yep, amazing how quickly a purchase or holiday can undo you – not matter how well you budgeted before hand. Last night at the petrol station poor hubby had to use the rest of the bank balance and the cash in his wallet and was still left with an IOU. Luckily I had $20 in my wallet!
I’ve been here so many times I cannot count. I’m a horrible budgeter but seem to get by on the meager amounts that we earn. There have definitely been times where I was worried that our electricity was going to be turned off but have always made it through.
The Life of Clare’s last post..Bomber Brekkies
I think the reason we run out of money is because I generally do pay all our bills as soon as we’re paid! And the bills are getting bigger!
Laney, I’m known amongst my friends as frugal Vicky. Having lived on an extremely tight budget for a long time, I have become very creative.
I haven’t read all the other comments, but simple savings website, and cheapskates are both great for hints, and suggestions on how to tighten your spending belt so to speak.
Good luck
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Creative is good – creative is what I’m looking for! Thanks so much for the recommendations – I’ll check both those sites out :)
I think being in the situation where debt was so bad that we using one credit card to pay of the other, until taking out a part 9 agreement made me rethink how I use money. I will never have a credit card ever again. If I don’t have the money I don’t buy it. I use a visa debit card, so I can have the benefit of the visa facility. I have also perfected the art of delaying the gratification.
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Very wise advice Vicky, very wise! Thank you :)
We are real bad with money, survived week to week but spend anything left over on…nothing! So we bit the bullet and are with a budgeting company who are amazing! Savings is growing week on week, we get allowance for food, petrol, spending and all other bills are taken care of by the third party – but we are more in control cause our budget is in front of us and we can see how the upcoming month is going etc etc… Have no money stress now and have more time with the family cause I’m not “paying bills” or “balancing the budget” etc :-)
I don’t think I will ever go back to doing our own budget … Loving the freedom too much!!
Hi Lena – that sounds interesting. Which company is it and how does it work exactly? Do they hold all of your money?
It is called MyBudget, they are marketed as “debt consolidation specialists” and help people to get out of debt quicker etc (they don’t do loans!)
They do hold all of your money however it is “YOUR” money – here is a scenario…
You have $2,000 in your “MB” account (as it is known) – you have $2,000 due to be paid on bills / living expenses before your next pay but OH NO the tyre on the car has burst and you need to get a new one… all you do is call them, they transfer your money into an “everyday” account and THEY juggle your bills so they are either paid on time or the companies are aware they are getting paid but may be a bit late.. they NEVER say “oh no you have no spare money..,.. no you can’t do that”
I can’t rave about them enough – feel free to send me an email and I’ll be happy to talk to you in more detail about it!
Ah yes, I’ve seen it advertised on TV. I’ll talk to hubby about it :)
Quick tip did you know you can organise to have payments for most utilities taken straight from you Centrelink payment before it even enters your account. I use this for electricity and phone. Oh and I have a great friend who was excellent at sitting down and doing our budget with us to suit our needs. I should send her over to meet you.
That’s good to know, unfortunately our family tax benefit payment wouldn’t come close to paying for any of our bills! I pay all our bills as soon as we’re paid, my biggest problem is there is never much left over!
we use our credit card for as much as humanly possible. then at the end of each month we transfer our money across. that way it’s sitting on our mortgage offsetting.
we don’t pay any interest as long as we clear it.
we get receipts for everything. place them in a little basket on my desk and I try each week (often fortnight) to enter them in a spread sheet.
This spreadsheet is gold. At the start of the year I estimate how much money I need for everything, every single last thing. groceries, schooling, clothing, electricity, gifts, blah blah.
Then each months we enter how much we spend.
It’s a great tool to see where all your money is going.
I’ve been in the red for the last few months so am trying to not buy any new clothes unless necessity for the rest of year. gives me some perspective.
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We thought we would do the same when we got our mortgage, but for the first few years we can’t offset our mortgage in the way you’ve described. Something to do with the kind of deal we got. We do however get a pretty good discount instead. I would like to do it this way once we can offset, but I’m still terrified about having a credit card.
I’m a bit of a spreadsheet geek – time to put that one into practice I think. Thanks for the advice Mandy.
Big hugs Laney! I can only imagine what that felt like.
Hubby and I have never had a budget (he does not believe in them LOL) but have never been in debt – we just happened to be well suited to each other and are both careful with money. Since you asked – a few tips based on what you mentioned so far are : with the bills – either set up direct debits if possible or write due dates in your diary / phone a few days before they are due and then set up direct deposit / BPAY, for months with big expenses i go into a minimal spending mode (cheaper meals, no impulse purchases, drive as little as possible (really combine errands, walk if possible etc) and to save up for something big i usually clear the house and sell stuff on ebay (kids toys, DVDs, books, clothes that no longer needed but in excellent shape), meal planning and shopping sales are a big part of us living within our means (it all adds up so when i see our cereal 1/2 price i buy 6 boxes and find somewhere to stash them…)
Looking forward to reading your posts and am glad your status update mentioned you got an invoice paid – woo ho!
Deb @ Home life simplified’s last post..Letting go
I really appreciate all these great tips Deb. I’m pretty good at paying the bills, it’s the small amount left over that causes the problems!!! I think we could probably sell a lot of stuff – such a big job though. However, when needs must!
I am a seesaw queen! One month it’s all MacBook Budget files and total control and the next it’s Oh God, where did that bill come from, behind the couch? To make it worse, in Sweden you get paid by the month so you actually do need to budget otherwise you’ll go hungry before pay day!
Lou Lou’s last post..Positive Affirmations!
I’m sure bills hide behind the couch sometimes, as good as I usually am and knowing what’s due when! We get paid monthly too. It does make it a lot harder.
Except when we were both contracting, we have always had a bit of money in the bank. We use our c/c for everything and always pay it off in full except once when I had to pay our c/c and we didn’t have enough money ! I was devastated ! I transferred all the money we had and had to wait for the next pay day to be ale to pay the rest – I didn’t feel good or sleep for quite a while !!!
What I do is once a year work out approx what each of our expenses are going to be – elec, rates, insurances, rego, phones, car maint, petrol, mortgage, groc, savings – then divide each amount into 12 and work ut how much money I need to put aside each month so that when the the bills come, I don’t have to find the whole amount in one month. Then when he c/c bills arrive – I allocate what has been spent against what I have put away for that expense.
Happy to help you with this if you want. It is fiddle to set up but nice it is working, it works really well for us. I have been using this system for over 25 yrs and it seems to do what we need it too.
Have a great weekend !!!!
Me
Me’s last post..Random Friday
It looks like I’m going to have to go through that budgeting exercise. Forecasting is the biggest difficulty, get it wrong (or not expect a blip in the first place) and cashflow is suddenly an issue! I have done this before, but find it hard because everthing is still just one lump sum in the bank account. Perhaps a second expenses account is needed?
Budgeting takes a while to set up but once it is, it becomes so easy. We did a spreadsheet of all our expenses, we added 10% to all the bills divided into fortnights and put this amount in an account, we never touch this account except to pay bills. Food, entertainment and petrol are in a different account because we can spend more or less on these things to balance the budget. So if we want a day out in the city we spend less on groceries. We also pay our mortgage monthly but put aside the repayments fortnightly so that we get an extra payment twice a year which we spend on house maintenance and repairs. I hope that helps.
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I just mentioned the second account possibility in a previous comment. I think that is what we will need to do so we don’t touch money we shouldn’t!
Thanks again Eliese. I just replied to your comment on the previous money post. I really like your approach. I’m going to check how easy it is to set up another account with our bank to use in this way. Hopefully there are no fees!