How We Manage Our Budget (Updated)

I first talked about getting our accounts in order back in May. We had a system, a seemingly organised system, but it wasn’t working out too well. I think by simplifying our accounts, and closing a couple of sinking fund/savings accounts, I’d made things a little more complicated. I’m all about simplifying things, but not if it causes you a problem, so I tweaked things a little.

We now have three saving accounts attached to our checking account (travel, gifts and everything else) and I will be using cash for grocery and miscellaneous spending. Hopefully this new system (+ budget) will work perfectly for us in our new home.



The spreadsheet shows our planned monthly expenditure + how we save on a month by month basis for annual expenses and travel.




  • The gift, travel and everything else fund are attached to the joint checking (to provide easy access)
  • Our long-term Emergency Fund’s are kept in tax-free ISA’s
  • From the checking account we pay the bills and fund our online savings accounts.
  • All our automatic bill payments (Direct Debits) are set to be paid between the 25th and 1st of every month and are, where possible, the paper free kind.
  • Grocery is paid for in cash.

I think that’s it. Now I’m just hoping the system works.:)

Budget Round-Up: June 2014

Starting this month I’m changing how I report our monthly spending……even I get bored with spreadsheets occasionally lol.

MONTHLY BUDGETMortgage: £550.00
- Regular payment + a small overpayment

Council Tax + Water Bill: £173.97
- Regular monthly payments

Gas & Electricity: £86.00
- Our new regular payment. We’re £198 in credit on this account and so when we close it down in a couple of weeks, we should be due a refund.

Digital TV + DVD Rental: £74.36
- No change here. Films watched: Girl Most Likely, Dallas Buyers Club (Fave of the month), Playing For Keeps, Robocop, Jack Ryan Shadow Recruit

Mobile: £15.00
- Woo no extra charges!

Prescription: £10.40
- Regular monthly payment for regular medication

Life Insurance: £21.08
- Regular monthly payment

Stationery: £19.60
- Notebooks, Stamps and Cards

Blog: £27.70
- New blog template (a total treat!)

Home: £64.93
- Kilner Jars, One Litre of Castille Soap (which in theory should be in the grocery budget but I don’t want to make that total any higher!! ;)), a Samsonite Travel Money Belt and 10 Light Bulbs

Eating Out: £14.93
- A couple of lunches and fish and chips – not too bad!

Make Up & Beauty: £10.43
- Face wipes (for when I’m away from home), and hand cream

Grocery: £260.60
- Totally blew it!!

Gifts: £55.00
- Birthday and Fathers Day gifts, flowers for my Mum and something for my Dad (I can’t for the life of me remember what though!)

Total Spend: £1,384 

I made just over £300 selling stuff this month – that money will be put towards items needed for the apartment…..which I can’t wait to get started on. It’s going to be lovely to have a new house project to work on, even though it’s on a much smaller scale than our current home.

As a side note I’m not posting a budget for July as our usual expenses will be all over the place with our move and it’s hard to set budget limits. I’ll  post a round-up after the dust settles though (even if it’s scary!)

How well did you stick to budget in June? 



Our budget is getting downsized too!

I’ve written many times about trying to get our monthly core budget below £1,000 and now finally, with our house move, we should be able to pull it off.

The big difference of course will be the lack of mortgage payment as we’re able to buy our new home outright. In a way we’re cutting out a lot of the mortgage payoff hard work by downsizing to less than 700 sq ft. However we’ve very happy to be accelerating our move to a simpler home, and a simpler lifestyle, as it will enable us to achieve our goals a lot earlier.

New Budget vs. Current Budget:

apartment budget

I’ve had to estimate a lot of the costs, but the £964.73 total allows for a little wiggle room on my < £1k target. Of course I haven’t included travel saving in this total, but I have included other line items that would go if they had to.