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Yep I do this. So one day I sat down and added up our bills (everything- phones, electricity, water, preschool, Netflix, swimming lessons, rates, internet) so I worked out how much each bill cost per year- eg Netflix is 10 a month so 120 per year. Then I added the yearly totals together and divided it by 52. I think the amount was around 350 so I added 50 to make it 400 in case of Drs bills etc. so I know every week from our budget I need to transfer 400 to the bill account. All our debits come out of there and usually when a bigger bill is due there's enough to cover it. I try to always keep the balance above 200 to avoid redraw fees if I forget a payment is due. This works for us :)
I put money away for everything individually then when that bill cones in the money is there. I have electric, gas,rent/morgage and insurance come out fortnightly direct debit hubby and i get paid fortnightly . I have a monthly account then a 3 monthly account so things that come out monthly eg internet, phone and credit card go into there. The 3 month account has our car rego and water bill and extra bill money go into there for wen thoae things come up, we put extra in there in case somethimg additional comes up. Then we have a food account, sunce we get paid fortnightly we do a big shop then but on the off week we atill have to get milk ,bread ect so i put money into that account as well as petrol money. Then a sepeeate acount for savings that has a set amount every pay aswell. What ever left over is our spending and family activities money. Sounds complicated but everything happens before we wake up so we only see our spending money in our account.
I'm about to start putting money away each fortnight to cover rates, water, car insurance and rego, sons extra curricular activities and other insurance.
I would already have the amount but our aircon broke so that's where all the money went.
I worked out the yearly total and it came to $170 or so a fortnight so I plan to put $190 or $200 a fortnight away to cover us
Thanks everyone! You've all given me a few more ideas of things I was missing in my budget to prepare for and I especially like the one about breaking it all down further.
Yep i budget each week for all those things you mentioned as well as birthdays xmas, hair appt, family camping holidays etc
I set all my regular bills up as set amount direct debits every fortnight on my payday then i just work with whats left for the not so regular bills.
Yes, I create two worksheets in an excel spread sheet. 1 titled Incoming, 2 titled outgoing. Worksheet 1 identifies all possible incomes after tax. 2 identifies every single cost you will incur or likely to incur through out the year. If you have copies of your old bills, drag them out. Break big costing items down into small items. An example is Car - break down Registration, Insurance (depending on what state you are in) Comprehensive or 3rd party insurance, Fuel costs, Maintenance, Tyres (if you are doing 50,000km per year = 1 new set of tyres)
Food - accounts for a larger proportion of income than we realise. Shop 'smart' get an A4 piece of paper landscape view fold in 1/2. On the R hand side, create a 4 cm column from centre down page, then divide into 7 lines. In the first small column put days of the week. In the big column put what the main meal is going to be and all the ingredients you will need for this dishes. Pull your pantry apart and make sure you write down all the ingredients you have and put what ingredients you need on the shopping list. Once your shopping list is finished with enough produce to last your 1 or 2 week shop, ONLY buy what is on the list. DO NOT buy more than you need.
BPAY - Some regular bills allow you to make use of BPAY so you can pay off your bill before it arrives. Make use of this when it is available. Either do this manually as soon as your pay comes in or automatically from your account. This strategy is mentioned above. It works though the toughest time is when you start this process and although you are putting the money away, you have not pooled enough to pay the current bill. Take a big breath and know it will be better next time that same bill arrives.