Week 3, Question 1
Thanks to everyone who voted and commented on our last question – going cold turkey on our spending was another clear winner. Martin Hawes has given us some tips about how we should go forward with our budget which I’ve included below.
This week's question should get some good discussion going - it certainly has in our house!
Matt and I have been debating which “luxury” to ditch first. Top of mind were the lunches Matt buys each day vs my gym membership and Pay TV subscription. Not sure how I ended up having two items on the table but there you go. Come on girls, stick up for me here!
Anyway, here’s what Martin has to say about budgeting:
Matt and Steph,
A budget is not all about scrimping and saving. It is deciding what you want to spend your money on, doing the things that give you good value and life enjoyment and not doing the things which don’t. (Your gym membership might fit into the first category but Pay TV???)
When you take another look at your budget on Sorted, you should keep a few things in mind:
- A budget has two sides: income and expenditure. A dollar of extra income is as good as a dollar cut from expenditure. Is there any work that you can do, Steph? Matt’s income is good, but can he improve it even further? When did he last ask for a pay rise? Don’t ignore the income side of the budget – it’s not all about taking a
chainsaw to expenditure.- Have you got any records of what your expenditure has actually been? It is much easier if you can look back to see where money has been going in the past.
- You need a way to monitor your performance against the budget. I can guarantee that your actual expenditure will not be what you planned in the budget and you need to know what differences there are.
- Watch out for “petty cash” – money that comes out of the pocket for little things. For example, Matt’s brown bag lunch might not sound a lot, but it sure adds up. If he spends $8 on lunch each day that’s $40 per week, $160 per month and $1920 per annum. Go on a money hunt, to find what those small things are - Carla’s idea of a little notebook is great.
- Don’t make the budget so tight that you can’t stick to it. It’s a bit like dieting: if you make it too tough you are likely to throw in the towel and give up!
Thanks Martin - some good food for thought there! Let’s see how the vote goes over the next few days.
Steph
posted by sortme @ 12:07 PM
10 comments
10 Comments:
i think its hardly fair you are only showing what matts luxury costs, what is the weekly amount for the gym and pay tv?
DUR! to above poster...obviously they are around the same cost! Man there are some idiots who post here! *Wonders if people who are so thick should even bother posting*
Hi Steph :)
I too would like to know the amounts for the Gym and PayTV, if you had to choose one or the other, what would it be?
Do you use your Gym membership often? if its the only thing you have for YOU then i say dont give it up. if it is an expensive membership and you want to keep going, is there another plan or a cheaper gym you can join? (you have a huge choice around you, your very lucky!) do some shopping, see if you can minimise the amount your paying. if you dont use the Gym often, then its easy, yep give it up, walking and running and hiring fitness dvds from your local video store or library are cheap options too.
Sky TV, i love it! thats MY treat! however it costs us half as much now as it used to, look at the channels you watch, do you watch sport often? do you watch movies often? by taking these two options away from your subscription its another saver without having to give it up, also give Telecom a call, they do a deal with Sky which makes your sky bill even smaller for the basic channels.
$8 a day on lunch doesnt seem much at the time, but it sure adds up! i have the same problem at the moment getting hubby to cut down on buying lunches, and i try to make them for him often... unfortunatly it gets left in the fridge a lot! (fighting a losing battle here.. stubborn man!) a $1 loaf of bread and some marmite lasts for ages and even if you go through a couple of loafs per week, its still a big save, let hubby go food shopping with you, go through what he likes to eat and make nice lunches etc, maybe say he gets to buy his lunch once or twice a week as HIS treat, remember he cant miss out too!
Well, my partner and I earn just under 90k (and there's just the two of us) and no WAY would we spend $8 a day on lunch! Whats wrong with packing a home made sandwich and fruit etc etc?? Also get rid of the pay TV, join the library, BUT keep the gym though. I would sacrifice anything before I got rid of my gym membership. Good luck :)
Oops sorry put this under the wrong thingy :/ Lol I really dont no what I am doing! But here goes again:
Hi there Steph,
With regards to this weeks question - I want to be really honest. Not only is a budget about comprimise, so is a relationship. I do not know why only one of you have got to miss out on their luxery - how about you BOTH cut something out. Yep I think Matt should start packing his lunch as $8 a day soon adds up to a few packets of nappies a week! But in saying that, you too should drop something. Maybe the gym membership (if you pay as you go and there are no costs involved in stopping) as at least with pay tv you and Matt can sit down together to watch it. If there are other costs in stopping ur membership them maybe pay tv is the thing to go. It is completly up to you two whether you both want to drop something or not and wheather you want to drop something you can both use together or drop the things only one of you reap the benefits for.
P.S You can keep just as fit by going for walks and using cans from the cupboards as weigts!! (trust me, I have been in ur situation and I got that desperate ahha)
Stacey
So Matt spends $8 a day on lunch.
You spend "X" amount on the gym per week.
Both of you spend "X" amount on Sky pay TV..
All three (3) things are luxuries..
Matt can make his lunch or you could make it for him the night before. (So he wont forget his lunch each morning when you put it in the fridge.. put his house/car keys on top of the lunch.)
Steph, Cancel your gym membership. You can go walking and put the little one in a stroller (you do have one, don't you?). That way you are getting some exercise... and FRESH air into both you and the little one's lungs... If it raining, put on a jacket and stroller cover over the stroller.
There are heaps of places to walk around Grey Lynn and lots of exciting things to show the little one... Now is the time to teach him about flowers and different smells and what the world looks like... make the walk exciting for him. This is the time that is most important in his learning.
The Sky pay TV - cancel the subscription. I bet you have a video or DVD.. so hire a movie once a week... cos I reckon you were not watching Sky much anyways.
That way you will save heaps... and pay off that mortgage a hell of a lot quicker.
Buying lunch, gym membership and Sky pay TV are luxuries items....
Well the lunches cost $40, not sure what the gym membership costs but mine was $13 a week.Based on that, $27 would be on pay tv per week to match up to matts lunches... I HIGHLY doubt pay tv would be that much, and if a gym membership is any more id be in shock.
Therefore i think matt should cut back on the lunches(ave 1-2 per week)as I feel they would cost more than the pay tv and gym membership per week...
Having said that, perhaps the sky tv could be cut off? Im sure its not just Steph who watches it!
gym membership, sky tv & bought lunches, everyday?? girl, you aren't going to budget very successfully like this! if you don't already have a good pram, invest in one. take baby out for regular walks, even if it is raining. a storm cover & warm blanket/clothes will keep him happy, and a raincoat for you. sky tv? ditch it. instead rent one or two dvds or videos a week, and have a movie night, with home made popcorn, for munchies. $40 per week for bought lunches? no way. matt needs to get used to home prepared lunches. a yoghurt, salad sandwich & piece of fruit is nutritious & much more economical.
Ditch the lunches, they can easily be replaced by making lunch every day or taking left over dinners.
Maybe you could cut back a bit both ways here instead of Matt giving up all his lunches OR you giving up the gym AND pay TV. Thta seems a harsh thing to do and as your planner said it's like a diet - too strict and you end up binging. If I try to budget too tightly I go and spend just for the hell of it! So maybe, yes Matt startts taking his lunch from home BUT once a week or on payday he can buy his lunch and he'll enjoy it as a treat. As for the gym and pay TV, maybe give one up but not both. Other posters have given excellent suggestions for alternative fitness and entertainment. Maybe you could take up a craft (beading is fun or people are willing to pay for those fluffy scarves if you can knit) and sell what you make and the money can be for your luxuries which you'll appreciate more. Also shop for deals - some companies offer power, phone, internet and Sky in a package. Good luck! :-))
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