# Anyone want to write a money diary?



## Brendan Burgess (5 Sep 2018)

Apparently a website where people document their week's spending has gone viral in New York.

https://www.refinery29.com/en-us/money-diary

I don't see the attraction of it myself.  

Would it have any application to askaboutmoney?  My guess is that it would be entertaining but not of any real use and the primary purpose of askaboutmoney is to ask and answer practical questions.

Brendan


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## gnf_ireland (12 Sep 2018)

@Brendan Burgess  Irish people by their nature are very secretive about their personal finances. Some are living lifestyles they cannot afford, and we are getting back to boom time spending in a lot of cases. I would say anything that opens up that discussion and gets people talking about finance is probably a good thing.



Brendan Burgess said:


> My guess is that it would be entertaining but not of any real use and the primary purpose of askaboutmoney is to ask and answer practical questions.


I think a week is too short - a month would make more sense I think. It also may be useful if it was also the month people renewed their insurances or swapped service providers for utilities (including broadband/TV etc).


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## RedOnion (12 Sep 2018)

Something that might be useful would be some form of typical household budgets for different income / lifestyle scenarios. Some of the posts in the money makeover forums tend to result in critique of how much a poster is spending on something that others don't find normal.

From my own experience, a few years ago (before I discovered AAM) we sat down to try work out if we could afford for my wife to give up work. We were coming from a situation without children where we both had decent salaries, to 1 child and giving up a 60k salary. We hadn't got a detailed analysis of our spending, as we never needed to worry about it previously. It was a nightmare trying to work it out, and it was really only 6 months after we'd gone ahead that we were comfortable with our planning.

Any help I could find was around budgets for people struggling, which were helpful in picking up things we'd forgotten, but they don't usually allow for foreign holidays for example.

Since mortgage / rent is such a variable, maybe some analysis of a net budget after mortgage.
E.g family with 2 / 3 / 4k per month. What's it being spent on?


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## RedOnion (12 Sep 2018)

gnf_ireland said:


> Some are living lifestyles they cannot afford


Only some?


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## gnf_ireland (12 Sep 2018)

RedOnion said:


> Only some?



_According to the Central Bank, the net worth of the Irish people stood at €726.8bn at the end of last year_
https://www.rte.ie/news/business/2018/0504/960183-irish-net-worth-at-record-level-central-bank/

I assume some of the people worth a total of 725bn are living within their means  Maybe I am wrong !


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## Delboy (12 Sep 2018)

For my sins, I have kept a record in excel of my spending going back over many many years . Compete with graphs, comparitive analysis etc.
Yes, I know, I need to get out more. But I'm a statto type so it was interesting to me to carry this out. And I started it at a time when I was saving to buy a house and wanted to see where my money was going, have a cash flow projection etc


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## gnf_ireland (12 Sep 2018)

RedOnion said:


> From my own experience, a few years ago (before I discovered AAM) we sat down to try work out if we could afford for my wife to give up work. We were coming from a situation without children where we both had decent salaries, to 1 child and giving up a 60k salary. We hadn't got a detailed analysis of our spending, as we never needed to worry about it previously. It was a nightmare trying to work it out, and it was really only 6 months after we'd gone ahead that we were comfortable with our planning.



Our situation was not too dissimilar. We wanted to determine the financial impacts of my wife going from a 4 day week to 2.5 day week, both in terms of income/expenditure and pension contributions. While we had joint accounts for all household spending, we needed to 'average' out person spending as well (in the interest of fairness). We reviewed expenditure for the previous quarter and came up with a 6 month budget across a number of categories. We done this from January 2016, and have done it continuously since - revised either 6 monthly or annually. It does allow us track expenses and make sure we are not being 'silly' in certain categories. My wife tracks the budget spending each month, tracking actual spend v budgeted.

This has two main benefits of this approach are:
(a) Clear categorization of spending (childcare, groceries, entertainment, [kids] activities, mortgage, holidays etc] allowing us to easily track where our money is spent
(b) Ensure that we are 'living within our means', as the budget is agreed, along with the associated funding


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## David1234 (12 Sep 2018)

I have done something similar which was prompted by the arrival of baby number 1. It was more to see how much of an impact extended unpaid maternity leave, childcare costs, etc. would have on our disposable income each month. This helped us to identify some areas where we were needlessly over spending and anticipate others where costs were going to rise.


I think sharing all these numbers would help some people but would ultimately end up with negative comments about lifestyle costs that others may not have.


I think that if there was a thread/forum for people to share money savings tips this could be beneficial to all.


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## DeeKie (12 Sep 2018)

I look at that website refinery29 from time to time. I think it’s great to get you thinking about spending and your own priorities. I’d love an Irish one. I think a week is perfect. It’s a lot for contributors to commit to more.


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## cremeegg (12 Sep 2018)

Seems like a great idea.

In a previous life I used to look at peoples spending habits regularly. It often struck me how different areas were prioritised by different families, even within a similar total.

For example some families spend far more on food than other similar sized families. 

Obviously some spend far more on entertainment inc. alcohol and smoking, than others do.

One that always jumped out at me was clothing, some people would have huge figures, others very low. I always allowed myself a quick look to see if this was reflected in their appearance. Usually not, the big spenders rarely looked any better dressed (to my eye) than the €50 once in a year in Pennys brigade.

A tool like this would allow us all to identify areas where our spending was out of step with the norm. That might be because we have different priorities, but it might be just because we have developed expensive habits that could do with a rethink.


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## Blackrock1 (12 Sep 2018)

cremeegg said:


> Seems like a great idea.
> 
> In a previous life I used to look at peoples spending habits regularly. It often struck me how different areas were prioritised by different families, even within a similar total.
> 
> ...



clothes maketh the man, or woman. But if you dont have any taste in the first place it wont matter a jot.


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## Cervelo (12 Sep 2018)

It never ceases to amaze me how many people have no idea how and where they are spending their money and only do these type exercises when they are in financial difficulty or applying for a mortgage.
There must be a million and one apps out there for your phone or computer or you can use MS Excel and create your own, Its not that hard to-do you just have to remember to keep adding your spending to it.
I've been doing it now for over 20 years (on Excel since 2005) and its helped me no end in my past, present and future financial/spending decisions.

But I would agree with other posters here that while it would be interesting to see how other people spend their money they would also be opening themselves to criticism on how and where they spend there money


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## mf1 (12 Sep 2018)

A great way to monitor people's spending habits is to be a family law  solicitor - what I do. 

Part of the separation/ divorce process is to prepare what is called an Affidavit of Means - a sworn statement of assets, liabilities, income and outgoings. Many of my clients struggle with this - they simply have no idea where the money goes. I see one years Bank/ Credit card statements as vouching and it can be a real eye-opener. 

I am often shocked by what people spend their money on- e.g. private schools, way too much coffee, eating out, Jimmy Choo shoes, cars- where the  income is not there to support the spending.

More often than not, people have not had to address their spending habits until the income stream has to cover two sets of household expenses.

While it seems obvious to me............

Per Mr. Micawber
"Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

mf


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## Monbretia (12 Sep 2018)

I too dealt with this sort of spending tracking in my previous jobs and it is fascinating to see the differences between people.

Personally I started a spending diary way before any apps etc   I have them going back 33 yrs, all in the top of the wardrobe and I still keep one very year in a standard paper diary, now it's just habit at this stage but it was very useful for many years.

I worked with a young girl few years back and she was new in our office but she was telling me she couldn't get on top of her overdraft so I advised as I always did the spending diary.  She discovered very quickly she was spending over 30 quid a week on chocolate bars!  Well that had to stop along with the several weekly visits to cinema until the overdraft was under control.  It's a very useful exercise to see where the wastage is.


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## Romulan (12 Sep 2018)

Delboy said:


> For my sins, I have kept a record in excel of my spending going back over many many years . Compete with graphs, comparitive analysis etc.
> Yes, I know, I need to get out more. But I'm a statto type so it was interesting to me to carry this out. And I started it at a time when I was saving to buy a house and wanted to see where my money was going, have a cash flow projection etc



There are others like me out there 

Being doing something similar for some 18 years and a sibling finds it highly amusing.
But it has saved me money not least spotting banking related mistakes.


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## RedOnion (12 Sep 2018)

Monbretia said:


> spending over 30 quid a week on chocolate bars


Sounds about average?!!


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## Monbretia (12 Sep 2018)

I buy a 15kg bag these days, works out cheaper and lasts longer


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## Leper (12 Sep 2018)

Secretly, I kept a money diary for years in a cheap public service note book.  Every week was a struggle. I couldn't come to terms with our shortages every hour of every day of every week. No holidays, no theatre, nothing. Literally we hadn't a cent to spare. Mrs Lep had to give up her working career on marriage.  We had four kids and when they evolved from nappies it was like a lotto win for us. But, the money saved on not buying nappies was needed elsewhere. In the middle of all this we consigned the car to the shed and started the engine only once a month just to keep it working. We couldn't afford road tax, car insurance, petrol. There was always something to drain the coffers.

I cycled everywhere, even brought the kids to primary school on the bike daily. Secondary school brought on a plethora of more charges. The battle was a losing one continuously. Mrs Lep took in English learning students from anywhere just to keep the coffers ticking over. Being a public servant my income was easily known and so we did not qualify for any 3rd Level Grant. I took a part-time job in a pub to keep ours away in university while the publican I worked for qualified for 3rd level grants for his offspring in the same university. When I think back, it's a wonder that I can think at all. I remember winning £2K family sun holiday. I literally begged for money in lieu of the holiday. Anything just to keep our heads above water. The worry was continuous, the strain unbearable, every light at the end of a tunnel seemed to be the light of a train about to maim us. I'm getting somewhat emotional as I post and fond memories? - Absolutely not, I look back in anger and if there's one kind of person I dislike, it's the silverspooners who abuse their good fortune. If anybody looking in is feeling the pinch keep a money diary. When times get better, take the diary out occasionally a look at what you went through. It will keep you well grounded, free of charge.


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## Monbretia (12 Sep 2018)

I was only telling my daughter the other day who has just toilet trained her 3 yr old of the huge financial relief it was when she was toilet trained, her nappies cost more than half her childcare cost  at that time.  Back then there was no Lidl/Aldi own brand and I even see Tesco do them too plus they are so much better than you can actually leave them on longer.

Yes of course I could have used cloth ones but hell I was working full time too so couldn't be dealing with that as well!  

I actually started my own spending diary just after she was born when I didn't have the 40 quid for the follow up doc's appointment, now I wasn't earning a fortune either but it concentrates the mind.


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## Delboy (12 Sep 2018)

Romulan said:


> There are others like me out there
> 
> Being doing something similar for some 18 years and a sibling finds it highly amusing.
> But it has saved me money not least spotting banking related mistakes.


I don't tell anyone...the embarrassment of it!
But the wife knows and she uses it as a stick to beat me with from time to time as she is the direct opposite to me....not a clue where her money goes from month to month


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## gnf_ireland (12 Sep 2018)

It is no real surprise that regulars on this site have a spending diary, or have kept one in the past - and in my case for years !!

However, outside of this site I would expect very different answers and people look at your like you have 10 heads if you said you kept a spending diary for 10 plus years.


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## losttheplot (12 Sep 2018)

I do a balance sheet each month, listing assets and liabilities. Using the credit card for everything makes it easy to track expenditure.

Only ever put 45 litres in the car, so can tell how much fuel I use annually and can work out the fuel efficiency too (since I know the mileage). Shows me how much I would save by switching to an electric vehicle.

I was surprised by what I spent on take aways.


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## gnf_ireland (13 Sep 2018)

losttheplot said:


> Only ever put 45 litres in the car, so can tell how much fuel I use annually and can work out the fuel efficiency too (since I know the mileage). Shows me how much I would save by switching to an electric vehicle.


Consider getting a fuel card - you normally get a few cent off the listed pump price, but you also get a bill showing the price per litre and the number of litres purchased !


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## losttheplot (13 Sep 2018)

I intend to be fully electric soon so pumps will be a thing of the past. Total fuel for last year was about €1500 (4.04 litres/100 km).


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## tallpaul (14 Sep 2018)

I'm another secret spending diary keeper!! Have kept detailed account tracking for over ten years in annual spreadsheets. I categorise my spending so I know each month, and averaged over the year, how much I spend. I find it invaluable as I won't buy anything until I have saved up for it. I will take it as far as if I want something for €200 I will start a mini-savings campaign to save the €200 even though I would have plenty of money already in my accounts. I like the discipline!! 

At the petrol station, I always take a photo of the odometer of my car when filling up. I also reset the trip computer to zero so I know how far I travel on each fill. I then put this information into a spreadsheet and keep track of km/l, mpg etc. A bit sad I know!!


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## huskerdu (14 Sep 2018)

This is fantastic. A safe space for money nerds. 
We have kept a money diary for years ( luckily both of us are data / number nerds, so no tension). Every Jan, we plan the year (income, what work do we need to do on the house, holidays etc. ) I couldnt tell my siblings , they think I am really tight (one car, no budget for tans or nails, packed lunches). However, I have a pension pot, a small mortgage and we go on plenty of holidays so its all a matter of priorities. 

It started when we were saving for our first house and continued when the money was flowing, when the money was tighter (kids, tax increases, unpaid maternity leave) and now that we are more comfortable but thinking about uni fees and the pension pot. 

Seeing as how we are boasting about cheap car costs - the 11 year old car is going strong, we both cycle to work. I fill the car so infrequently that I dont know how much I spend, or how much peterol costs. 

Next year I will pay a childminder for the last time, which will be a major source of celebration. 

Also, I know we were the lucky generation. 
My first rent was 100 a month, my first house was 70K. 
I really feel for people in their 20s trying to save for a house, its This post will be deleted if not edited to remove bad language out there.


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## Monbretia (14 Sep 2018)

My daughter's generation just wouldn't get this money diary thing at all although I have her fairly well indoctrinated, she is great with money and while doesn't keep a spending diary she does have a record of annual/monthly bills and saves weekly to cover these.  She started that account off with a lump sum from wedding gifts to cover the first year.  

I worked briefly with a budgeting agency and the concept of spending diaries was just unheard of to most people, again I think we need to get them early, should be a transition year type project.


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## Cervelo (14 Sep 2018)

huskerdu said:


> I really feel for people in their 20s trying to save for a house, its This post will be deleted if not edited to remove bad language out there.



I often wonder now how a person on 50K, which I would have considered a good salary, can buy a house, save for their pension, run a car, have health insurance, enjoy a foreign holiday, pay all their utility bills, save a rainy day fund and still have a bit left over for a social life???


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## mugsymugsy (14 Sep 2018)

You have inspired me to start making one. Interesting to see and now I hate the ATM transactions as I can't remember what I spent it on which can't be a good thing.

Easy to download from bank and then quick bit of excel work. Should only take 15 mins every month.

Another nerd has joined the club


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## gnf_ireland (15 Sep 2018)

mugsymugsy said:


> You have inspired me to start making one. Interesting to see and now I hate the ATM transactions as I can't remember what I spent it on which can't be a good thing.
> Easy to download from bank and then quick bit of excel work. Should only take 15 mins every month.
> Another nerd has joined the club


First step is keeping a spending diary
Second step is coming up with a budget
Third step is slowly squeezing the budget to direct money into savings/expensive purchases

after that, it gets dangerous  !!


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## Blackrock1 (17 Sep 2018)

Cervelo said:


> I often wonder now how a person on 50K, which I would have considered a good salary, can buy a house, save for their pension, run a car, have health insurance, enjoy a foreign holiday, pay all their utility bills, save a rainy day fund and still have a bit left over for a social life???



well in Dublin they cant. but 50k isnt really a good salary any more


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## David1234 (17 Sep 2018)

Cervelo said:


> I often wonder now how a person on 50K, which I would have considered a good salary, can buy a house, save for their pension, run a car, have health insurance, enjoy a foreign holiday, pay all their utility bills, save a rainy day fund and still have a bit left over for a social life???



I agree that it would be quite difficult to do all of this at once on 50k but it is all a matter of priorities in my opinion. A lot of what you list above are luxuries. Some of these will need to be sacrificed in order to achieve whatever financial goals you have. A salary of €50,000 is enough to purchase a 2 bed apartment in some areas of Dublin if you cut back on all of the luxuries. As per daft today there are 412 properties for sale in Dublin for under €200,000.  This will require a deposit of at least €25,000. The maximum mortgage to someone on €50k without an exemption is €175k.

A €50k p/a salary will net you roughly €3,050 per month. If you cut out all luxuries and rented a room in a house you should have no issue saving €1,250 per month. In 2 years you will have a €30,000 deposit saved.

Once the apartment is purchased you can rent out the spare room tax free. The additional funds could then be used to loosen the purse strings a bit, contribute to a pension, lead a more active social life, have private health insurance, save a rainy day fund and take a modest holiday.

Obviously this all would require some sacrifices but nothing too outrageous.


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## lff12 (27 Sep 2018)

David1234 said:


> I agree that it would be quite difficult to do all of this at once on 50k but it is all a matter of priorities in my opinion. A lot of what you list above are luxuries. Some of these will need to be sacrificed in order to achieve whatever financial goals you have. A salary of €50,000 is enough to purchase a 2 bed apartment in some areas of Dublin if you cut back on all of the luxuries. As per daft today there are 412 properties for sale in Dublin for under €200,000.  This will require a deposit of at least €25,000. The maximum mortgage to someone on €50k without an exemption is €175k.
> 
> A €50k p/a salary will net you roughly €3,050 per month. If you cut out all luxuries and rented a room in a house you should have no issue saving €1,250 per month. In 2 years you will have a €30,000 deposit saved.
> 
> ...



If your net income is 3000 a month, with a probable rent of 700-1000 a month, if not 1200-1400, regular bills of 100-200, car/transport of about 100 a month, unless you live on dried lentils, you will struggle to save about 1000 a month.
Also bear in mind that many of the sub 200k properties in Dublin are 1 bedroom units, for which lenders demand 20% deposit, so the cost of borrowing for the smallest units demands a 40k deposit, not 20k.  This is why so many are unable to even apply for mortgages they cannot qualify for, not to mention other conditions like having no other borrowings, a full time permanent role for more than 2 years etc.

Even an income of 70k or so is not enough, when you take into account all of the above.  Also I notice that my bank demands 15% deposit minimum so not sure where you are getting the 10% quoted above.

And by the way, that doesn't include conveyance fees, stamp duty, solicitors fees and management fees - about 5k for the first 3 items and management fees typically 1200 to 1800 pa in Dublin right now.

This is based on my own experience of trying to buy earlier this year, not some theoretical idea of what anyone can afford.  I am no fan of the housing hysterics, but it is quite difficult for those trying to housing themselves right now.


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## David1234 (27 Sep 2018)

lff12 said:


> If your net income is 3000 a month, with a probable rent of 700-1000 a month, if not 1200-1400, regular bills of 100-200, car/transport of about 100 a month, unless you live on dried lentils, you will struggle to save about 1000 a month.
> Also bear in mind that many of the sub 200k properties in Dublin are 1 bedroom units, for which lenders demand 20% deposit, so the cost of borrowing for the smallest units demands a 40k deposit, not 20k.  This is why so many are unable to even apply for mortgages they cannot qualify for, not to mention other conditions like having no other borrowings, a full time permanent role for more than 2 years etc.
> 
> Even an income of 70k or so is not enough, when you take into account all of the above.  Also I notice that my bank demands 15% deposit minimum so not sure where you are getting the 10% quoted above.
> ...



I never said it would be easy- sacrifices would have to be made while saving. Even using the unnecessary rental figure of €1,200 a month + €200 bills + €100 travel you still have €1,550 left per month. Take a generous food allowance of €250 and you have €1,300 left. If you cannot save a for a mortgage as a single applicant in the medium term on €70k you are overspending in some areas.

According to daft there are currently 271 2 bedroom + properties on the market for 200k or less as of today.

The 10% came from the first time buyers requirement as per the ECB regulations. The requirement to have over 10% seems to only apply to 1 bed apartments. A quick search shows that a number of banks will lend 90%. If yours requires a 15% deposit perhaps look at other banks, the mortgage market is quite competitive at the moment.

I too bought a property in the last few years. Does this make my point any more valid?


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## Ceepee (1 Oct 2018)

I recently completed an Affidavit of Means, due to an impending separation agreement.  I've been separated a couple of years, but we still have joint mortgage, a couple of joint accounts, and have to date been assessed jointly for tax.

I have found reading this thread very interesting.  But what I found very interesting was reading my ex's Affidavit of Means, completed since we separated a couple of years ago.  I have a fairly accurate and unexaggerated version of how I have spent money for the last few years, and what with the shock of the break-up and all, I have been living a fairly frugal and unexciting life (children-related expenses aside).  I was also afraid to spend money in case this would be viewed negatively by a judge.

I was really shocked at how much he has spent on non-essential items in the same period, whereas I was really cautious.  The outcome is that I have savings, and he has none.  I wonder if a judge will see that as me being capable of living on less?


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## mugsymugsy (31 Oct 2018)

Just wanted to update my part story on this. I got organised fullu all in excel spreadsheets... organised my health expenses claims over last 2 years, calculated my yearly health expenses - insurance rebate worked out, got my med 2 in for 2017, got my med 2 for 2018 ready. Reckon all in will get back 1500 euro between revenue and health insurer - already got back 700 euro. Thanks for the inspiration to get things in order. Next up is energy companies - already sorted out broadband and cutting the chord of paid TV.


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## Romulan (31 Oct 2018)

mugsymugsy said:


> Just wanted to update my part story on this. I got organised fullu all in excel spreadsheets... organised my health expenses claims over last 2 years, calculated my yearly health expenses - insurance rebate worked out, got my med 2 in for 2017, got my med 2 for 2018 ready. Reckon all in will get back 1500 euro between revenue and health insurer - already got back 700 euro. Thanks for the inspiration to get things in order. Next up is energy companies - already sorted out broadband and cutting the chord of paid TV.




Excellent News.  Well done.

I go to a well known health insurance expert (he is very good..... every couple of years and check policies.  Costs a few bob but still well in the black 
from the first consultation.

Bonkers.ie and change electricity supplier every year without fail.
Got a good deal on mobiles and did all the Saorview stuff so keep a general eye....Virgin rising every year well in excess of inflation.

Wait till you get to Savings and Pensions...............


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## mugsymugsy (1 Nov 2018)

Spoke to energy company I'm out of contract got the price per unit been on bonkers and can save a good bit switching up to 20% on rates.

Health insurance get it through work so all good.
Got mortgage rate fixed at a good rate after advice on here / what's best for our circumstances.
Pension have been putting in extra 5% avc on top of what work matches for past year will look to increase that % once i increase the rainy day fund. Bit of car trouble recently but got it through 2 year NCT so just keep that ticking over.

Thanks to all on AAM


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## Firefly (2 Nov 2018)

Thanks to all for this thread! We started a basic spending journal at the beginning of October and we've saved a lot of cash already. Any frivolous expenditure like a coffee has stopped as you know you will only have to write it into the book. "The Book of Shame" we've started calling it.


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## MsCutha (26 Dec 2018)

This is a very interesting thread.
I don't have a spending diary but use an 'envelope' system for the last 19 months. My other half is a spender and I am the saver. I basically make a list of the expenses for the month with the exception of direct debits/standing order and take out the money into separate envelopes. So childminder, petrol, groceries, kids extracurricular,even his spending money for the month I make him take it out with the rest of the cash. If he doesn't do that he will be back and forth to the atm and he hasn't a clue of how much is left. We have an agreement not to use bank cards and tend to stick to it most of the time. We are both early thirties with a 3 year old and a 5 year old and recently bought our first home. We saved like mad cutting out all non essentials and saved appro 15k in one year. This may not sound like a lot but we are on just under 80k gross combined, 3 year old needs ft childcare and 5 year old needs after school care, rent was 1130 and after essentials we ploughed every spare cash into savings. We haven't had a family holiday since my 3 year old was born apart from a quick visit to Thomasland htis summer gone. It should get a bit easier now we're no longer paying rent whilst saving but there's more saving and planning to be done for the future (other half doesn't really understand unless you spell it out like hey rainy day, future saving etc).
It is early morning boxing day and I'm sure loads are online looking for ways to spend money whilst I'm sort of the opposite


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## DeeKie (27 Dec 2018)

Any good tips learned from the diaries. It would be interesting to hear


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## PaddyBloggit (27 Dec 2018)

The only diaries I've kept over the last number of years are fuel diaries to see what I've spent on diesel over the year.

It's amazing the difference in spend when there's a big change in the price.


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## PMU (28 Dec 2018)

The best book on money management I have read is "Household Accounts - Controlling your income can make it go further...''. It was published in 1988 by accountants Catherine and Dermot O'Driscoll. It's probably way out of print by now and my copy is priced in Irish Pounds (IR£ 3.50). Their basic model is first to manage your money by setting up a cash book and then a statement of income and payments summary sheet. Secondly, they recommended budgeting by providing for each item of expenditure out of income whether it is it to be paid or not, i.e. each item of expense is provided for out of income received, so when the item is due for payment the amount required is available. For example, if your LPT is X euro a year you allocate X/(frequency of pay) to LPT each time you are paid, so you have accumulated the amount of your LPT when it is due to be paid.  I still use their method for budgeting for major expense items paid annually.


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## misemoi (13 Feb 2019)

I understand that the people who contribute to this site have a good head for and an interest in managing money.  But honestly the very basics of a money diary or a simple list of income and outgoings and an understanding of annual versus monthly expenses etc appears to be a novel concept to a lot of people.  This is a real skills gap, as a lack of understanding of finances and needs v wants has led to a lot of misery and stress for people.  It should not get to the stage where people are drowning before they seek assistance from MABs etc.  This should be ingrained in them at home and in school from a very early age.  My own kids are starting to get to the stage of understanding money (the fiver cards for birthdays are a great idea!) so I plan to drill into them the spend/save/donate mantra.


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## kilamangiro (13 Feb 2019)

I have been keeping an excel-based diary of spending for the last 3 or 4 years. It has certainly been successful in helping us see where our money is going, but it hasn't been a great success in terms of helping us to control spending, changing habits and building wealth (now, in fairness, the last few years have seen 2 babies arrive, wedding, house etc)

But in 2019, we are taking it more seriously, and have devised a system which so far is working very well for us. 

We each have a Revolut card, and we top it up every Sunday with money from our current account. Each of us can spend whatever we want (Coffee, clothes, lunches out, drinks . . . whatever) on this card and none of this money is tracked on the spreadsheet. No one has to answer to the other for any purchases they make on their Revolut card. These weekly topups appear on my budget spreadsheets as a single line called "pocket money"

Everything else - bills, groceries, petrol, spending on the kids etc - all comes from the current account and is tracked on the spreadsheet. I enter these transactions every day from the KBC app, usually when I'm in work.

We are trying to sit down at the beginning of every month to review the previous month and agree on the next month's budget.

As I say, at the moment, it's working well. Both of us have agreed that the Revolut method is making us stop and think about the money we had been throwing away on eating out, sweets, coffees etc. Because we both have things we actually want to buy for ourselves, we are therefore finding ourselves really cutting back on the rubbish.


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