Debt Management Compulsion Disorder

[johnz]

I did this last week and am going to find it an immense help in sticking to budget for the following 14 months and onwards.

If you know Excel, you know you can set it up to do calculations for you.

So I set one up with my basic salary going in and all regular monthly outgoings going out until the end of December 2008. All the way down the right hand side is a total of what I have left.

Then I sat and worked out when I would need to spend extra - birthday presents, etc. I entered a budget for the month before the extra was required. Then all the way through this I kept checking the amount left over at the end of any given month.

By doing this, I figured out that if any extra expense in say June was going to take me over budget, if I cut back on what I allowed myself for spending money in Jan, Feb, Mar, etc, then that takes care of it.

I also have on the same spreadsheet a list for my contingency fund and for my car expenses. As money is added in the amount goes up and if I spend any it goes down, showing me exactly what I have at any given time. By doing it this way, if it shows that I'm going to be short for anything, I can again, rework my personal expenditure to cover the shortfall.

I found that by looking at it over a yearly basis, rather than going from month to month, I can plan better. No use finding out I spent too much in January in April![:D]

All I've got to do now is stick to it.

Odd thing though. I looked at what the total of my contingency fund and the christmas savings fund and the car fund if I didn't have to spend any and now I don't want to spend any. It'd be over 2 grand!!!! Why, after years of spending money I don't have I now don't want to spend the money I will have, I don't know. It'll kill me to have to pay my car tax this year[:D][:D]

Johnz

[Helper and Seeker]

Hello All,

I too have used EXcel for years in helping me to run my finances and boy did I need it with over 40 creditcards and all the juggling I had to do [:p]

I now have a a spreadsheet for most things, weekly spending, one for when my first review comes up, loans from friends which I pay back a little a month as needed 4 new car tyres at a cost of £192 and as am only into the 2nd paymant of my IVA had no funds saved for this emergency.

It takes a bit of time to fill it all in but I try and do mine daily and you soon get quick at doing it and it gives you a good sense of where all your pennies are going.

Debbie

Just started my IVA as from 12.10.07

[johnz]

Oh, I'm obsessed. My bank account gets checked twice every day and every single thing is entered into the spreadsheet. I then check that I haven't overspent and that I will still be in the black over the next year. I spend ages on it every single day checking and rechecking my figures.

Personally I think that give the debt trend at the moment, in a couple of years they'll be able to announce a new medical condition. Debt Management Compulsion Disorder would be a good name for it I think [:D]

Johnz

... such a great name we've changed the topic heading [:)]
admin team

[cat 1]

...I've got DMCD as well, but I wish I'd got it sooner.Cat

[louisa.s]

Fantastic idea! I'll think |I'll give it a go as we are diabolical with our budget - we are still learning 19 months in! Because hubby is not that involved with it I have set up separate bank accounts to deal with different parts of the budget with standing orders going to them from our current account:
Joint Current Account - Bills
Hubbys account - his work expenses (which get claimed back & originally have to come from our Housekeeping budget!)
My Car Account - Car maintenance, tax etc
Food Account - Reminder of Housekeeping budget
Misc account - for hair/clothes/optical/dental & everything else life chucks at us!
Savings Account - hopefully will have savings in when I can get round to finding the pennies to save!!!

We've done it to stop us dipping into the current account for odd bits and pieces and although it's only just been set up I'm hoping it will work - something got to! But I like the idea of also tracking the money spent etc thats got possibilities - just need to get to the computer for long enough to set it up!!! Hubby loves his computer and is still; painstaking editing our wedding pics!!

[maxdebt]

OMG I have DMCD too!!! I am online checking my account at least twice a day [:D] Will using Excel make my DMCD worse or better!? [:)] I use an old an old fashioned ledger book ( £6.99 office world) and give each item its own page ( Road Tax, car tax, clothing, medical/specs etc) We only have 2 savings accounts so we have to keep a careful record and transfer the money as a lump sum each month to one of the accounts. ‘Perishables’ monies such as child minding/school meals/spare cash we take out once a month and put in large coloured plastic envelopes (think i got them at wilkinsons) which we keep in a little safe downstairs. I am not very good at excel and there is something very pleasant about leafing through my ledger and looking at the totals mmmmmmmmm...... Yep I definately have DMCD but I'm happy!!! ( will I be so happy when I have to pay for my cars service next month??)

[MelanieGiles]

You ought to patent your spreadsheet and sell it. What a remarkable turnaround from someone who was very stressed and worried when I first spoke to them, to someone who has turned her situation on its head and is now one of the strongest support members of the forum.

There are many success stories of this community, but Johnz' has to be one of the most shining examples of supported and supporting! Well done - I am proud of you, and so will your hubby be I am sure.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp