Budget Check-In: January

In the spirit of trying to be more self-accountable, here are the monthly figures. I have to say I feel quite proud of having actually engaged with the budget during the month – I do realise that’s the point, but as noted I have tended to treat my spending tallies more as a summary of mistakes rather than something I can use to tweak behaviours and get back on track.

About to end! Photo by Glen Carrie on Unsplash

I have been tallying up my budgets weekly and found it really helpful. It also takes such a short time, and removes The Fear of having to suddenly spend four hours pulling it together at the end of the month.

So, how did I do? Not badly in some ways but not great in others:

  • I spent 95% of my monthly planned budget, or £4,414 out of a planned £4,645. In some ways this is great since it’s under budget – but looking across the lines it’s clear I should have spent even less. Some annual costs (such as kids’ extra curricular activities) are budgeted for monthly but I didn’t spend anything this month, meaning in theory that at some point I will overspend if I don’t pull it back from elsewhere. I spent quite a bit on gifts but January is birthday heavy for us so this one should work out.
  • I still spent 150% of my grocery budget. This is SO ANNOYING – I was at almost exactly £400 on 30th January but we had a birthday dinner to host today so I went crazy in (the most expensive) supermarket. I knew as I was doing it that I was already regretting it. Something to continue working on, clearly.
  • We hadn’t planned for the impact of Brexit. I feel like, in the words of Lily Tomlin, it’s going to get a whole lot worse before it gets worse, but the immediate impact was that we couldn’t watch the telly. I might appreciate that this is small beans compared to, well, so many other things, but – the telly! We normally watch Prime, through my UK account, and pay additionally for some channels. 1st January – nada. I spent a frustrating amount of time trying things out (turns out you can’t get Brit Box in Europe, since apparently it’s only available in Anglophone countries) and did the single mum thing I hate – asked One Of The Dads to help since technology is a Boy Thing. Shakes fist at self. So I ended up buying an Apple TV box, cancelling my Prime subscription and trying HBO Nordic. We don’t have terrestrial or cable TV so I don’t mind paying for *something* but this was not budgeted for. It turns out my mum also won’t be able to send over gifts for the kids (or me) in the same way, so watch this space for the reign of terror which begins when I run out of marmite.
  • The kids’ schools are closed since Christmas and after a few weeks my son started to get neck pains. So whilst we had laptops from last time, my shopping-general budget took a hit to buy mice/keyboards/ whatnot to set him up, and a webcam for us both so we can use a proper monitor. I managed to find an old monitor and some bits and pieces, and we asked first on the local freebie marketplace, but still had to fork out.
  • There are still some things I haven’t budgeted for. Almost the entire ‘family’ spend this month was on helping out a very old friend. I can afford to do it, and he has done the same for me in the past, but it wasn’t anywhere on the list.
Item Monthly BudgetSpent Jan% of monthly budget
Childcare costs £         1,100.00 £             790.5472
Car (insurance, tax, petrol) £             125.00 £                99.5080
Charity £                66.67 £                25.6338
Eating out £             120.00 £             104.2287
Entertainment – subscription £                50.00 £                72.77146
Entertainment £             100.00 £             340.09340
Kids – extra curricular £             250.00 £                        –  0
Family £                50.00 £             170.39341
Groceries £             400.00 £             597.15149
Holidays  £             300.00 £                        –   
Insurance £             200.00 £             127.8764
Personal care £                30.00 £                47.02157
Shopping – general £                25.00 £             165.37661
Shopping – gifts incl birthdays £                58.33 £             167.97288
Shopping – clothes £                29.17 £                        –  0
Rent and Bills £         1,700.00 £         1,638.5796
Transport £                41.67 £                67.46162
TOTALS £   4,645.83 £   4,414.5595%
Enjoy the little things – like British TV? Photo by Brigitte Tohm on Unsplash

With that done, what did I save?

 Monthly PlanJanuary% of plan
Mortgage Capital  £                    865 £                    865100
Mortgage Overpayment  £                1,250 0
 Emergency Fund  £                    10015001500
ISA £                1,25050040
Kids savings £                    248248100
SIPP £                    300300100
  £   3,148.00 £   3,413.00108%

This went pretty much to plan. In January I had to move my house deposit over to Denmark and I lost some money in transaction and exchange rate costs. I also need to now boost my emergency fund as I’ve taken it down to £4,000 (or one month’s expenses). It’s definitely not enough in these uncertain times, so rather than focusing on my usual goals I need to spend a few months getting that back up to at least three months’ worth.

Overall I saved 44% of my income, and spent 56% which is a little better than planned.

Given the overspend in some areas, February should be a month of clawing back – though it does include half term holidays… Watch this space!

How did your January budget go? Feeling in good shape for the start of 2021? I’d love to hear from you!

PS – if you like British TV and don’t feel like your life has enough dystopian fear in then I highly recommend Years and Years (I am not paid for this – it’s just the best thing I’ve seen in a while. Terrifying).

So, how are we doing here? May budget and spends

Enough of the soul searching – what am I actually spending?

In my mind, lock-down has been a time of spending no money. Certainly you have to be both inventive and patient to hit the normal spending levels, since it has meant either queuing, or ordering things which take a long time to be delivered. I just received a fire bowl for the garden which we ordered in April and which arrived this week, but minus the actual bowl – a two month wait for a totally useless stand…

May was the month we went back to work and school here in Denmark. It was also my daughter’s 7th birthday party and since we weren’t able to have family or friends over, I definitely spoiled her a bit to try and make it more special.

It was also the month I started planning and paying for things to do in the long school holidays. Since we can’t travel back to the UK I had to cancel long made plans – thankfully being able to either move it all to next year or get refunds – but then think about what we are actually going to *do* for the next two months.

So here’s what we spent. And it reminds me why I think of myself as being ‘fake frugal’. There are no ridiculous purchases in here, nothing really out of the way or extravagant (or that felt like it, at least). And yet I still managed to overspend by almost £ 1,000.00.

 PlannedMay-20
Charity £       30.00£150.00
Insurance £    277.00£277.00
Rent and utilities £ 1,500.00£1,500.00
Childcare £ 1,000.00£1,000.00
Groceries £    300.00£793.36
Holidays £    300.00£858.84
Transport  £    300.00£36.00
Entertainment £    200.00£247.03
Eating out £    175.00£57.37
TOTAL £ 4,082.00£4,919.60
Planned vs actual spend: May 2020
Game over? Hell no!

So what went well? Bills, childcare, insurances all stayed the same. I upped our charity giving all throughout lock-down because things are so tough right now for so many people (to the Single Aid Mamas crowd fund, an amazing group of other single mums in the same line of work that I am in, a number of whom lost their income during this period: to Age UK given that older people are having a hard time: and to the Trussell Trust who are supporting food banks across the UK).

The bulk of the extra spend was on groceries. Whilst it does feel as though food is getting more expensive, this is also down to eating every meal at home (and the related decrease in eating out budget). It is also because like lots of people I have been really into cooking as something fun to do during the lockdown. As a wannabe frugaleer, I normally cook from scratch 5 nights a week, and make packed lunches. But we have really tried new things, got into baking, and also continued to keep a healthy level of food stocked up in the house in case the quarantine gets strict again.

But this was something of a wake up call. Just because I feel like we’re not doing much, or spending much, keeping track of the numbers is the only way to be sure. In May, I did manage to put  £ 800 into my savings,  £250 into the children’s accounts, and make a £ 2,000 mortgage over-payment. So whilst it wasn’t a great month, it still worked out.

Aluta continua!