Bhav from Project Life Admin: How I Discovered Spendee + 5 Tips That Help Me Budget Efficiently
I discovered Spendee in a rather unconventional way and didn’t use it in the way that you would assume. Since then, I’ve also started using it for my own tracking and budgeting.
Here’s how I found it and some budgeting tips I have learnt since using Spendee.
It’s the Mother’s Fault
You see, I have my mother as an additional account holder on my credit card. Why? Because, I was clearly feeling generous that day. Wait a second, not that generous … I don’t mean I pay for her shopping sprees. I just mean I look after the admin. What I didn’t realise at the time, was how much admin there would be and the headaches it would cause. My mother, bless her, is a serial returner. She just can’t help it, she’s Indian (and yes, that’s where I get it from). As she’s not the most tech-savvy and very old school, she pays me in cash. Unfortunately, as I don’t live with her, and can occasionally go a few weeks without seeing her, we can both quite easily forget what’s been paid and what hasn’t (she likes to pay weekly, not monthly).
The Search
I was getting a little annoyed with random iPhone notes and bits of paper trying to keep track of things (especially at Christmas … that woman can spend!). And so became the search to digitise this painful process.
I spent a lot of hours searching for the right app to do what I need:
- allow me to add expenses manually,
- allow me to add income (when she paid me),
- look pretty (I'm sorry, it's necessary),
- have some decent analysis built in (because I like to tell mother where she's spending all her money).
Eventually I found Spendee and my prayers had been answered. This was the app, and I haven’t looked back since.
Seamless
I can now say that I am no longer losing money, yay! 👏 Turns out my mother didn’t pay me as often as she thought she did! Once a week (I am a believer in the batching of tasks), I will sit down and enter her transactions for the week. This is usually done when I go to visit her so I can pull faces at her for some odd spend. It takes all of 5 minutes to transfer transaction from my credit card app to Spendee (this is where I use the web version on my Mac so I can use the credit card app on my phone … so efficient!). I then proceed to tell mother how much she owes me (having waited patiently for the magic number) and I get my monies. At this point, I add in the money she’s paid and we settle it there and then … result!
When we go a few weeks without doing this and she turns to me to claim she’s paid me (not because she’s trying to scam me by the way; she just doesn’t remember), I can put out my app and tell her, ‘Nu uh, missy. Nice try though 😉’. This is doubly great because normally if she’s have said that I would have accepted it (even if I knew she was wrong, just in case).
Categories
Now this is where it’s a little unconventional. Instead of having the usual categories, like groceries, clothes, bills etc. I have set Mum’s categories up to be the shops she spends in. She has her favourites, so 99 times out of 100, this is where she’ll be.
She’s also way more likely to remember that she went to M&S on Tuesday and Tesco on Thursday, than what she bought. Plus, she’s not the analyst, I am. This way I can tell her that she should stop going to Tesco 6 days a week 😬 Spendee allows you to customise your categories — not every app does.
Tips That Help me Budget Efficiently
I am also a huge fan of budgeting my own spend, and use Spendee to track my income and expenses. Here’s what I’ve learnt since starting:
#1: Kiss It
Well not literally, but ‘Keep It Simple, Stupid’ (I didn’t just call you stupid, the US Navy did). This is 1 of the 2 most important things to keep in mind when setting a budget.
It needs to be easy to create, easy to update, and easy to understand. The second it starts to become complicated, you’re much more likely to stop … and that is not what I want for you! Firstly, (and I’m talking from experience) the fewer categories you have, the better. You don’t need categories and subcategories and sub-subcategories.
Group as much as possible. Remember, you need as few as possible to keep it simple, but enough so you can set realistic budgets for each category.
#2: Make Sure It’s Sustainable
We all do it, we all overestimate how much we can do because we’re likely motivated in that moment. But how many times have you gone full ‘gung-ho’ into something, only to stop a week or 2 later.
This is because you made too much change, too fast. You need to make small changes and gradually build them up. This applies to both the budgets you set per category, and also with how you ensure you update your expenses. This is the 2nd most important thing.
#3: Save First
When setting a budget, people tend to allocate money for all their spend and then see what’s left over to save. Sometimes this isn’t very much, if at all!
If you’re someone who wants to save money, then it’s vital that you allocate money to your savings first. Then take what’s left over and spread to your various categories. To get a feel of what you normally spend, just take a look at a previous months’ transactions (possibly pre-Covid?).
#4: Fun Money
So I mentioned that I have a ‘guilt-free spending money’ category. This is a pot money that I set aside each month to use on all sorts of frivolous things to make me feel a bit better and ensure my budget is sustainable. I don’t mind cutting back a little on eating out if it means I can buy another pointless gadget … it makes me happy.
Conversely, those that are more social that I am, may prefer to spend more on eating out and cut down on a subscription they don’t use (or isn’t bringing them as much value). Which reminds, a good place to start when looking to cut some costs is by reviewing your existing subscriptions. Do you really need them all? Are they bringing you value?
Could you channel that inner Marie Kondo and ask yourself if they are bringing you joy. If not, perhaps it’s time to get rid.
#5: Do What Works For You
Everyone is different and everyone works in different ways. You need to find a method that works for you.
Some questions that may help are:
- Do I want to manually update my transactions or just have them automated? (I like to track manually to ensure I have accountabilty).
- Do I want to use an app or track with pen and paper? (I have been using Spendee for 2 years now, but I still like to set my budgets first with good old pen and paper).
- Would I prefer to update daily or weekly or even as the expense occurs? (I personally like to batch update my spend at the end of the week)
Ultimately, though, the key is to just do it.
Even if for the first month, all you do is track your income and expenses, it’s a start. You’ll create the habit, and learn about your spend. The budget will take care of itself.
Final points
Budgets aren’t just for those that those that may be struggling. Budgets can be adjusted.
Don’t beat yourself up for not doing it or not sticking to it. Just keep going.
