Confused about how to do our budget...

OK so DH and I have recently arrived back from a 6 month overseas holiday and im taking charge of our finances...well at least im trying to....:rolleyes:

Ive found a really geat spread sheet to use which works month to month but im confused about how I should work the money side of things. A bit of a run down:

DH works fly in fly out, so the money is good but it works on a rotation. He gets paid every Thursday but its dependent on the week. He gets 5 days pay one week, 7 days pay the next week and 2 days pay the next week. So some months he'll earn in excess of $9k but other months its only around $6.5k due to the way the weeks fall into the month. ie. some months he may have 1 big pay, 1 medium pay and 2 small pays - on another months he may have 2 big, 1 medium and 1 small. I work on a retainer and commission wage. I get a set retainer each month and then my commission can be up and down depending on how good of a month I have had. At the moment we are living at mum and dads until our tenants move out of our house next month. My plan is to save dh's entire wages this month as we are not paying a mortgage, rent etc to get us one month ahead.

We are about to change banks (Westpac are well and truely giving me the s*its!!!) This is my plan so far:

Three linked bank accounts:

One for everyday transactions: Food shopping, Fuel, Entertainment etc. This account will also have direct debits for: Gas, Electricity, Water, Internet/Home phone, Car, Home and Contents Insurance, Car Loan, Personal Loan and Private Health Cover.

A savings account that will have a set amount go into it each month for: Rego, Rates and gifts (like a xmas saving fund).

A savings account that will only have savings that we dont touch.

As we will be a month ahead I am planning on having the mortgage taken out in one lump sum at the start of the month (we pay it fortnightly at the moment and I know this is better intertest wise but im looking at a way to simplify it all, I can change it back to fortnightly later if its not working).

My retainer will go into the everyday account on the 18th of every month and ill arrange for all the direct debits to come out on the 20th of each month. My commission pay will go straight into the savings account that we dont touch. Then each month I will top up savings, pay c/c payment (wil be lump sums as wanting to pay off over a couple of months and cut up!) and allocate money to rego, rates etc. from DH's wage.

All sounds bloody confusing doesnt it???

It does sound very confusing! All I can advise is that you need to budget on your lowest possible income every month - so your flat rate pay and hubbys $6000 - then you should make yourselves live off that and anything you earn above should go into savings if possible. That's a pretty decent income anyway!
As for the mortgage, I would go to weekly if possible because you actually end up making afew extra payments in the 5 week months.

I think it all sounds good, and I was only going to say what Ausgirl said, to budget on the lowest income if possible.

The other thing is what have you budgeted for DH to spend when he's at work? Do you each have your own account as well?

Be careful with the direct debits as sometimes it's not possible (or worth the extra hassle) to change which date in the month those bills cycle on.

I agree with ausgirl too. But sounds like you have got it all covered... good work!!

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I think it all sounds good, and I was only going to say what Ausgirl said, to budget on the lowest income if possible.

The other thing is what have you budgeted for DH to spend when he's at work? Do you each have your own account as well?

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Hi Em,

I have allocated $100 per week for DH to spend up at work, most weeks he doesnt spend that much though. No Dh and I have had joint bank accounts since we were 17! It works really well for us though. It has never been 'his' and 'mine', it has always been 'ours'.