It's really hard
Hayley33
Posts: 52 Forumite
We've got quite a lot on the go I won't take out two cars at the same time again and I've just put my debts all in one place and if I can stick to a budget they'll be cleared in 3 years and on paper be £400 p/m better off. I was just in my overdraft before so I just used to switch out what I needed etc, within reason. Now I don't want to get into it again. But I always seem to have such a lot on I can see this is going to be really hard to do. On top of all the bills, the two car payments, the sofa payment, the loan to pay off the debts, there's clothes that my child always seems to need, the school always want something they ask for money most weeks, there's the school dinner bill, there's the endless birthday parties at £5 in the card each time., there's work where there's the constant collections for people, there's the never ending food shopping bill...... I REALLY want to pay off my debts and stay out of my overdraft. I've also opened up a little savings account in the hope that I can build up some money for myself. It's seems absolutely impossible to stay within a budget, you always need the credit card on top. I can't though anymore. I only work part time now around my husbands shifts because we can't afford childcare so my pay isn't the best but it will do until she grows up ( it will have to do). How do you all do it?
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First up, as you've been advised on another thread, you need an SOA (Statement of Affairs) so you know where you stand. It's linked in the sticky thread at the top of the board - get it filled in (accurately) format for MSE and post it in here and people can offer a lot more help and advice.
As for "how to do it" - less going out than you have coming in is key. But without the SOA it's not really possible to see where savings can be made. It sounds as though you've already learned that consolidation isn't a good answer for you (or indeed for most people) though - which is a good start.
Kids clothes by the way - eBay is your friend, or charity shops. Smaller kids REALLY don't care, I promise you! The school stuff - analyse what you *have* to pay for and what is just a "can you spare money to help with X" - the answer to the last one currently is that no, you can't, there IS no spare. Packed lunches may well worth out cheaper than school dinners, too.
Think about ways you can earn extra money too - how about taking on a Avon round or similar, or doing surveys even?🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Ill have a look at the SOA later.
I wouldn't say that I don't have money spare. Now that I've sorted out debts to be paid off I know I have a 3 year timescale and I know that I have £300 per month to myself thatsno food, bills, nothing they're all separate and sorted in another account.
I'm
Just not very good at saving and always seem to have a lot coming up and every penny seems to vanish.0 -
If you've got £300 a month spare, but are still having to fall back on using the CC to make ends meet, then you definitely need to sort the SOA as a matter of urgency. You need a budget, and you need TO budget, for all the things you've mentioned. Do you know how much your debt totals up to, for a start?
Suggestion. Sort the SOA, Sort the budget. Implement the budget. Cut up the Credit Card or at the least give it to a trusted family member who lives away from you to take care of - with instructions that you are ONLY to have use of it in an emergency. A real emergency. Once you have an emergency fund built (under 4 months away, with that money spare) you can cut the card up.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Yes I've worked it all out and now that my overdraft is clear I have £300 pounds I've taken petrol, bills, school dinner money, car insurance, phone etc everything I really pay out of this & even set a savings account up to start building up some money to fall back on/ towards a holiday etc. It sounds like a lot and I appreciate some people don't have this much, but it just goes. I am to start putting money in the savings from next month I've put my daughters on hold a minute I'll build it back up again when debts are cleared in 3 years ( I try to save for her for when she's older)
I don't really think I'm wasting money things are just so e pensive. I am taking my credit card out of my purse as I've bought clothes & bedding this month ( I have money to pay them the bedding was essential)
But it's just so that I can't spend I'll have to think about iti won't automatically have access to the card. I do have access to my money though. So I can only spend that.
What does everyone do ?0 -
Yes I know what my debts are. I don't really count my cars as bad debt as they are on going, so it's the one lot £150 per month for 3 years ( was 5,000 of debt) and a sofa payment but that's ongoing and is halfway through.0
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What does everyone do ?
I can't answer for everyone, but what we did was:
- Drew up a SOA so we knew what should be going out
- Worked out a proper budget.
- Worked out that we had a surplus
- Realised that the surplus we *should* have, there was no sign of by the end of the month
- Started sticking to the budget we'd worked out, thus gaining back that surplus
- Paid off our overdrafts
- Paid off a car loan early due to overpaying it, saving interest.
- learned to budget for annual expenses like car insurance, home insurance, so these were then paid upfront, saving on the premium for paying monthly.
- Haggled with suppliers to get the best deal on TV,. broadband etc.
- Learned to meal plan and shop to a list, cooked from scratch and cut takeaways back to an occasional treat
- Learned to save for things, then buy them, not buy them, then pay them off.
- Learned to budget for general car expenses, holidays, replacement household items, and occasional nights out - we set aside money each month for these.
We've been living by those rules for 8 years and have massively changed our lives for the better in that time. We saved and paid upfront for our new bathroom which was fitted in May of this year - the new towels we bought when it was done were the first new ones we'd bought since 2003. Next target is getting the kitchen done over the winter - that will also be paid for up front. We have a credit card - but it's a cashback one, gets paid off every month, and it pays us, we don't pay it.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
What are you doing, each month, with this "spare" £300?0
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maybe try keeping a spending diary for a month - write absolutely everything down. Then at the end of the month look back and see where it went. If you see £50 on coffee and magazines it might focus the mind next time you go out so that you take a refillable bottle of water with you instead - that sort of thing.
At the moment no one else knows where your money goes - and possibly you don't eitherI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
I'll keep a spending diary starting next month. Great idea.
Bob just on general living, meals out, a takeaway, clothes/shoes etc etc for my child, days out with child, things for myself toiletries, clothes etc. I didn't have that money spare until this month as I was hugely into my overdraft. Now I've paid it off ( well I will have in 3 years) I have this left from my pay. I do a strict shopping budget I take out cash and we try to stick to around the £250 a month mark.
I just thought imagine if I could live off £100 for a few months and save the £200 I'd have the £1000 emergency fund that I've always wanted to build up but that's probably an impossible goal0 -
Bob just on general living, meals out, a takeaway, clothes/shoes etc etc for my child, days out with child, things for myself toiletries, clothes etc.
Some of those are not essentials.
Cut them out, and put that money toward an emergency fund (price up your most expensive, essential, domestic appliance, double the amount, and save that ASAP), then, when you have the emergency fund, put future amounts to your debts.I just thought imagine if I could live off £100 for a few months and save the £200 I'd have the £1000 emergency fund that I've always wanted to build up but that's probably an impossible goal
Why is it an impossible goal :huh:0
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