HELP! Have cut back all I can but am still over-spending!

ScrimpingandSaving · 6 February 2013 at 10:09PM

Every month we are having to dip into our savings to bail us out and it just can't carry on. The problem is we simply don't earn enough. I just did the Budget Brain on MSE and we go over by around £330 each month.

Please help me see where I can make savings!

Our joint monthly income is £2,252 incl child benefit and child tax credits (not eligible for working tax credits)
Our total spend is £2,650.

Mortgage is fixed until April and is £448pm
We have no debts to pay.
No cable TV or monthly phone subscriptions - 3 PAYG phones at around £15pm
The most we spend is on groceries which is around £650pm for a family of four. That includes wine, beer and sundries such as household items, children's underwear and some birthday gifts.
Gas and electricity: Co-op which was cheapest when I checked 6 months ago. I pay £35pm and we owe an extra £250 on top of that so can't switch until I pay.
Council Tax: band B which is around £132pm
Insurance: just buildings at £6.42pm
Water: £350 a year
Petrol: £250pm 2 cars, 1 diesel @ 60 miles a day and 1 petrol for kids, shopping, etc @ 100miles pw.
Car insurance: we shop around for the best deals £44pm currently, £74pm on tax and £40pa breakdown cover for both cars. Maintenance for both cars incl MOT is £64pm.

Savings: no pensions so I save £100pm in an online savings account and put away £20pm each for the kids.

We don't eat out except for special occasions, no big days out, the only take-out we have is a supermarket curry every Sunday at a cost of around £7.

We generally have one holiday a year and that costs around £800 for all of us incl spending money, travel and accommodation.

I have promised to visit my dad in the Orkney islands this year as he's getting quite elderly now and I've not visited him yet. That will cost around £1,000 when you take into consideration the cost of petrol and 2 nights paid accommodation (one there and one back) plus the ferry.

I am at my wits end as to what we can do. We know we can't carry on the way we are but we are already cutting back on so much. The kids don't have any clubs, they don't have school meals and their clothes are all second hand as are ours.

Any advice greatly appreciated. I know I can stop putting away £100pm but that would be neither here nor there as I end up taking it back to top up our account anyway.

meritaten · 6 February 2013 at 10:17PM

er - so you are putting away savings yet are overspending each month?
even a quick scan of what you have posted tells me that you should be under budget - so where is the excess money going?
I am awful at math but I make your outgoings at less than £2000 a month inc holiday - have you counted in spending money for that?

Tiglath · 6 February 2013 at 10:21PM

You're spending a huge amount on groceries - lots of savings to be made there. I think you need to keep a spending diary to see where all the money's going; you should have hundreds over a month. Try for a month to log every penny you spend - every coffee, soft drink, bar of chocolate.

Aria`s_Tail · 6 February 2013 at 10:23PM

Hi, just a couple of suggestions, your grocery budget could easily be cut by a couple of hundred, try drop a brand and loads of cheap recipies on this site
. Do you really need both cars? I sat and debated this a few weeks ago as i was reluctant to sell my old faithfull when OH found a better one, but even as a runaround it would have cost £2k just on basics (tax, insurance service)

meritaten · 6 February 2013 at 10:25PM

I agree with Tiglath - you are somehow spending money which is not recorded in your budget! keep a spending diary and note every penny!

Own_My_Own · 6 February 2013 at 10:31PM

Filling out a SOA will make it easier for you to see where you are spending money.

http://www.stoozing.com/msoc/soacalc.php

rosie383 · 6 February 2013 at 10:32PM

Your grocery spend is far too high. But even at £650, there is extra spending happening somewhere. Look at your bank statements and account for every single penny.

sam.4000 · 6 February 2013 at 10:39PM

As others have said a spending diary would identify where all your money is going.
Try doing your grocery shopping online and have it delivered then you are far less tempted to add extra things as you shop.
Also doing a weekly meal plan will help you know what you need and also stop you wasting anything. There are several threads on this with some great ideas.
Try using cash only instead of cards so you can see the money. It makes me think a lot more when I can see the money going.
You have a yearly income of about £26,000 it's got to be going somewhere.

CookieMonsta · 6 February 2013 at 10:46PM

Your grocery spend does sound like a lot. Can you cut down on non-essentials and buy more basics brands and more in bulk for things like rice, pasta, tinned goods when on special offer etc?

Do your kids buy their lunch at school? Would it be cheaper to take packed lunch and if they already do this, could you cut costs by reducing the pre-packaged things they take and giving more leftovers, homemade muffins etc.

rosie383 · 6 February 2013 at 10:50PM

I agree with Sam and a lot of others here about using cash. I used to be like you, spent much more than I should have. Now I take my monthly budget of £250 for a family of 4, put it in a wee purse, and I have to make it stretch. I find it's always difficult by the end of the month, so I take £200 at the start, and try to make it last as long as possible and have the last £50 to look forward to.

McKneff · 6 February 2013 at 10:55PM

Do a proper SOA, it will be a lot easier for people to help you.

HELP! Have cut back all I can but am still over-spending!

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