Newbie needs to reduce living costs-help!

Empty_pockets · 7 December 2006 at 10:17PM

Hello all,

Im new to the site. First heard Martin on R2, its a great feature.
In the brief look i've had around the site, its great, lots of helpful people.
Seems like my debt is insignificant to many.

Anyway

Im struggling with getting anywhere financially.
I live with my 3 yr patner in mortgaged house (in my name) taken on in 2000.

Im 26 now, ben living on my own (and getting into debt) for 7 years.
Im self employed and currently earning more than i've ever done before but still don't seem to be making any financial headway.

I've bulit up loads of debt over the years and recently put most of it onto the mortgage which was 42K 7 years ago. its now about 70K

My partner, Aimee, is working however she can only contribute around £200 a month. Basically she buys all the shopping.

I am working an about 50-60 hours a week and grossing about 2K a month.
I allow myself £50 a week to blow on whatever ( though i dont usually ) and the rest goes on bills and a tiny saving.

Im not paying into my pension.

The house is in a terrible state we dont even have a propper floor down or curtains.

Im not qualified in anything so job wise, i dont think i'll get much better.

I simply cant see how everyone else seems to have a nice, cash rich life when I work like a ***** and dont seem to get anywhere for it.

I've got a balance spreadsheet which covers EVERYTHING but not sure whether i can put it up on here.

Thanks in advance.

Rick.

inspiremetosave · 7 December 2006 at 10:23PM

''I simply cant see how everyone else seems to have a nice, cash rich life''

how do you think the majority are paying for it?!

Biffa · 7 December 2006 at 10:26PM

Can you post a SOA so we can help a bit better? There may be things that we can see that you haven't seen for yourself. A fresh pair of eyes (or lots of pairs of eyes) can make all the difference.

Welcome to MSE and well done for taking the first step.

Empty_pockets · 7 December 2006 at 10:41PM

Yes, I know inspireme, I know! Still makes you feel down hough when they are telling you about the third holiday they've had this year!!

Ok SOA

Bit complicated as im SE

My target is £700 turnover
£105 radio fee
£100 fuel

They are my main costs, I reckon I get about £2000 a month (Gross pay)

Outgoings
Mortgage £550 - Thats the min, I was hoping to pay £700
Council tax £68
Gas £59
Electric £25
Water £28
BT Landline £10
Homecall calls £5
Mobile £40 (contracted, 14 months left)
Internet BB £20 (contracted 6 months left)
Life insure £5
Sick insure £12
Jujitsu £15
K-Boxing £30
Spending money £200
Child maintaince £150
Savings £700 (not acutal saving, see below)

Total £1917

Savings i've decided to put into an isa as the balance is only a grand or so at the moment.
It covers my annual bills
Being
Car insurance £1800
Licence £180
Accounts 3250
Car £1000
Home insure £200
Tax bill £3700
N.I £110
Actual savings £1000
Car tax £200

Hope thats clear

yung · 7 December 2006 at 10:54PM

Welcome to the forum, I am not an expert myself but the folks here are very good and they will helps and advises. good luck

immoral_angeluk · 7 December 2006 at 11:28PM

Empty_pockets wrote:

Yes, I know inspireme, I know! Still makes you feel down hough when they are telling you about the third holiday they've had this year!!

Ok SOA

Bit complicated as im SE

My target is £700 turnover
£105 radio fee
£100 fuel

They are my main costs, I reckon I get about £2000 a month (Gross pay)

Outgoings
Mortgage £550 - Thats the min, I was hoping to pay £700
Council tax £68
Gas £59
Electric £25
Water £28
BT Landline £10
Homecall calls £5
Mobile £40 (contracted, 14 months left)
Internet BB £20 (contracted 6 months left)
Life insure £5
Sick insure £12
Jujitsu £15
K-Boxing £30
Spending money £200
Child maintaince £150
Savings £700 (not acutal saving, see below)

Total £1917

Savings i've decided to put into an isa as the balance is only a grand or so at the moment.
It covers my annual bills
Being
Car insurance £1800
Licence £180
Accounts 3250
Car £1000
Home insure £200
Tax bill £3700
N.I £110
Actual savings £1000
Car tax £200

Hope thats clear

What about your food, tv licence etc? Check out the post at the top of the forum about SOA's to see if you've missed anything out.

taxi73 · 8 December 2006 at 12:28AM

Hi there and welcome...I know exactly how you feel being se myself...I guess you are a taxi driver the same as myself...it's so complicated when you are self employed due to the fluctuations in earnings..and not being able to know at any given time what car expenses you are going to incurr...i'm glad you've posted as there are others on here that are se and will come up with really good advice...just going to look at your Soa to see if I can help there...I will if I can...i'm quite new myself on here...but if your cabbie I may be able to help..you have come to the right place here as these posters really do know how to sort things out..:T

taxi73 · 8 December 2006 at 12:41AM

Hi ...I'm back again...I've spotted a few possible savings...
your gas £59 ...seems high could you change supplier
jujitsu,kickboxing £45...do you have to do these as this money could go to a debt
spending money £200 ...whats this for if you've debt you can't afford this
accountant £3250...extortionate ..you can take your papers into tax office they will do it for you or find a cheaper one...my accountant £150p/a for 2 self certs and joint partnership papers
Also just a suggestion...could you put a driver on one shift a day and charge him rent or half share
I didn't notice where you put your debt on your SOA could you post those amounts/min payments/int etc as this would help us give you some suggestions...you have took the first steps now and things can only get better

CLAPTON · 8 December 2006 at 1:38AM

a few points

your 'annual costs ' total to 11,400 or the equivalent to 953 per month but you are only saving 700 per month so it seems to me you are actually overspending by about 253 per month....even taking off the real saving of 1000 you are still overspending by £180 per month.

so you must either
increase income...can your oh contribute more to the household?
is it possible to let out a room ?

otherwise you need to cut back by 180 per month simply to stop going into debt.
looking at your SoA there isn't a lot to cut except that 200 socialising and the kickboxing etc ...you simply can't afford this...maybe you could down grade the phone contract even if you can't cancel it.

bonnie_2 · 8 December 2006 at 10:26AM

Agree taxi 73 our accountant is only £150 as well. I think the hobbies could come under his spending money, i have £200 a month as well but it has to include everything, hobbies and cigs.

Empty_pockets · 8 December 2006 at 11:24AM

Thanks all.

Typo on my part, if I was spending 3K on an accountant I should be a millionaire by now! The accountant cost is £250.

Thanks for showing the overspend Clapton, but with the figure adjusted as above my annual bills are £8440. With putting £170 a week to one side it should just about cover this even allowing a week or two off.

The money I spend on training is currently £45 a month, though this might go up slightly next year. I don't really want to stop doing either of these as I've been training several years and now not far from achiving my Black Belt.

The £200 spending money never gets totally used. I try and save as much as I can as it has to pay for Christmas presents, nights out, motorbike and petrol costs. Basically its like petty cash, it also covers everything from clothes to treating the mrs to a meal out to getting the house decorated.

Unfortunatly I didnt take the phone contract that long ago. I'll be able to reduce the contract around next March.

2 reasons i've not considered letting a room. Firstly, when the kids come to stay over they won't have a place to play or sleep. Secondly, the condition of the house is not nice enough to attract potention tennants. It culd be, but it'll need a few quid spending on it yet.

I changed from NPower to B.Gas earlier this year. Not much in it. TBH I think it can be more hassle changing suppliers every few months than its worth in saving. I would be better off working an extra hour than spending an hour on the phone sorting out idiot call centre staff.

Immoral angel, My other half buys all the food, thats her contribution, usually comes to about £200pm.

Debt wise I shifted most of it onto my mortgage hence it going from 42 to 70!
There are a couple of things hovering though. A CC bill of about £600.
More worryingly I goy a County court notice demand for £1000. Thats from the inland revenue as they say they overpaid me child tax credits when I was with my ex. I've contested it and asked to see the paperwork.
I also had a unpaid debt of £700 to a advertising company but I haven't heard from them in months so I think they may have just written it off.

Thanks for all the above replies.

Newbie needs to reduce living costs-help!

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