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  • FIRST POST
    • Zoe185
    • By Zoe185 7th Sep 17, 10:23 AM
    • 9Posts
    • 13Thanks
    Zoe185
    No Debt but struggling
    • #1
    • 7th Sep 17, 10:23 AM
    No Debt but struggling 7th Sep 17 at 10:23 AM
    Hi All,

    I am struggling with money each month, i have no frivolous spends and am really tight with my budget. I used to have a gambling problem and spent about GBP 3000 over the course of it before i got clean. Been 5 months so im not wasting that anymore.

    I work and support myself and my mother (who's 73 and mentally ill) so I pay all her bills as well. Did an SOA which shows I should have money left at the end of it, but i usually only have maybe 10 quid left at the end of it with no clue where it's going. I have poured over my yearly statements and i'm at a loss. I have build up my savings over the past year and thankfully have that but it's not growing. Any help or advise would be appreciated. My rent is high but I cannot move as ive calculated it would cost me almost the same maybe saving 20 quid if I count in commuting costs and eating expenses

    Statement of Affairs and Personal Balance Sheet

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 2200
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2200


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 1045.5
    Management charge (leasehold property).. 0
    Council tax............................. 108
    Electricity............................. 25
    Gas..................................... 25
    Oil..................................... 0
    Water rates............................. 23
    Telephone (land line)................... 0
    Mobile phone............................ 20
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 49.99
    Internet Services....................... 0
    Groceries etc. ......................... 75
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 10
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 17.4 (Cineworld Membership)
    Holiday................................. 0
    Emergency fund.......................... 0
    Payment for Mom......................... 500
    Total monthly expenses.................. 1911.01



    Assets

    Cash.................................... 25000
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 25000


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Total unsecured debts..........0.........0.........-



    Monthly Budget Summary

    Total monthly income.................... 2,200
    Expenses (including HP & secured debts). 1,911.01
    Available for debt repayments........... 288.99
    Monthly UNsecured debt repayments....... 0
    Amount left after debt repayments....... 288.99


    Personal Balance Sheet Summary
    Total assets (things you own)........... 25,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -0
    Net Assets.............................. 25,000
Page 2
    • Zoe185
    • By Zoe185 7th Sep 17, 11:54 PM
    • 9 Posts
    • 13 Thanks
    Zoe185
    I feel lik crying, thank you for the kindness, encouragement and advise. I'm happy i kicked the gambling habit that would have taken me down completely. Had a lightbulb moment when I thought of touching savings.

    My mom is important to me, unfortunately where when lives there is no help for the elderly so its upto me. no not going to stop paying for her rather cut back on my my own for a while. She's hasn't had the best life just want to make sure she's taken care of.

    I used to live in central london in a flat share the most miserable 5 years of my life. Was paying approx 600 then plus transport costs. I'm much more happier and at peace living alone.


    A bit too scared investing in Stocks ISA, thought about it but risking this kind of money would make me fret. Ive been trying to research otheraccounts which will get me a better interest rate. Calculating on my current ISA I'm getting interest of 0.033% per month. Not sure how good or bad that is tbh
    • datlex
    • By datlex 8th Sep 17, 1:47 AM
    • 1,313 Posts
    • 1,093 Thanks
    datlex
    Hi OP,
    Have you tried putting aside half of what you think you should be saving at the beginning of the month? Set up an SO for a savings account.

    Where does your mum live? £500 is a lot of money to give her. Could you help in other ways? (I had a quick read through but couldn't see if this has already been answered)
    • Zoe185
    • By Zoe185 8th Sep 17, 8:00 AM
    • 9 Posts
    • 13 Thanks
    Zoe185
    Hi Datlex,

    I've been thinking about that, I've just started doing a spending diary to first figure out where the extra money which I should have left over is going. Hopefully should have a clearer picture by the end of the month.

    The £500 is literally for bare minimal essentials, maintenance bills for the apartment (she lives in a coop society so this has to be paid every month), electricity, gas, water and medical bills for her and food. With the rate of inflation this juuuust barely covers it. As I pay all the bills from here I'm definitely keeping a check of all the amounts.

    She has sisters (who all live away) but they think I'm irresponsible for leaving her alone and moving overseas to U.K. and refuse to help even a little. All they want me to do is quit my job and my life and go there and take care of her. I'd do it too but salary wise it would be a massive hit and I'd barely be able to sustain the house on that.

    Been trying for a while to find other jobs but they unfortunately pay a lot lower than what I'm currently earning. I know that sending money for mom is taking up the bulk of my pay but it's a matter of survival for her. My conscience will kill me if I left her to fend for herself when I know she can't.

    Ahh well unless by some miracle my salary increases I guess I'm just stuck.
    • fiisch
    • By fiisch 8th Sep 17, 12:23 PM
    • 159 Posts
    • 61 Thanks
    fiisch
    I feel lik crying, thank you for the kindness, encouragement and advise. I'm happy i kicked the gambling habit that would have taken me down completely. Had a lightbulb moment when I thought of touching savings.

    My mom is important to me, unfortunately where when lives there is no help for the elderly so its upto me. no not going to stop paying for her rather cut back on my my own for a while. She's hasn't had the best life just want to make sure she's taken care of.

    I used to live in central london in a flat share the most miserable 5 years of my life. Was paying approx 600 then plus transport costs. I'm much more happier and at peace living alone.


    A bit too scared investing in Stocks ISA, thought about it but risking this kind of money would make me fret. Ive been trying to research otheraccounts which will get me a better interest rate. Calculating on my current ISA I'm getting interest of 0.033% per month. Not sure how good or bad that is tbh
    Originally posted by Zoe185



    Utterly appalling!! At 0.033%, that's probably the worst I've seen.... Your savings are losing money in real terms every day due to inflation (i.e.: what £25,000 can you buy you is diminishing due to inflation, but the interest rate in your ISA is not keeping pace in any way shape or form).


    I suggest the very next thing you do is open an Atom Fixed Savings Account (see Savings under MSE website). It's not going to make you rich at 2.1% (or thereabouts) - circa £500 interest per year - but at least your savings won't be losing money, and this involves zero risk.
    • paddlingfuriously
    • By paddlingfuriously 10th Sep 17, 2:12 PM
    • 81 Posts
    • 86 Thanks
    paddlingfuriously
    Hi Zoe, well done for your fantastic savings and for helping your mum. I just wondered, have you thought about looking into some volunteering? I've had my own bouts of struggling to see beyond work - home - work. As your mum isn't in the UK, perhaps something that helps an older person who for their own reasons doesn't have many family or friends nearby? Age UK has a scheme called Call in Time - the only commitment is to call a lonely older person you've been matched with for a 30 minute chat once a week - the link is here http://www.ageuk.org.uk/health-wellbeing/loneliness/sign-up-for-telephone-befriending/ It's a lovely thing to do that makes a huge difference to the older person and their volunteer. I can't recommend it enough.

    And remember, like lots of people have said - you're not in debt and have great savings - two huge positives. Make sure your savings are working as hard as they can be for you :-)
    • bubblycrazy
    • By bubblycrazy 10th Sep 17, 8:25 PM
    • 114 Posts
    • 304 Thanks
    bubblycrazy
    Have you looked for vacancies in your line of work in another part of the country? The pay might be slightly less but your rent could halve!

    What would happen to your mum if you weren't paying her bills? Surely there's something in place to help her, or her sisters would step in? Is there no other family?
    MFW - Original balance 28/08/2014 £52850
    Original MF date: 2049 Aiming for: 2025
    Balance 28/04/2015 £52250
    Balance 27/07/2016 £49990
    Balance 08/07/2017 £47999
    • Silver Queen
    • By Silver Queen 10th Sep 17, 9:36 PM
    • 142 Posts
    • 715 Thanks
    Silver Queen
    Hi, you live a very frugal lifestyle and I really commend you for looking after your mum like that. I would do the same and I completely agree with you saying that it's something that cannot budge.

    I wonder if you would be able to move somewhere else in the UK i.e. Up north? The pay would likely be less but the cost of living also significantly less.

    Have you considered becoming a lodger for a while? Rather than housesharing with others it would be with a family and probably a bit less hassle.

    Your rent is enormous and if possible, it would be better to buy because at least you'd be paying for something rather than throwing the money into oblivion. This is only if you plan to remain in the Uk, though. Would you be eligible for help to buy?
    • foxgloves
    • By foxgloves 11th Sep 17, 8:25 AM
    • 3,627 Posts
    • 17,624 Thanks
    foxgloves
    That rent is just eye-watering, Zoe. I feel for you & anyone in a similar situation who is having to find that kind of money each month. Moving further north would be an upheaval & reliant on finding a job, but as someone living only as far north as the East Midlands, I can agree with a previous post that rents are a lot lower. For instance, if I wanted to rent out our 3-bedroomed semi (which I don't), the expected rent for around here would be about £650 pm...........& the monthly mortgage payment is significantly less than that. Upping sticks & moving is always scary but it is there for you as a future possibility.
    F
    Money can't jump out of your purse on its own so ask 'Can I borrow one, make one, grow one, bake one, re-purpose or recycle, acquire it for free?' Yes? Then put that purse away & keep your money because little savings grow!
    Loan pay-down fund instalment 2 = £120
    Payment received from surveys: 2015 = £320 2016 = £210 2017 = £246
    • EssexHebridean
    • By EssexHebridean 11th Sep 17, 10:59 AM
    • 7,735 Posts
    • 40,093 Thanks
    EssexHebridean
    Absolutely understand you not trusting stocks & shares ISA's - I think you need a certain degree of knowledge on the way things like that work before you can feel comfortable about it 100%.

    Check out what options there are through your own bank as a starting point - some offer a regular saver account linked to your current account that mays good interest (around 5% annual rate) on a regular monthly deposit of £250 or £500 - so you could perhaps make a start by filtering some of that ISA money across to an account like that. Have a read of Martin's guides on savings etc so give yourself a bit of background information and some added confidence on what to do next.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£504.92 (29/08/17)
    • leicestersq
    • By leicestersq 11th Sep 17, 12:38 PM
    • 55 Posts
    • 80 Thanks
    leicestersq
    If I were in this situation I would seriously consider moving my cash from cash into shares.

    BP is yielding 6.9%. On 25k that is £1725 per year, or £30 a week.

    RDSB is yielding 6.8%.

    Buying shares is a risk though, you can lose every penny of your capital. If a replacement for oil and gas was ever found, I doubt if you would get a penny back from investing in these shares.

    On the other hand, the return on your money at the moment is pitiful, far less than inflation. The current trajectory is that your savings will become worthless at some point, you are going to lose the real value of your money, albeit very slowly.
    • LMG1305
    • By LMG1305 11th Sep 17, 1:12 PM
    • 84 Posts
    • 583 Thanks
    LMG1305
    Is it possible for your mum to move over here with you? Probably a bit drastic but as everybody has made every other suggestion possible, I just thought I would throw it in there.
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