Can't sleep..

Debt_Free_Chick

stebiz wrote: »

Do you ever watch Dragons Den? One of Duncan Valentines favourite phrases is something like 'I'm not interested in Turnover, anbody can do that, it is the bottom line that counts'.

Duncan Bannatyne - but we know who you mean

Yes - it's the profit that pays you a salary. You could turnover £100k but if your costs are £101k then your salary is Jack-$h!t :eek:

Shoozles

I don't know what to do. My boyfriend thinks that whenever I get a sale that's money for us to spend. I know it's not the case and I can't afford to pay myself, but I've put SO much into this I can't bear to give it up.

My doctor advised me against this when I was ill. I feel so stupid but I had to give up my job it was so awful. Now it's 11am and I haven't done any work yet today because I've been trying to deal with all of this and so far I've got nowhere.

Debt Free Chick I appreciate you telling it like it is.

But what do I do? I've got so many events booked up between now and Christmas, do I cancel them all and go to the job centre? I just don't know.

I got through to payplan, someone who works with the self employed is going to phone me back.

In the SOA I put partners income as 600, but it's really 800. The 200 I left out is for him to spend on things he needs. If I was to ask him to pay for sky etc I'd have less money to take from him to spend on the other household bills.

Debt_Free_Chick

Shoozles wrote: »

I don't know what to do. My boyfriend thinks that whenever I get a sale that's money for us to spend. I know it's not the case and I can't afford to pay myself, but I've put SO much into this I can't bear to give it up.

My doctor advised me against this when I was ill. I feel so stupid but I had to give up my job it was so awful. Now it's 11am and I haven't done any work yet today because I've been trying to deal with all of this and so far I've got nowhere.

Debt Free Chick I appreciate you telling it like it is.

But what do I do? I've got so many events booked up between now and Christmas, do I cancel them all and go to the job centre? I just don't know.

That's a tough call if you don't know whether attending those events is going to generate real profit. If I knew that it wouldn't, then I'd cancel -but then if YOU knew that it wouldn't, you wouldn't need to ask the question, would you

To me, this is one of TWO points in your finances. You actually don't know whether your business is generating enough money to pay you a salary. If you spend all your turnover, your debts are actually more than you imagine.

If you ran monthly accounts for your business, you'd be able to show your partner that ..... "of the £1,000 I got last month, £50 went on car expenses, £400 went on stock, £75 on xyz. So my profit was only £abc and I need to put aside £!!! for income tax".

I got through to payplan, someone who works with the self employed is going to phone me back.

Good news - but expect them to ask some of the questions I have (about profit etc) and expect a knock-back if you don't have even £1 to pay your debts.

In the SOA I put partners income as 600, but it's really 800. The 200 I left out is for him to spend on things he needs. If I was to ask him to pay for sky etc I'd have less money to take from him to spend on the other household bills.

He can't afford "the things he needs". He needs to share the costs of living with you, first - only then does he get "the things he needs". Those things come last, not first! (That's the second of the two key points I think you need to address in your finances)

Shoozles

Thank you Debt Free Chick.
I've pulled myself together a bit now, I had a head in hands sobbing moment, but they get me nowhere fast!

My neighbour just called me about something completely unrelated, and I told her that I've been working on finances this morning and I'm struggling. Her husband has just started his own business and she is doing all his accounts. She said she will come over and go through everything with me when she is free next week, which will be SO helpful. She's been self employed herself too so has experience. She also has ideas for getting more business for me.

I'm an artist, of sorts, that's what I do. It was a hobby for a while, then became full time therapy when I was signed off work, then it became all I wanted to do, so it's my life now. I sell online and wholesale to shops etc. The wholesale orders are coming in now with shops buying their christmas stock, and all the events coming up I'm hoping to sell lots at retail too. As I said, it's my first year, but my products so far have been so popular.

I have written my to do list for today and I have lots of orders to get out and a page of things to make for orders. It's like this every day, so I'm busy. That's why I think the business is going well. But of course without doing the accounts that's something I am just guessing at.

As I said, my boyfriend has a job interview tomorrow. So for now until that's over with, I'm not going to mention anything to him. I'm pretty confident he will get the job, as it's the job he is doing at the moment, but a permanent position.

After his interview, and hopefully his acceptance of the job (positive thinking!) is done, then I'll have to have a talk with him about the living costs.

sammy115

You really must start to let your OH deal with things...you are acting like his mother... Take it from someone who makes the same mistake and ends up paying for it...BUT i am married with four children and he brings in good money.

If you keep doing things for him, he will expect you to do them for him.

Self employed - YOU MUST start to put 30% of any PROFIT you make...you must start to keep records of income and expenditure so you know what that is.....

Shoozles

Rent.................................... 700
Would it be possible to rent somewhere cheaper? I've looked into this, and yes it would be in theory, but we would also have to move further away from my boyfriend's work. There is also the cost of moving. Plus, and this is the main thing, I don't think we'd be able to get a new tenancy agreement with such a small income. Or another landlady who lets me work from home.

Council tax............................. 88
If paying over 10 months can you ask to pay it over 12? (from January) I've just got a new bill for this - the dd failed two months in a row so they have sent me a new bill. I took the total and divided it by 12 for the SOA.

Electricity............................. 75
Gas..................................... 92
These are quite high - look at the comparison site for a better deal (uswitch, moneysupermarket) Thank you, I will do.

Mobile phone............................ 50
PAYG? This will be going down after I have paid my arrears to £15.00.

Telephone (land line)................... 42
Satellite/Cable TV...................... 75
Internet Services....................... 15
If you can't get a package deal, you need to reduce the cost of sky. Thank you, I'll phone Sky again later today.

Groceries etc. ......................... 60
Is this per week or per month? Goodness knows where I got this figure from! We don't eat much because we can't afford to, but I'm sure it's more than 60 pm!

Your boyfriend seems to be relying on you to take care of all this. That's not fair - and i don't think you are stressing too much over this - he isn't stressing enough!! You need to have a sit down and go over all the finances. Maybe if he can see it in black and white he'll take more notice.

Are you entitled to any benefits or small business grants? I have done some research into this and it appears that I'm not. But once I have my business accounts sorted and I have some real figures I will try again.

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Shoozles

sammy115 wrote: »

You really must start to let your OH deal with things...you are acting like his mother... Take it from someone who makes the same mistake and ends up paying for it...BUT i am married with four children and he brings in good money.

If you keep doing things for him, he will expect you to do them for him.

Self employed - YOU MUST start to put 30% of any PROFIT you make...you must start to keep records of income and expenditure so you know what that is.....

I know. I have always wanted to look after him and protect him from things as he suffers with anxiety.

Do you mean pay myself 30% of profit?

GeorgeUK

Shozzles - i think it's tax that is 30%

Shoozles

Thank you.

sammy115

sorry its tax (22%) and NI (8%)