Live on £4000 for a year - part 4 (Oct - Dec 2008)

thriftylass

The_Shiner wrote: »

Thanks for the clarification Nykmedia.
As the amount to live on is about £333 a month, to be fair to myself, I think I ought not include my life/health insurances too. I say this because although I am in good health (touch wood), my premiums are pretty high due to a chequered medical history in my distant past. No point trying to switch either as I reckon I was lucky to get cover at all and don't want to rock the boat. Does it seem reasonable for me to exclude those premiums on those grounds or would it be fairer to include a part of those premiums (the level at which they would have been pitched if I had been considered low risk)? My insurance would eat up over a third of the entire budget.
Yes please. Please put me on the in training list (not sure how much the nappies cost though) :-)

Hi Shiner, I'm test running the challenge at the moment too. And the way I do it is that I'm not too fixed on the 333pounds a month yet. I basically just write everything down I spent, try to be more money concious of course, and then in December look at what I've spent. Then I'll see where I could cut down and generate a bugdet for next year. The way I understand it it doesn't neccesarily have to be 4000pounds, there are people in this challenge with different amounts depending on their circumstances - mine will probably be about 4500.

P.S. I just updated my signature. A bit scary how far I'm into my "budget". I'm happy with the grocery bill (includes household stuff) as I won't need much more this month. I guess where I went over (and which will be a lot better next month) is the stuff, gifts and going out section. But then I already got most of my xmas sorted, needed a new phone, extras for my computer and it was my mums birthday. Och well, it can only get better.

mumzyof2

Forgot to mention, My mum was going to pay for 6 months rent on a new house for me as round here dont except DSS and if they do loads of people apply for it so only way was to put 6 months rent down upfront. But i dont really want to move as im really close to school and my friends.. so me and mum was having a convo and she said can you afford to stay there and be in debt too? i said not really. and she said well instead of moving il pay ur debt off (around 3k). But hoping to cut that by half as il ask for final settlement fees (is that what its called?) does anyone know if i can ring and ask them for full settlement fee or do i have to write to them?

bails

Janey :grouphug: I could send you some of my thermals, they come with love sewn in x
Hugs to you Whitewing :grouphug: so sorry to hear about your redundancy. It sounds hollow but I try to see every setback as an opportunity (not easy sometimes). Enjoy your break away and I hope great things turn up for you soon x
PTMN, :eek: about your phone bill! Is there any way your DD can pay some of it herself?

I was expecting a difficult day today but it has turned out lovely :j I had to go wedding dress shopping and steeled myself, but I fell in love with the first dress I tried on :T It was a morning of living in someone else's shoes though - I haven't been in a normal shop for ages and it was bizarre to be honest! I met OH for lunch and then went for my MA interview, which was great! Really interested in the modules, tutor seems nice and to top it all off, I can do two of the three modules for free (due to previous qualifications). So I am one happy bunny!

sophiesmum_2

Mumzy , you can ring and ask if they would be interested in a full and final but ask them to confirm in writing. They will usually do this and set a time limit for you to respond by.

Brighton_belle

Thanks again to those of you who posted your estimated 09 budgets yesterday. Very helpful. I've spent this afternoon staring at my own spreadsheet playing with figures. Things are gradually getting clearer & clearer though. Won't declare yet as I'm still basing some on guessing estimates based on the last 3.5 months spending.


One dilemma is clothes. I don't actually 'need' anything very much: I have enough to keep me warm in winter but occasionally I 'like' something new. So 95% of what I might buy would really be a luxery - so would I include clothes in the £4k challenge or not.
NyK, I stand in awe (well technically I'm sprawled on the sofa) at your low low figure for food - our is so much more just for the 2 of us. Still, learning all the time with the GC.
Shiner - welcome to the challenge - I've been using the last few months to gradually get to grips with it all in prep for Jan 1st so you have a good couple of months to do the same:T .
Got a couple of small wooden chairs on freecycle today for a mosaic project and tiles yesterday:j . This new hobby,which I am loving, is one of the main things I want to be able to fund as a result of the 4k challenge.

New cashback credit card has arrived so I hope to buy all future asda spends and petrol on that to earn a bit back. Will transfer the money in bank fairly pronto to the card after each spend to ensure I don't over spend each month.
Moving all my ddm's to A&L is also going to be good: I can see much more clearly what's left and what's got to achieve each month.
Whitewing - sorry to hear your news.
Janey, another good memory. (My mum lived through the Plymouth blitz. ) And your 'coldness of the soul' said a 100 words:grouphug:

Janey51

Mumzy there are template letters for Full and Final settlements on the National Debtline website.

I have made a gorgeous marinade to put some chicken thighs and potatoes in to cook something Moroccan to take to my friend's on Friday. She is always feeding me and I miss cooking so now it's my turn
It smells fantastic but I will have to stop talking when in company because the garlic breath will be very antisocial :rotfl:

Have loads of bids and watchers on Ebay. Just wish I'd known about the "no fee" listing days this weekend before I put them on :mad:

thriftylass

mumzyof2 wrote: »

Forgot to mention, My mum was going to pay for 6 months rent on a new house for me as round here dont except DSS and if they do loads of people apply for it so only way was to put 6 months rent down upfront. But i dont really want to move as im really close to school and my friends.. so me and mum was having a convo and she said can you afford to stay there and be in debt too? i said not really. and she said well instead of moving il pay ur debt off (around 3k). But hoping to cut that by half as il ask for final settlement fees (is that what its called?) does anyone know if i can ring and ask them for full settlement fee or do i have to write to them?

That's really nice of your mum:T. Although it doesn't make the debt go away at least it's better than having the credit sharks breathing down your neck and the debt accumulating more interest. Hope you get a final sttlement sorted too.

cw18

I'm still struggling to work out if I can even set a budget to allow me to join in next year....

According to the Benefits Agency we will have a ridiculously high amount to live on compared to the £4k target for this challenge (due to loads of extra supplements due to DH being registered disabled, and the fact I will be his registered carer) plus his DLA (highest rate of both components).

On top of this we are "allowed" to pay the council tax and the amount they would give us towards the mortgage interest (once our capital falls low enough and we've served the 'waiting period').

I did think of just totally ignoring the mortgage and council tax as most people are excluding these, but the mortgage won't balance out -- what they pay towards the interest doesn't look like it will be as much as we have to pay, and we also have to pay the capital repayment from the other money.

So then I thought about setting my budget to being the amount we'd be "allowed" to spend (ie. what we would get if my redundancy pay-out didn't block us from getting anything)

But I'm ashamed to say that by the time I've worked out all the outgoings (which has to include repayment on other large debts and the water bill as well as the mortgage shortfall) I reckon we're going to overspend by an average of at least £150 a month in 2009 -- and I can't see a single thing I can do to reduce the bills short of giving away the dogs and giving up the car, the TV, the internet, the home phone and the mobile (which is on a minimum term contract until next August anyway) or not eating :eek:

And that doesn't give us anything for prescription/dental/optician charges (which I should be able to zero out, as they'd be free if we did qualify for means tested benefits as we'll have zero other income), nor -- and this is what worries me -- clothes, shoes, presents, or repairs to the house or car :eek: :eek: :eek:

Frugaldom

bails wrote: »

:j I had to go wedding dress shopping and steeled myself, but I fell in love with the first dress I tried on :T

:eek: :eek: :eek: BAILS - WHAT HAVE I MISSED? I know my memory is bad, I'm easily confused and extremely forgetful but do you mean you were trying on wedding dresses for YOU? Have I missed a post somewhere? Or am I still mixed up and now think you were play acting an episode of 'Friends' where Monica tries the bride's dress?

Mumzy, that's great news about your mum offering to pay the debts. If you do accept, please promise to try your best not to run up any more... my DD is similar age to you and umm, I have helped with the finances several times and it gets me so upset every time she goes and does something else that gets her into more debt. (Sorry, not nagging, just concerned. Didn't you say your rent was already paid up front by your mum?) This could be an excellent time to make a huge effort to quit the ciggies, that way, at least, you can have some extra money and NO DEBTS

Brighton belle - I only count my own clothes into the 4k challenge as DS now buys his own. Thank goodness! He's does look for bargains but 'discounted' for his stuff is like £20 for a T-shirt instead of £40 or £60 for a pair of boots instead of £120.

The Shiner - private health insurance etc is not counted because it isn't something that everyone has, so that's one of your extras. I have separate mini-challenges for most of my extras, such as the Interest beater challenge, which pays for my savings bond and life assurance policy and my quit smoking fund, which is money being saved for DD's wedding. My £2 coin savings are allocated to my 'garden & livestock' fund, vouchers contribute to extra Christmas & gift shopping and cashback is for special occasions.

Life is one series of challenges and that's how I like it
I used to have a challenge for my 'racehorse fund', but don't think I'll be trying that one again, as it's too much like hard work. :rotfl:

Frugaldom

cw - Isn't there a clause in the benefits rules that allows you to make a capital payment towards your mortgage using redundancy money? If so, would it be feasible to use the majority of the lump sum to reduce (or pay off) your mortgage and then live on whatever regular amount is due to you whilst still having some savings? I'm sure you are allowed £17,000 in savings before it exempts you from claiming. Think of it this way, you worked to buy your house, the money you get in a lump sum is in lieu of the loss of the regular income that would have been used to fund the monthly mortgage payments, so give it a shot - ask at your local Citizens Advice Bureau.