The Best of Intentions ... Budget Help!!!

Nikkei

Every month me and my partner sit down and make a budget for the upcoming month with the best of intentions ands promises to ourselves that we'll stick to it BUT it NEVER happens. Both of us don't spend much money during the week and we don't go out on the evenings really ever as we have a little one we prefer to spend time with. The problem is when we do go out and I say "we" but really I mean "I" all budgeting goes out the window and it's getting out of control. I wouldn't say we are in serious debt but I can see us heading that way quickly if something doesn't change. We've had a really good run of things getting better as we have both been given pay rises and my partner has also been told more or less he'll be getting transfered alot closer to home which is going to save us over £130 a month on train fare but unless we stop spending then the money's going to be gone and we'll be in a dia straights.

We've tried putting money in envelopes and it didn't work as we were using our debit cards at the same time and sometimes we'd find ourself in a situation where we'd need money but the cash would be at home and we'd be stuck.

I've tried staying in as much as possible and avoiding shopping but then when I go out shopping I spend more than I should. (just so you know I'm an emotional shopper and eater, it's always about the lbs!!!!!)

I'm at my wits end and I end up feeling guilty and empty and pathetic for not sticking to it.

Can anyone suggest a way of budgeting that may work for us? I am willing to try anything as I want to pay off all debts (with the exception of a secured loan we took out for home improvements) by the middle of next year. I want a better quality of life knowing that I don't owe any money and that if there should be hard times ahead that we can deal with it without worrying.

Thanks for taking the time to read this and good luck to all those doing everything they can to be debt free x

Nikkei

smashedbooboo

Hi and welcome hun, be back in a minute with the link for the SOA you can fill in and pos up on here and then we will be able to give you some on how to budget etc. Dont go away hun xxxxxxxxxxxxxx

smashedbooboo

http://www.makesenseofcards.com/soacalc.html

Go to this webpage above and fill in the info and put it all up on here. this will help us help you. Well done for taking the first step. We will support you all we can. It maybe a bit quiet tonight but there will be loads on tomorrow. If you fall off first page i will bump your post back up so it will be seen by everyone. In the meantime if you just want to have a chat then pop over to the night owl thread and introduce yourself to the madhouse. We are there for anything and everything. A shoulder if you need one or just to have a laugh. Anything goes and they really are a crazy bunch. And during the day therenis a daily chat thread. Same sort of thing really. If you have any specific questions then ask it on here. It will not get lost in a mountain of other posts then and will be answered much mo0re quickly.
Boo xxxxxxxxxxxxxx

Nikkei

Thanks for that hun, really appreciated here goes

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 950
Partners monthly income after tax....... 1750
Benefits................................ 64
Other income............................ 0
Total monthly income.................... 2764

Monthly Expense Details
Mortgage................................ 836
Secured loan repayments................. 336
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 93
Electricity............................. 40 - possibly overpayment but would prefer to pay too much than too little and have to find money we don't have for big bill - heatings always left off unless really necessary




le phone............................ 50 reducing contract down each month with o2 until it hits £20 on the one phone will reduce to £45 total for the two phones
............. 11.25
Satellite/Cable TV...................... 21
Internet Services....................... 0
Groceries etc. ......................... 100 fab local farm that does fruit and veg boxes for £5 each and delivers! comes with atleast £30 of goods anyone local to chester can contact me for details as is well worth the money and friendly service too!
Clothing................................ 0
Petrol/diesel........................... 130
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 133 Commuting costs hopefully to disappear when Ian gets transfer
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 40 Poorly rabbit meds and opperation. Money well spent!
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 67 This we have applied to be reduced as was increditbly high due to me having pancreatitus which I haven't had a reoccurence for two years. Life insurance company dragging it out but hopeful will be resolved within the next two months atleast!
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1917.25

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 500
Car(s).................................. 2500
Other assets............................ 0
Total Assets............................ 3000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 146000...(836)......5.9
Secured Debt.................. 25000....(336)......8.9
Total secured debts........... 171000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Cards...................8000......150.......12.9
Total unsecured debts..........8000......150.......-

Monthly Budget Summary
Total monthly income.................... 2,764
Expenses (including secured debts)....... 1,917.25
Available for debt repayments........... 846.75
Monthly UNsecured debt repayments....... 150
Surplus(deficit if negative)............ 696.75

Personal Balance Sheet Summary
Total assets (things you own)........... 3,000
Total Secured debt...................... -171,000
Total Unsecured debt.................... -8,000
Net Assets.............................. -176,000

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

======== Enter any other useful information below ========

e.g. the number of adults & children in the household, the number

of cars included in the SOA or anything else that may be useful.

smashedbooboo

Ok chick, i can see why you are having difficulty budgeting. there is quite a lot missed off the SOA. As you say you tend to spend money so what we need to find out is what on. Does it come under clothes, if so enter that. Anything you spend money add it to the category. No matter what, whatever money goes out of your purse or his wallet is an outgong of sorts.

Now one thing i will say please dont be dwelling on this at this time of night.

Some of the other peeps will have a look at your SOA and pull it apart and will give you suggestions as to what to do. And i mean pull it apart in a nice way tomorrow. Then again there may well be a couple of mad peeps still up who will look at it tonight.

I have to go to bed as i am up very early for work but will pop in and see how it is going

Take care

Boo xxxxxxxxxxxxxxxxxx

GeorgeUK

To help with keeping to a budget, i would suggest keeping a spending diary for a month. If you update it every day you should see where your money is being spent and can hopefully find a cheaper substitute or cut back on it.

To avoid the impulse buys, create meal plans then do your weekly shop so you know exactly what you need to buy.

With you current surplus, you should be able to clear your creditcard in about a year, then you can tackle the secured debt and hopefully have that paid off in another 3 years.

tealady

Hi. As george says a good idea to keep a spending diary. Another useful tool I have utilises something invented a long time ago, a shopping list! You sound like me an impulse shopper so I find if I only have enough money to buy whats on my list and haven't got my cards with me then I spend less.
I would shop around for petrol too see https://www.petrolprices.com
Good luck

doodledo_2

Hi and welcome to the forum.

Is your car a company car as you have a cost for petrol but not for any other car related costs?

You also have nothing in for presents/haircuts/clothing or entertainment. Even if you don't spend money on this every month work out how much you would spend a year and divide my 12.

The key to changing your current position is to see where this spare £700 a month is going as this is a really good amount after all your expenses.

I would really recommend keeping a spending diary and writing down every single penny you spend. I did this and was appalled at what I spent our money on.

Good luck with your journey.

tyllwyd

I agree with the other posters - your SOA gives the impression you have a 'spare' £700, but since you haven't budgeted anything for things like car costs, clothes, that isn't true.

Also, do you really only spend £100 on food/cleaning materials/toiletries for 2 adults and a child in a month? You spend £40 per month just on the rabbit!

Do you have building/contents insurance? No water or gas bill to pay? Your electricity is very low if you don't have gas as well.

Nikkei

Thanks everyone, ok answers to some of your questions

Food/Cleaning- sometimes we do go over budget however with things like toiletries we tend to bulk buy as for food because we buy veg boxes from the local farm where we used to spend £30-£40 we now only spend £10 a week.

Building and Contents - we have prepaid this for the year but will be due shortly (mid dec)

Gas and Electric - we do pay £40 a month to each (think I may have overwritten this with my comments but it has been calculated in the total

Car - This is a house car not company, haven't really budgeted for costs currently as tax, insurance, mot all prepaid and car has been serviced as we sold our old car and bought a cheaper car to help pay off some of the credit card (didn't happen though!)

We've done the diary and although I can see money is being spent on rubbish and stuff we don't need it hasn't helped change our spending habbits at all (i'm the same with dieting, I know what I need to do I just don't do it) I get all defeatist and demotivated and it sucks!

many thanks for your help guys it really is appreciated!!!

Kmac_Edin

I gave my cards to my flat mate, after I'd withdrawn my money for the month.

Its amazing what happens when you find youself handing over cash and you see it getting smaller and smaller as the month goes on... but it kicked me into touch.

My problem was I would buy a magazine and a coffee EVERYDAY ( ie £5 per day) ontop of buying lunch. Indsted of totally going without I just cut 1 thing out, so now I dont have a magazine and a coffee but I still buy lunch.

Nights out - I have 1 drink then a glass of water, makes the night last longer, not spending as much AND no hangover the next day.

Stopped buying DVDs ( was spending about £100 monthly on them) and got a subscription to lovefilm, get unlimited rentals ( so it feels like I have lots of DVDs) and can keep them for as long as I like, but its saving me nearly £80!

Hope this helps xx