When you think you are Debt Free - BUT you're not!!

plzhelpmesave!

Hi all

I have just had a great big shock! DD was having a nap, DH at work so i thought I would just go through our online bank statements - BOY did I get a shock!

I've been using this site for almost 2 years and pop into lots of different forums on here, so I guess i thought I was savvy with money. Im the one friends and family ask for advice and help, i buy things through quidco, shop around for everything to get the lowest price, buy all kids clothes in sales, we use DH egg money card to get cashback - so i though we were doing all the right things. SO how can i be spending £700 a month on "stuff"?

- I've been getting lots of "bargains" from Boots (collecting presents I don't need or will not use for a long time)
- buying shopping for points at TESCO (spending a lot of money I didn't need to to get Clubcard points)
- taking out cash from my account and spending it on ......WHAT??

I don't work, its just DH. I have been applying for jobs (had been working P/T on a temporary contrat and a SAHM to our kids aged 2, 4, and 6), not been able to get a job due to "lack of relevant experience" so doing a course to increase my chances.

So, for the rest of this month I am going to :

- Cook as much as possible from the storecupboards and freezers. I have a really bad habit of buying cheap/reduced items and stockpiling them so there is always stuff in the house - BUT now we are going to start those till the cupboards are bare! Will only buy fresh stuff - milk, bread and fruit etc.

- Get into the loft and start Ebaying like mad! Have looooads of stuff - lots of new and old - and need to get it out of the house and into the paypal account!

- Start a proper Spending Diary and write down what we both spend.

- Set a budget / limit on what we spend and stick to it. I am thinking about getting out the money weekly and keeping it in the house to use on budgeted items. Once we have spent it- it's gone.

- Stop stockpiling! Whether its food, household stuff of "someday" pressies - I will buy as and when I need stuff not just because it is on offer. there are always offers on - I know because I do shop around and see offers all the time!

Sorry for the long and boring post. Just wanted to get it all down while I am motivated, Here goes.

MissOptimistic

Well, it certainly sounds like you know where you are going wrong and thats half the battle! - Good luck and let us know how you get on

epsilondraconis

We spend over £500 per month on "things" - as with yourselves, it isn't easy to determine where the money is going. I've been meaning to get up the attic for months and begin selling some of it - okay we don't have any expensive antiques, but when its all sold, I'm sure we'll make a reasonable amount of money.

Good luck in your quest plzhelpmesave! - keep posting...

MrsPitcher2b

Hi plzhelpmesave!

I know exactly what you mean, up until i had my LBM i didnt realise how much we spent on 'stuff'

We have quite a good disposable income each month, but to be honest i think that is our downfall, because we just think oh we've got the money it doesnt matter and end up getting credit and spending loads. Like we got a dvd player/surround sound system at currys - we bought the telly cash from our xmas money, but got the dvd and surround on credit because we could only get out a certain amount cash each day (didnt have a debit card) - we just thought yeh we can pay it off tomorrow.

Well, tomorrow never came.. lol And we just kept thinking oh it doesnt matter we can pay it back etc.. and ended up spending more each montht hat we had.

And i no what you mean about the tesco clubcard points! We are saving ours for our wedding rings/honeymoon - so i just want to buy everyhting from there to bounce up the points!! It is very easy to waste money especially how stores are pushing promotions etc now, but i think if you keep a spending diary it really helps!! Good luck, and im sure you can cut down the 'stuff' soon x

(Also, i now avoid Superdrugs/boots - i can easily spend £100 in there on nothing! everything in there just calls my name...)

firesidemaid

i know where you are coming from!

i have given up on having a cashback credit card for the same reason - we have saved so much money by living with cash.

also by meal planning week by week and looking at what is in cupboards/freezer before we go to shops and making a list (and sticking to it)our food bill has also come down massively.

plzhelpmesave!

Thanks guys - glad it is not just me! Thanks for the advice & tips - will definately get them going - some of it has come from my very own lips to friends & family!! Bought 3 notebooks from tesco for 35p recently so one will become my SD, another my shopping list book - and i will keep them both in my coupon wallet - which goes with me everywhere!

I'm also gonna see how much I can SAVE this month rather than spend!

I think i was so shocked coz we've paid off hubby's ccards, and just have mine on 0%, so just kind of thought we had no debts other than mortgage now - which is a dangerous way to think really!

I had a look in the box room - soon to be DD's bedroom - which is full of "junk" and stock - i now can confirm that i don't need to buy for at least 3-6 months.......

- kitchen rolls - got loads of Bounty on "double the difference" at Tesco so it ended up being free
- toilet rolls - i became quite obsessed with the darn things and keep buying them when on offer!
- shower gels, shampoos, handwashes, toothpaste etc - have loads from Tesco last H&B offers LAST YEAR!! and some charles worthington from this year (CW was all free on DTD)
- Baby Wipes - bought about 30 packs when Wilkos had them on for £1 BOGOF
- Laundry Liquid - bought 13 bottles of concentrated stuff when Boots had a glitch so got for about £1 a bottle

PHEEEEEW! that little lot gives me an idea where the money goes! BUT they are all big bulky items, which can add quite a bit to the weekly shop so my shops will be cheaper for not having to buy these things each week.

Problem is when i go in to get the cheap stuff, buy stuff that has coupons etc, i end up spending so much on other things. I can't walk past a reduced sticker, or OOOPS label without buying it and congratulating myself on getting my bargains!!

savingholmes

Hi PHMS - I sympathise. I have a study I can't barely get into due to card making stuff, craft stuff, presents to be and finished baskets (xmas and birthday presents all bought now until Feb!). I have a tub full of toiletries and 24 toilet rolls in waiting! My cupboards and freezers are full (I have one in the garage as well as the kitchen) and I am still spending more than I should - but all bargains of course. I'm doing better than I was before joining the site - but I've not yet reached my mse potential by a long way! So I may need to re-read your first post again to understand where I am going wrong!

tealady

Hi PHMS How about joining the No Spend day challenge, it may help. Or just take a small amount of cash out with you and no cards. I find that helps.

bathgatebuyer

The amazing thing is that even when you think you are debt-free, something will come out the blue and biet you on the bum! I mean, I thought I was doing ok until Edinburgh Council told me I'd underpaid on Council Tax from 2003!!! As a result, I'm paying £220 a month for the next 5 months to made good as opposed to my normal monthly payment of £97. Had they told me in 2003 what I needed to pay (when I was out of work and relying on them to work out my CTB) then they could have had it as I had a higher salary then than I do now when I started working.

If it wasn't that, it would have been something else!