Money-saving advice needed

Kagero

Hi, I'm 19, recently started full-time work and this is my first time on the forums.

My troubles are petty compared to what others are facing on here but some helpful advice would be really appreciated.

I've been in debt with my bank (on a £750 student overdraft) for the past year and I've been struggling to get out of it, I always see something I want to buy and I think of my difference between my balance and my overdraft limit as spending money as opposed to money I don't have. To make things worse, I've been telling my girlfriend (been together 3 years now), that I'm not in debt, as a result of this, I'm constantly spending money still, taking her out for meals, going to see films etc.

I'm pretty desperate to save up for a car, I've had a full driving license for a year and it's really been getting to me, but I'm £800 under, I rang up Halifax and had my student overdraft increased because I spent too much this month.

I really don't know how to keep my money in my pocket and stop spending it, I earn little over £600 a month and with christmas around the corner my account's going to take another beating.

My aim is to get out of debt before things get even worse and save enough money for a cheap car and the insurance (quoted at £1300 for a male my age). I'd preferably want to get out of debt before '09.

Typical spending
- £2.50 train to work, 5-6 times a week
- £35 phone contract (I know, it's bad, but I'd be spending so much more on PAYG)
- £15 weekly on food
- £30 monthly to the parents, they're going pretty easy on me since I only just started full time work, they don't know about the debt
- £9 monthly, WoW subscription.

I'd appreciate any comments, thank you.

chevalier

Kagero wrote: »

Hi, I'm 19, recently started full-time work and this is my first time on the forums. Welcome

My troubles are petty compared to what others are facing on here but some helpful advice would be really appreciated. We will do our best.

I've been in debt with my bank (on a £750 student overdraft) for the past year and I've been struggling to get out of it, I always see something I want to buy and I think of my difference between my balance and my overdraft limit as spending money as opposed to money I don't have. To make things worse, I've been telling my girlfriend (been together 3 years now), that I'm not in debt, as a result of this, I'm constantly spending money still, taking her out for meals, going to see films etc. Sorry why is she not going halves on these treats? If you look at the side of this page, there are lots of 2 for 1 deals for meals and films so get printing off some vouchers to save money! And if you don't want to tell her about the debt, then tell her that you need to cut back because you want to save for a car.


I really don't know how to keep my money in my pocket and stop spending it, I earn little over £600 a month and with christmas around the corner my account's going to take another beating. Ask the bank to decrease your overdraft by say £5 a month each month. If you don't have the capacity there then maybe it will help with some discipline!

My aim is to get out of debt before things get even worse and save enough money for a cheap car and the insurance (quoted at £1300 for a male my age). I'd preferably want to get out of debt before '09.

Typical spending
- £2.50 train to work, 5-6 times a week
- £35 phone contract (I know, it's bad, but I'd be spending so much more on PAYG)
- £15 weekly on food
- £30 monthly to the parents, they're going pretty easy on me since I only just started full time work, they don't know about the debt
- £9 monthly, WoW subscription.

I'd appreciate any comments, thank you.

Ok this adds up to about £200! If you earn £600 that is £400 your are frittering away! Like WOW!

So for starters tell your girlfriend, use the 2 for 1 vouchers mentioned. Look for free festivals or whatever to do instead of paying to go out.

Start a spending diary so you can see where your money is going. It may well shock you when you find out, for example, that you have a £100 a month coffee habit.....:eek:

Xmas does NOT need to be expensive. you just have to make your money work harder for you. So ALWAYS check whether you can get something cheaper, by searching the net for it, checking whether you can get it cheap on ebay, and whether you can buy it via a cash back site to get money back on the purchase.

There is a special occasions forum on here (go to the main forums page and look for it there), that will give you LOADS of ideas that don't cost to much, but do require time and a bit of thought.

good luck
chev

Sue-UU

Hi Kagero and welcome to MSE.

I know you say your debts are petty compared to most folk on here, but we all started somewhere - near where you are! You HAVE to know when to stop spending for your sake and the sakes of all those you hold dear in your life. It isn't fair to lie to your girlfriend as you're doing either, it's not a way to gain her respect and you should be respecting her more than saying that you haven't any debts. The truth will come out, so take control of your life and finances NOW!

I can see areas where you save money straight away and phoning you mobile company and speaking to them to go on a lower tariff is vital. You don't NEED to spend out that much each month on calls you can't afford, and that's what we're talking about here - the needs in life rather than the wants! Tackle them and you just may be free of debt in 2009, but you need to alter your ways - and quickly! Cut out that £15 a week on food and take sandwiches from home and cease the WoW subscription!

I know you've done a basic SOA above, but try doing another based on everything you spend out for over the course of a year, including Christmas, Birthdays ...the lot! Go to here and you'll find the perfect SOA. Also look at the video on this link you'll find it very, very helpful I promise you.

See you again Kagero and the very best of luck in getting back on track.

Sue

Jesthar

Heya Kagero, and welcome!

Congratulations on getting to grips with this before it spirals out of control! Sounds like all you need it to learn how to budget a bit, plus a degree of self control.

One thing jumps out at me - £2.50 every time you travel to work? Have you looked at the cost of getting a season ticket? Might work out cheaper.

The other thing is the food - do you feed yourself, or is this the cost of lunch at work? If so, you'd be better off taking sandwiches - I do, and very decent home-made sarnies, and apple and a clementine cost me under £1 a day.

Aside from that, though, you're not spending a huge amount on a regular basis. You have a WoW subscription - fair enough, providing you're playing regularly, it's not a huge amount for a monthly entertainment budget!

I think chevalier has a very good piece of advice for you - start a spending diary ASAP, and see where all this money goes! Then you can take steps to change your bad habits.

~Jes