MY SOA -your comments and suggestions please.

Katgoddess

Just a bump to put you back on the top page now that it's daylight and more people are around.

In case you have missed a few things off the list, look at Martins Budget planner here.

bonnie_2

why are you saving for the children, surely once there 18 they can stand on their own two feet. noone ever saved anything for me and i'm not saving for mine can't afford to.

Saucepot

bonnie wrote:

why are you saving for the children, surely once there 18 they can stand on their own two feet. noone ever saved anything for me and i'm not saving for mine can't afford to.

I disagree. Too many people these days know to little about money, schools don't teach it. Saving for kids, encouraging them to save and teaching them that money can work for them is one of the best lessons you can give a child. Real preperation for adult prosperity.

And whilst you are right about grown kids standing on their own 2 feet, a little nest egg can make the first steps to independence successful steps.

lynzpower

CLAPTON wrote:

just a late thought

if you borrow £65 per month at 24.5% for say 10 years it will cost you £31,500.65p

if you save the £65 in a saving a/c paying 5% for your children for 10 years you (they) will have £10,301.29p at the end.

explain that to your children

I really could not agree with Clapton more on this. Currently, the way I see it, you are borrowing from your credit card to pay into the savings account.

happyformonths

RE charity payments.

I was paying out about £100/month to 3 charities even as I was slipping further and further into debt each month (about £200/month further actually). And yet I couldn't bring myself to stop. It went against all those things I'd been brought up on - "don't be selfish", "you are so lucky compared to other people", and so on.

I guess my thinking went "it's such a small amount compared to what I spend on other things" ... it was complicated, but there was guilt in there, and some kind of denial of how much damage the overspending was doing ME.

Now I don't want to make you feel any worse than you already do, but your payments to charity (which are actually the bank's donations, which you are paying the bank to make) - and, I'm afraid, your "savings" for the children (which, again, simply represent you giving more interest to the bank which is money which COULD eventually go to your children) - are damaging you, and by extension, your family.

I know it *feels* important but you must see that it is financially nonsensical.

Eventually I gave in and took a deep breath and cancelled my charity payments. And do you know, in a funny way I feel less guilty now. Everything is cleaner. When I finally get out of debt and have REAL money, I can be as generous as I want. Before, the money wasn't mine to give away.

Look at it this way - the money you're donating and "saving" is NOT REAL money. The money you're paying in interest for the privilege of borrowing those sums is REAL money. It's the real money you should be looking after, not imaginary sums.

There are posts current on this thread from people trying to help out their parents in desperate straits - wouldn't you rather protect your kids from being in this situation?

Oh and yes, nothing was ever saved for me either - and if it had been I would have only frittered it away, even if they'd kept it from me til I was 25.

I hope this is some use - my heart goes out to you!

HFM

domestic_goddess

I do agree about saving for the kids each month, I only save a very small amount at the moment ( £5 per month each ) but when I am debt free I will be able to put more away for them.

The way things are with the house prices if we dont save a little bit to help them when they need it they will be living at hpme forever :eek: :eek: :eek:

You need to sort out your sky, even if you just get rid of the premium package and keep the most basic - thats what I did. First of all though call them to cancel and you are putthrough to another department. I told themI had been offered a much better deal with cable and they offered to half my bill for 3 months. After this three months was up I reduced the package right down.

Steve1963

Thank you everyone for your replies.

Its strange but most of what you have all said I knew already, but just couldn't make myself do. I felt a bit like a rabbit in car headlights- I just watched the debt coming and did nothing:rolleyes:

1st bonus of posting on here is I feel much happier today:j a bit of a blub last night and now I feel liberated, if you'll excuse the cliche.

Just talked to the family about dishing Sky (excuse the pun), a few tears from our 10 year old but promised we could use a bit of the money rent a film at weekends.

Going to start work on a detailed budget. Got a box ready to start collecting receipts and keep a diary handy.

Food budget will be separate from anything else, going to start at £75 pw (cash) and see how it goes.

I'm sorting exact balances and interest rates for the snowball calculator and see what that comes up with.

I'd better not do much else for now otherwise I may scare myself!:eek:

I'll keep you posted on progress. Take a number for the butt kicking queue:p

Steve

gallygirl

Don't worry Steve, for every you get a from someone else.......


You're doing well, and well done for getting the family on board too.

Steve1963

OOH! Very excited. Just used the snowball calculator and it shows me debt free in just over 3 years! Wow! I estimated at least 5 years. If only I can make it work.

Steve

regularsaver1

my parents gave me a policy of £2500 at 16 - what did i do - i was so silly and spent it all on holiday ect - it could of come in handy at uni when i was 18 - so so silly -- and do you know looking back now I wish my parents had taken the £2500 for themselves

decrease what you pay into their savings for now - so it frees a little up