My budget - whaddya reckon?

SeaSmart

Thoughts appreciated guys. We have 3100 on a CC and a 1700 overdraft. Thats the full amount of our debt. Jusr recently we have been overspending and this is my first run at a budget. I know we can cut back on this but for a first month it looks like a reasonable stab. We need to pay off our CC. Not so much worried about the O.D but would like to get it down.




Mortgage (inlcuding insurance)-600
Life Insurance 25
Account Charges 28
Gas/Electric 70
Council Tax 91
Phone/TV 65
Gas Servicing 30
Household Maint 25
Water rates 20
Internet 18
Mobile Phone 15
TV License 12
Food and Household shopping-300
Treats/other stuff 10
Clothes 50
Xmas (monthly) 21
Birthdays (monthly)-30
Other big one offs (montlhy) 17
Cigarettes 35
Other Stuff 10
AA Memb 7
Car Maint 21 250
Car Insurance 21
Car tax 14
Petrol 100
Credir Card 80
Childrens Clubs 50
Hobbies 30
Densits/Haircuts 10
Eating Out 30
Social 100
Optical 10

Total 1945


Income 1790
Child Benefit 125
Other/Coastguard 30

Total Inc 1945

Spare/Save £0


Also my wife will earn an extra £100-£150 per month from doing shifts with her mother in the evening.

So the popensity to pay off possibly 150 - 200 quid a month off the card is a possibility but my god things are going to be tight for a bit. We got in this situation as i have moved roles from a sales role to a non sales role hence 0 commission as we were used to it clearing CC's and OD's. Oh well.
I know my debt isnt huge in the grand scheme of things but if we don't stop it now and get a grip on it then it will spiral and i will end up extending my OD further.

Thanks for looking people.

Edit...i cocked up and only allowed 35 quid for gas/elec when combined they are 70 quid. Which leaves sod all spare each month! we will have to rely on partners wage to pay off debt etc. Eeek

lynsayjane

SeaSmart wrote:

Mortgage (inlcuding insurance)-600
Life Insurance 25
Account Charges 28can you move your account to one that doesnt charge?
Gas/Electric 35
Council Tax 91
Phone/TV 65any chance of giving up the tv channels?
Gas Servicing 30is this necessary? have you ever used it?
Household Maint 25is this just for your own maintenance? would it be better to save up as you need something?
Water rates 20
Internet 18i'm sure you could get htis cut down? there are packages for as little as £15
Mobile Phone 15
TV License 12
Food and Household shopping-300how many are you planning on feeding :eek:
Treats/other stuff 10
Clothes 50
Xmas (monthly) 21
Birthdays (monthly)-30
Other big one offs (montlhy) 17
Cigarettes 35
Other Stuff 10
AA Memb 7
Car Maint 21 250
Car Insurance 21
Car tax 14
Petrol 100
Credir Card 80
Childrens Clubs 50
Hobbies 30
Densits/Haircuts 10
Eating Out 30
Social 100
Optical 10

Total 1910

i also think a lot could be saved from the hobbies, social, eating out, kids clubs and your birthday/xmas savings seem high too. you could ge tout of debt a lot quicker by cutting back on all the luxury things your bdgeting for there.

i know it seems harsh, when i first joined this site i was full of excuses why i needed sky and the gym and all the other things i had, but i've now cut them all out. it seems like i don't have much of a life, but then i think about the better life i could have if i were debt free and that makes it much easier to bear.

Macduff_3

Mortgage (inlcuding insurance)-600
Life Insurance 25
Account Charges 28
Gas/Electric 70
Council Tax 91
Phone/TV 65 Do you need this package? You could get a basic landline, use your mobile for calls to other mobiles and get freeview
Gas Servicing 30
Household Maint 25 Are you saving this up or do you just spend it is it doesn't get used that month?
Water rates 20
Internet 18
Mobile Phone 15
TV License 12
Food and Household shopping-300 How many people is this for? Can you do this cheaper?
Treats/other stuff 10
Clothes 50 Every month???
Xmas (monthly) 21 Do you actually save this?
Birthdays (monthly)-30 Saved???
Other big one offs (montlhy) 17 Such as??
Cigarettes 35 No. You can't afford to smoke.
Other Stuff 10 Such as
AA Memb 7
Car Maint 21 saved??
Car Insurance 21
Car tax 14
Petrol 100
Credir Card 80
Childrens Clubs 50 Such as?
Hobbies 30 On top of the kids clubs?
Densits/Haircuts 10
Eating Out 30 You can't afford this every month
Social 100 Why so much? especially on top of the childrens clubs, hobbies and eating out. All that should be 1 figure.
Optical 10

Total 1910


Income 1790
Child Benefit 125
Other/Coastguard 30

Total Inc 1945

Spare/Save £35


First of all, well done with the SOA - thanks for letting us have a look.

I've looked at this through my counsellor eyes - you may think its harsh but there is a lot of expenditure that looks a bit unnecessary.

Your debt is easily conquerable if you tighten your belt for a while. Your quality of life will improve so much afterwards that you won't regret it.

wanna-be-mortgage-free_2

Other more qualified people will be along shortly but my first stab would be:



Mortgage (inlcuding insurance)-600
Life Insurance 25
Account Charges 28 (Can these be cut out reduced if you had word with bank?
Gas/Electric 70 You can cut electric costs by turning off lights reducing amount of tv you watch
Council Tax 91
Phone/TV 65 I'm assuming there is sky in this - either cancel or reduce your package
Gas Servicing 30 Could you do without this until you get back on your feet
Household Maint 25
Water rates 20
Internet 18 Could get a better price if you shop around
Mobile Phone 15
TV License 12
Food and Household shopping-300 This can be cut I know from experience have a look at oldstyle board for menu ideas
Treats/other stuff 10
Clothes 50 Shop on ebay for clothes or charity shops
Xmas (monthly) 21
Birthdays (monthly)-30 Make birthday pressies - much cheaper!
Other big one offs (montlhy) 17
Cigarettes 35 You'll have to stop smoking to get this one down
Other Stuff 10
AA Memb 7
Car Maint 21 250 Seems high, can you get a better price
Car Insurance 21 Have you checked around for a better quote
Car tax 14
Petrol 100
Credir Card 80
Childrens Clubs 50
Hobbies 30 You may need to cut these out until you get back on your feet
Densits/Haircuts 10
Eating Out 30
Social 100 Have quiet nights in by candle light saves electric and costs of going out!
Optical 10

Total 1945


[/QUOTE]

scottishspendaholic

Great minds think alike SeaSmart - 3 for the price of 1! Note how most of the advice given by other posters above concentrates on key areas.

I seem to remember you were already given some of this advice when you originally posted your SOA - please can you think about cutting out some of the luxuries posted above - such as ciggies, social, eating out, hobbies, Sky etc. I know you are trying to include everything but if you cut down a bit (you have a lot of luxuries for someone trying to get debt free) - you could pay off everything much sooner and have a better quality of life and peace of mind. Is this something you would consider?

Also are you not only paying back debts with an unsecure income (your wife's) - is this wise?

I hope I haven't offended - I'm just trying to be honest.

scottishspendaholic x

melt71

Have you tried shopping around for cheaper equivalents? ie the AA I got a top wack policy for a year for £45 with GEM!, insurance (if it's with your mortgage company it may be expensive), gas & electric, phone/broadband/tv packages. It takes time to shop around but it is worth it.

I don't believe that you need all of the social/hobbies/clubs/eating out! If you are really serious about reducing debt or even not to get further into debt these need to go down to the absolute minimum. Invite your friends round to you or go round to them, watch a film with a bar of choc and bottle of wine, play games, go out to free parks/events with the kids.

Shopping can be brought down by meal planning and shopping with a list of what you really need. Also shop at Lidl/Aldi for all your basics which will reduce your bill considerably. My shopping budget for me & my daughter is about £70 a month - factor in my other half and that rises to £110 as he eats a lot! This isn't just for food, it includes all toilettries, cleaning products and all household stuff. Go on the OS board for more details on reducing your shopping bills.

Think about what is more important; having lots of debt or being skint for a while and staying in more WITHOUT DEBT!!

SeaSmart

The internet is NTL...we dont have a BT landline installed and it will cost about 150 quid to get one installed!:eek: So our only options are with NTL at the moment (thats broadband included...all other broadbands require a BT line).Re the TV If we go down to the base pack it is about 8 quid cheaper. I might see if i get get cheaper calls by going on an autodialler but i thought we needed a BT line for that?

I have over estimated a lot of stuff as i say this is just my first stab. We may struggle with the 100 quid petrol. That will be a huge challenge. The ciggies are not mine. I packed in 5 weeks ago but due to bereavements etc in my wifes family recently she needs them at the moment. I understand that.

100 quid social wont go far.

Kids clubs are as follows

5 quid a week gymnastics and 30 quid a month taekwondo - both for my boy. He starts school sept so will take adavatage of the afterschool clubs and kncok the expensive TKD on the head. Although he graded last weke and got awarded hi red stripe last night (skipping blue stripe) He loves it so much and it will be such a shame but needs must.

GOOD NEWS - he can do judo with me for 2 quid a week when he reaches 5 (next feb)

I have just estimated a monthyl figure for car insurance/tax etc using martins budget planner. car expense normally comes as a one off.

The account charges are for a lloyds platinum (£15) and £13 overdraft charges. It would cost me more at the mo in OD charges if i downgraded plus i dont get free AA cover including homestart that is worth over 100 pound a year.

Hopefully i will have some money left over each month. At the moment as i am new to this its all very guestimation. We are also going to try shopping at ALDI for fruit/veg etc.

Cheers for looking guys

Macduff_3

£100 a month goes really far with social activities. Can't remember the last time I spent that much in a month. Got to be before I had my daughter, at least.

bikerqueen

what does social mean?

melt71

bikerqueen wrote:

what does social mean?

LOL I was going to say to the OP that it has been months since I have had a social night out and I haven't even got any debt! I have to be very careful not to overspend and get into debt though the point of which seems to have gone over his head completely. Oh well, he received advice it's up to him whether he takes it or not.

SeaSmart

I am talking family stuff. For example. A cheap day out for us would be a picnic by the lake, kicking footballs about, my kids playing on the park. Hiring a boat.

Petrol -£5
Icecreams - £7
Boat Hire - £7

£19

that would come out of the £100

This budget is going to be a kind of 'suck it and see'. I have put 50 for clothes since my boy needs his school unifrom next month which will be about 44 quid. After that it will probably go down but kids grow so quick nowadays and that inculdes shoes etc.