Managing our finances - Struggling

bigmaz

Hi People

This might end up sounding a bit vague, and a stupid post, and i hope i have this in the correct section. But I am really struggling to manage our finances. I get paid weekly, and we seem to just spend money without thinking, and are slipping a bit with bills etc, and not having money left over for holidays. Its really just down to pure bad management of money. I am contract worker so just earn as I work. Has anyone got good systems they use to manage their finances that they think would benefit us? We are a family of 4 (wife and 2 kids) my credit rating is bad, so will struggle opening bank accounts. Hope some of you can help

Cheers
Martin

epsilondraconis

Hi Martin,

The first thing to do is to keep a spending diary where you write down absolutely everything you buy. This will at least allow you to understand where your money is going.

It may be worth you posting on the debtfreewannabe board as you will get lots of useful ideas on there.

It may also be worth you filling in a statement of affairs:

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

Good luck...

bigmaz

Thanks for your reply. I filled that form out and this is what i get:

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1600
Partners monthly income after tax....... 0
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 1680
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 400
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 80
Gas..................................... 80
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 11
Mobile phone............................ 70
TV Licence.............................. 12
Satellite/Cable TV...................... 18
Internet Services....................... 22
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 20
Car Insurance........................... 40
Car maintenance (including MOT)......... 25
Car parking............................. 0
Other travel............................ 130
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1338

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 2000

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,680
Expenses (including HP & secured debts). 1,338
Available for debt repayments........... 342
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 342
Personal Balance Sheet Summary
Total assets (things you own)........... 2,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 2,000
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

epsilondraconis

Hi Martin,

The main items that stick out for me are the gas and electricity (both at £80 per month) and the mobile phone at £70 per month. It may be worth switching your gas / electricity tariff if the landlord allows it. The £80 per month does seem rather high. Do you know if these amounts are based upon estimated meter readings (if you have been paying these amounts for a while, I'm wondering if you are actually in credit).

Regarding the mobile phone bill, is there any way this can be reduced? It will obviously depend upon your contract T&C's however if you can drop it down a tariff or two, it would be useful.

The other things I noticed about the SOA is that there are no entries for clothes etc.

If you do a spending diary, this will obviously help you better understand where the money goes.

The only other advice I can offer is that perhaps you could have a clear out at home and sell some of it on e-bay or sell it at a car boot sale.

Although your grocery bill is already quite low for four people for a month, you may be able to get some cooking tips from the old style board on this site.

Lokolo

What is "Other Travel"?

bigmaz

The gas & Electricity is high because I am making up for previous months that were not paid. And the other travel is my train passes to work. We have not been spending much in way of clothes, as not much money left over for it. As for the phone contracts, these are locked in a contract till January at the earliest to change.

ffacoffipawb

bigmaz wrote: »

Thanks for your reply. I filled that form out and this is what i get:

Benefits................................ 80

For an income of £1600 per month net, the benefit of £80 seems low.

Child benefit is £23.70 per week for 2 children. This is £103 per month based on a 52 week year,

Also child tax credit is also a minimum of £10.50 per week or £45 per month.

So now have pretty much £150 per month.

Also may have some working tax credit available??

Are you claiming all you are entitled to?

epsilondraconis

ffacoffipawb wrote: »

Are you claiming all you are entitled to?

See https://www.entitledto.org