Not in Debt - but still don't have much 'spare' money - why ?

debbycatz

Hi All

I am lucky enough not to be in debt (just paid off my credit card out of my ISA last month :j ). I have been reading lots of posts lately and really admire those who are throwing such large amounts towards reducing their debts. However, I must confess to feeling a little envious of all the 'spare' money that these folks will have once they clear their debts. Someone who is throwing £700 a month at debts will eventually have £700 a month spare money to do with as they please. I, on the other hand do not have debt but I don't seem to have much spare money either

I thought if I post my SOA, you might be able to help me free up a bit more money so that I might feel the benefit of being 'debt-free'. This is a new budget that I have done since paying off my credit card. I realised that I had run up the credit card simply because I had not bugdeted properly and never allowed for things like birthdays, christmas and haircuts etc.

It is just myself and my 18 year old son living in the house but my son is not working as yet. (thats a whole other story :rolleyes: )

My monthly Income is my salary of £840

My monthly Outgoings are:-
Gas £45.00
Electric £45.00 (I know these might seem high but I got caught out last year because I didn't put enough away for big winter bills so I'm making sure I can cover my winter bills this year)
Water £32.00
Mortgage £160.00
Building Ins - £10
Council Tax - £55.0
Mobile Phone £10.00 (PAYG)


Bin Cleaner (2x month) £3.00

Cable Subscription(Telewest Basic Channels) £5.50
Phone (calls) incl £11 line rental £30.00 (hoping to reduce this by using phone less - this is just an average from pre-budget days !
Telewest Broadband £18.00
Standard Life Endowment £20.56
T.V. Licence £10.00
Oxfam £2.00

Birthdays/Christmas/Haircut/Savings £26.00

Total Bills £472.06

Amount left £367.94

Tesco-Food Shopping £200.00 (I know this is high and I'm trying to get this down but difficult with a strapping teenage boy in the house !)

Amount Left £167.94

I allow myself £30 a week (£120 a month) for everyday spends such as going out for lunch or to the pub for a couple of drinks/stamps/wine etc, etc.

So this leaves me with £47 'spare' at the end of the month.

Maybe I am expecting too much but I kind of feel I ought to have more than that and not be forever watching the pennies. However, if I am to stick to my goal of never going into debt again, perhaps I just have to accept that I will always need to stick very carefully to my budget and maybe I will never have that feeling of being able to just pick something up and buy it without having to carefully weigh whether I can 'afford' it or not.

How do you all envisage your future spending habits ? Do you expect to be able to have enough money to simply say "yeah, I'll take two of those please, one in black and one in white" Do you know what I mean ?

Sorry to have rambled on so much but I'd be interested to know what others think.

To all who made it to the end of the post :beer:

lady_fuschia

If its any consolation I think there are relatively few people in the world who can truly afford to just pick something up and buy it without having to weigh up whether they can afford it or not. Some people don't, but they probably should!
I don't think I ever realistically expect to be able to just buy whatever I want without thinking about it- it'd just be nice to be able to go out for a meal now and then or a reasonably priced holiday, but I don't expect not to have to save for it.
As for your SOA- I'm sure the experts will be along to help shortly, but to my not-that-expert eyes the only thing that really looks excessive is your food bill- have you tried the Old Style board for some tips on cutting down- I found that very helpful. And do you have a LKidl or Aldi near you where you might be able to get some things cheaper?

elantan

i may be one of the few who should have money once i pay off my debt ..... notice i say may as technically this is possible but probable is another thing..in my case if it does happen it will only be because my hubby earns an ok wage and so do i ....you have the only income coming into your house so it will be alot harder for you ..from that you are trying to keep your self and your son ....unless things change in your circumstances... ie... son gets a job you get a partner with no debt etc or get more of an income this is the way things are going to be for you ..i dont honestly mean to sound harsh towards you.... to be totally truthfull to me you are in an enviable position ..you have no debt ..something i am a long way from achieving ....but what i am attempting to say (doing a very bad job of) is dont be hard on yourself you are doing great alot better than most ....your circumstances will change one day and if you manage to stay debt free.....then you will be able to look back at this time and say thank heavens i stuck with it ...all the best

GardenMillie

Hi Debbycatz

Like you I don't have any debt (other than the mortgage) but I've been really trying to cut back so I can pay extra off my mortgage or up my savings account.

At first glance at your SOA your internet charges seem quite high - also have you tried Primus for your phone calls? I signed up in May so still pay my BT line rental but only pay £2.99 per month and all calls to land lines after 6pm and all weekends are free, so you could probably save something there.

Don't be too discouraged you are living within your means:T

debbycatz

Thanks Lady Fushcia - That is a very good point, I think your right and maybe the only kind of people who can buy stuff and not have to think about it are the very rich. I think probably most 'everyday' folk do have to weigh up the pro's and con's of any purchase and if they don't - they end up here, like me :rotfl:

I have checked out the Old Style board and I am going to attempt to cut down the shopping but I can only admit to being a lazy so and so :rotfl:

Thanks again :A

msmicawber

I'm in the same boat, debbycatz, having just paid off my debts finally, I re-did my SOA and found that I still have no spare money. Now, though, my budget includes savings towards future spending on clothes, shoes, etc., whereas before I was constantly 'winging it'. It's hard to see how I paid off my debts at all.

I think the only way forward for me is to get a better paid job, so am studying to get into Uni. in order to do this. I hope that in a few years I'll actually be in a position where I have some truly disposable income after I've paid for everything each month.

Good luck, and many congratulations on becoming debt free.

debbycatz

elantan wrote:

you have the only income coming into your house so it will be alot harder for you ..from that you are trying to keep your self and your son ....unless things change in your circumstances... ie... son gets a job you get a partner with no debt etc or get more of an income this is the way things are going to be for you ..i dont honestly mean to sound harsh towards you.... to be totally truthfull to me you are in an enviable position ..you have no debt ..something i am a long way from achieving ....but what i am attempting to say (doing a very bad job of) is dont be hard on yourself you are doing great alot better than most ....your circumstances will change one day and if you manage to stay debt free.....then you will be able to look back at this time and say thank heavens i stuck with it ...all the best

thanks elantan - that is a nice post, I appreciate it. I had to laugh at the idea of me getting a partner tho' - that just doesn't seem to be happening at the moment but probably 'cos I spend my evenings on here instead of getting myself out and about
I know that I am lucky in many ways, being debt-free and having total control is great
I'm hoping to move up the ladder at my current work place in the next year so that should help too

Thank you for your post :A

debbycatz

GardenMillie wrote:

Hi Debbycatz

Like you I don't have any debt (other than the mortgage) but I've been really trying to cut back so I can pay extra off my mortgage or up my savings account.

At first glance at your SOA your internet charges seem quite high - also have you tried Primus for your phone calls? I signed up in May so still pay my BT line rental but only pay £2.99 per month and all calls to land lines after 6pm and all weekends are free, so you could probably save something there.

Don't be too discouraged you are living within your means:T

Thanks Garden Millie (lovely name btw ). I don't have a BT line so don't think the Primus thing would work for me. Thanks for the tip tho' and the kind words.:A

debbycatz

msmicawber wrote:

I'm in the same boat, debbycatz, having just paid off my debts finally, I re-did my SOA and found that I still have no spare money. Now, though, my budget includes savings towards future spending on clothes, shoes, etc., whereas before I was constantly 'winging it'. It's hard to see how I paid off my debts at all.

I think the only way forward for me is to get a better paid job, so am studying to get into Uni. in order to do this. I hope that in a few years I'll actually be in a position where I have some truly disposable income after I've paid for everything each month.

Good luck, and many congratulations on becoming debt free.

Thanks Mismicawber . I have done exactly the same thing as you by adding things into my new budget that I never used to include but spent nevertheless. I'm really looking forward to the next year to see how my budget pans out and to find out what it feels like to pay for birthdays etc out of my little 'pot' rather than feeling sick at using my credit card again.
Good luck with the Uni thing - that sounds like a good plan.
I succeeded in gaining a HND in Business Information Technology three years ago but I seriously lack confidence in myself so have never really put myself forward for positions that I know I'm qualified for
At the moment I am building and developing databases on a Clerical Assistants salary but I'm hoping my employer will see my 'talents' and manage to upgrade me within the next year *fingers crossed*.

elantan

see positive thinking already you'll be loaded before you know it ..it is hard and you have ot harder than most ...but you will also have a sense of achievment that i will never have ...you will have succeeded all by yourself ....that takes bravery and strength....you'll be boss before you know it...and driving a convertible merc lol

cathybird

hi debbycatz, this might be small comfort but I personally think everyone should carefully weigh what they buy before they buy it, no matter how much money they've got ... it would mean less packaging, less pollution caused by making products, less consumerism. I read somewhere that even billionaires should be washing and re-using plastic bags (in so far as anyone should be using plastic bags at all.) So if you're buying less then you're almost certainly helping the environment more than someone who thoughtlessly goes out and buys "one in black and one in white" every day. ummmm, but that might be cold comfort, I don't know!!!! I'm kind of aiming to live on less altogether - less "stuff" - and spend as little as I can even if I have got a surplus. hope that helps, even a bit?????...