Budgeting without actually having debt

maradona10_2

Hiya, first time poster so I hope I am in the right place, couldn't find anywhere else to post it.

I earn a "decent" wage, very much underpaid but aren't we all

I do not own any credit cards nor have I got an over draft, I live on the money I earn, well I try to.

Since Feb I've been struggling quite considerably. Money seems to run out during week 2 or 3 out of sometimes a 5 week month.

Admittedly my money management skills are not at their peak but I am conscious of what I have and fear not having but it doesnt help, I think I am trying to make money last that just isnt possible?

I am not sure of the policies of the forum but without giving exact numbers, my outgoings are :

Rent @ £375
C/Tax @ £91
Mobile @ £42
Scottish Power @ £93 (will be changing as of next month but I anticipate by nothing more than 50%)
Sky @ £28.50 (package cut down to bare bones)
Dad repayment @ £50
TV License @ £12
Car @ £154
Insurance @ £54

Infact its quite accurate :rotfl:

Now I'm left with £400 ish if I settle all that on payday and thats to last me. I do smoke, I do have a kitten and I obviously need to petrol the car and eat/drink etc.

Am I fighting a lost battle?

I just cant control it, I am trying to get out of the vicious circle of borrowing/repaying money but I dont think thats going to be the solution.

blueberrypie

Mobile bill is quite high at £42. Sky at £28.50 is bare bones? Freeview is...well, free! And if you're not making enough money to smoke...don't!

getmore4less

Do a proper SOA

http://www.makesenseofcards.co.uk/soacalc.html

Base it on the last years spends minimum and project forward for a t least a year some will have gone up.

Start a spending diary every penny in and out.

maradona10_2

blueberrypie wrote: »

Mobile bill is quite high at £42. Sky at £28.50 is bare bones? Freeview is...well, free! And if you're not making enough money to smoke...don't!

Okay now bare bones but compared to what I had, it pretty much is. Just one entertainment pack.

Mobile would be £5 less but its insured. I didn't think it was that expensive considering I've unlimited texts & browsing and more than enough free minutes.

I know about the smoking, not a day passes I don't think about making the first pounce to try and stop.

izools

Drop the car.

My NET monthly income is somewhat higher than yours and I don't consider a car remotely affordable. Or Sky. I don't even have a TV or TV license but that's not due to affordability, just choice. I don't like being told what to watch and when. I decide that with my PC

Breaking the £400 down into the other things you need,

How much do you spend a week on Food? Petrol? Pub? Cigarettes? Pet care? Etc. If you work that out you soon realise that the biggest expense you can cut back on - car ownership - leaves you without even enough money for new shoes.

gocompare

I got rid of all my sky packs and haven't noticed the difference at all - I need to watch less telly anyway! Am stuck on £18 per month until xmas though

snugglepet20

Buy a 10kg sack of kitten food from somewhere like zooplus for £40, it will last 6 months and is better quality than supermarket food. Make him poop outside to save on litter costs and smell!
Make all your own lunches and drinks for work that will save loads.
Use cashback sites.
Plan your grocery shopping and order monthly online using money off codes.
Consider downgrading your car to one you can afford to buy outright.
Get rid of scottish power.
And of course give up the fags!

Should leave loads of spare money (5 of us live off not much more than you earn!)

MoneySavingNovice

Well done!
To have the courage and sense to start to address a problem before it gets out of hand is impressive.
Yes you need to do a very detailed budget - but given your post here it looks like you already started, hence that as a given you have basically two options, either to increase your income or to spend less. I’m assuming that to increase your income will be difficult in the short term (Its worth a try) so I will make some hopefully helpful comments about your outgoings.

Looking at you expenditure I class this in three areas, fixed expenditure your can’t realistically reduce, i.e.
Rent @ £375
C/Tax @ £91
TV License @ £12
Sub-total £478
Areas which you might be able to reduce dependent upon personal circumstances
Dad repayment @ £50 - See If you can reduce this amount
Car @ £154 - Do you actually need a car? If you live in any large town or city for example I would suggest you don’t . Investigate public transport to get to work - if this is an option think about not having a car! - remember you can always hire a car or join a car share scheme should you need one.
Insurance @ £54 - I guess for the car - even so shop around for a cheaper deal!
http://www.moneysavingexpert.com/insurance/compare-cheap-car-insurance
Things you really should address;-
Scottish Power @ £93 - This seems expensive, Switch
http://www.moneysavingexpert.com/utilities/you-switch-gas-electricity
Mobile @ £42 - This is huge - Find a much less expensive deal
http://www.moneysavingexpert.com/phones/mobile-phone-cost-cutting
Sky @ £28.50 - If it was me I would get rid - freeview is free!
Smoking, Cat, petrol and food/drink, ask yourself if what you are spending represents good value to you - if not don’t spend it!
Try:-
http://www.moneysavingexpert.com/shopping/cheap-supermarket-shopping
It surprised me!

Hope this helps - It’s worth reading this site it will give you loads of ides which actually work!
Best of Luck

Scottish_Power

Hi maradona10

In relation to your ScottishPower monthly payment, I would suggest contacting us to see if you can be changed onto a better tariff to help lower your monthly outgoing.

I've attached a link to our website below which provides details of all methods to contact us. Alternatively, send me your details and I'll investigate your account and see what we can do for you.

http://www.scottishpower.co.uk/your-home/existing-customer/home.aspx

Kind Regards

Colin @ ScottishPower

usedandabused

Once I clear the 700 i owe to various credit card companies i'm going to start recording money in and money out!

i get 800 after tax a month
i pay 365 a month for rent but that includes bills etc for a room i rent
i do my own food shop though around 50 a month
i pay 20 a month for a mobile although this is p&g so varies
i buy a monthly travel card of 150 a month
plus i pay some support to an ex gf so she'll leave me alone 100 a month

oh and i only make minimum payments on credit cards so 50 a month


doesn't leave me with much else to play with

ninky_2

mobile is way too high. i pay less than 15 quid a month by having a sim only deal and keeping my old handset with vodafone - and i work freelance in a communications industry.

cancel the sky subscription. if money is running out each month you can't afford it.

what is the insurance for?

how long do you need to pay back your dad? you say you don't have debts but this sounds like one?