When the going gets tough

SJ1

the moneysavers get going.....

Hi there everyone

I did a budget last night. Not the one that I have in my notebook where we don't spent that much but the real one where I sat down and went through what we actually did spend in our bank statements. Good lord I was shocked. I budget £450 a month for food which I always thought was generous and I shoudl reduce. I worked out that a few months ago there was a month where we spent nearly £600. I am also absolutely disheartened and upset with myself that me, someone who has always thought that she was ok with money, has managed to save absolutely nothing this year. In fact things have gone the other way and we have a £2,500 overdraft.

The problem is partly credit cards - we always pay them off but then we don' t have enough money so we start to spend on them again and then the extra money I thought I would have to pay off overdraft/save goes on paying the credit cards off again and so it goes on. The problem is also our budget which we just don't seem able to stick to and in particular cash. I take out £60 a week for various things, it disappears and I need more.

So I have made a decision - no more of this. I want to try to pay off my mortgage, I don't want to have an overdraft anymore and I want to save some money so when I retire I will be able to enjoy it.

I saw a post on here a few nights ago about the envelope system and was really gripped by this lady, Maria's, story. I can't do a complete envelope system so I have decided that I am going to try a bit of a half and half system to get things under control. Rules are as follows - advice would be good from anyone who has tried to do this themselves....

1. Spending for diesel for two cars, we both drive to work in odd places and travel after we get there, is on the card - approx £60 a week each (I know but I travel more than 100 miles a day!)
2. Main food shop goes on card - limit to £100
3. Then get cash out - £30 for any other food shopping through the week, £15 for lunches, £5 miscellanous, £10 for hubby miscellaneous, £50 for other things like prescriptions, kids shoes, clothing and other bits and bobs for the kids and £10 for the paper which is needed for work.
4. No spending on card after cash is out until the weekend when we fill up again and do weekly shop

I know that my totals probably seem high but from watching Maria's post a few nights ago she said not to go too crazy as then you can't stick to it and get disheartened and this is me all through as I have tried to cut down before. I am spending a LOT more than this at the moment, if I can get down to this each week I will be able to pay off my overdraft in no time.

Aims are

1. Reduce overdraft of £2,500
2. Save for Christmas and use new Amex card rewards, Tesco vouchers and other freebies to pay as many presents as possible
3. Start a savings account to cover car expenses, moving on to other bits and pieces.

I was truly shocked by how much is going out of our bank account. I am going to need loads of help doing this and this forum has always been great for advice, hints and tips so this is going to be my record of my story.

Thanks for reading

Susi

SJ1

http://www.stewardship.org.uk/money/smartweb/resources/embed/84

this was what started it...

S

SJ1

Well, two days in and things are going well with the envelope system. Spend so far is lunch, £1.50. Paper, £2. Other - £33 for back appointment, food shopping, my own personal problem area £15 so far out of my £30 .... Hubby had a dentist appointment end of the week so that is going to be another £45 so that is our limit on the 'other' category - problem area number 2!!

I think the visual of having to give the money over is really useful - for me at least and also I do feel like I have achieved something. Haven't touched the card so far and there is still money in all the pots! Yippee!!

Very early days and we have had nothing 'go wrong' so very pleased with my progress..

Thanks to all the other posters on here - very helpful to read other people's journeys - I free vaguely normal.

S

SJ1

Hi Everyone

Well we are a week in now and it's all going really well. We already had a planned weekend away (OOOer) so I pulled some cash out for that and we kept to that so so far so good. The envelope thing makes it really obvious if I am getting into problems and actually makes me think about it so all good.

Have found that the 'other' category is still a bit of a problem and this went a bit over between dentist, prescriptions and haircuts but hopefully we will do better on that one this week. I always start the week thinking there isn't anything we need and then get to the end of it having spent a lot = at least I now know where it is all going!

Doing really well on the food front so very pleased about that. Stuck to my budget really well and just steered clear of the supermarket. I have to go to the butcher tomorrow but hoping that will only be about £7 so will still have £23 left for the weekend meat.

Hubby is being supportive although he finds all my little money bags very amusing when I am trying to find the right one to pay for whatever it is! Not sure he completely gets it but as long as he sticks to his £10 a week I couldn't care less!!

S

SuzySu

Hey.....found you!! And will have a look at the link to the envelope system too.

Good luck with your efforts. We are quite similar where food shopping is concerned aren't we

SuzySu

SJ1

I am really awful with food shopping. I LOVE cooking cakes and all sorts of exotic things. I always sit down and plan the week of cooking and yet I go out on Sat and pop into M&S (I know but it's handy) and then £20 and very little later my budget is blown....

So I am avoiding M&S! Decided to use the butcher instead - how wrong can I go when the only option is meat and not raspberry panacotta (sp?) or melting chocolate puddings or iced spiced buns - you can see the problem!!

S

SJ1

I am working on the premise that it's better for my waistline but at the moment I am craving green and blacks dark chocolate with cherries.....

RIGHT GOT to STOP talking about food....

Pork chop anyone?

S

savingholmes

just wanted to wish you good luck on your journey... It may help to do a statement of affairs SOA at make sense of cards and post it here - you may get some useful tips on where you could make savings - switch etc

SJ1

Thanks savinghomes

I am a bit useless with SOA's. If I can stick to my budget montly I will be fine, problem is more sticking to the budget and hence the envelope system. I have looked at electric and gas and saved on that, water is not on meter but there are quite a few of us, mortgage is fixed for 5 years, phones are also on fixed contracts and are set about right, got a good deal from BT on phone, internet etc, don't have sky, do have a lot of life insurance but am very loathe to cut that down. So on my fixed's I am pretty happy as I have literally been through the lot. We do still have gym membership which may have to go.

On the envelope system....

Was going well until today - £33 out of my £50 had to go on school PE kit and £22 on trainers had to go on the card. Got ice cream to celebrate school starting for DS1 and had to pay for haircut for said DS. So I have £26 left on food, very pleased but haven't actually been to butcher yet, £4 left on paper - again good. No lunch money but don't need one tomorrow and about £1 out of my 'other' budget left after expensive day for DS.

So going to have to get through the weekend with just the food money. We actually don't need anything - bought all that was needed for school today so hoping that that will be ok!! :eek:

S

savingholmes

Hi SJ1 - just think of it as a cold turkey weekend and see if you can get thro without spending!! I tend to set mini-targets.... a bit like a recovering alcoholic.... get thro the next hour without spending, then the hour after that etc... Its tricky tho isn't as something are needed... a lot of my spends turn out to be wants rather than needs... Hence why more work is needed!

SJ1

Hi SavingHolmes

I am already plotting and planning. We are going out on Sat night so don't need to buy anything for that (already have a bottle of wine I can take)and might try free day out to local park with the kids and making cookies. Sun I think I will do Sun lunch and just use what I have - all I need is a joint of meat and still have money left for food. Only prob is baby sitter fees which I didn't factor in so might have to get a little out for that. We don't normally go out so this is an unusual expense for us. Little bit nervous as don't know the baby sitter but a good friend of mine uses her.

If I can get through the weekend with that as my only extra I will be really happy....

S