Suggestions to cut my outgoings!

the_why_bird

Hello,

I currently work in a public-sector job which is for the chop. I am technically on the redeployment list, but I am one of 800 staff going from my department so I am not holding out any hope for this.

I have been there less than two years and so will not get any redundancy payments. My husband works full time and gets 12k per year, and looking at our budget I am struggling to see how we can survive on this for any length of time.

Please can someone look at our budget and give me some ideas?

Monthly outgoings:

-Rent and council tax = 500 (we rent the house from my parents because when we moved in I was 19 and couldn't get my own mortgage. This just covers the mortgage my parents pay so I can't ask them to reduce it. It is also in negative equity so I don't feel we can just move into a cheaper property without causing my family financial problems).
- Gas and Electricity = 75 (having just gone through comparison sites and switched to the cheapest provider)
-Car insurance = 60 (quotes for next year tell me this is going to go up to 80 per month, I don't know why since I have five years no claim)
- Petrol = 50 (this will go down when I am not driving to work)
- Phone and internet = 30 (we use talktalk for the free international calls because my husband's family are all in America, though if anyone knows of a cheaper company with this deal I would love to hear about them)
- food/toiletries/cleaning products - 250
- tv licence - 10
-car tax - 20
- clothing - 50

That's all I can think of for the time being.
Neither of us drink or smoke, we very rarely go out for meals. We don't have Sky TV. Our car is a 10 year old astra, so whilst a smaller car might be cheaper to run the car loan we would have to take out would probably make things more expensive. I'd rather not get rid of the car because that limits my job search to places nearby or easily accessible by bus. I am from a social-work-type background so most jobs I am qualified for involve working out of hours and visiting people in the community, and so I would need the car for this. My husband walks to work, we both take packed lunches. I have cancelled my gym membership and a few miscellaneous subscriptions we had. We have no debt except my student loan on which payments will stop when I am out of work. I can't think of any more ideas, can anyone help?

thank you!

Lokolo

2 of you and you spend £250 a month on food? Well for starters that can easily be cut down to £150-175.

http://forums.moneysavingexpert.com/forumdisplay.php?f=33

You could try asking in there how to cut down, but maybe you should have a meal plan diary thing.

And you should do a better planner:

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

To take everything into consideration.

Svenena

I think you'll find you've missed some things - take a look on the debt-free wannabee board and you'll find a template for an SOA (statement of affairs) which will make sure you cover everything (eg medical costs, haircuts, mobile phones, etc).

Your husband's income is very low - does he work full-time? You need to look into what benefits you'll be entitled to if/when you become unemployed. This could include working tax credits (for your husband), job seekers allowance (for you), local housing allowance (not sure how this would work as you're renting off family, but could be possible), council tax benefit. And of course you need to get looking for another job ASAP if this happens.

Good luck!

Svenena

Lokolo wrote: »

2 of you and you spend £250 a month on food? Well for starters that can easily be cut down to £150-175.
.

Yes, I meant to say that too!

mummyroysof3

hi, 1st thoughts are

will you be able to get help with rent/council tax when unemployed?
clothing could be cut for a while?
shopping could be cheaper for a while?

hope it doesnt end up so bad for you or if it does you can get another job quickly

the_why_bird

Thank you for all the quick replies.

You are right that I did miss some things off.

We both have pay-as-you-go mobile phones, I think between us we have only spent twenty pounds in the last 8 months as we're not big phone users.
Haircuts we do at home - I shave my husband and my hair is long and straight so just needs trimming.

Aside from the food bill which I admit is high for two of us, we have tried to live sensibly.

I should be eligible for contributions based JSA, but I am 24 so it will be at the lower rate of 51.85 per week. We are estimated to get 20 per week in tax credits, and 7 per week in housing benefits. So about 300 a month in total, for six months until JSA runs out.

And yes my husband does work full time in a very poorly paid job.

McKneff

Only in extreme circumstances can you get housing benefit if you are renting from family.
So you wont be able to claim this. Unless its a proper rental agreement and the parents issue gas certificates etc like proper landlords.

I think it should be both of you looking for new jobs to be honest.

Svenena

Is your partner also under 25? The reason I ask is that if he were over, he could qualify for working tax credit. Unfortunately if you're both under 25, your entitlement to benefits will be limited, as you're expected to live in a room in a shared house where rent would be lower. I know you said you didn't want to move, but if this were to be a long-term situation, it could be your only option.

In the meantime, could one or both of you look to getting a part-time job on top of your current ones, to get some savings behind you in preparation? Or your husband could try and find a better paid job (I know it's easier said than done, but it's worth trying)?

the_why_bird

McKneff wrote: »

Only in extreme circumstances can you get housing benefit if you are renting from family.
So you wont be able to claim this. Unless its a proper rental agreement and the parents issue gas certificates etc like proper landlords.

I think it should be both of you looking for new jobs to be honest.

I thought that might be the case with the housing benefits, although we do have formal agreements drawn up.

I am definitely looking for a new job - I had been looking for some time anyway but in view of the circumstances I will have to be less picky and take up some temp work and put my CV in at tesco.

ehlo

You could look into Skype to save some money on those international calls. If both people use Skype, then the call will be 100% free, otherwise you can look at skype credit (basically payasyougo) or the skype unlimited options which may well be cheaper than talktalk

System

Rent - Could your parents switch to interest only til your back on your feet and reduce the rent accordingly. You can always pay a bit extra in when your working again.

Phone/Internet - Primus & 18185. Even if you cant get out of Talk Talk's clutches - go to the basic package and look at the dial thru numbers on here - US for 0.5p per minute etc.

Toiletries / Food etc - Look at buying special offers, ALDI/Lidl can be good for good quality, reasonably priced stuff, Own brand cosmetics etc - check out the ones that win awards .Of all the big supermarkets, i find Sainsbury's basics range the best quality especially fruit/veg.

Benefits - Apply for all you both can. Job centre can help with interview clothes and travelling costs. Are there any courses/certification that would help you for free?

Gas/Electricity - Swap 2 times a year ~ you can get about £100 back via cashback sites each time. When I get this, I do a bank transfer into the fuel account.

Clothes - Try Asda, Tesco and places like TK Maxx. Primark is ok for basics.

Mobile - Check your on the best tariff ~ Asda Mobile, Giff Gaff & Tesco Lite are all 8p per minute, 4p texts. Asda is on Vodafone with the others O2.

Car Insurance - £720 seems alot (with 5ys no claims)- Try the comparisons sites.

Going out - Keep an eye out for offers like 5pm.co.uk and vouchers .
Occasionally is good and can work out not much more than home.

Jobwise - This isn't strictly money saving but is there any relevant voluntary work that you could do? It would keep up your CV and give you a foot in the door with voluntary organisations and related agencies.

Good luck - I'm sure you'll find something soon!