How much do you live on per month?

curlygirl1971

lizziebums wrote: »

does anyone know of any good books/guides/sites to help understand financial things like mortgages, insurances, pensions etc but on simple terms related to real life, as now I have sole control / responsibility would like to understand it better to make the right decisions as feel a complete girl when it comes to things like renewing insurances, sorting car, mortgage stuff (on a part buy part rent scheme ).

To help understand my viewpoint my debts include £1,300 on one CC (interest free until Jan 2012) £2,800 on another, I have a fixed loan which I pay £175 per month which will end April 2014 - which consolidated debts from ex. I have a family loan of £6000 which I dont have to pay back until I move again (as they had it spare to help me put deposit down or when ever I want they saw it as an investment) however I would like to start paying it back even if little bit at a time as feel like they will moan behind my back although they have never asked me too my pride is dented.

Hi lizziebums

Great post!

Lucy1010 seems to be out again tonight - I think we should get her tagged. Then we could watch her movements on WheresLucy1010?.com

I'm on the forum most nights at the moment because 1) I'm obsessed 2) I'm in. I'm okay with being in at my time of life :rotfl:because its a choice. If I didn't have a choice I think I would feel very different about it. I have a great BF (we don't currently live together), if I didn't then I think I would be going out more - as it is I can't be bothered and would rather save the pennies

I'll post separately about expenses because I've got LOTS AND LOTS to say about them (I'm a complete gas bag)

I've learnt loads from this site, from other peoples experiences - good or bad, trust your common sense. My sister has a book called 'Personal Finance for Dummies' or 'Money for Dummies' or something like that - it's good, but I don't think there is much you could learn from it that you couldn't learn on MSE - but perhaps the book is in a better format?

I'm not qualified to talk about debt - I've been very lucky/fortunate never to be in it (except Mortgage) so I feel uncomfortable giving 'advice' or opinion. I think the general 'rule' may be to pay off the debt that is costing you the most first - but you need to look into this much more first. Am sure there are plenty of other people here that can give you a much more valid opinion. If you haven't already done it then consider posting a SOA on the DFW board and letting experienced people comment.

Now on to expenses....(starts panting with excitment)

backinbusiness

Inbetweeners!!! No, I really, really, really am actually a lady!!

And I have the hormones to prove it!!

bib

curlygirl1971

lizziebums wrote: »

With regard to a previous post about breaking down outgoing to what is necessary etc where would you say things like Life Insurance, Critical Illness Insurance come under? Is it advisable to keep these going or stop them whilst paying off debts?....... Also I pay into a pension before tax is it advisable to keep this going too? (as often look and think that £60 a month could go on debts)

Depends on your point of view and what is important to you.

A couple of years ago I came across a couple of personal finance 'theories'. They are American in origin so when you're looking at them you should bear in mind that in the US there are different taxes, medical insurance, school bills etc

The first one is 60/40 plan - 60% of your income on expenditure and 40% on Savings (don't freak - Americans have to save for a lot more than us!). My version of this is as follows (so it suits me):-

Committed Expenses, 60%
Mortgage Payment
Council Tax
Life / Sickness / Redundancy Insurance
Gas
Electrical
Water
TV License
Land-Line
Food & Household
Petrol
Prescriptions , Dentist, Opticians
Mobile Phone
Car Insurance
House Insurance

Whatever I want, 10%
Social & Exercise
Clothes, Hairdressers, Toiletries
Ocassion & Christmas Presents
Contact lenses
Charity Donation

Savings for Annual and large one-off expenses, 10%
Car Service Money set aside towards Car Repairs
Car Tax
Car Breakdown
Car MOT
Savings for Holidays

Savings, 20%
My Pension Contribution after tax relief
Mortgage Over Payment
Savings - long-term not to be touched

But for some people this might be laughably inpractical - for example, to manage these %'s your income has to be a certain level. If you earn £100 then your Commited expenses are unlikely to be only £60 (They are going to be the same as what they would be if you earned £1000 as many of them are outside of your control). Where would debt repayment come into this (I would say Committed Expense) and then its also subjective - some people would say that Mobile Phone should come under 'Want'. I view this plan as some sort of guide - its an interesting exercise - thats all. I don't conform to these %'s but it was interesting to categorise my expenses in this way and see the %'s

The second one is the Money Rule which says (AS A GUIDELINE!) that expenses can be categorised into Need/Want/Saving

Needs (Must have's that I can't live without)50.00%
Wants (Items that I can live without for 6 months)30.00%
Saving (Pure savings designed not to be touched)20.00%

If I was repaying a debt I would be tempted to put this into 'Need'. I've decided that Needs/Wants etc for me are as follows - but again this is personal to you

Needs (Absolute essentials that I cannot live with out)
Mortgage Payment
Council Tax
Gas
Electrical
Water
Food & Household
Petrol
Prescriptions, Dentist, Opticians
Mobile Phone
Car Insurance
House Insurance
Car Service
Car Repairs
Car Tax
Car Breakdown
Car MOT

Wants (Things I could live without if I had no income for 6 months)
Social & Excercise
Life, Sickness & Redundancy Insurance
Land Line
TV License
Clothes, Hairdressers & Toiletries
Occasion & Christmas Presents
Contact lenses
Charity Donation
Holidays

Savings
My Pension Contribution after tax relief
Mortgage Over Payment
Additional Savings

A good test of whether something is a Want or not is - 'Can I live without it for 6 months if I had no income?' I decided that my Car Expenses were a Need because if I was looking for a job I'd need my car. I decided a mobile was more important than a Landline.....etc etc


So this is just two different ways of looking at expenses. There is no pass or fail. Do what you want to do. I prefer the Want/Need list. But just because something is on the Need list doesn't mean that you can't influence it - you might need Food, but you might not need to spend that much on it, especially if your circumstances change.

With regards to Pension / Life Ins payments whilst having Debt - I don't think there is a right or wrong. I'm a security freak - I would tend to provide for the long term / unexpected (if I possibly could) but others would disagree.

Many people say build up an emergency savings pot even when in debt to help you cope with unexpected costs and avoid getting into further debt, whereas others would say don't have much if any saving - if you have access to further credit then use that instead for coping with unexpected costs. (Is further credit guaranteed though?). It all boils down to your circumstances and what kind of person you are.

Need a break now......all expense'd out

FOURCANDLES_2

God I thought we were skint compared to most ,
after rent, ct, d,debits, (apart from when the car tax is due) we have £290 pweek minus £75 pweek on food which as said has gone up by a tenner in the last 6 weeks we have a cple of hundred spare a week ,We are a lot better off than some it seems I will not moan again.

curlygirl1971

lizziebums wrote: »

does anyone know of any good books/guides/sites to help understand financial things like mortgages, insurances, pensions etc but on simple terms related to real life, as now I have sole control / responsibility would like to understand it better to make the right decisions as feel a complete girl when it comes to things like renewing insurances, sorting car, mortgage stuff (on a part buy part rent scheme ).

Personal Finance for Dummies £10 on Amazon. But like I said - nothing you can't learn on here IMO.

There's a guy called Alvin Hall who has been on TV/Radio and I find him quite motivational when talking about money - he has some books out to.

I wouldn't spend a lot though

YORKSHIRELASS

Hi everyone

Well March was a better month than I expected in the end. I spent £25.58 more than I had coming in but my tax credits were £60 less than I was expecting so I am actually quite pleased with this! I have also managed to complete my spending diary for a full 3 months and know exactly how much I have spent on everything since the beginning of the year. Usually I start doing this then stop for a bit then start again. I am determined to keep it going for a whole year because it makes me think about what I am spending.

Need to go and pick up DS1 from school now but I feel good because I have done all my spreadsheets. Must tackle that overdraft this month and try and get it to go down rather than up!

lizziebums

Sorry backinbusiness I just had to comment on the fact people guessing genders and getting it wrong!

Thanks curlygirl1971 for the expenses info - lots of food for thought, I think because in theory I should have enough coming in to cover all my bits including insurance I should concentrate on spending less on rubbish I dont need and budgeting properly - I have very loud voices in head saying just this once, or you only live once, or you dont drink or smoke so a book is your treat (when actually I dont need magazines, as got two subscriptions with Mr T rewards when double thing, and my bookcase is full with books to read, and toiletries I have enough to be getting on with - so need to sign up to some challenges) but what do people do to keep motivated, on straight and narrow, to keep their willpower/determination in check?

I will check out the website more, as MSE friendly I shouldnt buy a book lol (see above) and I want realistic/life advice with regards to finances etc so if decide a book is way forward library it is!

x

kerri_gt

lizziebums wrote: »

Sorry backinbusiness I just had to comment on the fact people guessing genders and getting it wrong!

Thanks curlygirl1971 for the expenses info - lots of food for thought, I think because in theory I should have enough coming in to cover all my bits including insurance I should concentrate on spending less on rubbish I dont need and budgeting properly - I have very loud voices in head saying just this once, or you only live once, or you dont drink or smoke so a book is your treat (when actually I dont need magazines, as got two subscriptions with Mr T rewards when double thing, and my bookcase is full with books to read, and toiletries I have enough to be getting on with - so need to sign up to some challenges) but what do people do to keep motivated, on straight and narrow, to keep their willpower/determination in check?

I will check out the website more, as MSE friendly I shouldnt buy a book lol (see above) and I want realistic/life advice with regards to finances etc so if decide a book is way forward library it is!

x

I keep a spending diary with my budget broken down between bills, petrol, food, misc etc. The misc is for general 'stuff' this includes clothes shopping, toiletries (which can be me or OH if I buy them), bits n bobs for the house like foil for sarnies, bulbs for the garden, books etc etc Oh, and clothes. Part of what keeps me motivated is thinking about what my 'misc' balance is when I want to buy something - don't get me wrong, I do have some leaway to go over...a bit...but I do try to keep to it as much as possible. I also do the NSD challenge which gets quite addictive. Although I did get a bit bad on my spendy days at overspending for a bit (just befoe xmas and up to about last month ) trying to get back on the straight and narrow now though.

What I also did I couple of years ago is allow myself to choose a treat item - or two, when I got paid, and that was me for the month. Once it was a £30 MP3 player, the next it was a jumper and pair of trousers. I decided the month before what I really wanted, so I had the anticipation of the build up, time to really think about it, and then the pleasure in purchasing.

curlygirl1971

I think I'm like Kerri - because I note everything down (to the point I know how much is in my accounts and how much is going to be in my accounts for the months to come) it's there in black and white - I'm responsible for the money going out or staying in. I can see in my forecast how my spending today affects the money I have / have not, months down the line.

When I was saving for a house deposit (over 10 years ago) and I wanted something - if I didn't spend it then I would put the same value in my savings account. Ie. Night out - drove not taxi £15 in account, New Top £20 in account, Magazine - £3 in account etc etc. And I used to get a big kick out of seeing the balance go up. Now I'm concentrating on my mortgage and now I get a kick out of seeing the balance go down (I have that on a spreadsheet too so I can see it)

You've got to find what works for you I think - but I think making a note of everything is a great place to start. Mine is an all singing and dancing spreadsheet that I've been keeping for years. If I was a busy mum just starting then I might be tempted just to keep a simpler note either in a notebook or simple spreadsheet.

ps I think there is a no more books challenge but if you do fancy a new book why not try a charity shop?

vka1

To quote the magnificent David Walliams "I'm a laaddeeeee!" actually; sorry to disappoint!

I support the Scottish Rugby Team because they have truly magnificent legs!!!

BackinBusiness - My apologies! I think I was thinking of Beachie, and then got distracted by two user names beginning with B and the thought of those lovely rugby playing legs.....! Your replies have made me giggle a lot though! And you clearly have good taste...