Spend too much on things

Polly_Wolly_Doodle

Hi Wistles,
Really interested in your dilema as we have just taken two of our children out of fee paying and into state sector and TBH it's been a great success.
However i am not so confident of the secondary schools and am hoping we can get them back in later.
However i never see the drain stopping, if we get them back into fee paying and they go to uni then we'll be paying for that too or watching them get saddled with debt before they even start their lives.
As i'm sure you know it seems that everyone is away skiing at half term and off to the Maldives / India / South Africa in the summer, has ponies and riding lessons, coaching for tennis and private golf lessons, so i understand your financial concerns!

We also have a secured loan until Nov 2017 by which time the eldest will be 14 and the youngest 9, there is a middle one too.
When does your loan end?

Could you self-insure for the dogs?

Reduce groceries, how many of you are there?

Haircuts, is that for your wife? Could she stretch to going longer between colouring etc - i have and all i've had is compliments as my hair has grown and a home hair dye is every bit as good!

Cleaner, again could this be done away with or hours reduced?

I don't know if any of this will be enough as again all i can see are more expenses, cars and parties etc etc etc.

Can you claim your entertaining back if it's business related? Are you self employed or an employee? Can you employ your wife to use her personal allowances?

Feeling your pain.

bravobeastie

It seems that you really need to look at EVERYTHING because something obviously has got to give. Change your gas supplier and be prepared to speak to 'idiots' on the phone (although I don't really think that was a fair comment tbh)

wistles wrote: »

the electricity and gas can't really go down as there is someone at home all day along with a computer that has to be on.

Who is at home all day to justify the utilities having to be used all day? Whoever it is, could they not walk the dogs?

Indecisionismymiddlename

I must admit to being confused about the things that you need for work. If you run your own business then things that are legitimate work expenses need to come off your own monthly income and on to your business expenditure. If you are an employee then surely you need to claim for these on your expenses each month.

Having said that, it doesn't extend to your wife's haircuts and clothing but a dongle must surely be a business expense.

wistles

bravobeastie wrote: »

It seems that you really need to look at EVERYTHING because something obviously has got to give. Change your gas supplier and be prepared to speak to 'idiots' on the phone (although I don't really think that was a fair comment tbh)




Who is at home all day to justify the utilities having to be used all day? Whoever it is, could they not walk the dogs?

We have a nanny who is in the house with our youngest. They are big dogs, she would not be able to cope.

wistles

Indecisionismymiddlename wrote: »

I must admit to being confused about the things that you need for work. If you run your own business then things that are legitimate work expenses need to come off your own monthly income and on to your business expenditure. If you are an employee then surely you need to claim for these on your expenses each month.

Having said that, it doesn't extend to your wife's haircuts and clothing but a dongle must surely be a business expense.

I am self employed. These overheads affect my take home. Hence they are listed here.

climbgirl

£85 a month on TV is very high - can you reduce to a cheaper package or cut it altogether? THere are plenty of free options for entertainment without spending this much each month.

I also think the money you're spending on haircuts is high too. Make sure you're choosing the cheapest option in your area or get cuts that last a little longer than normal!

I also think the grocery bill can come down - start by reducing it gradually instead of making drastic cuts. Meal plan so you only buy what you need each week.

Like Tixy says, it's all about personal choice and priorities - only spend money on what's important to you.

tugrin

Hi Wistles
This is a bit radical but if your children are v young are the local first/primary schools any good. I sent my daughter to a state primary and then to a GDST because I know the secondary schools here are ABSOLUTLELY AWFUL (as they are in many places). I am a teacher in the state sector and realise there can be enormous differences in an area school to school - BUT if you find a decent primary you could potentially save yourself thousands and put that into a fund for the next phase.
Also - are your children extra bright or especially talented at music or sport or drama because there may be scholarships to be had. Do you have a specific public school in mind or are you open to looking at what they all have on offer?
These are just thoughts from a mum who has spent years agonising over my children's education and wellbeing.

Polly_Wolly_Doodle

Wistles,
What line of business are you in? If you are self-employed is the commute required or can you set up at home? Claim part of your household expenses as tax deductible, walk your own dogs, reduce the nanny's hours as you are 'away' from home for fewer hours?
You maybe need to give us the income figure too, one man's good salary is another's basic!
Feel free to PM me, i'm an accountant!!

KiKi

There's nothing wrong with admitting you're in debt (or going to be) when you have a big income. The main thing is that you take action now before it gets out of control - which you're doing.

I've read all your posts so far, but I'm still going to comment.

wistles wrote: »

Monthly Expense Details
Electricity........................................ 80
Gas................................................ 80

You can cut these down. I work from home all day, with my laptop on, my radio, doing washing, the heating etc, and I spend 31 a month in total. I am undoubtedly in a smaller property than you, but even so, it can be cut.

I appreciate that you've gone for customer service which I completely understand. There are some things that are worth paying extra for.

However - and I mean this kindly - if you really do need to save more, then you have to compromise. There's no point explaining why you have to have all these things (even if the reasons are very good!) then say you need to save. You have to take action somewhere.

Be realistic - how often do you *actually* have to phone your gas / elec provider? Really? I do all my readings and paying etc online.

You need to accept a 'lower' standard of service, or not complain that you can't make savings. You can't have it both ways, I'm afraid.

Satellite/Cable TV........................... 85

You don't need this. No, you really don't! You may want it (for sport, movies for the kids etc), but you don't need it. Freeview has *plenty* of kids' TV, especially if you set up a DVDR or recorded to record shows as and when they come on, then there's always lots to watch. I bet they have their favourite DVDs anyway that they'd rather watch over and above stuff on Nickleodeon.

Again, I appreciate you might enjoy it, but if you do need to save more for your kids' education, then you have to choose to cutback somewhere without finding reasons as to why you need it. I mean this kindly!

Groceries etc. .............................. 600

You can cut this down. It's not about not having time to shop - lots of people are in that position. If you shop online then you can easily cut down your bills as you aren't being tempted by stuff you don't need which you see sitting on a shelf.

You don't say who does the shopping, but in just one hour between you and your wife / nanny / whoever does the shopping, you could agree the basics that have to be bought each month, and set that up as your 'usuals' list. This can be delivered weekly / monthly whatever. But you can cut back on the brands. Sainsburys is excellent for good quality own brand food.

I understand not having time to shop for the real bargains, but £600 a month implies that you're buying top brands, expensive taste food which you could easily cut back on. If you got that down to £400 a month, that's £200 more for your child's education.

Clothing....................................... 100

With your jobs, I can understand this, but perhaps just take it down to £80. Even if you rotate client entertainment, you don't need a new suit each time. That's another £240 a year for your child.

Other travel................................. 529.6

What's this for?

Childcare/nursery.......................... 1850

Is there any way to cut this back? Is your nanny full time? Is this essential for your child? Could you have an au pair who is just as effective? (They're not all 19 and unable to speak English! Some are absolutely outstanding, just get the right agency.) There are other options than a nanny, and you need to think about whether you'd rather spend the money on your child's education, or his/her immediate care right now.

I didn't notice how old the child is, but I assume they'll be at nursery at some point, so you need to take the opportunities to cut this down.

Again, I know you probably don't want to, or can see obstacles to this (like your job). But if you want to save, you have to make cuts. If you just won't look at it, then no-one can help you.

Pet insurance/vet bills..................... 410

Great news that your pets are covered, and the dog walkers are absolutely right if you're out all day and they're big dogs.

But £110 is a lot for pet insurance. I read your reasoning and I understand it. And I get that you've already had one operation for £7K. But if you are already able to save quite a bit each month and can make more cutbacks from your SOA, then this could be another £600 a year to your child.

Perhaps you could try and negotiate with your insurance provider, or play this one off against another, see what discount you can get. Anything is better than nothing. But it requires a few phonecalls.

Entertainment............................... 500

This has to come down. I imagine your business entertainment costs aren't going to be in here (as they'd be offset from your business) so you need to look at what you're spending. I'm not saying take it down to £50, but reduce it slowly. Aim for £400 for the next three months, then £300. Given that you already spend a lot on food and Sky and haircuts and clothes, this can be easily cut.

Again, I know you might not like it, but you're asking for advice on cutting down, so that's my advice.


I hope this is helpful.
KiKi

belfastgirl23

The thing about trying to sort out your finances is that it can feel overwhelming. Especially if you're in a busy and stressful job. And you can end up making excuses about why you need a certain level of expenditure because you don't have time to think about other possibilities.

What I'd suggest is taking one thing per week and paying it proper attention. So the thing you're thinking about this week might be tv/phone/internet (since it's often bundled). Next week you might look at gas and electricity. Take a proper look at the relevant articles and boards on this website and see can you make savings. It's easy to think that it's not worth the time for £20 here and there. But the thing is that all of those £20s add up, especially if it's over time. These kinds of things (plus insurance) can be left for a year or more before you have to pay attention to them again.

Knowing how many people are in the house in total would help with figuring out whether your grocery bills are too high. Also how long to go before your youngest doesn't need at home care.

I do wonder if you offered your nanny an extra few quid would she walk the dogs - at least the exercise would get her warmed up and out of the house which might cut back on utility bills

As an aside, you also should check on your tax situation to make sure you're claiming for everything you're entitled to, eg client entertainment etc...and making sure that you are up to date with your tax obligations if your finances are a bit muddled.