I want to be debt free!

GeorgieFTB

I think you need to fill out a full SOA, the favourite one for here is http://www.makesenseofcards.co.uk

If you fill this in with as much detail as possible. It sounds like what messes you up every month is the one off expenses, car breaking down, mot, boiler on the fritz...

Once you have a comprehensive budget then you know how much you have to put away for all those expenses, then you can get a savings account/another account and start trying to save that money into those pots you will need.

if you want opinions then post it up here and we can tear it apart, it might help you save some money.

Gx

Triggles

I agree, we're missing loads of info here. Can you fill out the SOA linked above? It would help people immensely so they can give better advice. Thanks.

theoretica

Do you really need a TV at all? If you got rid you would have more money for other things.
Do you need to go to the gym? Do you use it enough to justify it? Could you go out jogging instead?
I assume your nephew and daughter are still quite young. They should be just as happy with really cheap presents as with anything else. Actually, I find well chosen presents are usually better than the merely expensive for everyone.

I suggest you work through the budget planner (link to the right of this page under free tools) including all taxes and insurances which only come round once, and checking through your past bank statements to make sure you are putting down the right amounts. Because money is tight you need to have an exact plan so you know what you can afford and what you can't and include putting some aside for expensive months when the car dies and road tax is due.

Competetive

One more thing...Put up for sale all of your unwanted books, cds, dvds etc on Amazon/ebay and make some money!! I've managed to clear off some junk at home, whilst pocketing £280

summerstreetallotments

..See if there is a credit union locally...these are very good...you can arrange to pay in as little as £5.00 a week and then after 13 weeks you can borrow 3 times that much...some lend before this, the rate of interest is tiny and you can borrow against the total....

stoker0nine

Hello everyone, thanks for the advice so far!

Here is a copy of my SOA which was calculated on the above link.
As you can see, on paper, it looks as though i should easily be able to put away over £300 per month, which would be great, however, I never have that spare due to always having to pay for something extra each month. As I stated above, I have extras to pay for this month, which virtually equals the full amount of my pay. So once again I will have nothing left to save. I'll be lucky if, during May, I don't have to borrow any more.
If only one month came along where I didn't have anything extra to pay for, where I wouldn't have to borrow money, then pay it back the next month, and borrow again to cover my borrowing...
Whatt is worrying is that, the above speaks for next month (May); in June, I am going on a stag do for my best friend's wedding (i'm best man). We have decided to stay local for the stag do to save money, as oppose to going abroad, etc. but no doubt it will still cost a little bit.
In July, my child is due!

In response to some of the above; unfortunately I need to keep my gym membership; it's mixed martial arts, not just a general gym. I did used to be a member of a general gym as well, but cancelled that.
I am thinking about cancelling my full sky package (paying around £60-70 per month) as I can probably do without it, and maybe go for mobile broadband. My only concern there is the reliability of mobile broadband, as i'm doing a degree with the Open University, I need regular, reliable access to the internet.

I'm looking forward to the advice.

Thanks.
Statement of Affairs & Personal Balance Sheet

Summary

Monthly Budget SummaryAmount(£)Total monthly income1,270Monthly expenses (incl. HP & secured loans)894Available for debt repayments376UNsecured debt repayments0Amount left after debt repayments376

Personal Balance Sheet SummaryAmount(£)Total Assets (things you own)2,000Total Secured & HP Debt-0Total Unsecured Debt-0Net Assets2,000
Household Information

Number of adults in household2Number of children in household1Number of cars owned3
Income, Expense, Debt & Asset Details

IncomeAmount(£)Monthly income after tax1020Partners monthly income0Benefits250Other income0Total monthly income1270

ExpensesAmount(£)Mortgage0Secured/HP loan payments0Rent250Management charge (leasehold property)0Council tax100Electricity37Gas37Oil0Water Rates35Telephone (land line)11Mobile phone35TV Licence15Satellite/Cable TV30Internet services10Groceries etc.40Clothing0Petrol/diesel130Road tax18Car Insurance90Car maintenance (including MOT)16Car Parking0Other travel0Childcare/nursery0Other child related expenses0Medical (prescriptions, dentists, opticians etc.)0Pet Insurance/Vet bills0Buildings Insurance0Contents Insurance0Life Assurance0Other Insurance0Presents (birthday, christmas etc.)0Haircuts0Entertainment0Holiday0Emergency Fund0Catalogue (Hoover)30Gym40Total monthly expenses894

Secured & HP Debt DescriptionDebt(£)Monthly(£)APR(%)Mortgage0(0) 0Secured & HP Debt totals0- -

Unsecured Debt DescriptionDebt(£)Monthly(£)APR(%)Unsecured Debt totals00-

Asset DescriptionValue (£)Cash0House Value (Gross)0Shares and bonds0Car(s)2000Other assets (e.g. endowments, jewellery etc) 0Total Assets2000
Comments on the results
You have sufficient monthly income to meet your expenses and your minimum monthly debt repayments with £376 left over. You can use this to pay off your debts more quickly or to build/top-up an emergency fund. Whatever your results show, it always pays to seek advice or comments from others. Why not post your SOA details on our Debt Management discussion board or on your preferred discussion forum elsewhere.

dancingfairy

I can't read your budget planner but a few thoughts anyway.
I suspect that you are spending a lot more than you think you are:
1) presents - how much do you spend annually on birthdays/christmas - divide this by 12
2) entertainment - I suspect there is some of this.
3) Shopping
4) other household bills - ie shopping
5) holidays.
6) car costs - etc.

I suspect that this is eating up your 'free' 400 a month.
I think a spending diary might be a good plan to figure out exactly where all your money is going. I suspect that you are in actual fact overspending. You need to try and put away the amount each month for things like car repairs, birthdays, etc so when they crop up you have the money available.
I also think that your discrentionary/luxury spending may have to be curtailed.
df

stoker0nine

Hi Dancing Fairy,

Sorry about the above post, i've just realised the formatting of it. It seemed fine when I copied and pasted into the post!

I definitely agree with you, in that I am over spending. I think when I first started trying to manage my finances last year or so, I looked at the 'basic' bills, ie., rent, gas, electric, telephone, and didn't look at other costs that would crop up such as shopping, petrol, birthdays etc. Upon seeing that I would have all this money 'free' I bought luxuries.

I now need to get to the point where, in one month, I don't have to borrow any money. From then, I can save money, no matter how small, each month for whenever my car breaks down, someone's birthday, etc.

I think you're right about a spending diary; does anyone know of any good ones available?

Thanks.
S.

goodgirl80

stoker0nine wrote: »

Hi Dancing Fairy,

Sorry about the above post, i've just realised the formatting of it. It seemed fine when I copied and pasted into the post!

I definitely agree with you, in that I am over spending. I think when I first started trying to manage my finances last year or so, I looked at the 'basic' bills, ie., rent, gas, electric, telephone, and didn't look at other costs that would crop up such as shopping, petrol, birthdays etc. Upon seeing that I would have all this money 'free' I bought luxuries.

I now need to get to the point where, in one month, I don't have to borrow any money. From then, I can save money, no matter how small, each month for whenever my car breaks down, someone's birthday, etc.

I think you're right about a spending diary; does anyone know of any good ones available?

Thanks.
S.

Hi, as regards spending diary, just write it down! When, where, what and how much

dancingfairy

Either a little notebook you update through out the day or last thing at night.
Or you can set up a little spreadsheet if you are handy - any format you like really - it's for you so whatever's going to work for you.
It's kind of a 2-fold approach - 1 it makes you stop and think about whether you want to buy something - knowing that it has to go down in the little book and 2 you can look through the book and see where the main problems lie - coffee on the way to work, cigarettes, cd's, dvd's, magazines, clothes -whatever your weakness is and then you can try and think of a way to cut down/do without etc. Somethings you won't want to do without but will want to cut down. Other things you will realise are a complete waste of money to you.
df