SOA - no debt yet but please help

robin

Thank you everyone for taking the time to read and your comments. The pocket money is fixed but will be re-thinking this. I'm going to have a proper look at all of our statements to see exactly where money is going and keep a detailed spending diary for a month. The mortgage is fixed until September and have started to look around but seems we are going to be better off staying with our lender and switching to the variable rate, we currently overpay (by reducing the term each time we switch). We have the right ideas about saving money, etc but have perhaps lost our way a bit.

Anyway I've got lots to think about and do and really do appreciate everyones time and comments. I'll come back with a detailed SOA possibly next weekend.

destroyerofdebt2011

As others have said a spending diary is a great way of highlighting all those little things that soon add to big things.

Maybe for future "pocket money" is worked out monthly so that you only allow yourselves whats left to spend rather than giving yourselves a guarenteed amount each month. Simple things like "shopping from your cupboards for food and smellies" can help you turn this round....i had 65 meals in my freezer/cupboards the first month i did an inventory for 1 person i was shocked! I only buy clothes now when i need them... and normally try to source good quality labels from charity shops/ebay as apposed to pay £30 and upwards an item (yes u can find monsoon dresses for under £5 if you know where to look).
some of the great tips ive picked up from this site have come from the many forum posts here and on the oldstyle board in particular. Signing up to some of the challenges on here like the Grocery challenge and no smellies in 2011 etc really help to focus the mind and offer a large amount of support even on the gloomiest of days.

HTH

MrandMrsB

It's brilliant that you are trying to sort it out. Does your "spouse" support you in your economy drive? My suggestion is that you spend a few hours having a meeting together first and decide what to do. To encourage each other you could buy a treat - perhaps your favourite food or drink to eat while you are throwing ideas around, and make it fun!!

I am not being patronising here! Do you know what a budget is? (It took me a long time to get the hang of them and I am still learning after budgeting for over 35 years.) It is basically the minimum amount of money you can live on currently. Next month it will be different because you need to constantly review your budget (especially in the early stages) as your lifestyle and prices change. By the way, don't forget that you need to put money aside for emergencies and dire emergencies....at least that is what I do. I have a lot of money saved for such an occurrence, and since I do not know when I will need this money, most of it is saved up. You should not spend all your income each month - I usually have a surplus of £2 - 3K at any time, even though our budget is a lot tighter than yours (this is through choice - we could spend a lot more! Once you get into budgeting you will consider very carefully before you spend!) This money is not considered to be savings since it is already earmarked to be spent on certain things. If you have the money available you can grab a bargain when you see it, and not feel guilty about it because the money is there to be spent.

Back to basics: would you be financially better off if only one of you worked??? It might be for instance that you will only need to run one car, the "house person" would have more time to shop around for bargains, maybe do your own baking (much cheaper and healthier than the rubbish in the shops)......

You will need to keep very detailed household accounts to work out what you spend and where you can economise. Have you reviewed all your utility bills to make sure you have the best deal? And everything else? As I said, don't think of it as a chore, but as a fun challenge.

By the way have you signed up for a fixed deal on your electricity and gas yet? Or did you not have the time to research it and sign up because you are both working? I am at home (actually we have both retired from work) so I had the time to find a fantastic deal today!

Hope that is of help to somebody!