How can I save?

AliceBanned

Hi all

I've just used the SOA as seen in another post and have posted it below. I feel frustrated that I go round in circles and feel I will never improve my situation. Apart from getting a lodger (in my one bed HA rented flat, would be a squeeze) I can't see how i can ever save to buy my own place. I could stay in rented accommodation and I like my flat but I feel like I'm not achieving anything and this has been going on for all my adult life - low levels of debt but in the past had big problems (1 ccj due to be removed end of Nov) and one default (removed) and one arrangement (2006 not removed yet). I feel I will never get anywhere and pay quite high interest and want to get 0% balance transfer to help me pay things off and start again. I paid £35 on my Halifax reward c/a this month in fees, £5 of whcih due to employer paying us a day late!! this is first time I've done this SOA - I did it years ago to get two arrangements. It's depressing to see and I feel i'm getting poorer, as I suppose a lot of us are in these times. I could try and get a better job - I do PA/admin work and have a degree in languages but could retrain. I feel i've always done low paid work and that has been the problem. This is the best paying job I've had but is in London so is average-low by those standards and my outgoings are higher because of it . thanks for any feedback. I think my habits may be the problem but I'm not extravagent, just like to live life a little bit at least. I don't have family and live on my own so socialising is important sometimes and I live far from friends so petrol prices add on to this.
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household.........
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1564
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1564
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 330
Management charge (leasehold property).. 0
Council tax............................. 75
Electricity............................. 20
Gas..................................... 40
Oil..................................... 0
Water rates............................. 2
Telephone (land line)................... 10
Mobile phone............................ 15
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 15
Groceries etc. ......................... 200
Clothing................................ 100
Petrol/diesel........................... 120
Road tax................................ 12
Car Insurance........................... 15
Car maintenance (including MOT)......... 45
Car parking............................. 0
Other travel............................ 265
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 15
Haircuts................................ 25
Entertainment........................... 100
Holiday................................. 50
Emergency fund.......................... 0
Total monthly expenses.................. 1469

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax cc.....................2000......20........21.9
Halifax o/d....................500.......20........17
Cap one cc.....................450.......15........12
Credit Union...................1100......110.......12
Total unsecured debts..........4050......165.......-

Monthly Budget Summary
Total monthly income.................... 1,564
Expenses (including HP & secured debts). 1,469
Available for debt repayments........... 95
Monthly UNsecured debt repayments....... 165
Amount short for making debt repayments. -70
Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,050
Net Assets.............................. -3,550
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

[Deleted User]

You seem to have a lot of money for entertainment and holidays, remember you don't have to spend this. I earn the same as you and have to pay for two adults, 1 child and a lot more. I think you are doing okay, there is not much more you can do unless you give some things up, maybe even clothing?

[Deleted User]

Also do you not pay your tV-l?

AliceBanned

I forgot to ad tv l.

Having no family doesn't automatically make things easier. There are tax credits etc and not to mention the human aspect. I have no kids and am in my forties and single and haven't met the right person so it doesn't mean it's easier. If anything i need to go out more otherwise I'm just a loser at home with nothing. sorry to be so down but I dont' think I'm doing alright at all. I have nothing an i don't know why. Oh i also pay for counselling at the moment but forgot to add that.

PasturesNew

I wish I could find some "low paid work" that pays as much as you manage to get for it. £24,500 isn't a low wage. I'm fully qualified/experienced as a PA with oodles of years' experience and could cope with anything .... but in my county (if a job existed) it'd only pay £7/hour (£12k).

Also - I wish I could get a cheap HA flat.... you're paying peanuts for rent.

AliceBanned wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1564
Total monthly income.................... 1564
Monthly Expense Details
Rent.................................... 330
Council tax............................. 75
Electricity............................. 20
Gas..................................... 40
Water rates............................. 2
Telephone (land line)................... 10
Mobile phone............................ 15
Internet Services....................... 15
Groceries etc. ......................... 200 - way too much, cut that to £150, then to £100
Clothing................................ 100 - way too much, use what you've got for the next 2-5 years.
Petrol/diesel........................... 120
Road tax................................ 12
Car Insurance........................... 15
Car maintenance (including MOT)......... 45
Other travel............................ 265 - where on earth are you going???
Medical (prescriptions, dentist etc).... 15
Presents (birthday, christmas etc)...... 15
Haircuts................................ 25 - every month? Way too much, find ways to get it cheaper and do it less often
Entertainment........................... 100 - you can't have your cake and eat it. Go out on cheaper nights, drink slower, don't get involved in rounds or bill splitting
Holiday................................. 50 - not a necessity
Total monthly expenses.................. 1469

Assets
Car(s).................................. 500
Total Assets............................ 500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Halifax cc.....................2000......20........21.9
Halifax o/d....................500.......20........17
Cap one cc.....................450.......15........12
Credit Union...................1100......110.......12
Total unsecured debts..........4050......165.......-

Monthly Budget Summary
Total monthly income.................... 1,564
Expenses (including HP & secured debts). 1,469
Available for debt repayments........... 95
Monthly UNsecured debt repayments....... 165
Amount short for making debt repayments. -70
Personal Balance Sheet Summary
Total assets (things you own)........... 500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,050
Net Assets.............................. -3,550

You're spending your savings the minute the cash hits your bank. Rather than get a lodger - and if the socialising is so important to you - why not try to combine socialising with a 2nd job, e.g. bar work, or waitressing. If you could get a job, where you can socialise and get paid and get tips and get fed that'd be worth its weight in gold.

Also, you spend £457 on various forms of transport (without even taking into account replacement of car costs). It'd be worth your while ditching all transport and taking a lower paid job closer to home if you could.

dark^knight

Hi,

You need to think about looking for a better paid job. This will help you in the long term. Of cource, it goes without saying, you still need to make sure you're keeping your expenditure in control.

There many things you can:
1, Budget
2, Keep a spending diary
3, Sell things you don't need

...for starters.

AliceBanned

Thanks PasturesNew but I travel into London to work and commute 4 hours per day (including Boris bikes as I clearly can't afford tube or bus on top of main season ticket for the train). I can't believe these responses - my life is miserable and I'm paying out so much of my salary on train fares and petrol and rent and council tax, am NOT living an extravagant lifestyle or much of a llife at all, and struggling to survive both emotionally and financially. All I get is told to buy no clothes and not go on holiday!!! I obviously posted in the wrong forum to get any kind of moral support. . I don't know why you're being so accusatory - the £265 is essential and it's NOt my fault this country's rail services are a total rip off. Where on earth are you coming from with your reply? if anyone else wants to just castigate me, please don't bother replying because I was fed up before I posted and now I feel worse.

AliceBanned

dark^knight wrote: »

Hi,

You need to think about looking for a better paid job. This will help you in the long term. Of cource, it goes without saying, you still need to make sure you're keeping your expenditure in control.

There many things you can:
1, Budget
2, Keep a spending diary
3, Sell things you don't need

...for starters.

Thanks for at least some understanding. I resent being told (in another reply) that I earn a lot by someone who clearly has no idea what we pay in both physical health stress levels and high prices for everything, in the south east. True, I have a degree and also have years and years of experience and frequently get compliments from profs of medicine who I work for about the high quality of my work etc. I'm not boasting I'm just saying it to emphasise my frustration - yet I am struggling so much - it doesn't make sense. I put a lot into my work and I put a lot into studying an just carrying on. Thanks for your help.

AliceBanned

Pastures New sorry I didn't read second part of your post. I feel I'm just being told how lucky I am t have a HA flat!! I have tried to swap it and to be honest in the past have been to hell an back and become ill over terrible neighbours, which the HA did nothing about. It is not golddust as people without one seem to imagine. It also is the reason I pay £465 in travel costs per month, so effectively is no saving at all. The jobs in Herts pay around £14k probably for the same type of work but more boring, so that's not the answer either. Thanks for replying anyway but as you can see I'm caught between a rock and hard place. I could move back to London and pay more rent but less travel but my outgoings remain the same. I am wondering whether to do TEFL and leave the bloody country as I can't make a life here.

mildredalien

Hi Alice,

I can understand things aren't easy for you but people are just trying to point out the savings that you could make - it's up to you what you decide to spend or cut back on according to how you want to live your life. Personally I keep a holiday fund that could significantly reduce the amount of time it takes me to pay my debts back if I used it, but I've made the decision to live life a little and take a few months longer

Anyway that being said, there are definitely things you could reduce - even if that's not travel costs! Don't focus on the things you can't change or don't have control over like your current pay, focus on what you can change.

- £200 food shopping can definitely be reduced, take a look at the old style board for tips
- £100 on clothes every month is a LOT. You could save up £1200 towards a deposit in just one year by not buying any clothes!
- £25 a month on haircuts can also be reduced, if you get your hair cut every 2 months at £30 a time even, that's an extra £20 in your pocket over 2 months.
- figure out exactly what you are spending £100 a month on when it comes to entertainment. can it be reduced?

As rough as it may be, if you want to save for a deposit on a house/flat, with your current income and debts you are going to have to make some changes. I'd suggest figuring out how to make some savings on your outgoings and paying all your debts off first so you can start saving with a clean slate and no nasty interest rates eating up your hard earned cash!

mildredalien

Oh, and just a thought - is it worth getting rid of the car if you need to get public transport into work anyway? That would be an extra £500 in your pocket (could pay off a CC in full even!) and an extra £200 quid a month spare. You could work out whether getting public transport or getting shopping delivered etc. could work out cheaper overall?