Hard work now but hoping to lead to financial freedom

niftythrifty33

Hi all, I am excitedly starting this as a way of encouraging myself and others, especially those with biggish families and to hopefully get any ideas, encouragement, support from all you lovely people. I posted on DFW board earlier which explains our situation, so have just copied it to here...

I think my post will be too long and boring so I'm thinking of doing a blog. We are a family of 5 (3 teenagers). One fulltime & 1 part time wage. (21K & 7K before tax). I worked to p/t jobs last yr so have had all my tax credits stopped until next april so were 200p/m down.

Debt is £3,786 on credit card (0% til March 2014)
O/D is £1,300

This year has been really expensive especially clothes as the kids have grown so much. I started recording all spending on 1st Jan this year so know where its all gone. At same time I started putting £240 away each month by standing order into seperate acct. On a spreadsheet I worked out how much each thing is per month ie birthdays/Christmas/insurance etc etc and it should have been 240.00 trouble is this was HUGELY underestimated, it was probably wishful thinking when I started it in Jan.

For years I've tried to use cash only each week, meal plan, shopping list etc and manage for a while then it goes pear shaped. I dont feel we do anything extravagant. We hardly go out but do like the odd chinese.

In sept I started a new budget of 150.00 p/w to cover everything. This includes all food (usually about 70-80 p/w), kids clubs, adult sports clubs 4.00, school trips (50.00 so taken out of 2 weeks money) clothes for DS (essentials) petrol etc etc. We are JUST about managing on this if I bake stuff for packed lunches.

I have some savings but dont want to use it as it was a gift (in a will) and seems sad to use on debt. Have worked out we need £2,003 p/m to live (d/ds are 1k) and we take home £2,335

I just need some encouragement from you lovely folks to stay on track. My/our ultimate goal is clear credit card and OD and start attacking the stupid mortgage. Sorry for the long post everyone, just feels like such a struggle all the time (for yrs) and worried about losing benefits and cuts being made next yr. Thank you all.

ps. when I said we need £2,003 to live on, this is if we only use the 240.00 put away each month for other stuff not in our weekly budget. But like I said this seems to have been hugely underestimated judging by the money that has been spent on top of this throughout the year...

I have had some wonderful replies. I would like to put them on here but I don't know how.

My biggest decision right now is whether to use some savings to clear the debt, I dont want to do this but feel I might have to. I'm feeling really positive today after all my replies on the DFW bit. I will keep you all updated and will probably have tons of questions

niftythrifty33

Just an update. Have managed to buy DS's Christmas present with money that DH had earned (extra on top of wages) plus a 50.00 voucher that I got for doing a food survey earlier in the year.

Also found out that I had more than I thought in paypal and used this towards other DS's present from ebay. Both have saved loads. Just need to get motivated to put more stuff on ebay now.
Also just been given a shed which will save us loads as we needed one but couldn't afford it.

I will do meal plan and baking today for packed lunches. We only have 30.00 left for this week so using stuff from freezer as much as poss. This 150.00 weekly budget isn't going far at all!! I'm going to walk all week and avoid using the car if I can.

I had saved up for Christmas but am now wondering whether the money I've saved on the above pressies that hasnt come out of the xmas fund should be used towards the OD or credit card?

niftythrifty33

No spend day today Everyone had packed lunches. I managed to do all the food shopping we needed yesterday for 20.00. Did meal plans til next Friday using stuff from freezer, so just had to buy top up bits and stuff for packed lunches.
Had the Fire safety people round tonight to fit new free smoke alarms so one less thing to buy. Must remember to discuss with the family an exit route in case of emergency.
Will do online banking in a bit and pay off OD with savings. I have done OT recently so will use that to put back into savings or pay some of cr card off?
Hope anyone that can be bothered to read this had a good day

katy_ann

Good luck on your journey and well done on having a NSD! I take a pack lunch everyday hehe

Hope your ok I have subscribed to your diary x

niftythrifty33

Hi Katy-ann, I don't mind at all and let me know if you have any tips. Some people I know buy lunch out every day costing nearly a fiver, It saves us a small fortune just trying to be prepared but I do HATE making packed lunches!

beanielou

Happy shiney new diary
Keep posting!

niftythrifty33

thanks beanielou

niftythrifty33

DH says he doesnt want me to use my savings (that I got as gift in a will) towards the OD as he thinks we will never be strict enough to put it back. I have done lots of OT lately and he seems to think we might be able to clear it with this. Trouble is I know that to completely get out of the OD you need enough sitting in the bank to cover all the DD's before they come out which is never the case!

I also realised I get a payment of £700 either this month or next from a cancer protection thing that I started 10 yrs ago for £5.95 p/m, if you dont claim then you get it all back. It was a very good deal, and Im so incredibly lucky that I haven't needed to use it.

The 0% on credit card runs out on 22nd March 2014. I REALLY want to have paid it off by then. I worked out that to do this would cost just over 200.00 p/m. We cant afford that right now so I have set up a DD for 100.00 p/m and once the OD is clearer I will just chuck everything I can at it. My DH feels differently towards it than me, he says not to worry about it as its 0% and worst case scenario just get another when it runs out. This will be the 3rd 0% card for the same debt!!! I just want to get rid of it. THEN... I can make a start on the really big one, mortgage. Although my friend thinks this is mad as it will be at the same time as kids flying the nest but Im determined to chip away at it and get rid! Thats why were not cancelling the 100.00 OP we make to it already as we can already see yrs coming off it just from that extra each month.

niftythrifty33

Well we have been using a budget of £150 p/w since start of Sept. My DH set this as I always set it lower in the past and it always ran out. Some weeks we have had other stuff come up such as 2 school trips = £50 so we then take £20/£30 out of the next 2 weeks monty to make up for it. Another week we had to go away so Diesel cost more than usual.

This week we had £4 left which is great as we only had £120 last week.

Despite doing this for past 6/7 weeks the OD is still shockingly bad, infact worse than when I wrote my sig'. Our tax credits being stopped has made such a huge difference.

I wonder if we can get the 150 p/w down at all? any suggestions welcome. I already do a meal plan and shopping list.

Going to call tax credit office to check they have the figures right for stopping all our money

niftythrifty33

Uh Oh! well the budget didn't last this week. Took out £140 as I had paid 40.00 for something extra last week (was essential) so am taking 10.00 off each weeks budget for next 4 weeks.

Car playing up and has cost 40.00 in diesel ? is this because it needs a service?
Had 45.00 left for weeks shopping yesterday and freezer is empty. Shopping came to nearly 50.00 and I need at least 10.00 for kids clubs in week so had to use the card for 20.00 and cash for the rest. This 150 p/w budget is a real struggle.

anyone else reading this with 3 big kids in the house? How much do you manage to live on each week?

niftythrifty33

Just wanted to check in. well Ive fallen off the wagon for past 2 weeks and not done spending diary and already its starting to show. I will get back to it this week and start with this diary again.

Why do I always manage to do a diary/budget for 4 or 5 weeks then it goes pear shaped?

I really want to get back on track. I think its very difficult when working long hours as its just a case of grab and go at the supermarket and even when Ive done a meal plan at the end of a long day I havent got the energy to cook!!

I would love some motivation from you lovely people