earning more than ever before but have been overspending!

Hillbilly1

I will doing the same as you soon, when I start a new higher paid job. Want to make my money work for me!

We have started saving by moving gas and elec, try the comparisons on here.

Your BB and TV is alot - is it fibre? Do you need fibre? Various deals from Martin under utilities and phones/

You can def spend less on groceries if it is just the 3 of you. Ditto entertainment.

If you could squeeze £150 off groceries and £50 of entertainment you could pay £700 pm to the debt and be debt free in 10 months.Then you could save/overpay the mortgage.

Are your savings really just £1000? Ideally need 3 months salary to access. So your savings plan after clearing the debt would be to have £10k as a cushion. You would then need to consider over paying that large mortgage! Does your partner pay the same as you, or is that between the 2 of you?

Its scary to see that almost no matter what size your income the overspends are usually in the same places, food, going out, extras.

Good luck!

mrsdee

Hi guys and thanks for your constructive comments. Gym membership is pretty important to both of us as we have both lost a lot of weight over the past year and want to sustain momentum, also it is a beautiful haven of peace (and a spa) so cannot quite tear myself away from that as yet but clearly savings to be had on other things like entertainment, going out, food etc. I dont think of the mortgage as particularly high, where we are but I guess it is a lot of money!!! DH pays for house insurance and the works that we are doing on our house (it needs full refurbishment and we are part way through) along with his car, car tax, etc and child maintenance for another child. He is on quite a low wage.
I know we just need to be sensible and start locking some money away into savings and cutting down mortgage etc once we have dealt with the other things which I hope to do within next few months and fingers crossed, will have bonus coming part way through the year which will go straight onto it (rather than straight onto holidays as has been the case in the past!).
Thank you for the warm and welcoming support. Not so scary after all once I look at it in black and white - just need to address it now before it gets worse.... Thank you and have a good weekend!!

Hillbilly1

Good to hear from you.

Maybe an idea to currently keep the gym as a "treat" while you cut down the eating out etc. All helps towards the weight loss!

Ongoing you need:-

£7k to pay off debt = 10 months
£12000 to have 3 months cushion = 16 months (£700 pm)

Does your partner have 3 months of salary saved? If not they need to.

So thats just over a 2 year plan. Then you can join the mortgage free board! If you get bonuses or cut down further you can do it sooner.

MrsCautious

Hi, one of the things I did recently and that may be suitable for you was to tell the lady who had been coming to help me with cleaning that I couldn't afford it any more, then I linked my kids' pocket money with them doing chores. Then they continued to do chores without pocket money as they want to help and I've told them I can't afford pocket money for a while, due to paying for a school trip. Anyway good luck.

I've asked people for money for Xmas and recent birthday, have been shopping in Aldi while still getting some stuff from sainsburys, planning meals, batch cooking, using cashback site, set up Santander account to get cashback on bills, sold some old clothes, plan to sell a load more, swapped gas and electricity and signed up to some surveys, I've also started a spending diary and having No spend days where I can, all of this has changed my outlook and I am grateful for picking up tips from lurking here, even down to charging my phone in the office to save on electricity. I've even got bags of loose change to collect £2 coins, 20ps and 5ps and coppers and pay these in when I can as every little helps, I could bore for England on the subject, but after the death of my husband it has given me a much-needed focus and I just wanted to say I hope you can get as much useful stuff round these parts as I have. I've also got a cashback credit card but I know that's most definitely not for everyone with the full balance being paid off each month. Hope some of this may be helpful. Even the dog has been targeted with her food now a £1.50 big bag from Sainsbury's, she loves it.

I don't have any debt but am having to adjust to new circumstances, I am relishing the challenge, hope you can too xx

MrsCautious

Sorry just to add, is it worth putting your £1k savings into a Santander 123 account for the interest and cashback on household bills and top cashback paying £40+ for starting this account through them, there's a £2 fee a month but it could well be worthwhile still. There's a calculator online to help work it out.

Barbeduk

^^ 123 account pays 3% on £3k + but make cut backs and you'll soon be able to save this. Even though you're on a good income it's def worth saving and/or slashing the mortgage.

carrielovesfanta

mrsdee - have you checked to see if your gym does a couple's membership price? It may be cheaper than paying separately.

mrsdee

thank you everyone - all very very helpful tips and comments! MrsCautious, I have just switched to the Santander123 account! I def need to move my savings and I'm already mealplanning and keeping a spending diary and so on. have switched gas/elec provider and need to get on the case with ebay.
Thank you so much everyone. What a lovely bunch of people! And a kind welcome. Have a great (moneysaving!) week!

closed

In savings = £1000

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> Overdraft = -£1702.55 = Overdraft = -£702.55

mrsdee

yay, good point!