New to DFW

ditzydress

Hi Everyone,

I have decided enough is enough and I want to get myself out of this hole before I get to far into it.

Every single month I go into my overdraft and end up having to borrow money from family to get me through till payday, I don't want to live paycheck to paycheck anymore. I want to move out with my O/H but he is nervous about doing so with my financial situation.

I have stopped shopping before and only bought necessities but I am finding it harder and harder, Christmas is coming up soon and I am worried I may not be able to get people presents.

I need help..

My outgoings per standard month are:
£34 to CIPD (membership for my college course)
£100 for housekeeping
£9.50 for my debit card with overdraft facility
£31.33 for my laptop on finance (old one broke)
£11.50 for my laptop insurance
£91.50 for my bus/train pass
£4.99 for spotify
£32 for my mobile phone contract

I did used to have 2 more DD one for £40 for learners insurance and one for £15.90 for a cineworld card. I cancelled both of these as I didn't use either of them.

Any money I have spare I tend to just spend on shopping that I don't need, I know I could just stop shopping but I enjoy it an awful lot. I know this may sound silly but if I don't shop I get really low. I think I have a problem, I just don't know how to stop it.

Thank you.

rebeccajlsk

I'd definitely say get rid of Spotify as you can't really afford it right now and see if you can cut down your phone contract to something cheaper...how long have you got left on it?

You also say you go shopping and know that you need to stop but if you don't, you get really low. Perhaps you are feeling low because of your financial situation and whilst shopping makes you feel better whilst you are doing it, you subconsciously realise that it makes the situation worse.

I can't really see any other areas to cut down unless you can get the laptop insurance for cheaper except for maybe bus/train pass. You say you go to college so is the pass at student rates?

Hope this helps a little

McKneff

You should really do a proper SOA (statement of affairs) and also buy a little note book and list everything, and I mean everything that you spend.

Even a few cups of coffee out can cost a lot of money over the month.

If someone could kindly put up a link to an SOA

savingjenny

I think you can still get Spotify for free, you just have to put up with some ads?

re stopping shopping - well you have a HUGE incentive to do so, to be able to move in with OH!

A couple of good sites with ideas: http://www.care2.com/greenliving/10-stop-shopping-tips.html and http://debtcamel.co.uk/improve/decrease-your-expenditure/

Is you shopping mostly done online? If so, could you switch to using your online time to do things like find money saving coupons or completing surveys? You won't get rich doing it but it will stop you spending as much

Have you looked at mystery shopping? Again you won't make much money but you could have a bit of fun doing it. http://uk.marketforce.com/become-a-mystery-shopper/

MrsGSR

Hi Ditzydress,
Well done on your LBM, things can only get better.
I am assuming you live with your parents as you mention housekeeping in your expenses? I
Anyway here are my thoughts
Do you need the £9.50 on the bank account? Do you use all the services it provides?
Spotify, get rid of this.
Mobile phone, can you lower the amount a month?
Would suggest you seek out some of the challenges on here. The No Spend Day one I think would be ideal and would enable you to curb your day to day spending.
Good luck.

Tixy

Hi

Its a bit difficult to advise without knowing your income etc.
It would also be useful to list your debts, how much you owe on the overdraft, how much to family, how much left on the finance etc

But you do need to be realistic about where else you are spending money and what you are buying when you are shopping. You perhaps could cut down the amount of money you spend when you shop, rather than the amount of time you spend shopping. Or could look for other hobbies that would be more rewarding and cheaper.

The £9.50 to your debt card - are you in your overdraft? is this fees/interest for using the overdraft? or do you have a current account that has a monthly fee? if the latter what perks do you get and could you switch to a free account?

MrsGSR

http://www.stoozing.com/calculator/soa.php

StupidityFail

As for you professional membership is it a requirement to have it at the college course.

If your working, some places might pay it, but that depends, but also if you aren't able to claim it you can claim back tax as it's tax free.

ditzydress

Hi Everyone,

Thank you for some useful information, the few outgoings that you mentioned.

The £34 for the college course is something I have had to pay myself because my work wouldn't pay for it.
My Bus/Train pass isn't a student pass because I am only a part time student not a full time one.
The £9.50 for my bank account is a one of charge per month for the privilege of having a fee free £200 overdraft.

Okay so, I have gone through all my bank statements since January this year up until the end of October and I have counted all the transactions that I didnt need to make and I am horrified with myself. In total over the past 10 months I have spent £3931.97 on shopping alone. I really need to change. According to my SOA that leaves me with only £45 surplus and that needs to include presents, when things go wrong, odd prescriptions etc.

:eek:

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 850
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 850

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 100
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 32
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 4.99
Groceries etc. ......................... 93.4
Clothing................................ 393.2
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 94.5
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 11.5
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 31.33
Holiday................................. 0
Emergency fund.......................... 0
Debit Card.............................. 9.5
Student Membership...................... 34
Total monthly expenses.................. 804.42


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 850
Expenses (including HP & secured debts). 804.42
Available for debt repayments........... 45.58
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 45.58

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 0

Tixy

So even if you just halved the amount you are spending on clothes then you would easy have sufficient to start paying for presents etc and start building up some savings.

Obviously the most simple thing to say is to stop or massively reduce the amount you spend on clothes. But some more practical tips
-how about setting yourself a challenge to spend no more than £100 a month on clothes
-how about selling some old clothes on ebay and using that money only to buy new ones
-or a combination of the above, e.g no more than £100 on new clothes except for money made from selling old clothes or doing overtime.
-could you look in to customising existing clothes to make new ones
-could you organise a swishing event with friends
-how abour looking in to learning to make your own clothes

-maybe try implementing the 3 day cool off rule. You see something you like in a shop, write it in a notebook and go home. If after 3 days you still want it you search online to see if you can find it cheaper and if not only then go back to the shop and buy it.
In the 3 days some people make sure they check their wardrobes to see they don't already have a very similar item, or they think how else they could spend the money and whether it is something more important to them long term (e.g. moving in with your boyfriend).

For some inspiration maybe take a look at the crazy clothes challenge, where some posters challenge themselves to spend no more than £100 a year on new clothes. The Completely Crazy 2013 Clothes Challenge

strandedinaber

I agree that stopping shopping entirely isn't practical. How about a one-in one-out approach as well as a budget of say £100? For every piece you buy, you list on eBay or craigslist or skmething like that.