Budgeting Service?

AngelPie78

getmore4less wrote: »

I don't think so, you keep saying its a short term problem

I still don't think you can balance the budget on just the essentials

OK a radical suggestion(OK I don't know your kids so may be a no go)

get No.1 D on the case, she is approaching adulthood and needs to learn about this stuff anyway.

Go over the budgets and cash flow with her train her to be the monitor, have every spend approved by her.

Ok, am I getting confused here?? According to the SOA, with the suggested changes I've made [see post in DFW], I have over £600+ a month available after all of the essentials. Fair enough that most of this can go on my debt [yippee!] but why do you keep saying I can't balance things on the essentials??

Also, my daughter is a no-no for helping [long story]. But thanks for the suggestion x

AngelPie78

MPH80 wrote: »

Ok - to pick up on this specifically first:

You're right - a lot of what we're talking about is the medium term.

But you have these priorities right now:
Rent, Council Tax, Food, Heat/power, Transport.

That's it. Nothing - and I mean nothing - including those birthdays - matters. You're at critical mass - if you don't stop and take stock - you'll never gain control.

You mentioned this:


Well - bankruptcy will simply put them on the creditors list and they are going to be quite far down! You have to face the fact you'll probably need to find a new childminder for example. If you owe them money then when you go bankrupt - they fall onto your creditors list - as does your mum with the money you owe her. That's a fact of life.

There's an expression - trying to have a champagne lifestyle on beer money. I don't think you're trying to do that - but you are trying to have a beer lifestyle on tap water money.

Fundamentally - with your income - you should be able to survive reasonably well and have the life style you wish. You're only on tap water money because you've been spending too much previously.

The bankruptcy is going to force you to live without credit. So you need to get your house in order.

No one else is going to sort your money out for you. Even a service like Think Money can only work if you've actually got more money coming in than going out. If you walk out and get a new mobile phone and set a new DD up - think money will pay it - but then that food money will go down!

M.

thanks for taking the time to reply. I just need some help now in order to make the difference in the medium and long term. I can't even think how the medium/long term will work if I carry on as I am and that's what I need help with. I'm just getting extremely frustrated with people on here telling me the same thing. I am asking for specific help in a specific area for a specific problem and everyone keeps going on about debt/long term problems/housing/birthdays blah blah blah...

Thanks for the info on bankruptcy though and I like the tap water money analogy x Also, i have no credit. It doesn't matter. I'd much rather work in all cash and so I know what's due when and what's left. etc

MPH80

AngelPie78 wrote: »

thanks for taking the time to reply. I just need some help now in order to make the difference in the medium and long term. I can't even think how the medium/long term will work if I carry on as I am and that's what I need help with. I'm just getting extremely frustrated with people on here telling me the same thing. I am asking for specific help in a specific area for a specific problem and everyone keeps going on about debt/long term problems/housing/birthdays blah blah blah...

Thanks for the info on bankruptcy though and I like the tap water money analogy x Also, i have no credit. It doesn't matter. I'd much rather work in all cash and so I know what's due when and what's left. etc

No one is going to magic up some money for you. You have minus £85 in your bank account and your rent is due and you're 2 months behind already.

There's no option but to delay payment unless you are able to borrow more money - which you've said you can't.

That's why I keep talking about priorities:
Rent, Council Tax, Food, Heat/Power, Transport

Spending on everything else stops - today - now. You focus on those priorities NOW for the coming month - you find the money to cover those however you find it. Ebay clothes, ebay toys etc.

That's how you fix the short term. There is always pain in the short term to get to a medium term comfortable, workable, solution.

As your next set of income comes in - you start coffee jarring - and I really suggest working in cash than with bank accounts - I know it's nice to have everything electronic - but there is a genuine feeling associated with handing over notes and coins rather than a debit/credit card. It feels like you're giving something you have. It will take time (a few months min) to build up enough in each coffee jar/jam jar - but you get there in the end.

And just for reference - in case you think I'm talking from a high perch - I was in a similar situation - £28k of unsecured debt, similar income. In my case - no kids. I had to move home with parents to overcome my budgeting issues (not an option in your case - just giving it as an example). I am now, 10 years on, debt free (mortgage excepted) - married in a wedding performed without taking debt on and 2 kids.

I have a keen memory of the lightbulb moment for me. It was when I looked at the annual interest amount on one credit card and it came to double the amount of a particular bit of tech I was interested in (and trying to justify buying) and I realised I had to sort out my own spending.

M.

getmore4less

Now running a DFW thread.

https://forums.moneysavingexpert.com/discussion/4892035=

more info over there

AngelPie78

MPH80 wrote: »

No one is going to magic up some money for you. You have minus £85 in your bank account and your rent is due and you're 2 months behind already.

There's no option but to delay payment unless you are able to borrow more money - which you've said you can't.

That's why I keep talking about priorities:
Rent, Council Tax, Food, Heat/Power, Transport

Spending on everything else stops - today - now. You focus on those priorities NOW for the coming month - you find the money to cover those however you find it. Ebay clothes, ebay toys etc.

That's how you fix the short term. There is always pain in the short term to get to a medium term comfortable, workable, solution.

As your next set of income comes in - you start coffee jarring - and I really suggest working in cash than with bank accounts - I know it's nice to have everything electronic - but there is a genuine feeling associated with handing over notes and coins rather than a debit/credit card. It feels like you're giving something you have. It will take time (a few months min) to build up enough in each coffee jar/jam jar - but you get there in the end.

And just for reference - in case you think I'm talking from a high perch - I was in a similar situation - £28k of unsecured debt, similar income. In my case - no kids. I had to move home with parents to overcome my budgeting issues (not an option in your case - just giving it as an example). I am now, 10 years on, debt free (mortgage excepted) - married in a wedding performed without taking debt on and 2 kids.

I have a keen memory of the lightbulb moment for me. It was when I looked at the annual interest amount on one credit card and it came to double the amount of a particular bit of tech I was interested in (and trying to justify buying) and I realised I had to sort out my own spending.

M.

with respect that is not a similar situation. Unlike you, I cannot magically get rid of my kids or other responsibilities and move it to live off my Mum and Dad rent free until I get myself sorted. I have to get myself sorted as well as look after everyone else.

We all make our own decisions and have to live by them, and I appreciate your effort to help, but I think comparing your previous situation to mine is not right.

AngelPie78

getmore4less wrote: »

Now running a DFW thread.

more info over there

thanks I couldn't link it

MPH80

AngelPie78 wrote: »

with respect that is not a similar situation. Unlike you, I cannot magically get rid of my kids or other responsibilities and move it to live off my Mum and Dad rent free until I get myself sorted. I have to get myself sorted as well as look after everyone else.

We all make our own decisions and have to live by them, and I appreciate your effort to help, but I think comparing your previous situation to mine is not right.

It really doesn't sound like you're appreciative. It sounds like you're in an extremely combative mood.

Our situations are very similar. I had major budgeting problems - I had months where rent was missed, where I was behind on electricity. I couldn't keep my outgoings less than my income.

My ROUTE OUT was very different. But the reality of how I got there was very similar. You're right - you can't get rid of your kids and you can't move home - as I acknowledged. I was trying to be supportive and show that other people have been in similar places.

But since - apparently - you're more interested in being combative than actually grasping what I'm saying - I'll leave you to it.

redcard

The problem with the OP is that she doesn't know the value of money. She doesn't earn a penny of the money she spends and doesn't appreciate the value of it.

It would be a different story if she had to go out and work 3 hours to pay for next weekend's takeaway.

redcard

AngelPie78 wrote: »

with respect that is not a similar situation. Unlike you, I cannot magically get rid of my kids or other responsibilities and move it to live off my Mum and Dad rent free until I get myself sorted. I have to get myself sorted as well as look after everyone else.

We all make our own decisions and have to live by them, and I appreciate your effort to help, but I think comparing your previous situation to mine is not right.

You're not taking care of your responsibilities, that's your problem. The state is bailing you out every step.

The state is paying for you, and you even want the state to teach you to stop you spending the money they're giving you for doing absolutely nothing.

It's rather bizarre.

getmore4less

AngelPie78 wrote: »

Ok, am I getting confused here?? According to the SOA, with the suggested changes I've made [see post in DFW], I have over £600+ a month available after all of the essentials. Fair enough that most of this can go on my debt [yippee!] but why do you keep saying I can't balance things on the essentials??

Also, my daughter is a no-no for helping [long story]. But thanks for the suggestion x

But you don't have this free(YET). this is a nice to have SOA.

Even with the changes there are things you missed off so you can't spend the £600pm yet.

What's the plan for no car is a travel/season an option?

Do a Spending diary to find out the real numbers on where the money goes and adjust the SOA until it reflects reality, do it daily if you need to keep control(think about what might be missing like Xmas).

If this SOA is the plan going forward then the spending diary tracks it and says how real it is over time it becomes real.

Once on track(balanced budget) you can start the review how you deal with the previous stuff.

I might have missed it have you included the house asset yet?

this is critical for anyone reviewing the options for DMP/IVA/bankruptcy.