Don't know where to start...

rozmister

I have a mountain of debt and I can't manage my finances!! I don't know where to start on getting everything in order/under control. Once again I am living in borrowed money because I spent all my wages too quickly. I went to the bank to try and get a loan to consolidate my debts and although I could easily manage the repayments I was declined.

I have over £7.5k of debts, not a penny of savings and live close to the edge (or on it) each month.

So far I've reduced my phone bill by £15 and set out a budget for next month but I don't know if it's any good or how you actually stick to one. The irony is that I work in local government and manage my own budget for work with no problem, in fact I am notoriously stingy with spending taxpayer's money. When it comes to my own money I am not, can't distinguish a need or want and easily persuaded to spend

Any advice on where to start would be great....

marliepanda

Best start is to put up a statement of affairs, google it and one of the first links will have 'stoozing' in, that's a good one (can't link well on my phone sorry)

Then it will be in black and white and people will be able to advise where you can cut down!

A spending diary of every purchase will also help you to spot where that spare money trickles to.

rozmister

Thanks Marlie, I've found that one and got it up but I pay a lump sum for bills rather than individually (as I share a house) and I don't know how much I spend on groceries or birthdays/christmas/holidays! I literally just spend until my bank is empty

Eyes_wide_open

Might be an idea to start a spending diary. Write down everything you spend ( every single penny), not only will it help you calculate a budget for future months but will also make you realise how all those little things add up. Its
amazing how those coffees, magazines, sandwiches add up.

By doing a spending diary you will be able to see areas that you can cut back on without it impacting significantly. x

rozmister

Thanks eyes wide open, I'll start one when I get paid this month. I am quitting smoking to save money as I figure that easily accounts for £60 - £70 spending a month straight off the bat.

Giraffeseeker

Download the trial of YNAB. The only thing that works for me in terms of sticking to a budget.

FireWyrm

Do you have online banking? If so, download bank statements as far back as it is possible to go and start analysing them. You should be able to work out what you spent on groceries at least last month for instance.

YNAB is the best budgeting tool for assigning money now, but forward analysis isnt it's strong point. You need an accurate picture now in order to figure out what to spend next month and on what categories are appropriate.

Giving up smoking is a laudable objective, but I doubt it will work in one go. Why dont you check out things like an e-cigarette instead.

Bublin1

You budget for a living but don't have clue where to start with your personal finances? Wow, I'm not casting any shade on you. I'm just wondering how that happens. At least you've now realised you need to make changes. Why not apply work principles/practices to your personal life.

giblet1979

Hi rozmister,

It can seem really difficult at first, but I'd second the other posters re: keeping an accurate spending diary (either a spreadsheet or even on pen and paper). Make sure to put everything in, and it will give you an idea of where the money is going. Personally, I also think it makes you more aware of where / why you are spending, and therefore more able to consider if it is a need / want or where the emotional factors or pressures may be playing a part.

Read diaries on here for inspiration also, and take it one step at a time. Lots of people are in a similar situation, and the fact that you have recognised that you want to make a change is a great first step.

Good luck with everything x

rozmister

Bublin1 wrote: »

You budget for a living but don't have clue where to start with your personal finances? Wow, I'm not casting any shade on you. I'm just wondering how that happens. At least you've now realised you need to make changes. Why not apply work principles/practices to your personal life.

Budgeting makes up a very small proportion of my job, I manage project based communications and so I am designated a certain amount of money to spend on a campaign and then I formulate proposals of how much each of the elements in the campaign would cost and rank them by priority and then remove them to reach my budget total. It is probably a 2 day job at the beginning of a campaign and then a 1/2 day every 2 - 3 months to review the budget and check on any unexpected costs which are rare.

It's not quite the same as day to day budgeting which comes with a lot more unexpected costs and is harder to forecast. Also I can remove anything I want to reach my bottom line whereas in reality I have to make certain payments out of my personal budget each month whether I want to/can afford to or not.

rozmister

FireWyrm wrote: »

Do you have online banking? If so, download bank statements as far back as it is possible to go and start analysing them. You should be able to work out what you spent on groceries at least last month for instance.

YNAB is the best budgeting tool for assigning money now, but forward analysis isnt it's strong point. You need an accurate picture now in order to figure out what to spend next month and on what categories are appropriate.

Giving up smoking is a laudable objective, but I doubt it will work in one go. Why dont you check out things like an e-cigarette instead.

I have online banking with Lloyds TSB so it does show me a rough idea of what I spend where however a lot of my outgoings aren't labelled and are transfers or cash because I transfer money for rent/bills & paying off my store card/overdraft and I withdraw cash quite often which I can't account for.

I'm going to keep a diary for the next month and try to stick to the budget I have set out for myself. To make my budget I removed all my outgoings and the amount I want to save this month from my monthly salary and then the amount left will have to cover everything I want for the month. I don't really know how much to budget for food but I thought maybe if I just tried to keep the costs really low this month and saw how much that was it might be right?

I might get an e-cigarette, my housemate has one and swears by it but I really enjoy the whole routine of a cigarette and I thought if I was still in the habit of holding a 'cigarette' type product it would be easier to fall back into real cigarettes. We'll see how well my lofty ideas work out in practice this week though!!