Please help me reduce my outgoings

jkmoreton

Have you tried all the comparison websites for insurance and utilities etc to try cut them costs down ? have you got time to find a part time evening job maybe ? hope you find a way good luck !:)

Pixie5740

Have you got any spare rooms you could let out to lodgers? That would help bump up your income.

pleasedelete

getmore4less wrote: »

You have very little room to save much money



One other thing, if you are paying the mortgage that your parent have.

Are they declaring the interest component they need to pay tax on that if you pay it
When they transfer the house to you they need to do a CGT and SDLT assessments.

Typically on a 17 year mortgage at 4% paying 345pm would be £51000 after 5 years you have paid off 11600, about 23% not 33% unless your parents are gifting you some of the house?

Your parents wont be able to transfer any of the flat to you until the mortgage is paid in full. You cant be added to the deeds -the mortgage company wont allow it as your are not a mortgagee . Is it is a buy to let mortgage-even more complicated- you cant be an owner and live in it so you cant become a party to the mortgage. If they are renting it out it almost certainly must be buy to let.

Did you take legal advice of the flat arrangement? How do they intend to sign a chunk over to you? After 5 years I cant see how you will own any of the flat (an owner would be on the deeds).

-taff

The bottom line is that your current car is costing you monthly £372.30.

I understand you might be enjoying being ndependent and being able to get in the car whenever you like, but that spending is almost 40% of your monthly wage.

How much would it be to buy a cheaper car, or to get rid of it and purchase a moped, or similar?

You could conceivably save £41 a month if you got rid of your mobile phone and stopped paying for netflix. [why do have netflix when you have virgin? You could get rid of the landline, just pay for broadband, and not have a tv licence - if you have netflix, you don't really need tv, especially as you could download or catch up on anything you really wanted to see]

sourcrates

Hi,
I work 3 days a week, and earn about as much as you, however, I am in the position of been a homeowner outright, so have no mortgage or rent to pay, I think you need to clarify with your folks exactly what the details of this scheme you appear to have entered into are, as has been mentioned above, if you don't appear on the deed at the beginning, whilst the property is still mortgaged, I am unsure if an additional borrower can be added later, once paid off and owned outright, the owners can sign the house over to you no problem, but I think you need to clarify the situation, as regards the car, bit expensive compared to what you earn, you are basically skint, and need to address the situation now, I would look at getting rid of the car, one way or another, you have virtually nothing left at month end, not a good situation.

suomi

You could save quite a chunk on your mobile phone and networking bills.
I have a contract with 3 which costs me £36 a month (yes its quite alot) It includes: unlimited calls, texts and data. Its a 2year contract and if you carry it on. you get a new, ( high end) phone.
The great thing with 3 is, they let you use your phone as a wifi hotspot which means you can send the internet from your phone to other devices (up to 5 at a time) like laptop , tablet, tv, other phones. Also I'm very happy with the original phone i got on the contract, so when my upgrade was ready I picked a samsung galaxy note 3 and sold it straight away for £620.
So its actually only costing me £122 a year or £10/month for all my calls, all my internet and all my texts.
Instead of £54/month you are currently paying.
So theres £44 you could be saving a month. Just hope you get a good 3 signal where you are, mines faster than my old broadband.:)

freeman3030

I feel your pain (having had a Mini I know your attachment to it!) but trust me, they're a mixed bag in terms of reliability. I had a '54 plate Mini One convertible, it failed 2 out of 3 of its MOT's in my ownership. The roof broke, it chewed up tyres, drank oil like there was no tomorrow and the day I put a deposit on a new car, on the way home the gearbox broke and had to get it replaced before getting the new car! But I'd imagine yours is the second generation Mini - not sure how many problems they ironed out compared to the first generation. When my roof broke, Mini/BMW charged me £80 to tell me what needed repairing and give me a quote. So lets hope (if you keep the car) nothing goes wrong with yours! My sisters mini on the other hand has been incredibly reliable, so it really is pot luck!

Its hard because now you've got the nice car, it would be a step backwards to go back to a 1-2k car/public transport. But if you do that, save to one side how much you're already paying out for your car and in 5 years you'll have enough to buy yourself that beloved Mini again. You'll own it from the start and you'll be able to save again until its time for another new car.

myteeduck

Hi

Just wanted to update you all on the situation now as it stands.

I did trade my car in for another mini, against most of your advice, however I did think about it, looked at my options and sought the advice of my parents.

I took advice from a car firm other than mini who also informed me that due to my situation, I would pay the same amount of money for a car that was worth less as my car wasn't worth as much to them, so I realised that I am not going to own my car until I could save £7000+. So I made the decision to swop the car for one I was happier with - a standard hatchback - not a convertible which I will keep for another 3 years.

In that time, I have set myself a challenge that as I am now out of debt, I will put the money I was paying to debts into a car fund, so that after 3 years, I will have a large chunk of the bubble at the end of the finance so I may be either able to keep the car, or to reduce the payments.

The new car is already worth its weight as I no longer pay tax - was nice to get the renewal and it be nil and also my payments did slightly reduce and also I use far less fuel. :j

Also I was slightly wrong about the house, which pleasedelete spotted below

pleasedelete wrote: »

Your parents wont be able to transfer any of the flat to you until the mortgage is paid in full. You cant be added to the deeds -the mortgage company wont allow it as your are not a mortgagee . Is it is a buy to let mortgage-even more complicated- you cant be an owner and live in it so you cant become a party to the mortgage. If they are renting it out it almost certainly must be buy to let.

Did you take legal advice of the flat arrangement? How do they intend to sign a chunk over to you? After 5 years I cant see how you will own any of the flat (an owner would be on the deeds).

It will be written in to my mum and dad's will that should anything happen to them, then after a certain time, I am allowed a certain percentage of this flat over my sister and so on, but their main house will be shared equally. if I am only 1/3rd of the way in to the term, then I get a third outright and the other 2/3rd are split equally, etc. I realise now that I can't be written in any other way.

Finally, I have been looking at my other bills. I managed to reduce my gas, electric and my virgin tv straight away and in 2 months I will reduce my mobile phone bill

I now end up with about £100 per month before food to put away which should build approx £3600 over the next 3 years so the rest will have to come from being really careful with my money and not wasting any of it. This is going to be a challenge but I suppose this is what makes challenges

Thank you all for your replies up to know and for any future ones as well.

x