newbie here- would love some advice

Vanilla_2

Hi all,

I have Martin's book the money diet and ive done the budget planner- I am overspending about £250 a month, and my overdraft is currently at £1000. I have no credit card debt or other debt apart from student loan and a £50/mth gross repayment of overpaid salary.

I am on an £800 a month salary after tax. The problem is I had to downshift from a £1500 a month salary to £1000 when I became disabled, and I was then told I'd been paid too much so my salary was reduced again to £800.

Its the final downshift to £800 that has got me into trouble, i just cant seem to get the motivation to change my lifestyle to match the new salary. I have cut my bills as much as i can so the overspending is on impulse buying, magazines, my hobbies and on food.

I just need a kick up hte backside and I hope this forum will give me it. In the past i sucessfully paid off £10,000 in debt and i know I can do it again, its just that i have less salary to play with this time.

thanks for reading and hello to you all!

tealady

Hi Vanilla. Start by putting up your SOA (see the sticky up at the top to see how). Then we can all see what youre spending and (hopefully) suggest ways of cuting back without too much pain.
If you want a kick up the backside use a snowball calculator to see how quickly your debts will mount up if you carry on overspending, I bet it will be an eyeopener.

hypno06

Hi there, how about trying a spending diary, so that you have to account for every penny you spend? It is often a great way of recognising that you don't actually need as much stuff, and you can cut back and make savings accordingly.

Also, how about joining in one of the challenges on this board - the unnecessary challenge, the how much will you spend today challenge and the olympic challenge are all great motivators - you will be back in balance in no time!

Am assuming you are getting all the benefits you are entitled to, if you are on a reduced income due to disability. Check out www.entitledto.com to check, and claim whatever you are due.

Good luck, and keep posting - we are a friendly bunch (well, most of the time :rotfl: )

Vanilla_2

(the figures in bold are what i plan to cut down to)

My salary - £813
Total - £813

Monthly Outgoings:

Board - £225.75
phone+internet-£22
stuff mum buys for me- £50
luxury-stuff for my room- £8.33
Groceries+ eating out-£73 0 (this is extra to what I eat at meals at home)
car insurance 54.17
Petrol - £40 35
Other car (tax,maintenance)-£36
hobbies-
computer 7.50, 0
camera 5.00,
crafts 100, 0
magazines 27.50, 15
books 8.33, 0
shopping for fun 1.67,0
stationery 3.33 0
holidays and days out-26.67 19
gifts (xmas and birthdays)-37.50 29
clothes- 50 20
conferences-4.17 0
professional membership fees-29.17
pet-1.67
personal care (inc vitamins)-47 15.60
weightwatchers-21.67
health equipment(fitness etc) 16.67 0
health charity membership-11
bank charges-6 5
savings account-50
barclaycard-50 (paid in full) 0
cashback-60 (no record of what this goes on!) 20
total- £1103.92 new total would be 607.68
balance- -£272.58 new total would be +255.32

Overdraft - £1000 (limit £1,600) (0-£200 free, £200-1,600 0.794%)

Vanilla_2

hi, thanks for both of your input. I've now posted my SOA, along with my new figures... am just wondering how I will manage to keep to this new budget.

I will definately have to start a spending diary, thanks for that suggestion. the entiltedto website didnt think I was entitled to anything as I work 16 hours... though Im not on any disability benefit- I might have to try for DLA again, though was rejected while I was off sick.

I will have a look for the calculators and challenges you both mention thanks

Vanilla_2

I've worked out that if i followed my new budget for 4 months I would loose my overdraft if I put my £50/month savings into it.my savings account has only £30 in it right now to keep it open.

anniestar

Just want to say welcome and good luck.

Vanilla_2

thanks

vanilla

hypno06

Ok, so you have done the sums, now you need the motivation.

Do you have an idea of something that you would like to be aiming for - it could be anything from a pair of designer shoes, to a new house or a holiday.

Make a picture board of the things you will be able to work towards when you are debt free - put it somewhere prominant, make a small version to go in your purse, by your computer screen, anything! Then you will always be looking at what you are aspiring to and giving yourself the motivation you need to stick with it!

SarahNeedle1872

Hi Vanilla, welcome aboard!

I just read ur SOA and I lovet he line 'shopping for fun':D If I had put that in my SOA it'd have way more than £1.67 on it!:rolleyes:

Definately check out if u can get anymore benefits, esp if ur disabled and only working 16hrs a week. Now that ur back at work, it may make a difference.

I notice u have made huge cuts on ur hobbies on ur SOA - don't leave urself with too little to do, I always find the shops call the loudest when I'm bored!:p

As Hypno said, the challenges are great, I've got 3 on the go atm, and I find them really good at spurring me on - its nice to be able to 'document' what I've earned/saved rather than trying to figure it all out in my head!

On the money makig front, do u have anything u could sell on eBay/Amazon that ur not using anymore? OR could u do a car boot? Perhaps u could rope ur Mum into doing one with u and share the profits...?

Take care

Sarah x

Vanilla_2

thanks guys

now a board would be a lovely idea- and a great motivator- i will see what i can rustle up

I have decided that O will give myself til xmas to be overdraft-free- my challenge to myself is to get through xmas without dipping into my overdraft. I know I CAN do it if i really want to.

re the hobbie- lol you should see my room, half of it is taken up with crafting stuff so i will definately not NEED to buy any more stuff even if I'd LIKE to lol.

I must have a clear-out, i've got lots of books I dont need anymore, medical type ones, though they are a few years old now (and thus not up to date) so not sure if anyone would want em!- I could do with some extra space too

thanks guys, you've really given me the mojo i needed