Time for honesty and balance the books!

Dozzydebt

TimeToDoIt wrote: »

It is sometimes a bit of a shock when you first do that budget and see it all there in black and white - huh?I know you say you like your holidays (don't we all?!) but £3,600 a year on holidays for the pair of you when you admit you are worried about your money situation.....?

Just saying

Hi Timetodoit
Many thanks for feedback - really appreciate the time you have take to read my post.
You are doing really well reducing your debt and hope to do the same.
I am getting a bit of a lightbulb moment about our holidays - we really need to have a talk about this.
Thanks again
DD

Dozzydebt

runforlife wrote: »

The problem is that you are paying £1,060.47 on debt repayments and then a further £926 on your mortgage bringing your debt repayments to just shy of £1,987
Your income is £3500 (is that exactly?) leaving £1513 for everything else. Thats where you are overspending. Need to reduce your debt levels.

What are your credit card amounts outstanding v credit limit and APRs? Same for the loans.

Hi Runforlife
Many thanks for reply and taking time to look at my budget
Yes you are right I do need to concentrate the mind on debts rather than holidays and socialising!
You are doing really well and hope I can do this too
Will look at how I list my credit card debts on post - there are quite a few
Thanks again
DD

Dozzydebt

TimeToDoIt wrote: »

Do your daughters not pay any housekeeping?

Hi
Yes they do, but I forgot to put this on, but also forgot two timeshares so doesn't change total.
Have realised there are a few bits I need to tweak after my first draft.
Thanks again for the time you have taken to look at this
DD

ViolaLass

Dozzydebt wrote: »

Need to plan more for food - have a T*sco delivery every week and daughters go on and add what they want too

And pay for it? (Bet not, dread to think what that's costing you!)

Dozzydebt

Dozey_crow wrote: »

Are you getting the best gas/ electric deal?

It seems to me that you are spending quite a bit on food for 4. Particularlya I imagine that the two children eat away from the home too?
Food and household £400
Eating out £50
Meals at work £43.33

Almost £500 a month is high. This is a good area to focus on.. Pop over to old style board and see if they can help. They are great at advising on where savings can be made. It seems like a quick win.

Sorry if it seems harsh but...there is also a great deal being spent on 'non essentials'/ socialising £195 pet month including the gym and sky tv which is quite high when you consider that there is an additional £300 per month for holidays. It may be worth considering if all of these are necessary or if they are being used to their full potential. Again it may be possible to save more here.

Hope to help

Hi Dozey Crow
Many thanks for taking time for looking at my budget - i'm really touched that people have looked at it and taken time to comment.


Feedback on food budget is definitely an area I can look at - I have T*sco shop each week which girls add to. 3 of us are following Slimming World so spend quite a lot of fresh fruit, veg and meat - but I am sure I could reduce. Unfortunately we don't have a L*dl or A*di nearby as live in rural area.


Have had a lightbulb moment about my holidays and socialising - it is something we have done since we met and lived a lovely life when I lived at home travelling the world - probably the reason we are in debt and definitely something I can look at reducing.


Will look at old style board and look at gas and electric - have deal till March 2017 - but don't think it is tied in


Many thanks again
DD

Dozzydebt

ViolaLass wrote: »

And pay for it? (Bet not, dread to think what that's costing you!)

Hi Viola Lass
Many thanks for taking time for replying with your new baby - congratulations


Yes food shopping and the way I do it is definitely an area to look at, really appreciate people taking time to look at my budget.


Lots of areas I can improve on - busy afternoon ahead


Thanks again
DD

[Deleted User]

Could you redo the SOA, using the MSE template (link below), as that will make it easier to follow.

In the meantime, a few things I've noticed.

£60 seems a lot for two mobile phones. Go PAYG/sim only, ASAP, for about £10 per phone.

£150 (that's £1,800 per year) is a lot for energy. Check U-Switch for a better deal and, in the meantime, if you are paying monthly, see if you are in credit. If so, look to reducing the payments, so you are only paying just enough, to over the annual bills.

If Council Tax is over 10 months, switching to 12 months will reduce it to £125 per month.

Do you really get £144+ of benefits per year, for the "bank account fee"? If not, swap to a non-fee account.

£400 per month is a lot, to feed 4 people. you should be able to knock at least a hundred off this.

Your satellite/cable TV is costing you £360 per year. Dump it and go to Freeview or Freesat instead.

What are the Hobbies and Fitness/Sports/Gym, which are costing you £1,260 per year?

You are spending £3,600 per year on holidays. Cutting down to one holiday a year, will put £150 per month (£1,800 per year) back into your pocket/account.

Have you checked that your daughters are contributing at least as much (preferably more) to the household, than they are taking from it?

Just doing as I've suggested, for the the mobiles, groceries, pay TV, and holidays, would leave you an extra £320 per month, which is £3,840 per year.

That's enough to cover your Credit Card payments.

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

[Deleted User]

Dozzydebt wrote: »

My bank account fee is with Halifax Reward and I do use travel insurance and mobile insurance

Do you (or could you) holiday just in Europe?

If so, then open a Barclays account, and get European travel insurance, mobile phone insurance, and breakdown cover, for £8 pm.

[Deleted User]

Dozzydebt wrote: »

Hubby works away all week so we do rely on mobiles to communicate and he uses while he is away as he is a lorry driver - but will get him to look if PAYG would be better.

I notice you have a home phone.

If he goes on Virgin Big Talk, for £10 pm, he can ring land lines (01, 02 and 03 numbers) as much as he likes (plus 120 minutes to mobiles) and he keeps his £10 top up as well.

An extra £5 pm will get him 3000 texts too.

enthusiasticsaver

The problem is as you have guessed that you are living a lifestyle you cannot afford and consequently debt has bridged the gap between your incomings and outgoings. Without the timeshare costs you have mentioned there is at least £800 per month in non essential spending with scope to reduce even further by economising on your food bills which are far too high for just two people and if your daughters are still living at home they should be contributing to that. Also your gas and electric look very high unless you are in a very large old house in which case you should look at grants for loft insulation, cavity wall insulation etc etc. You also have no savings which is a major problem if you have a boiler break down, house repair not covered by insurance or a large car repair bill. Your monthly debt repayments are also extremely large as a proportion of your income with £1060.47 going monthly on unsecured debts (is that minimum payments on credit cards?) and a further £926 on your mortgage so it is unsurprising that you are not making ends meet.


Positive things first is that you have realised you cannot carry on spending like this and your monthly income is quite good so if you dedicated yourself to getting your finances in order in quite the same manner as you have to enjoying yourself on the never never then you can get on top of this. My suggestion is that you both sit down with that soa and cross everything off you do not need ( need not want) and resolve to dedicate your next few years to sorting out your finances and setting a great example to your two daughters as well. Living within your means and having no debt worries is worth a few holidays in my book and I love holidays too. We normally sit down at the beginning of the year and thing what major items of expenditure are there and budget for these and holidays and make a decision as to which will go if we cannot afford both. Look at affordability before you buy anything or go anywhere.


Just one thing I noted is that you only spend £25 on petrol per month but including car payments you spend £337.27 per month on running a car. Is the car really essential if you do not use it that much?