Time to buckle up, my LBM?

Grapes

Hi all,

Lurker here deciding to take the plunge. I've been reading a few bits and bobs around the website to try and help my finances but sometimes my motivation, alongside life in general, puts a stop to any such plans. Decided that if I sign up, and post regularly I can keep a closer watch (& hopefully with some help along the way) of what exactly i'm doing with my money.

Bit of background information. I'm 24, soon to be 25 with no savings, an overdraft which I live in month to month of £1000 & recently my car needed scrapped. I was fortunate in that I have a friend who gave me money (£4200) to purchase a new one outright which i've to pay back at no interest. This was the sort of moment that pushed me to registering (LBM?) as I realised I wasn't prepared for any emergencies or anything rather than the month to month struggle. I also have a 2 year old daughter who I want to show by example the importance of money, finance and budgeting.

I'm in full time employment, still live with a parent, and ideally i'm wanting to pay off these debts so I can move in with my partner and daughter (who stay at home with partners parent).

So to summarize (and sorry for the never ending story) I have about 5200 worth of debt, 1000 of which raises charges on a monthly basis, & 4200 (which I will be paying 200 a month too).

Hoping this is the big kick that I need to get things sorted.

SOA imminent (although dreading as it'll highlight the sieve like capabilities of my needless spending).

Thanks.

Grapes

Statement of Affairs and Personal Balance Sheet

Monthly Income Details[/b]
Monthly income after tax................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 200
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 38
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 40
Petrol/diesel........................... 170
Road tax................................ 15
Car Insurance........................... 53.83
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 60
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 8
Gym (& fives).......................................56
Entertainment........................... 250
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 940.83


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4200
Other assets............................ 0
Total Assets............................ 4200

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
loan...........................4200......200.......0
overdraft......................1000......100.......0
Total unsecured debts..........5200......300.......-


Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including HP & secured debts). 940.83
Available for debt repayments........... 415.17
Monthly UNsecured debt repayments....... 300
Amount left after debt repayments....... 59.17

Personal Balance Sheet Summary
Total assets (things you own)........... 4,200
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,200
Net Assets.............................. -1,000

Brightspark87

Something that really stands out is your entertainment - £250 a month or £3,000 a year?! that could pay off a massive part of your debt! You don't have any food costs either- do you ever pay any?
£40 on presents is very high too - surely better to pay off debt? is the £170 spends on petrol necessary? Could you reduce this?

twiggy86

Hi Grapes. Well done in coming on here and posting your SOA.


In addition to what Brightspark has said above I would question £40 a month in clothes and also £38 a month for a mobile is expensive - appreciate you may be tied into a contract but you should consider switching to a lower tariff when you can.


Do you give your partner anything towards your daughter? Other than childcare I couldn't see anything identified.

Grapes

Brightspark87 wrote: »

Something that really stands out is your entertainment - £250 a month or £3,000 a year?! that could pay off a massive part of your debt! You don't have any food costs either- do you ever pay any?
£40 on presents is very high too - surely better to pay off debt? is the £170 spends on petrol necessary? Could you reduce this?

I know, real eye opener. How I need around £60 a week just to "entertain" is pretty ridiculous. I do go to football matches but this will be the first thing to go (not much of a fight there, the football is terrible). I live with my mother who tells me she won't accept more than £200 a month from me, and all bills / groceries etc are included in that, very thankful for her. I'm far too generous with presents, something that needs reigned in (especially when in debt). This also has a habit of a chunk from a months pay as I don't budget, so if its someones birthday one month, it comes out that pay (stupid). Unfortunately not for the petrol. Using public transport turns my 30 minute drive into a 2 and a half hour bus journey for work. No colleague is local to me for car sharing either, an avenue I hoped would work. Thanks for your reply brightspark.

twiggy86 wrote: »

Hi Grapes. Well done in coming on here and posting your SOA.


In addition to what Brightspark has said above I would question £40 a month in clothes and also £38 a month for a mobile is expensive - appreciate you may be tied into a contract but you should consider switching to a lower tariff when you can.


Do you give your partner anything towards your daughter? Other than childcare I couldn't see anything identified.

Thanks twiggy. The clothes is combined with my daughter and me (hardly anything for myself, truth be told). The mobile is killing me slowly, 24 month contract that i've had for 8. The urge to spend the money to terminate it and go sim only is tempting but won't do anything but hurt my finances in the time being. I think I can call up after 12 months to review my tariff so that is on the calendar (just seems so far away).

As mentioned for my daughter her clothing budget is really mine. I haven't actually factored in nappies and the like for her anywhere in the SOA. I'd reckon I spend around another £40 a month. Will need to think for a more accurate reflection on cost in case I am way out.

twiggy86

Maybe you should keep a spending log for a month to get a realistic idea of where your money goes? I think there's apps which can help you track it, or alternatively just jot EVERYTHING down in a pad for a while which should help you see where you're spending.


Also pay attention to little things. Do you buy yourself a coffee in the mornings? I used to be partial to Fanta/coke etc - however I was probably buying a bottle everyday to every other day - this is potentially £10 a week which just slips through!

Grapes

twiggy86 wrote: »

Maybe you should keep a spending log for a month to get a realistic idea of where your money goes? I think there's apps which can help you track it, or alternatively just jot EVERYTHING down in a pad for a while which should help you see where you're spending.


Also pay attention to little things. Do you buy yourself a coffee in the mornings? I used to be partial to Fanta/coke etc - however I was probably buying a bottle everyday to every other day - this is potentially £10 a week which just slips through!

Good idea. I tried to monitor spending by using my debit card but this made it too easy to spend and then police it later. I find if I withdraw cash, then it makes it easier to put the change into tins. My problem is I end up putting "IOU"s into this tin when I "borrow" from it.

Also forgot about the Gym which is £36, and I play football once a week which is £5. That's another £56 I didn't account for in my SOA (will amend original post). These keep me fit and in good health so not quite eager to get rid, but certainly look at if I can find a gym cheaper when my contract is up.

19lottie82

Grapes wrote: »

find a gym cheaper when my contract is up.

There seem to be loads of these £16.99 a month 24 hour gyms opening up all over the place now.

19lottie82

sorry to be blunt, but you spend over £350 a month on entertainment, footie, the gym and a mobile phone for yourself, yet you spend / contribute less than £80 a month towards your daughter? Any reason for this?

Grapes

19lottie82 wrote: »

sorry to be blunt, but you spend over £350 a month on entertainment, footie, the gym and a mobile phone for yourself, yet you spend / contribute less than £80 a month towards your daughter? Any reason for this?

No need to apologise, I can see how that looks. I didn't think i'd have to breakdown on what is actually spent. The entertainment is high because I enjoy spending time out with my daughter. Swimming, trip to the zoo, days out, treats. Going to the football is mostly the only thing I tend to do myself (which I will cut back on with no real issue to myself). I think the way going forward is looking for vouchers and the like for things to do with my daughter which will cut down the cost?. It's one thing i'd feel really bad on cutting down but I know needs must for now. I don't really want to halt my daughters enjoyment and be stuck in the house, but at this time of the year, a trip to the park or going to feed the ducks is halted by the horrendous weather.

Sorry if I had anyone googling social services! :eek:

twiggy86

I quite often see on facebook, people putting "is there anything free going on that I can take my kids to/do with my kids today" - might be worth a shot! I don't have children so I can't help!