Renovations and Repayments.

AlexLK

slowlyfading wrote: »

Because every budget should have some wriggle room, or money specifically for this reason. I have some budget templates on my blog, if you want to have a look

Good to hear from you, SF. I hope you are well?

Also, thanks. I'll have a look.

maman wrote: »

Alex, I really can't believe that an intelligent man like you can't get the hang of how to budget!!

I think what you mean is it's all too much trouble and you don't want to make the effort.

You're probably right, maman. Also, I'm quite afraid to find the true amount of money we waste every month.

I know we waste money but also know it's not enough to make a real difference. It's not enough to pay for my son's education and be able to tell my parents they're wrong about me not being able to pay my own way. Suppose that should be wife being able to pay my way, really.

maman wrote: »

For example, on the food budget, the expensive way is to either just walk around the supermarket throwing things in the trolley with no idea what you plan to make with the ingredients or to call into a local shop several times a week buying bits and pieces for a couple of meals at a time. That's disorganised and expensive. You need to plan and only buy what you need and preferably in a shop that charges sensible prices. I reckon with a packed lunch for LittleK, breakfast and an evening meal for everyone you could probably spend about £50 per week if you tried, £60 would be generous. I'm assuming MrsK still eats out at lunchtime and you have Sunday lunch at your parents (unless that's permanently off??;)). There will always be some bits and pieces for you to have for lunch assuming you're not at your dad's listening to his latest monologue!:rotfl:


If you want help and ideas just ask.

I buy food several times per week because I really can taste the difference between food that is fresh and food that is days old. I avoid supermarkets, if possible and do not freeze food (can taste whether it's been frozen or not). Also, if it's Monday, how do you know what you'd like to eat on Tuesday?

Don't really know how much we spend on food per week at the moment, almost certain it's more than £50 though. Mrs K only eats out for lunch around 2 days per week now, my lunch I have with my parents most days and yes, we will continue to have Sunday lunch at my parents'.

smallholdingsister wrote: »

It's all about intentionality, Baby!

Didn't know you're a philosopher, smallholding.

gallygirl

AlexLK wrote: »

Don't really know how much we spend on food per week at the moment, almost certain it's more than £50 though.

I expect it's double that at least Alex.

No-one can tell you how to live your life (though that doesn't stop us trying :rotfl:). However, at one time you were in denial of your debts and how much better did you feel when you got to grips with those?

Don't underestimate how far your money can go if you get to grips with it. I'll stick my neck out and say you could pay Little K's school fees out of Mrs K's salary and your earnings if you were both determined to do so (which she's not, so you'll never be able to prove me wrong ).

Alex I cannot describe how empowering being in charge of your finances is - literally life changing :T.

heartbreak_star

AlexLK wrote: »

You're probably right, maman. Also, I'm quite afraid to find the true amount of money we waste every month.

Feel the fear and do it anyway. You need to know, I think.

I know we waste money but also know it's not enough to make a real difference. It's not enough to pay for my son's education and be able to tell my parents they're wrong about me not being able to pay my own way. Suppose that should be wife being able to pay my way, really.

What do you mean, "a real difference"? You DO pay your own way. Hells bells, I pay my own way on <£1200 pcm.

I buy food several times per week because I really can taste the difference between food that is fresh and food that is days old. I avoid supermarkets, if possible and do not freeze food (can taste whether it's been frozen or not). Also, if it's Monday, how do you know what you'd like to eat on Tuesday?

You meal plan. You decide what you're going to have on those days and stick to it. Like...I will cook a chicken for dinner on Sunday. That gets made into curry on Monday, or maybe sandwiches with nice crusty bread. Tuesday I will make a batch of mince and tomato sauce which is bolognese on Tues, chilli on Weds and the remainder goes into a lasagne on Thursday with a bit of veggie padding. And so on...

Start freezing. Once food is in a sauce, you won't notice the difference. I don't like food that's several days old, and shop a few times a week, but I rarely impulse buy expensive stuff because we simply don't need it as we have an idea of what we're going to be eating each day.

Don't really know how much we spend on food per week at the moment, almost certain it's more than £50 though. Mrs K only eats out for lunch around 2 days per week now, my lunch I have with my parents most days and yes, we will continue to have Sunday lunch at my parents'.

I'd agree with GG it's probably closer to £100. This is where notebooks with lists and whatnot come in handy

Comments in my most beloved purple

Remember your parents fell off their pedestal. Don't put them back on it.

Shopping and whatnot is all about changing your mindset from "what do I fancy" to "what have I planned". And I would bet with every certainty that if I gave you a portion of my lasagne or curry, you wouldn't know if it had been frozen or not.

It took me a little while to get the hang of sorting out meals, but now it's just second nature You can do it - as GG said, remember how empowered you felt when you dealt with your debts. This is the next step.

HBS x

hiddenshadow

AlexLK wrote: »

You make some excellent points. I would like to know where our money goes, I think I'm actually afraid to find out, to be honest.

In the past (and now) we haven't been disciplined and in some ways it's quite nice to be ignorant to how much we spend - don't have to do anything about it that way. However, I know it's not a good way forward.

I spent several years using the head-in-the-sand "I'm not adding to my debt so it's all OK" la-la-la land. Trust me, knowing where you spend your money is worth it. Maybe it pushes you to do some things you're resistant to (like meal planning ), maybe it just confirms that X is a priority in your life and you do really want to devote £Y to it (e.g. my hypothetical £500/mo petrol amount listed above). Either way, you're ahead of the game because either 1) your spending is the same but you're more confident that it's what you want to spend your money on, so less guilt/stress/what if?/etc 2) your spending decreases in areas that you don't care that much about, leaving you more money to dedicate to things you do (cars/music/LittleK/etc). (Or both!)

Also, you'd be surprised at how much of a difference the "not really worth it" money can make.

Goldiegirl

Ah ha ! A flickering light bulb moment about handling your money efficiently by budgeting!


This sort of thing doesn't happen overnight, but requires some work over a few months.


A working budget is your key to living the life you want, in the most cost effective way as possible


My suggestions


Set up a spending diary to record all expenditure for both of you. I'd suggest doing this for at least a month before you move to the next stage (December might not be a good time to start, as spending is not always representative of the average).


Next, use the information you have gathered from your spending diary to complete a statement of affairs. (I don't know where the link is, but I'm sure it can be found somewhere on MSE)


Your SOA is yours to use - you can post it on here if you want help, but you don't have to - it's your choice


Next, analyse every single category. Are you getting the best deals, can items be bought in the most cost effective way, can things be reduced or cut completely without compromising your quality of life, when you are spending can you get any added value on your expenditure?


Once you get a clear picture of what you are spending, it is surprisingly easy to spend less, and not compromise your lifestyle.


Food is generally a very easy target


Consider meal planning. Maybe list a weeks worth of meals, and each day select the one you want - thereby when you go shopping you'll know exactly what you want, and won't buy items that will end up being unused and thrown out. Can you buy things like rice, pulses, pasta, oils, in bulk, at a lower price? Consider experimenting with your freezer - put your prejudice about frozen food aside for a while. Maybe find a good supplier where you can buy quality meat in bulk at a lower price than you do now, and keep it in the freezer until required. Maybe you won't even notice that it has been frozen


A food budget doesn't have to be about value baked beans and lentils - it's about eating what you want, but at the best possible price


Regarding petrol - can you cut some of the driving for pleasure? If not, at least make sure you are getting added value from your expenditure by joining a loyalty scheme and collecting the points so you can cash in the points for treats.


I know the general expectation is that one day you'll take over your parents empire. In order to be a successful businessman you'll need an understanding of budgets, figures and accounting, so start now at home.

maman

gallygirl wrote: »

No-one can tell you how to live your life (though that doesn't stop us trying :rotfl:).

:rotfl:


Despite all his infuriating ways Alex is always endlessly polite and patient. I don't know how he manages it. What a star!!:T


P.S. I expect most of the food you eat I restaurants is frozen or days old. And shops don't have daily deliveries either.:p

welshlady33

AlexLK wrote: »

Good to hear from you, SF. I hope you are well?

Also, thanks. I'll have a look.



You're probably right, maman. Also, I'm quite afraid to find the true amount of money we waste every month.

I know we waste money but also know it's not enough to make a real difference. It's not enough to pay for my son's education and be able to tell my parents they're wrong about me not being able to pay my own way. Suppose that should be wife being able to pay my way, really.



I take it you haven't discovered the wonder that is the mortgage overpayment calculator on this site!!

Also did you or anyone else on this lovely site happen to read an article in the Daily Telegraph money makeover section about a couple who earned 190k pa, spend it all and more every month, have 8k credit card debt and only few hundred pound savings and worry they might have to sell their buy to let flat to fund private education for their 2 little girls. It made my brain hurt!

For some reason it made me think of Alex a little bit ( the private education bit) and I wondered what you would think about their situation.

On another note - are you going to be doing elf of the shelf or similar with LittleK this Christmas?

AlexLK

Thanks for all your replies and sorry I'm not responding to each post, today has been awful. I will respond and do appreciate people have put time and effort into responding to me. I know some habits of old have returned and that we spend everything we earn apart from the money I make to put into savings.

Goldie's comment about being successful in business has really made me think. I'll be honest, my furniture business will be no more after Christmas, my fault as I never really put the amount of effort into it that was needed. Our income will go down as a result unless my parents decide to let me take a larger income from property. Don't really know what my next move is, either. I still do the music teaching and buy and sell nice old things but neither are real sources of income.

DollyDee_2

Oh Alex - sorry to hear you had an awful day yesterday but today is a new day. Please try to do something productive (take it out on the grouting!) and you will feel better.

When I'm fed up I attack the ironing with a vengeance. Amazing how quick I get it done. Satisfying to see one pile reduce and another pile grow. Bit like "IN" and "OUT" trays!

If your furniture business really is finished, now is the time to reduce the spending. You might not miss the furniture money that much.

One thing, look at the figures in your signature - £32297.54 paid off in 16 months and over £10000 saved this year. That is amazing and you should be very, very proud.

Hugs from Dolly.

slowlyfading

AlexLK wrote: »

Good to hear from you, SF. I hope you are well?

Also, thanks. I'll have a look.

I'm good thanks, busy! DS seems to want my attention all of the time