Pension or pay debts?

lowely

Thanks SeduLOUs.

My fault - the £250 is from an old SOA and shouldn't be on there.

So, by cutting the 250, 200 on social and the 90 on Sky immediately that saves me 540. I will dust off my bike as it is easy to cycle to work so that will save another 180 (now at 720). I will work to cut groceries to 200/month but I would really appreciate any tips for this! (This makes it 920 saved). I will knock 50 off the clothing and get looking 2nd hand from now on (970 saved).

Thanks all for the help with this. Are there any other areas I can look at without raiding the pension / getting a 2nd job?

L

Brightspark87

hi just quickly do you not get any other benefits? Or is it with your pension contributions you are earn more than £60,000?

Brightspark87

also council tax over 12 months rather than 10, presents at £600 a year seems high? As children are young can you reduce this? Its tough but if you can save your family lots of money. Your rent is very high too, its horrid but anything you can do about this? you are also putting £1,080 for your car- even though its only worth £600 so your car is likely to be older, that seems high too. Petrol is also high if you dont use the car?

Arkers

Could be talking out of turn here, in that I might not be correct, but am I right in thinking that teachers are classified as "key workers," and that there may be a housing scheme that you could go on a list for? This would eventually allow you to have a more affordable housing option, or is this a Utopian view, and you live somewhere in the SE where affordable housing is pie in the sky.


Like the others do not give up your pension even in the short term as you have dependents and it probably offers significant benefits to them should something happen to you.

lowely

Thanks Brightspark. I will look to cut down onn the gifts (it's also for friends and other family). I am signed up to private health care (700ish a year) which I will try and opt out of. Rent is a killer but we are signed on for another year and other 3 bed properties near both our work are even more expensive!

I estimated the car's worth and have also guessed on a 500 service and 500 mor (which is probably over the top!)

What do you mean with the council tax......can I pay less?

Thank you!

SeduLOUs

lowely wrote: »

I will work to cut groceries to 200/month but I would really appreciate any tips for this!

The old style moneysaving board might give you some ideas for meal planning - groceries overspend is one of my personal faults though so I am not a good person to give advice!

Don't cut out entertainment completely. You still need to enjoy yourselves once in a while otherwise you'll all just be miserable. There are cheap and even free ways to have fun, but I'd personally keep a bit in the budget for it, just substantially less than you did have.

Other options might be to boost your income - does you bank account do anything for you? I 'make' about £25 per month via cashback and interest by paying all of my regular direct debits through a Santander 1-2-3 account, and doing my everyday spending on a 1-2-3 credit card.

Have you switched energy suppliers in the last year or so? Have a look at the MSE energy club and see if there's any savings to be made there.

If you or partner has any spare time between jobs/kids there might be a few ideas for to make a few quid by looking at the 'boost your income' boards. Having a big clearout and a car boot sale can generate a few extra pennies and can also be a fun day out.

Brightspark87

lowely wrote: »

Thanks Brightspark. I will look to cut down onn the gifts (it's also for friends and other family). I am signed up to private health care (700ish a year) which I will try and opt out of. Rent is a killer but we are signed on for another year and other 3 bed properties near both our work are even more expensive!

I estimated the car's worth and have also guessed on a 500 service and 500 mor (which is probably over the top!)

What do you mean with the council tax......can I pay less?

Thank you!

you normally pay council tax over 10 months and not pay anything in Feb and March. However, you could reduce this amount ie seems you are paying £1,700 a year. therefore you could reduce the cost from £170 a month to £141.67. thats another £30. private health care is amazing but you cant afford it currently.

macman

Sky needs to go obviously, as already noted. But £480 pa on a mobile? if you are out of minimum term then you can get a perfectly good SIM-only deal for £10 a month. That's £360 towards your debt repayment in one easy move.
Car insurance £600pa? Hit the comp sites and get a better deal next time it renews.
And what is 'other travel' at £2,160pa (on top of your £1,200 for fuel)?

SeduLOUs

andyfromotley wrote: »

This is a pretty hardcore cutting of your budget but you are in a bad way if you don't change what you are doing. I total those savings to be £704 which gets you back in the black. it gives you some extra to put into your emergency fund until it reaches £1k.

This SOA needs savings of £1345 per month to get it back in the black, and extra if there is to be an emergency fund.

How long until partner can return to work? If not soon, then perhaps something more drastic needs to happen like getting rid of the car (or at least SORN it for now) to get rid of the associated expenses (insurance/maintenance etc).

andyfromotley

SeduLOUs wrote: »

This SOA needs savings of £1345 per month to get it back in the black, and extra if there is to be an emergency fund.

How long until partner can return to work? If not soon, then perhaps something more drastic needs to happen like getting rid of the car (or at least SORN it for now) to get rid of the associated expenses (insurance/maintenance etc).

Oh wow thanks i misread it!!

i'll redo it but not sure theres that much in there!!