A Diary of Reinventing Ourselves

getmore4less

OK I though I would have another look at the SOA and see if there is another £500pm somewhere.
(for now I will assume the car gets changed to a purchase and we don't need to add back the rental)

I will remove any lines not relevent to keep the list shorter)

Forward_thinking wrote: »

Electricity............................. 130
Gas..................................... 0 (dual fuel)

---

Telephone (land line)................... 45
Mobile phone............................ 20
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 37

---

This is still a potential for cuts-£20pm.

---

Petrol/diesel........................... 300
Road tax................................ 0 ??????
Car Insurance........................... 0 ??????
Car maintenance (including MOT)......... 30 ??????
Car parking............................. 5

---

What happened here we seem to have lost the tax and insurance for your car and if we add another car this will all go up.


Contents insurance...................... 0 (this was £20 on SOA(v1))

---

add the interest to see how much over the min payment is
Description....................Debt......Monthly...APR
Barclay card...................8370......230.......21.9 (£153 £80 debt repayment)
MBNA...........................18660.....700.......29.9 (£465 £235 debt repayment)
Halifax........................725.......14........29.9 ( (£18 ????)

IN your min payments there is around £310pm debt repayment

I think this will remain tight on £7k income when the new car comes and you add back the tax insurance for both much of the £300 debt reduction will get eaten up by those.

The interest reduction is going to be the next critical thing that will get you under £6500pm

Everything else has had a trim you know the list if you need to find more so no point repeating.

greensalad

Yes you definitely need to budget car allowances.

We save £71 a month towards car expenses as I have worked out that is what I need to pay tax, MOT, insurance and have £200 leftover for repairs/servicing. We currently pay insurance monthly and will for another year, which means we're plugging about £120 into the car every month (!) but March 2017 we won't be playing catch-up any more and will be able to buy our insurance outright.

mommysue

Wow goodluck

Forward_thinking

Evening. Been busy today so less time on here which is a good thing. Lovehackney - hats off to you and well done!! Great to hear how things are working out for you and I do now see that the crucial factor is how much we spend not how much money we earn.

Getmore - our car insurance was paid off for the year in one payment so we don't have to worry about that until 2017. Our parents have been paying the tax on the car. I have included £300 for repairs and think I've put petrol in a different category - need to check. However, you are quite right - I have forgotten to add for the second car!!

It's going to take a while until I perfect this but I will get there. Busy tonight having a little look at YNAB and progressing the work front.

lynnejk

Forward_thinking wrote: »

Evening. Been busy today so less time on here which is a good thing. Lovehackney - hats off to you and well done!! Great to hear how things are working out for you and I do now see that the crucial factor is how much we spend not how much money we earn.

Getmore - our car insurance was paid off for the year in one payment so we don't have to worry about that until 2017. Our parents have been paying the tax on the car. I have included £300 for repairs and think I've put petrol in a different category - need to check. However, you are quite right - I have forgotten to add for the second car!!

It's going to take a while until I perfect this but I will get there. Busy tonight having a little look at YNAB and progressing the work front.

This is where, I think FT, you are missing the point.


You will still have to pay car insurance in Jan 2017 and so you should be budgeting the cost into your budget - ie putting aside 1/12th of the cost every month this year so the money is there ready for January next year.


The idea is that you put away monies each month for anticipated spending over the next 12 months for everything to prevent you having to resort to credit.
Lx
Lx

Forward_thinking

Yep. I get you. You're right. It's a new concept looking ahead and you're right - because it was far away in 2017 I thought I could put it to the back of my mind. As I said, I'm trying hard and determined to get there!!

dottydebts

It's clear how many changes you are trying to make in such a short space of time, and I just wanted to say I'm really impressed by your determination and also how well you're taking everyone's advice. Not everyone would be able to take (constructive) criticisms like this and still keep going. Keep up the great work, and things will become a lot easier in the long run.

getmore4less

Something been bothering me.

How come you did not have a frying pan?

getmore4less

Budgets take ages to get right even when you think you have everything something crops up that needs adding or you change plans.
That's why an emergency fund exists.
The disaster fund(loss of income) will be something to think about later.

Once the plan is in place that deals with the debts then the planning starts for the years beyond the debt free day target.

mumtoomany

Disaster fun! Sounds like an oxymoron. Made me laugh, getmore. I too am wondering about the frying pan, we have three in the kitchen, another in the trailer tent and one DS has taken with him while working away. Maybe I have a problem! M2m.