No more overspending

alice_kate_2

Hi all,

It’s time I finally admitted that we’ve overspent. My husband and I need to seriously get a grip on our money if we ever want to move house (which we do! ASAP!!).

The frustrating thing is that for a young couple we’re actually earning good money so I have no idea how it got to this stage .

I’m on £30k, H is on approx. £40k plus bonus of approx. £10k before tax annually.

The hardest thing about budgeting is H is largely commission based so he can do £4k in a good month or £2k in a bad month!

Outstanding debts that I’m not trying to repay just yet:
Mortgage £139k – although I’m not trying to pay this off just make sure we make our £540 payments every month! (this comes out of H account)
Car - £13k – as above just want to make payments of £230 each month for now (my account)

My debt:
CC - £674 (currently making as and when payments so amount varies each month)
HP - approx. £2500 across two accounts (currently paying about £240 each month)
Overdraft – as of today £0 but always in it by next pay day (last month by £950 )

H’s debt:
CC – approx. £3400 (making minimum payment each month)
Overdraft - £1000 – this get paid of monthly but always back in it before pay day!
Loan - £7500 – currently paying £450 a month

Monthly income between us: £3800 after tax (if we say averagely so we are in a worst case scenario)

Expenditure (not including overdraft or CCs) – approximately £2600 – including food and travel

So on paper we should have £1200 left – we don’t! No idea why!

Any tips on how we can pay everything off without going in our overdraft every month?

H is due about £8000 end of April from inheritance and hopefully he’ll get his annual bonus around April – after tax this should be about £5k – this is not guaranteed however so we cannot rely on it. This should largely sort us out however we need to consider moving in the next 12 months and desperately need to start saving for a deposit. And we’ve still got two to three months moving forward of trying to not end up in our overdraft every month.
All of this is seriously stressing me out at the moment as H doesn’t seem to take it seriously . Any tips on how I can really make him take notice? He still spends about £100 a month on sport every month. I think he’s still got a gym account that he doesn’t use as well but just won’t cancel for about £20 a month. He said he doesn’t want to use inheritance to pay off debt but I don’t see that we’ve got any other choice? The last two weeks of last month we had to live on soup and toast as that’s all we could afford :eek:.

The biggest issue is due to the nature of his job he deals with the mega rich daily (millionaires and even a couple of billionaires :eek: ) as his main clients so feels he has to meet that image although he would never admit it.

Ahh! Anyway, I’ll keep you all updated with the progress and fingers crossed we’ll get there.
Onwards and upwards

alice_kate_2

Forgot to add I'm hoping to pick up a second job over the weekend doing a few hours in our local village pub.

I'm hoping this will give us an extra £30-£100 per week!

Going to do a big shop in Aldi after work that will hopefully last us the month (other than fresh bits) so no more living on toast...

Debt_Denier

alice_kate wrote: »

Forgot to add I'm hoping to pick up a second job over the weekend doing a few hours in our local village pub.

I'm hoping this will give us an extra £30-£100 per week!

Going to do a big shop in Aldi after work that will hopefully last us the month (other than fresh bits) so no more living on toast...

My first every reply to someone about their problems not mine. Feels nice. Do an SOA - http://www.stoozing.com/calculator/soa.php
You sound exactly like us. Can;t really give advice as we are getting started on this road too. We just spend everything we earn as well.

alice_kate_2

Debt_Denier wrote: »

My first every reply to someone about their problems not mine. Feels nice. Do an SOA - http://www.stoozing.com/calculator/soa.php
You sound exactly like us. Can;t really give advice as we are getting started on this road too. We just spend everything we earn as well.

I know - I have no idea how we do it! It's just taken me a while to really admit it and I'm so glad I have and we can get on top of things. I will look at that link this evening thanks!

I moved jobs recently and was owed commission from my last job that I didn't think they'd put through but they have as I've just received an email saying I'll get £566 after tax paid on Monday! That will nearly clear my CC so I'm super happy! :T

Debt_Denier

alice_kate wrote: »

I know - I have no idea how we do it! It's just taken me a while to really admit it and I'm so glad I have and we can get on top of things. I will look at that link this evening thanks!

I moved jobs recently and was owed commission from my last job that I didn't think they'd put through but they have as I've just received an email saying I'll get £566 after tax paid on Monday! That will nearly clear my CC so I'm super happy! :T

By my reckoning with my SOA we are living about 2 weeks ahead of ourselves and with no savings I am now understanding that that is really bad news. The money we owe is mostly for assets things that we could sell if we were desperate (which we aren't but if one of us lost their job we would be screwed).

Gettingtherequickly

Your net salary is currently being reduced by the overdraft, so that is some of the cash differential.

You need to compile an SOA

alice_kate_2

I've done an SOA - we should have £1100 left at the end of the month not including any payment to overdraft.

I'm struggling to see how we're going to do it - I guess just aim to go into it a little less each month?

So instead of it being £950 being £850 for example and we're £100 closer to being debt free

Kitten868

I really don't think extra income is necessary at this point. I really think you need to get better at working with what you have. Any extra income is going to be spent just as easily as that mystery £1200. Get yourself an SOA sorted out. £2600 seems really expensive when your mortgage is only £500. Get out your old statements and do an average. If you do a real one it'll all make sense. You'll know where to stop yourself over spending.
In your husbands position I wouldn't want to spend inheritance on debt. I would put it as an overpayment on the mortgage like someone was giving you a hand up the property ladder. I don't think any relative would oppose doing that with the money. Plus it helps you with your goal. X

alice_kate_2

Kitten868 wrote: »

I really don't think extra income is necessary at this point. I really think you need to get better at working with what you have. Any extra income is going to be spent just as easily as that mystery £1200. Get yourself an SOA sorted out. £2600 seems really expensive when your mortgage is only £500. Get out your old statements and do an average. If you do a real one it'll all make sense. You'll know where to stop yourself over spending.
In your husbands position I wouldn't want to spend inheritance on debt. I would put it as an overpayment on the mortgage like someone was giving you a hand up the property ladder. I don't think any relative would oppose doing that with the money. Plus it helps you with your goal. X

£2600 is a lot you're right. That does include the loan, car and HP. It just doesn't include CC or overdraft that aren't set fees if that makes sense. But it does include fuel and food - we both drive quite a distance to work so spend about £300-£350 per month on fuel between us!

I've had another look at may have overestimated and would probably be closer to £2400 (my figures are exact but hubby's aren't need to go through his bank this weekend!).

I think you're right about the extra income to be honest so I really do need to have a think and see if it's worth it for the money - it would mean having very little time off and I do work long hours as it is!

Claree__x

Hiya!
We're in a similar position in that we earn a good living but still end up with money to pay on credit cards, it's crazy.

The best thing I've done is keep a spending diary. Not as thorough as some people do but I keep a spreadsheet of my bank transactions && puts them in categories.

Have you considered combining your finances? I know it's not for everyone.

Debt_Denier

alice_kate wrote: »

£2600 is a lot you're right. That does include the loan, car and HP. It just doesn't include CC or overdraft that aren't set fees if that makes sense. But it does include fuel and food - we both drive quite a distance to work so spend about £300-£350 per month on fuel between us!

I've had another look at may have overestimated and would probably be closer to £2400 (my figures are exact but hubby's aren't need to go through his bank this weekend!).

I think you're right about the extra income to be honest so I really do need to have a think and see if it's worth it for the money - it would mean having very little time off and I do work long hours as it is!

I think the 2nd job idea is a red herring. You would also feel tired and sorry for yourself and end up eating out more, buying more convenience food etc. I would anyway

When you do an SOA and I have revised mine several times already in a few weeks you have to really challenge yourself. All the £1 or £2 here and there contributions to leaving gifts for people at work. Netflix? Kindle books? Haircuts? Tip for the hairdresser? Postage for gifts/cards?
Our SOA says we should have £1200 a month for debt in addition tot the car loan, mortgage etc. and we have achieved it this month. I have kept a really tight eye on my money this month I am willing paypay to come again on Monday the 29th when I know I will pay that £1200 off my debts. You can do it but it really means looking at everything you spend in forensic detail.