Need to cut expenses for at least 3-4 months (long ramble, sorry)

kunekune

I'm not sure this is the right place to put this, but we are going to have a lot of expenses over the next 3-4 months and I want to get through it without drawing on savings. If I'm successful, once things are back to normal, then we will know we can save a lot more than we do at the moment.

Background: we live in a rental property and have found one we would prefer. Unfortunately it will be ready immediately all our credit checks are done, and we have to give 3 months notice. We will also need to pay for curtains and some other equipment. It's likely our current place will be let out faster than that, and then we can stop paying, but there are no guarantees.

Of course, if I was a good MSE I wouldn't even be moving house but there are sensible reasons for it, and our budget has a lot of slack. Basically, the extra costs will be a minimum of 2 months, maybe 3, rent at £650 a month PLUS moving and furnishing costs, say £700 PLUS extra bond and the bit we won't get back on our current one, say £250 PLUS the cost of applying for the new tenancy, £150 (this has been absorbed already).

So I am looking to shear £600 at least off our monthly bills between now and Christmas. There are two adults and two primary-aged children in the house. We usually save at least £400, but it would be nice if we could still save a bit. That probably sounds really hard but in theory there shouldn't be any problem: monthly income after tax is about £4500 and we massively overspend on good food, wine, etc etc. We're in the 'more money then time' category but have taken it too far.

The plan is to reduce our food spend to £100 a week average, the booze spend to £50 max a week (maybe less if we try hard), take packed lunches when I'm not working at home ... and turn off one-click on Amazon, LOL.

I am reluctant to cancel the cleaner as this is my busiest time of year at work, and it's going to be important to keep the house clean.

Some other savings once we've moved will include a better bank account (we're not getting interest but I don't want to fiddle in the middle of credit checks), getting better interest on savings (thanks MSE for the ideas on this), cheaper utilities and internet, and DH signing up for childcare vouchers. We need to save more because we will need to buy a house in a year or two, and don't have much in the way of retirement funds. See this as the result of years and years of bad financial planning (plus two house price crashes).

I hope you will let me keep a diary about my efforts (and not tell me off too much about former bad habits). It's a different kind of goal from those other people have, I think, but a lot of the same tricks should work.

Kevicho

Good luck with that, I think DFW tips and "tricks" can be used by anyone for any purpose.

Better in our pockets than theirs.

BTW have you posted an SOA? Let us have a peek see if we can find you savings?

kunekune

SOA

Money coming in (net)

Salary 1 2200
Salary 2 2300
Child allowance 116
DLA 250

TOTAL 4868



Regular bills & rent

Electricity 70
Gas 50
Telephone 50
Water 16
Internet 16
Petrol 200
Parking 100
Council tax 90
Bus 60
Rent 675
Childcare (average) 400
Cleaning 130

TOTAL 1857


Other expenditure

Supermarket shopping 840
Other food shopping during week 200
Alcohol and entertainment 400
Clothes and shoes for self (average) 100
Clothes and shoes for children 100
Clothes and shoes for OH 50
Household items 25
Books 100
Magazines 40
Eating out 50
Takeaways 40

TOTAL 1945


SUPPOSED SURPLUS 1066
ACTUAL SURPLUS varies between 400 & 1000



Things that aren’t here and why

• Life insurance: currently we have none, because we both have death in service cover of 3 x salary and have no mortgage/secure jobs
• Other insurance: this has been paid for the next 12 months
• TV licence, car tax, etc: ditto
• Interest: we have no credit cards and no overdraft

kunekune

Looking at this, the cleaning looks excessive. However, the reason we have this done is partly to do with my son's disability (he makes a lot of mess and needs more care, hence takes up extra time), and we regard it as paid for out of the DLA allowance.

The booze and the food bills are obviously excessive. In more ways than one!!!! I have enough food stocked up for 4 weeks by my calculations, and that is eating well, and we have 7 bottles of wine and 5 bottles of beer in the cupboards.

newlywed

For tips and help on cutting shopping bills - food and cleaning products - check out the OS (old style) board.

Menu planning can save you loads on your food bills (I cut food budget in half with the help of this). Plan your meals for the week and then only buy the extra bits you need to complete those meals.

Also lots of tips for cleaning using vinegar for cleaning glass etc.

Not all will work for everyone (I would never buy value sausages, mince etc personally) but if you can find several things that cut your bills down and that work easily for you, even for those months, it will help.

newlywed

I've just added up your bills for food:-

Supermarket : 840
Other food: 200
Eating out and takeaways 90

That's £1130 each month - on food!!! :eek:

How about setting yourself a challenge where if you keep to your food budget for the supermarket and "other" food shop then you can reward yourself with a takeaway at the end of the month???

(I used to spend about £600 a month on food for 4 of us and now spend about £250 - but don't have takeaways anymore and eating out is for special occasions).

yellowmonkey

kunekune wrote: »

SOA

Money coming in (net)

Salary 1 2200
Salary 2 2300
Child allowance 116
DLA 250

TOTAL 4868



Regular bills & rent

Electricity 70 could you look at switching suppliers?
Gas 50 Ditto
Telephone 50 Again look at other suppliers
Water 16
Internet 16
Petrol 200 How many Cars?
Parking 100
Council tax 90
Bus 60 if you have car do you need bus as well ?
Rent 675
Childcare (average) 400
Cleaning 130 Go onto the old style boards and follow the Flylady thread. It works

TOTAL 1857


Other expenditure

Supermarket shopping 840 Seems very high. Again go on the OS board for tips,Meal planning etc
Other food shopping during week 200 If you get to grips with above should not need this
Alcohol and entertainment 400 Stay in more perhaps
Clothes and shoes for self (average) 100 Try charity shops/ebay etc
Clothes and shoes for children 100 as above
Clothes and shoes for OH 50 Can this be cut down
Household items 25 Incorperate into household budget
Books 100 Join a libary perhaps
Magazines 40 Could you perhaps get 1 a month ?
Eating out 50 Meal plan and treat yourself once a month. Home cooking is great and cheaper than take outs
Takeaways 40 One a month ???

TOTAL 1945


SUPPOSED SURPLUS 1066
ACTUAL SURPLUS varies between 400 & 1000



Things that aren’t here and why

• Life insurance: currently we have none, because we both have death in service cover of 3 x salary and have no mortgage/secure jobs
• Other insurance: this has been paid for the next 12 months
• TV licence, car tax, etc: ditto
• Interest: we have no credit cards and no overdraft

Hope that helps. The Os board is really good for helping you meal plan and if you plan well and stick to shopping list you could cut 2/3 rds off your food alone. That will get you nearly the amount you require. It is not about scrimping and saving just cutting out the waste.

ym

peb

JUst one thing jumps to mind from your initial post - you have to give 3 mnths notice on your current property? If it is an AST it should be 1 month unless you have been there less than 6 months already? I've noticed a lot of landlords trying to amend rental agreements in respect of this. It would be helpful if you did not have an overlap on the tenancy agreements.

HTL

kunekune

We only have one car, I don't drive so I have to use the bus. OH travels in the opposite direction, and there is no public transport he can use.

We will be shifting suppliers when we move to the new flat, but don't want to make things complicated when we only have 6 weeks or so left here.

Food is so embarrassingly high I am cringeing!!! I do cook from scratch most of the time, but tend to use expensive ingredients because I don't get in until 6, so (a) the children end up eating separately and (b) I often buy quick cooking meat such as duck breast. We got into these habits when living in NZ, where food is considerably cheaper. I have set myself a challenge to spend no more than £50 a week on food for the next month, and use up stocks. Takeaway is no more than once a week: we buy extra and have it for lunch the next day.

The books are work-related: our university library doesn't have them and if they order them for me they belong to the library not me, which is a pain especially as the library is on another campus and half an hour away by bus. I buy them second hand on amazon usually. I regard this as an acceptable expense for the kind of job I do.

I used to buy second hand clothes for the children on Trade Me when we lived in New Zealand but have slipped, because (a) there is nowhere for parcels to be left when I am at work and (b) I hate the clothes section on Ebay. One child is particularly difficult because his trousers have to be shortened and I tend to get that done professionally, which costs. Again, I regard that as something DLA is to help with.

kunekune

The rental overlap is a bit of a pain. We signed an AST a year ago, and the LL wanted another 12 month AST. We didn't want this because we thought we wouldn't stay that long. He wanted a longer notice period than a periodic tenancy provides. We agreed verbally on the terms. Then problems with noisy neighbours and kids outside started to escalate and a place we preferred came up.

In reality, the notice period is not legally enforceable. It is a contract governing an interest in land, and therefore must be in writing. However, if it was contested, I think the LL would win using an estoppel argument, because he changed his own position relying on our promise, and also the agreement should have been signed 2 weeks ago, I put it off for reasons that had nothing to do with whether we were staying. Add in living in a small town, children in same childcare, and strong prospect that the LL will be enrolling on a course I teach ...

Result: better to just suck it up, hope he rents it out quickly, and keep the relationship sweet. It's a human rather than a legal solution.

yellowmonkey

Hi

Thanks for that. As i and others have said your food bill is quite high. With a bit of planning and perhaps a Slow cooker you should be able to find the extra £600 a month you need just from the food alone.
We all live to different needs so there is absolutly NO NEED to feel embarressed about your food bill. Quality of life is important and you can still eat well and healthly for a bit less. Now dont you go eating beans on toast for a month :rotfl: :rotfl: :rotfl: :rotfl:

Good luck on your quest and think about how many ducks there will be in the ponds now instead of in the oven :rotfl: :rotfl:

Good luck

ym