Time to sort my finances out

Flowers123

Thanks houseplant. I'm useless at this budgeting stuff Hope you're feeling better today x

Houseplant26

Flowers123 wrote: »

Thanks houseplant. I'm useless at this budgeting stuff Hope you're feeling better today x

You're not useless! It all depends what you buy but if you cook most things from scratch and don't go to mad throwing things in your trolley I think you can get it down. Anything pre-prepared costs a lot more but I know sometimes if you're really knackered or stressed it might be needed. Sorry if I sound harsh I was a bit grouchy!

Smodlet

I agree with Houseplant26, you could cut your grocery bill significantly if you wanted to... you keep buying ready-prepared salads! What is wrong with cooking your own pasta and buying actual lettuce, tomatoes, bean shoots, chinese leaf, chick peas, cucumber, cress, whatever you like and making your own salads every day? If you buy little gem lettuces, they keep for days until you wash them. You could cut your work lunch budget by what, 60-75%? What think you, Houseplant26? That's just one meal a day you could save on.

I know it is far more difficult when you are single to be bothered to cook, let alone batch cook but it is so easy and saves a fortune. It takes a few hours once or twice a month; once done, you freeze individual portions (those takeaway plastic containers are ideal for this) then all you have to do is remember to take one out to defrost in the fridge 24 hours in advance and you can come home to a ready meal you made. You know exactly what is in it and you don't even have to wait for it to be delivered. Just a suggestion.

Your SOA shows landline/internet but no mention of TV; do you watch only via the internet? No mention of setting aside a monthly amount for car expenses. What about car insurance/road tax, to say nothing of repairs? Your telephone/internet costs look entirely reasonable as do those for your gas/electricity.

Why would you "feel bad" if you switched to a cheaper insurance company for buildings/contents? Do you worry about your credit card providers' feelings? You work hard for your money, make it work hard for you if you want to be debt free. It is entirely up to you whether you choose to listen to me or to anyone else but, if you do, methinks there is quite a deal you could do to trim your budget. HTH

P.S. I am pretty sure you cannot take out a mortgage to pay off credit card or other debts; that would be a loan. If you took out a secured loan (against your house) for that, you would have to be nuts. Your loans at the moment are not secured so no-one could take your house away if you did not pay them. I am sure you already knew that. Sorry.

Flowers123

I do agree with you both. Now my basic take home wage is less I need to start thinking about ways to become more frugal. I did manage pasta bake last week with some lettuce and some sour cream dip and it was really nice. I will be setting up a spreadsheet on my lunch break tomorrow and I'm going to do meal plans and stick to them.

Oops, my SOA needs amending. I always forget about all the small bits and bobs. My tv licence was paid in full so will need to save for this. My car insurance was paid in full and was about £450 for the year but it should go down next year as I'll be over 25 and I won't need to do as many miles due to my job change. I've asked about reducing the mileage this year but it didn't make a difference to the premium. I used a groupon deal for my car service earlier this year so it was £55 and I've had 4 brand new tyres put on recently. How much should you generally budget for car maintenance? My car is 4.5 years old and is in good condition so I'm hoping not too much will go wrong with it but you never know.

I would rather you were all honest with me. I know I need to change my ways and I've lived the high life for too long. I've taken a pay cut and I should have been able to pay my parents off and have no debt but I've had holidays and spent beyond my means. Now is the time to sort my finances out and save for my future.

Thank you Smodlet for your wise words. I am going to go and compare buildings and content insurance quotes now and see if I can reduce this.

Smodlet

I have yet to get my head around what groupon is; maybe you could help me with that, please, Flowers? Not much of a clue about the interweb, tbh. I never did any textese before succumbing to this forum (I still despise it; I am overdue for a trip to the "It's Aitch, not Haitch" thread)

I believe there is a link somewhere to the format for an SOA; perhaps Houseplant26 might be able to help with that. I know Tonkaaaa has posted one recently so perhaps you could check his out to see what you might have missed. He, like you, comes across as a very intelligent and courteous person whom it is a pleasure to assist, if one can.

If your annual car insurance is £450, maybe allow a little for depreciation next time and divide £480 by 12 so put aside £40 per month for that. I believe road tax is just under £260 per year for a normal car so that would be £21 per month.

What about an emergency fund? You can read a great deal about those on here; there are various "challenges". You seem in a pretty secure situation for someone your age (how many a decade plus older than you are wondering if they will ever get on to the housing ladder, let alone be mortgage-free?) but emergencies happen to everyone. It makes sense to save as well as drive debt down so that if, for example, your washing machine died, you could just buy another one without incurring more debt however, if all your debts are at 0%, it is not a big deal. What if your boiler died? You are looking at £2-3k, not £2-3 hundred for that.

There is a great deal you can do to cut your expenditure; it is great that you want to be debt free and save for your future at your age, I am in awe of your maturity. Just don't forget to have fun as well; you can do so without spending anything like what you do down the pub. Does your house have a garden? If so, BBQs? You could ask your guests to bring food as well as a bottle, maybe even some salads and you just provide the venue and a few bits and pieces? You could do a wonderful marinated chicken you then cook on the barbie and amaze people. Entertaining does not have to be expensive or a pain. You seem to have inspired me, sorry to go on for so long. TTFN.

misstara

Hi Flowers123, just popping by to say hello after you posted on my thread. You're doing fab so far

Me and OH usually spend between £130 and £150 a month between us on groceries by meal planning, using up leftovers and buying reduced price items at the supermarket. I used to just wander round the supermarket sticking in anything I fancied without thinking but it soon becomes second nature to stick to a budget. An emergency fund is a good idea as well just in case.

I'm definitely one of those people that Smodlet refers to - not sure if I will ever get on the housing ladder but the plan is to start saving for a deposit as soon as I get debt free.

Good luck with everything

Smodlet

I found it on Tonka's thread.

http://www.stoozing.com/calculator/soa.php

Flowers123

Summary

Monthly Budget Summary Amount(£)
Total monthly income 1,458
Monthly expenses (incl. HP & secured loans) 932
Available for debt repayments 526
UNsecured debt repayments 407.1
Amount left after debt repayments 118.9


Personal Balance Sheet Summary Amount(£)
Total Assets (things you own) 208,550
Total Secured & HP Debt -15,000
Total Unsecured Debt -18,664.9
Net Assets 174,885.1

Household Information

Number of adults in household 1
Number of children in household 0
Number of cars owned 1

Income, Expense, Debt & Asset Details

Income Amount(£)
Monthly income after tax 1458
Partners monthly income 0
Benefits 0
Other income 0
Total monthly income 1458


Expenses Amount(£)
Mortgage 300
Secured/HP loan payments 0
Rent 0
Management charge (leasehold property) 0
Council tax 102
Electricity 30
Gas 20
Oil 0
Water Rates 30
Telephone (land line) 35
Mobile phone 18
TV Licence 12
Satellite/Cable TV 0
Internet services 0
Groceries etc. 150
Clothing 0
Petrol/diesel 40
Road tax 0 don't have car tax
Car Insurance 30
Car maintenance (including MOT) 25
Car Parking 0
Other travel 0
Childcare/nursery 0
Other child related expenses 0
Medical (prescriptions, dentists, opticians etc.) 5
Pet Insurance/Vet bills 0
Buildings Insurance 15
Contents Insurance 15
Life Assurance 0
Other Insurance 0
Presents (birthday, christmas etc.) 10
Haircuts 10
Entertainment 50
Holiday 0
Emergency Fund 35
Total monthly expenses 932


Secured & HP Debt Description Debt(£) Monthly(£) APR(%)
Mortgage 15000 (300) 0
Secured & HP Debt totals 15000 - -


Unsecured Debt Description Debt(£) Monthly(£) APR(%)
CC1 2055 £25min
CC2 1500 £35min
loan 15109.90 Min £347.13
Unsecured Debt totals £18664.9 £407.1 -


Asset Description Value (£)
Cash 50
House Value (Gross) 200000
Shares and bonds 0
Car(s) 6500
Other assets (e.g. endowments, jewellery etc) 2000
Total Assets 208550

Flowers123

Evening all. Thank you all so much for your advice. I've amended my SOA and included a budget for car maintenance. I've taken away my clothing budget and if I need something new then I either have to work overtime or sell something, no more Karen M*llen!

Gro*pon is amazing Smodlet. You can get really cheap deals on days out and also things like car services and they also had a deal for an MOT for £9! They have afternoon tea deals that are so much cheaper than if you buy on the day.

I admit I am in an extremely lucky position and I should really have no debt but I've learnt my lesson and I am determined to pay off my debts. No more holidays or expensive handbags.

Yes I have a garden. That's a brilliant idea. I do have a small BBQ that I bought a few years ago and it's still in the box.

It's not been a great day for me spending wise. I walked to work and took my own lunch but my ex bf has hurt his back so I spent £10 on bits for him. He is still a good friend and would do the same for me if I was house bound and offered to get us a takeaway when he's back to normal.

I have all my meals sorted for tomorrow. I just need to make a meal plan for the rest of the week. I've been watching eat well for less and I have picked up a few ideas.

Feeling a bit down in the dumps today. I'm so used to not thinking about what I spend but now every time I buy something I feel guilty

Smodlet

Well done, you. What do I do, just google Groupon? No money for days out but cheap car services sounds like a thing... assuming anyone here in the back of beyond has ever heard of it.

Keep up the good work.

S