How do you do it!?

Tonkaaaa

Morning,

Tonka here, I have a text from Lloyds this morning your balance is under your set limit of £100, luckily it is payday tomorrow!

Every single month I get this text usually a week before payday and I can't continue, it is really getting to me worrying about money all the time, I have 2 children, a fiancee and a house, I should be enjoying my life not worrying at the end of every month about being overdrawn or missing payments!

We have around £8k left on a loan (repayments ~£186) used to help with the house renovations, that's is all the debt we have and we still struggle every month. How do people on here have such a clear mind set and good quality of life when clearing debts 5 times the amount of mine, it baffles me and is psychologically getting me down, I am aware this may seem quite petty to some of you but it really does.

Does anyone have any MSE tips :money: for me to saving money on the usual spends through the month, food, fuel, utilities, etc as I am open to all suggestions. Maybe this is my light-bulb moment!

Thanks :beer:

Tonka!

bexster1975

Hi Tonka

A couple of things I would suggest to start with.

First I would keep a spending diary for a month. Make a note of everything you spend. It sounds like you might not be sure where all your money goes.

A statement of affairs would be my next suggestion. I will post the link. If you aren't sure of your weekly/monthly expenses this will be hard to complete until you have done your spending diary.

Good luck

Bexster

bexster1975

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

Link to SOA

EssexHebridean

It shouldn't seem petty to anyone - and if it's bothering you that's a sure sign that you need to tackle it, so well done for acknowleging it!

First thing is to sit down and put together your SOA (Statement of Affairs) - you can find the link to it HERE - that will tell you exactly where your money is actually going, and if you post the results in here people can offer help and suggestions about where you may be able to cut back.

A couple of things to think about - make sure the figures you put in reflect how things are, not how you'd like them to be. It's marvellous putting in that you set aside £50 a month for car maintenance and £50 emergency fund, but if there are then no cash assets to show for those things it's a bit of a giveaway that actually you're not practising what you preach, as it were! So first off, SOA reflecting what's happening right now, warts and all. From there you take the figure it says you should have left over and work out whether you do have that left, or whether it's getting frittered. (Spending diary noting EVERY penny you spend).once that's done you can work out a proper budget, and start either attacking that loan if there is any benefit to paying off early, or amassing savings/overpaying your mortgage if there's not.

Good luck, and welcome to MSE!

Tonkaaaa

Thanks for the link to SOA, I have completed it to best my knowledge, however I need to explain a few things; which I have done below.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2218*Set to change slightly as I have a company commercial vehicle as of last week.
Partners monthly income after tax....... 0
Benefits................................ 556
Other income............................ 350
Total monthly income.................... 3124

Monthly Expense Details
Mortgage................................ 1010
Secured/HP loan repayments.............. 183.4000000000001
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 109
Electricity............................. 62
Gas..................................... 0*Combined with electricity (3 bed semi)
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 25.81 *Includes broadband
Mobile phone............................ 47 *Just OH phone, I have a company mobile.
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400*Sometimes more
Clothing................................ 0
Petrol/diesel........................... 150*Just OH as I now have a company vehicle.
Road tax................................ 35.43*2no. cars at the moment until mine is sold
Car Insurance........................... 80.31*2no. cars at the moment until mine is sold
Car maintenance (including MOT)......... 0*Usually use a credit card for this :eek:
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 28
Contents insurance...................... 0*Included above
Life assurance ......................... 39*Cancelled today runs out end of next month cheaper quote obtained, circa £20
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0*Usually use a credit card for this :eek:
Haircuts................................ 25*Guess
Entertainment........................... 400*I've included takeaways, non standard spends and extra visits to supermarkets
Holiday................................. 0*Usually use a credit card for this :eek:
Emergency fund.......................... 300*Considering I started saving £300 a month since February I only have £300 in the savings account, this backs up that I am rubbish with money!
Wetlands membership..................... 7
Gym .................................... 42*OH £28 Mine £14
Partner's budget she never sticks to.... 200*As the title suggests
Total monthly expenses.................. 3184.07


Assets
Cash.................................... 0
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 7000*Will be £2000 soon
Other assets............................ 5000
Total Assets............................ 162000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 92000....(1010).....6
Secured Debt.................. 8200.....(183.4)....3.9
Total secured & HP debts...... 100200....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 3,124
Expenses (including HP & secured debts). 3,184.07
Available for debt repayments........... -60.07
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -60.07

Personal Balance Sheet Summary
Total assets (things you own)........... 162,000
Total HP & Secured debt................. -100,200
Total Unsecured debt.................... -0
Net Assets.............................. 61,800


Reproduced on Moneysavingexpert with permission, using other browser.[/i]

As you can see I am rubbish with money and so is my partner, her favourite phrase is "It was only £20" what she fails to realise is hearing that 6 days a week isn't helping our situation!

I must admit I do blame her for frivolous spending, however it is also my fault, I am just as bad unfortunately.

The car situation :eek: - I do have a car that I will be selling, however; there is quite a big issue and it is with the mechanic at the moment, now this could either cost me £750 or £2500, so depending on the diagnostics it will depend how much extra cash I have come the sale of the car.

Please, any help will be greatly appreciated, I'm pretty thick skinned so please be as critical as you like and I will try to answer any questions you may have.

Tonka

Tonkaaaa

EssexHebridean wrote: »

It shouldn't seem petty to anyone - and if it's bothering you that's a sure sign that you need to tackle it, so well done for acknowleging it!

Thank you, hopefully this isn't a case of one step forward three steps back!

cms-help

Tonkaaaa wrote: »

Thanks for the link to SOA, I have completed it to best my knowledge, however I need to explain a few things; which I have done below.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 2218*Set to change slightly as I have a company commercial vehicle as of last week.
Partners monthly income after tax....... 0
Benefits................................ 556 - what benefits do you receive with that income?
Other income............................ 350 - where is this from?
Total monthly income.................... 3124

Monthly Expense Details
Mortgage................................ 1010 - how long left to run? The APR is really high.
Secured/HP loan repayments.............. 183.4000000000001
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 109
Electricity............................. 62
Gas..................................... 0*Combined with electricity (3 bed semi)
Oil..................................... 0
Water rates............................. 28
Telephone (land line)................... 25.81 *Includes broadband
Mobile phone............................ 47 *Just OH phone, I have a company mobile. - this is ridiculous for 1 phone. We have 2 and pay £30 a month for unlumited calls and texts. We do have capped data as we both work where we have WIFI so no need for it.
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 400*Sometimes more - way too much. We are also a family of 4, one still in nappies, and spend £300 a month.
Clothing................................ 0
Petrol/diesel........................... 150*Just OH as I now have a company vehicle. - why this much petrol if they don't work?
Road tax................................ 35.43*2no. cars at the moment until mine is sold
Car Insurance........................... 80.31*2no. cars at the moment until mine is sold
Car maintenance (including MOT)......... 0*Usually use a credit card for this :eek:
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 28
Contents insurance...................... 0*Included above
Life assurance ......................... 39*Cancelled today runs out end of next month cheaper quote obtained, circa £20 - do you have health issues as we pay £9 a month for £150k term life assurance?
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0*Usually use a credit card for this :eek:
Haircuts................................ 25*Guess
Entertainment........................... 400*I've included takeaways, non standard spends and extra visits to supermarkets - Woah!
Holiday................................. 0*Usually use a credit card for this :eek:
Emergency fund.......................... 300*Considering I started saving £300 a month since February I only have £300 in the savings account, this backs up that I am rubbish with money!
Wetlands membership..................... 7
Gym .................................... 42*OH £28 Mine £14
Partner's budget she never sticks to.... 200*As the title suggests What does she spend this on?
Total monthly expenses.................. 3184.07


Assets
Cash.................................... 0
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 7000*Will be £2000 soon
Other assets............................ 5000
Total Assets............................ 162000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 92000....(1010).....6
Secured Debt.................. 8200.....(183.4)....3.9
Total secured & HP debts...... 100200....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 3,124
Expenses (including HP & secured debts). 3,184.07
Available for debt repayments........... -60.07
Monthly UNsecured debt repayments....... 0
Amount short for making debt repayments. -60.07

Personal Balance Sheet Summary
Total assets (things you own)........... 162,000
Total HP & Secured debt................. -100,200
Total Unsecured debt.................... -0
Net Assets.............................. 61,800


Reproduced on Moneysavingexpert with permission, using other browser.[/i]

As you can see I am rubbish with money and so is my partner, her favourite phrase is "It was only £20" what she fails to realise is hearing that 6 days a week isn't helping our situation!

I must admit I do blame her for frivolous spending, however it is also my fault, I am just as bad unfortunately.

The car situation :eek: - I do have a car that I will be selling, however; there is quite a big issue and it is with the mechanic at the moment, now this could either cost me £750 or £2500, so depending on the diagnostics it will depend how much extra cash I have come the sale of the car.

Please, any help will be greatly appreciated, I'm pretty thick skinned so please be as critical as you like and I will try to answer any questions you may have.

Tonka

Comments in bold.

dancingfairy

It seems pretty obvious from your soa what the problem is income 3124, expenditure 3184 (plus all the things you've said you put on a credit card).
You can't afford 400 + on entertainment, 200+ in partners spends +a holiday +......
You only have a set amount left after paying the mortgage and essential bills so you need to decide how best to spend it. Very little on entertainment and then a nice holiday or decent monthly entertainment but a few nights in a tent. You need to decide what are the priorities for your family.
Good luck.
Df

Grumpelstiltskin

£400 on Groceries and then takeaways on top of that.


You look like prime candidates for Eat Well For Less.


You must get your partner on board. She doesn't work? If so why is she spending so much on food?

dancingfairy

P.s you don't need to give everything up and live like a monk, you need to make smarter choices and get more value for your money (rather than maybe spending unconsciously).
Df

Tonkaaaa

cms-help wrote: »

Comments in bold.

Thank you CMS.

Benefits - Partner was made redundant a month before finding out she was pregnant so she had a part time job until her MA started and is currently getting maturnity allowance, she will be going back to work part once this has ended for at least the same money maybe slightly more.

Other income - A side venture.

Mortgage - The mortgage was taken over a 14 year term, house value when bought £126,000, loan value £113,400. The 4 year fixed term ends in November, hopefully I can switch to a slightly better rate over the remaining term because the LTV has increased since our renovations works (recently valued at £160,000 but I am guessing £150,000 to be conservative).

Mobile - OH has 11 months left on here O2 contract, agreed this is ridiculous. Any ideas on how I can get out of it or decrease payments?

Groceries - I need to address this and stick to meal plans, I will have a chat with the OH and address this later, also shopping at Waitrose or Sainsbury's isn't advantageous. Going to give Aldi a go.

Petrol - Is £150 unreasonable? Usually trips around the city and to family and friends.

Life insurance - £9 is ridiculously good, I may need to look into this.

Entertainment - I take it this is too high, we go out once a week to eat and have friends/family round once a week which ends up with some sort of take out meal and we tend to take the kids somewhere that costs money on the weekend instead of searching out free things to do lots of work to be done here.

Partners budget - I don't know, it's hers to do as she pleases however there is always the odd thing that gets added to the debit card. We need to sit down and sort all this out, hopefully it'll give us a reality check.

Thank you for your comments, I will take what you have said on board.