Newbie with SOA Questions

Drawingaline

Yes, sounds like you need to focus on budgeting. I use You Need A Budget (YNAB) and am loving it. You can set catagories, and put money aside into them while keeping the actual money in your normal bank account. For the first time I have 'budgets' for things like Xmas, haircuts, medical items etc. It's been a revelation for me. It's not for everyone, it is a subscription I paid for the year and now have a 'budgets' savings next year's payment. There is a month free to try it out and it takes a little getting used to but there are loads of tutorials on YouTube and if I can work it anyone can!!!

Like I said it's not for everyone, other people have success opening a few online savings accounts linked to there bank account and transfer money across on payday etc but it might be worth a look.

Good luck, it sounds like you want to make the change.:T

Jolin

EssexHebridean,I'm embarrassed to say I don't know what my money goes on in that I feel I have nothing to show for it. I squander it,I don't drink, smoke, gamble, socialise much or go out for meals nor do I have any expensive hobbies. At one point,I did go through my online banking and add up all my supermarket transactions and I had spent £400 in one month. That was eyeopening so have majorly tried to reign this in and use budgeted cash instead of my debit card and when its gone its gone. I'm having difficulty copying the SOA form on the ipad so will do it again on the laptop.

EssexHebridean

Jolin wrote: »

EssexHebridean,I'm embarrassed to say I don't know what my money goes on in that I feel I have nothing to show for it. I squander it,I don't drink, smoke, gamble, socialise much or go out for meals nor do I have any expensive hobbies. At one point,I did go through my online banking and add up all my supermarket transactions and I had spent £400 in one month. That was eyeopening so have majorly tried to reign this in and use budgeted cash instead of my debit card and when its gone its gone. I'm having difficulty copying the SOA form on the ipad so will do it again on the laptop.

Two words - SPENDING DIARY!

Go grab a notebook from somewhere - or just a sheet of paper if you have no notebooks about - and start writing down everything you spend on. Stop using your debit card, contactless or ApplePay for purchases - as you say take cash out to a budgeted amount and use that instead.

If you find yourself tempted to buy something stop and ask whether you need it, and if the answer is no, the next question is "Can I afford it" - currently the answer to that is going to be a resounding no also. Once you get back on track and get your debt cleared then a treats budget will probably help you.

Jolin

Drawinaline Thank you. I do want to change and coming on here has been very insightful. The crazy thing is,I do have a budget which consists of me adding up all my outgoings then thinking whatevers left is mine to spend as I please,time to grow up. I'm 37 afterall!

Jolin

EssexHebridean I've started one Last month was the first month in forever that I got to the end of the month and had money left in the bank and I was able to clear a chunk of debt. When I got my £1000 compensation for my flight delay in,I paid it off my credit card straightaway though will admit part of me wanted to only use some of it for that and spend the rest on frivolities.

enthusiasticsaver

I agree with EH that it sounds like lack of budgeting is letting you down and you lurch from one large expense to another whether it is a holiday, Christmas or unexpected bill. If you spend regardless of income (£400 on groceries!!) then eventually the money has to come from somewhere and usually it is debt. From the sound of it your debt is manageable now so get a grip and sort it out going forward.

First spending diary is a must

Second open savings accounts for emergency, Christmas, holidays, car and house repair fund.

Third do a spreadsheet or use pen and paper to work out your income and expenditure (or post an soa here) and look to cut costs as much as possible to get rid of the debt asap.

Jolin

enthusiastic saver, the £400 on groceries is even worse when you take into account that my household consists of only myself and my 14 year old :eek:

You have described me to a T, I do lurch from one expense to another and only look at the month ahead when I sit and do my finances never the bigger picture. I've cut my outgoings down by getting rid of Sky TV last June saving £30 a month and in December,I got my prepayment meters removed ( I've bought my council house and they were in when I started renting) and standard ones put in so I could access better gas and elec tariffs. My friend is a mortgage adviser and saved me 50 quid a month on my mortgage yet I still had to put £600 onto my Very account to cover Christmas. Its actually mind boggling.

LabRatty

Hi Jolin,
I found that one of the by-products of a spending diary, analysis of past spending using statements or even a bank reconciliation is that you are immediately more aware of spending and that in itself can rein in the frittering tendency. It's also great to be able to pay into an emergency fund for added peace of mind - particularly as you're a house owner.
I think that often we don't realise how much overspending is down to habit as much as anything else and beginning to learn new habits is key.
All the best,
LR