23, IVA & just learning to budget

zippygeorgeandben

The £280 you say is to spend on crap. Your call however I would account for all this. Let's say 9th March, you go out to the pub, £60 gone. You don't know what's going to happen between then and next pay day. Do you 'borrow' from the next payday and in your head write a mental IOU?
Like your mum said, you've been winging it for far too long! Need to change your mindset, pronto!

elsien

No, I get that. All I'm saying is that after a couple of austere months to get back on track if that's what suits you, then build the car servicing, a bit for clothes and presents, the cats emergency fund, a bit of a holiday fund or whatever into a proper budget before looking at what's left for the "go wild" stuff.
Once you've got to that stage, it can help to plan the basics over a year instead of month by month. The problem with all or nothing is that is gets hard quickly, and people can get disheartened and give up more easily.
Well done for getting a grip now though, and added congratulations on losing the fags.

Rocketlolasaves

I literally just got the TV license two days ago my mum advised me to because they sent a letter wanting to see if I was in on the 6th and she scared me livid.

Completely learnt. I got a £10000 loan out at 28.8% Apr with lloyds when I was 18. That's the reason for the IVA.

zippygeorgeandben

Do you have anything to show for that £10k or was it just impulse/splurges?
What would the 23 year old you say to the 18 year old now before taking that loan?

elsien

I wouldn't give up my TV licence. I don't use streaming services or catch up on the tv and I like the BBC channels. Whether to give it up or not depends very much on your viewing habits now you need a licence for iplayer.

Rocketlolasaves

I never take from the month to come ever. I only now have a couple of drinks at the pub and me being in hospital and housebound for three weeks has taught me a lot too. I've had a lot of time to consider what I enjoy and what I'd like to spend money on like clothes and house bits etc. Only last month I went on a few nights out and spent but now I'm trying to be strict and say if I want to go out I'll have to stick within my budget of the "spend on crap" fund.

I'm now more interested in having the emergency fund, savings etc so I'm prepared for life's unlikely events but of course don't want to be chained to my house. Again a lot of this has to do with being poorly too. I think the way I'm now looking at things is if it's not in the budget it's not happening. There's tons I can do for free like dog walking at the rescue centre and walking etc.

Jeez none of this comes to mind when I sat down last week trying to write a budget.

Rocketlolasaves

I actually have nothing. Oh wait no I have my sofas but the rest was to help an ex. 18 year old me was influenced by other people and had no clue. Me today wouldn't dream of anything like that and would like to think I would never end up in that situation again.

elsien

Don't get disheartened. There isn't a one size fits all answer - what works for some doesn't work for others.
And a budget is always a work in progress that you can tweak as time goes on and you work out what's important for you for where you are in your life at the moment. That's why the nice stuff is in there as well, if you can afford it.
You certainly sound like you have the willpower when you put your mind to it.

marcsshell

Just wondering how you have managed to run up 2 CC debts whilst in an IVA?
Taking any further credit whilst in an IVA means that you have broken the terms of it which in turn means they can revoke it.

Rocketlolasaves

One was an existing one from years ago that they didn't put in the Iva. My terms state no further credit more than £700 so I'm within my terms of my contract.