Struggling to budget

loey93

HI Everyone...

I think this is under the right section..

Basically I am REALLY struggling to budget and control my finances... I seem to spend the majority of my wage within the first 2 weeks of getting paid and then the remaining 2 weeks I am left with pittance ... I'm really concerned as I am currently saving for a house and I know when I move out I'll be left with even less spare money. If I'm struggling to manage my money now when my bills are so little I have no hope to manage it when I move out!

I was just wondering if anyone has any tips they can give to me so I can control my finances better?

Dobbibill

You need to create a SOA and be honest with yourself.

Keep a track of all your spending, even down to a cup of coffee at work. Use cash if it's easier to track.

Allocate yourself a realistic budget for spending and move your savings at the beginning of the month when you get paid....don't wait to see if you have anything left

Livelongandprosper

As above, a SOA and be brutally honest

A spending diary will help. Every penny you spend, you write down, that's every single penny, right down to 10p in a charity box, every mars bar when you fill up with petrol, every single penny for a month

Once you have that honest SOA, then you can start to budget

loey93

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1450
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1450

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 285.1
Rent.................................... 120
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 100
Petrol/diesel........................... 100
Road tax................................ 1.6
Car Insurance........................... 90
Car maintenance (including MOT)......... 0
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..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 1011.7


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 16500....(285.1)....0
Total secured & HP debts...... 16500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................200.......5.........19
Ikano Loan ....................1980......55........0
Total unsecured debts..........2180......60........-


Monthly Budget Summary
Total monthly income.................... 1,450
Expenses (including HP & secured debts). 1,011.7
Available for debt repayments........... 438.3
Monthly UNsecured debt repayments....... 60
Amount left after debt repayments....... 378.3

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -16,500
Total Unsecured debt.................... -2,180
Net Assets.............................. -18,680

loey93

I also put £200.00 away each month in a HTB ISA

Dobbibill

Out of what you have left, what do you spend this on?

You have nothing in the Entertainment category, so are you using it for this?

I would clear the Credit Card ASAP - your savings won't be earning you 19%.

loey93

Yes I have paid £85.00 off my credit card bill this month, so I will get that cleared completely next month.

Yes I haven't put anything in the entertainment because I don't allocate anything for entertainment .. Whatever I have remaining after bills and saving I just spend on anything .. But the problem is I spend within 2 weeks and then I am stuck the other 2 weeks with barely anything to get by. It like I can't control what I am spending money on.

teddysmum

You are really going to struggle with a mortgage to pay, along with the other bills currently zero, which go with home ownership and even with renting.


£100 a month on clothing is where you can make a huge cut in expenditure.

ThePants999

You know where your money is SUPPOSED to go - that's the budgeting bit practically done. Sounds like your actual problem is KEEPING to the budget. If that's genuinely a problem for you, take cash out with you and leave your cards at home so you can only spend what's allocated.

[Deleted User]

You can cut your mobile phone bill down from £45 by going Sim only.

You also say you save £200 a month but the savings are not listed under your cash assets.

I do fear that a saving of £200 a month is way short of what is required to get a property tbh the deposit will take you forever to save and then house prices will have risen again,

Shakin_Steve

Just a couple of points. What is 1.6 for road tax? And, if you have petrol/diesel to pay for, how come no maintenance/repairs/MOT?