I Can't Work This Out

C_Ronaldo

Have you checked to see if you can get car insurance, house insurance, house contents, broadband, mobile phone bills any cheaper, do you have cable/sky tv if so have you thought about getting freeview,

DickDastardly_2

Just to clarify a bit so you may see why I am going nuts here:

1. My wife and I have family finances, i.e. we are all in one pot, no seperate accounts, etc.

2. We have a One Account and nothing else. Oour motrgage through this is roughly £700 a month and as everything varies with what's left in the account.

3. My income is paid weekly or two weekly or monthly dependent. It various job to job. I dont run a business merely sell my skilled labour. I get paid part-tax deducted, I have to put by more and add national insurance which this stinking government makes the self-employed pay twice, thanks.:mad:

4. I refuse to have direct debits. Sure they discount you 1p a year, but then they have your money early! Last time we did this our accounts for electric and water built up a lovely surplus which was earning those companies money, so we went back to paying for just what we have used and keep that money in our account not theirs.

5. Electric bill and water bill are variable but I could take a guess at. Rates are fixed but only for the year cos another group of highwaymen, they increase annually. Phone is combined with internet, just done and is also variable again only a guess at what it would be each month.

6. Only got FreeSat, so no costs there. House insurance paid annually in cash. Life insurance paid monthly and that is fixed. TV licence paid annually.

7. Cars - we need two. I use mine to get to and from work and it is also my 'hobby' and I would rather live in it than lose it. It is a classic car, cheap insurance, and although requires constant attention, I do all the work myself and the costs so far this year are LESS than our 'normal' car which is 7 years old and knackered. Currently this year my classic has cost £1700 which includes all fuel, tax, insurance MOT, maintenance and £600 on a major chunk of one-off restoration which can be discounted in terms of 'running' costs, also included is tools, consumables, everything that car has cost to the penny - if I smoked 20 fags a day at £4 a pack I would have spent £1120 so far this year, so not bad by comparison - I dont have any other vices! These costs will also decrease year on year as I cath up on and restore further, reliability increases etc. The other car, a 7-year old eurobox is serviced and MOTd all in one every year. It is used by my wife to run around as we live in a very small town with no major facilities, so shopping is all a car ride away. At a push it could go, but the savings are miniscule £1225 (includes fuel, servicing MOT, insurance and tax) maybe a year?? This would then have to be spent on grotty public transport, so not really saving a great deal I wouldn't think.

8. My wife has recently started the shopping online to a fixed price leaving a small budget each week for fresh fruit and suchliek. So far this has worked very well (1st month!) and has cut our bill right down.

9. I have used the bills thing and we are on the cheapest tarrifs we can get for utilities, water and such.

10. We have been doing bits to our house wich it desperately needs and I know this has taken a small percentage of earnings, which I suppose add up.

11. Days out are generally cheap. We joined as a family a local steam railway (I like trains!) and we normally end up there on massivley discounted travel tickets and take a packed lunch. We occassionaly have a take away and occassionally watch a DVD. We do not live the high life.

I fully admit that we must be spending too much, but it is not frittered away on crap and beer! Everything we buy we need or improves the home, etc, so it is getting very frustrating - not because of the lack of luxuries, but the fact that ends still dont meet!!:(

What I need is a way to get things straight and I just cannot see how to do it! I have tried writing everything down which just ended up depressing us and not really helping to avoid anything. To be honest I think we are living in advance of our wages and it is making it impossible.

fletch3163

Hi there

Although not a MFW I just had to respond because your sheer frustruation is palpable. Your feelings are coming across very well.

By your own admission your sums don't add up. You say you can't budget for the future but you can check the past can't you? Why don't you do that? Post your SOA based on last month and the month before. You don't have to say Lender/Provider names, etc, thus keeping a level of "secrecy".

I have never posted a SOA but have just come from online banking totally deflated. I've brown-bagged all month, scrimped and saved (I thought), only to find DH and I have spent about £300 without even noticing. Am furious!

I've seen people do wonderful things with SOAs which look fruitless and hopeless. What do you have to lose? Your stroke-inducing fury, that's what!

Good luck whatever you do but I'll hang around to see what you do.

DickDastardly_2

SOA?? What is that?

fletch3163

Statement Of Affairs. It's the lingo used on this site. It's where you list all the money in and ALL the money out, right down to the stamps for the birthday card. It's an eye-opener! I don't think it's as much about giving anything up but being aware of where your money is going. It will liberate you, I'm sure!

I've seen people over on DFW who have been faced with a HUGE mountain of debt and have dilligently acknowledged and worked through it. Some if it is truly amazing. Inspirational. Have you screamed AAAAARRRRRGGGGHHHH yet?

DickDastardly_2

My bank statement logs everything and out and as I said we have done this in the past, but I fail to see what it does apart from making us depressed. Where do I start? What does it do apart from make me go aarrrgghhh!!!???

SJ1

I think that the post by DitheringDad is excellent advice and I would read it carefully if I were you. It is very hard when you are spending more than you earn and frustrating but it is all about looking closely at what you are spending, I keep a weekly diary on what goes out and sometimes it shocks me how much I can spend on just food!

Then, after you have looked and got depressed you need to try to set a budget. I know you are not certain, day to day, what you are going to earn that month - but if it was approx £30k last year then after tax your monthly income should be about £1,800. You must try to take out tax and NI, its a nightmare but necessary. Then take your mortgage out - say £700 and that leaves you with £1,100.

- you then need to work out at least an average monthly cost for electric, gas, water, council tax, telephone, mobiles - all those things you have to pay for and take that off too. I know DD's mean that the companies get things earlier but you don't get any unexpected surprises month to month and if you are budgeting that is essential.
- that will leave you with 'what is left' and I would try to take out a little of that - even if it is £100 to save for holidays etc and for those unexpected costs that will occur.
- This will leave you with what you have to live on for the month for food, petrol, cash, eating out and other bits and bobs.

This will probably be a shock and to shock yourself even more you could go through the last month's bank statement and see how your spend compares to what you should have spent. Its then worth reviewing to see what was essential and what wasn't ...

I think that the thing you are finding frustrating is in fact the problem. You don't know what your income is which is causing you problems as you can't budget but if you don't budget then you have nothing to aim. Therefore at least just try to estimate even if you are doing it over an expected years income and then maybe review this month to month to ensure you are on target.

Hope it helps.......

SJ

SJ1

I think that the post by DitheringDad is excellent advice and I would read it carefully if I were you. It is very hard when you are spending more than you earn and frustrating but it is all about looking closely at what you are spending, I keep a weekly diary on what goes out and sometimes it shocks me how much I can spend on just food!

Then, after you have looked and got depressed you need to try to set a budget. I know you are not certain, day to day, what you are going to earn that month - but if it was approx £30k last year then after tax your monthly income should be about £1,800. You must try to take out tax and NI, its a nightmare but necessary. Then take your mortgage out - say £700 and that leaves you with £1,100.

- you then need to work out at least an average monthly cost for electric, gas, water, council tax, telephone, mobiles - all those things you have to pay for and take that off too. I know DD's mean that the companies get things earlier but you don't get any unexpected surprises month to month and if you are budgeting that is essential.
- that will leave you with 'what is left' and I would try to take out a little of that - even if it is £100 to save for holidays etc and for those unexpected costs that will occur.
- This will leave you with what you have to live on for the month for food, petrol, cash, eating out and other bits and bobs.

This will probably be a shock and to shock yourself even more you could go through the last month's bank statement and see how your spend compares to what you should have spent. Its then worth reviewing to see what was essential and what wasn't ...

I think that the thing you are finding frustrating is in fact the problem. You don't know what your income is which is causing you problems as you can't budget but if you don't budget then you have nothing to aim. Therefore at least just try to estimate even if you are doing it over an expected years income and then maybe review this month to month to ensure you are on target.

Hope it helps.......

SJ

donstermonster

DD - Try selling your PC and paying the money off your mortgage

This will save you on electricity and will stop you getting frustrated by replies from all of us

DD - I am only joking, not making light of your predicament just trying to make you smile

DM

hostertlady

you have got to do the 'three' account thing.. i have done it for years,, account 1 ( bill account): all my direct debits and standing orders ( put enough in this account to cover all of these.
account 2: (save account!!) even if its only £10 a week( thats £520 a year and once you start doing it you wont miss it.. if you can manage £20 a week that's even better)
account three: the rest of the money is here for you to do as you please..