Need to Fix my Finances

Hiddenidenity

You can really cut Xmas, for example I have 3 small ones, 8 years, 6 years and 3. I won't spend £300 in total for xmas for everything.

My kids get 'something they want, something they need, something to wear and something to read'

I came to an agreement with family we don't buy gifts, the children make small token gifts to close relatives (Homemade cards/cookies)

I don't spend any extra on Xmas dinner than a 'normal' roast dinner.

We have created some amazing memories doing activities that are free or really low cost, baking/movie nights when a movie is on normal tv, making cards/ making decorations/ going on winter walks etc.

I know it doesn't work for everyone but time and fun definitely means more to my smalls that what gifts are under the Xmas tree.

enthusiasticsaver

bilko89 wrote: »

I just love Christmas but like you say, is it worth starting off the year catching up again? No, it's not! I will certainly be looking at the amount I'm spending.

I'll get cracking on with my budget, allowing for those payments. Should I be building up an emergency fund at the same time? Is there a rule of thumb to how much of a fund I should build ( 2 months wages?) Thanks.

Well done for accepting what has been some harsh criticism re your Christmas spending plans. As chelseablue says depending on how old your kids are you do not have to spend £300 on each of them to give them a good christmas. You can do it within budget and next year from January save in a separate account for it. Why give yourself the stress of finding that sort of money when you don't have it?

The general rule with emergency funds is £1k is a good start as most emergencies can be sorted with that - an emergency house repair or car repair. You rent but you do have a car so I think aiming for £500 is a good start until the debt is gone. After that aim for 3 months expenses.

enthusiasticsaver

bilko89 wrote: »

It's something I taken from my mum and dad. Now I've had a LBM, it's something that definitely needs addressed.

They might have been able to afford it and nothing wrong with it if it is affordable. As you are behind with rent, council tax and debts you most definitely cannot afford it.

nkkingston

Did you partner get any advice about losing her job during maternity leave? It's possible it was all above board, but it's also very possible it wasn't, and it's worth checking out in case she was treated unfairly.

bilko89

nkkingston wrote: »

Did you partner get any advice about losing her job during maternity leave? It's possible it was all above board, but it's also very possible it wasn't, and it's worth checking out in case she was treated unfairly.

Thank you all for your replies. First port of call is Christmas funds! Next year moving forward, paying off debts and creating an emergency fund.

nkkingston, It was an accountant she worked for, apparently the company went "bust" but we later found out he was working out of the same office just under a new guise. She received some money but it was a pittance as she'd only worked there for just over a year.