Where am I going wrong?

lotteryman

Hi Lauren,

Not sure if you are using any budgeting software to help you track your spending. If not i have an easy to use Excel book that you could use. If you want it just PM me and I'll send it to you.

datlex

No TV licence? As for receipts you can use apps like Receipthog to scan these and then be able to see what you spend at various shops. It has the added advantage that once you have scanned enough they can get you a variety of vouchers including love to shop, paypal and amazon.

My_Own_Back_Door

Hi Lauren


Good luck with paying your debts!


You mentioned you overspent at Xmas, do you have a separate saving pot for that or is that included in your £10 presents pot? I opened a Xmas savings account with a Credit Union which gets paid straight from my salary and is a lifesaver. I'd recommend that.


I wonder if your food spend is an underestimate, it seems low. Your spending diary will show if that needs increased.

ReadingTim

There are 2 sides to this equation: what goes out and what comes in.

If you can't significantly reduce what goes out, you need to increase what comes in - a 2nd job, or better paying first job. Your monthly net pay suggests a gross annual salary of £16-17k per year, which is just over half the UK average salary of £27k.

Given you're running a house and car on that wage, you're not doing too badly, but it's always going to be a struggle, and a couple of big bills could tip you into a hole which is very difficult to get out of.

I'd be trying to improve my job prospects or earning potential rather than excessively counting the pennies, unless your 2nd SOA really bears no relation to reality, and you have no idea where the money's going...

EitherWalnut

datlex wrote: »

No TV licence? As for receipts you can use apps like Receipthog to scan these and then be able to see what you spend at various shops. It has the added advantage that once you have scanned enough they can get you a variety of vouchers including love to shop, paypal and amazon.

No, I don't have a TV licence - I can honestly say I never watch TV! Mostly Netflix and then occasionally 4oD. I'll check out that app - although I'm not sure how much will actually go through it since I tend to shop locally or or Amazon for anything I can't get in the town!

ReadingTim wrote: »

There are 2 sides to this equation: what goes out and what comes in.

If you can't significantly reduce what goes out, you need to increase what comes in - a 2nd job, or better paying first job. Your monthly net pay suggests a gross annual salary of £16-17k per year, which is just over half the UK average salary of £27k.

Given you're running a house and car on that wage, you're not doing too badly, but it's always going to be a struggle, and a couple of big bills could tip you into a hole which is very difficult to get out of.

I'd be trying to improve my job prospects or earning potential rather than excessively counting the pennies, unless your 2nd SOA really bears no relation to reality, and you have no idea where the money's going...

You make a valid point about my income in relation to the UK average - although I could probably count on one hand the number of people I know that are actually on a salary anywhere near that! My annual salary is £16575 - NLW on a 42.5hr week. I'm a dispenser in an independent community pharmacy so the prospects are somewhat limited. I'm working on my technician's qualification at the moment, and once that's done I'd hope to be at the £18k pa mark.
I know that may not seem enough for some people, but as you say, I manage to run a house and vehicle on that salary (which is why it drives me bats when people say it's impossible to survive on NLW) with some money to spare. I can walk to work, meet my mum or sister for lunch, pick my nephew up from school if I need to. I enjoy my job and the fact that I'm interacting with the local community (village life - everybody knows everybody). I have had more lucrative jobs in the past, and probably could find another higher paying job, but it might entail a two hour commute to a job I don't even like. So, I guess what I'm saying, is that my current "perks" are worth the lower income. All the more reason for me to get a handle on my spending and figure out where I'm sending that extra £50+ every week!

Apologies for the waffly post. Thanks for all the replies so far - think you've all helped me realise that I've been a bit ignorant about my spending!

Nonnadiluca

I use Spending Tracker app on my phone, ( the one with the brown wallet logo). It's free easy to use and, because it's on your phone, spends can be entered immediately - no more getting home and forgetting what you've spent. I have 'accounts' on mine for shopping, other spends and the joint account, but you can have as many as you like. It really helps me to keep track of my spending.

pmlindyloo

nicmalauren wrote: »

No, I don't have a TV licence - I can honestly say I never watch TV! Mostly Netflix and then occasionally 4oD. I'll check out that app - although I'm not sure how much will actually go through it since I tend to shop locally or or Amazon for anything I can't get in the town!



You make a valid point about my income in relation to the UK average - although I could probably count on one hand the number of people I know that are actually on a salary anywhere near that! My annual salary is £16575 - NLW on a 42.5hr week. I'm a dispenser in an independent community pharmacy so the prospects are somewhat limited. I'm working on my technician's qualification at the moment, and once that's done I'd hope to be at the £18k pa mark.
I know that may not seem enough for some people, but as you say, I manage to run a house and vehicle on that salary (which is why it drives me bats when people say it's impossible to survive on NLW) with some money to spare. I can walk to work, meet my mum or sister for lunch, pick my nephew up from school if I need to. I enjoy my job and the fact that I'm interacting with the local community (village life - everybody knows everybody). I have had more lucrative jobs in the past, and probably could find another higher paying job, but it might entail a two hour commute to a job I don't even like. So, I guess what I'm saying, is that my current "perks" are worth the lower income. All the more reason for me to get a handle on my spending and figure out where I'm sending that extra £50+ every week!

Apologies for the waffly post. Thanks for all the replies so far - think you've all helped me realise that I've been a bit ignorant about my spending!

Your mortgage is very low. Is this interest only or did you have a hefty deposit? Rent/mortgage for most people would mean that they would struggle with your salary.

Also your car costs are very low. Are they correct? The running costs do not seem to cover the cost of a MOT. Your insurance is also very low.

Do share how you have worked out these low costs as they may help other people struggling!

vickthestick

Is your house and contents insurance accurate? It's very very good if it is!

EitherWalnut

It’s all relative - I bought what I could afford on my salary. I bought my house (which was a repossession) for £61,000. As I mentioned in my OP, my vehicle costs are low because it’s a motorcycle as opposed to a car.

My insurances - I just shop around for each year using all the usual comparison sites (although last year the best deal was actually Direct Line as it turned out). Going through Quidco for insurance can also make a few pounds for an Amazon voucher as well!

pennystretcher

For electricity - spend a bit of money and replace the bulbs that are used most with LED light bulbs, you'll be surprised how quickly you save the money back. Also remember not to leave things on stand-by.

When I leave the house, I know there are five things left on - my alarm clock, fridge-freezer, router, boiler and my phone (I remove the handset from the charging base tho). My electricity bill is £17 per month even though I work from home quite a lot.

Apart from that - looking at your figures, once you get the IKANO loan paid off and clear your overdraft, you can then add say £50 to emergency fund and the rest towards the CCs...and possibly start small payment towards your loan from mum as well If you stick to the plan you'll be debt free in no time and then maybe start paying off your mortgage quicker?