Want to be a DFW

VirgoWhite

Hi All, This is my first ever forum that I have joined and my first ever post I have ever made. I feel a bit silly trying to talk about my issues with the web but I am hoping that someone (anyone?) will be able to give me some advice and help me to form some good habits.

My current situation: I am a working professional in London. I have a good job, I rent a flat from family (cheap rent) but spend an insane amount of money on rubbish with nothing to show for it except 3 maxxed credit cards and an overdraft that is down to 0 at the end of every month (sometimes more in which case i'll use our joint account though i always put money back in that i have used).... My husband is the antithesis. He is a fantastic saver, really good with money and is in disbelief at how I don't seem to have any savings or ability to stop spending. He has tried to help but I feel so inwardly embarrassed that I am so rubbish that I end up getting defensive and we end up arguing. I also want to be able to do this independently as I feel like its a basic life skill that I am missing... At the beginning of the year I decided to try and look at how to start clearing my debt so I downloaded my bank statement for the last year (1 Jan-31 Dec) and was shocked at some of the numbers...
I have tried cutting back on eating out, food for lunch, coffee, entertainment, socialising but I am in no better financial state and I don't really know where to start.... I have filled out a SOA (below) based on last month (March). I fully expect to be judged here as I know its ridiculous and there are clear areas that I can cut back. As I type I know I sound like an idiot but if anyone has any advice on clearing credit card and overdraft debts (which priority, how much each month etc) and how to save I would be really grateful as i'm pretty clueless and i really want to take control before we have any serious responsibilities (We're going to be trying to buy a house in the next year and I really want to start saving in general). What I have not declared is around £35,000 joint savings we have that we mainly got as wedding gifts but neither of us touch.

Thanks in advance

Household Information
Number of adults in household........... 1 (I have based this on me, not both of us)
Number of children in household.........
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 2327
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2327

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 600
Management charge (leasehold property).. 0
Council tax............................. 45 (1/2 the total bill, my husband also pays half)
Electricity............................. 20 (Gas and electric are paid together - (1/2 the total bill, my husband also pays half)
Gas..................................... 0
Oil..................................... 0
Water rates............................. 20 (1/2 the total bill, my husband also pays half)
Telephone (land line)................... 0
Mobile phone............................ 55
TV Licence.............................. 10 (1/2 the total bill, my husband also pays half)
Satellite/Cable TV...................... 25 (1/2 the total bill, my husband also pays half)
Internet Services....................... 0
Groceries etc. ......................... 305 - this is 1/2 household and half lunch at work + coffee
Clothing................................ 255
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 140
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 25 - contact lense subscription with boots
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 175 - this was high - we had 2 weddings, 2 family birthdays and a christening
Haircuts................................ 0
Entertainment........................... 433 - eating out, drinking, cinema, audible (since cancelled), netflix
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 2208


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0
No Secured nor Hire Purchase Debts

Unsecured Debts - i pay 50 to all my CCs each month, and then use them when i run out of money... I clear my overdraft every month and then go back into it. I have a loan from about 5 years ago from my husband - I pay him around 50-150 per month, i never pay nothing on any of these.
Description....................Debt......Monthly...APR
Aqua - had for 2 yrs...........300.......50........39.9
HSBC - had for 10 yrs..........500.......50........28.9
Barclaycard....................1471......50........25.9
Loan from husband..............2750......50........0
HSBC Overdraft.................500.......500.......19.9
Total unsecured debts..........5521......700.......-

Monthly Budget Summary
Total monthly income.................... 2,327
Expenses (including HP & secured debts). 2,208
Available for debt repayments........... 119
Monthly UNsecured debt repayments....... 700
Amount short for making debt repayments. -581

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -5,521
Net Assets.............................. -5,521

ReadingTim

It's basic self-discipline - stop buying junk and rubbish you don't need.

You have to learn to say "no" to buying whatever it is, just like you have to say no to that extra cream cake, pint of beer or glass of wine, cigarette etc.

National_Debtline

Hi VirgoWhite


Welcome to the forum, and well done on taking steps to try and deal with your financial situation. I think you are already aware that there are areas you can cut back on your statement of affairs (SOA). And that really is going to be essential so you can pay your debts off and start saving.


I'd suggest you start with a spending diary. Lots of people find it helpful and it really helps you keep track of exactly where your money is going. Then amend your SOA so you can cover your normal outgoings (without relying on credit) and a reasonable payment towards your debts. You need to then stick to those figures.


As a minimum you need to cover the contractual monthly payments on your debts. In terms of paying above that, concentrate on the debts with the highest rates of interest first. You could also consider using the savings to pay back your debts but there would be a number of factors to consider, including whether you earn more interest on your savings than you pay on your debts. Take some independent financial advice before making any decision on that.


Good luck with it all


Susie
@natdebtline

horseygirl2014

Well done on you light bulb moment, and making the changes you have.
Looking at your SOA, there are a couple of things that come to mind

Mobile phone - is this a contract and can you reduce this. If its for work (?) then is it tax deductible or even better will work pay for it - if not - shop around for a better deal.
Your grocery bill is high - very high. this can be cut in half as there are only two of you - and id personally be taking a flask of coffee and some sandwiches with me to work, rather than paying for them.
Clothing - 255 per month, 3060 a year!! - this def is an easy area to cut back on. there surely must be clothes that you own that could get more wear - and if you don't use them/don't like them/ don't fit into them anymore -consider selling some of them to recoup some of the money that is sat on your hangers.
There are other areas you could shave some pennies off, but i think these would give you the quickest and best results - i think some of your struggles will come from braking the spending habits. Its not easy, but it will become very rewarding

Good Luck x

horseygirl2014

As a side note - one month without buying any clothes will nearly wipe out your aqua debt. worth thinking about. x

Sncjw

Loan from husband/ can I ask what this is for. If it!!!8217;s for house related stuff could that not be wiped.

£255 on clothes. Surely your wardrobe must be bursting.

Potbellypig

A good 3 months and you could literally wipe out your overdraft, Aqua and HSBC credit card.

redpete

Groceries are high, clothing is very high, entertainment is ridiculously high, but I think you know that.

No real tips I can think of to help with self-discipline - maybe thinking about how this cup of coffee, or this skirt, or this night out is all making it less likely that you'll be able to buy your own home. Also think about how the unequal attitude to money will affect your relationship, if not now then it will once you need to work together for something (like buying a home).

Lauralou79

A few years ago I was much like you, I spent and never really saved. ( I earned half your income tho!) My partner is sensible with money and made me realise I needed to sort myself out!

I had a few thousand in card/overdraft and loan so paid these off and started properly saving ( not just for hols) I didn't have as much disposable income as you so it can be done with adjustments to lifestyle but so you still feel like you are living.

If you buy coffee/lunch every day take your own and maybe buy it once a week as a treat. When you go for drinks/meals choose cheaper places or cheaper food/drinks options. Use voucher sites like vouchercloud etc. Have a catch up with friends at each other's houses. Shop in cheaper supermarkets.
Sell stuff it'll be surprising what people actually buy on eBay/Facebook/shpock type sites and use that to pay off debts faster. It all helps.

I'm so different with money now, I overpay my mortgage, save regularly and am very aware of what I'm spending. I still live, go out, see friends, treat myself. But way within my means. It's worth it to not be in any debt apart from my shiny new mortgage. Good luck

System

Hiya.
Have you come across YNAB yet? It's a budget tool and ethos around budgeting which made a fantastic difference for me. It does come with an annual fee but it more than covers itself for me by helping me make best use of funds. They do a free trial and a whole raft of free training and it comes with a phone app.

I'd also recommend starting a diary on here as it might help you as you get going. Good luck xxxx

Scilly

if it helps, use the 'Daily Budget' app, it's free. I give myself a daily budget & pop in any spending so I can see exactly where my money's going. Also, it stops me from spending over my budget unless I've saved it from the previous few days... It's helped me immensely! Good luck!