Please help me get my head around this.

Drawingaline

Was just coming on to suggest you look up worrieddan diary, as this posts is almost identical to his posts last year!!!

karencks

Drawingaline wrote: »

Was just coming on to suggest you look up worrieddan diary, as this posts is almost identical to his posts last year!!!

Yep, see post #40. Had some supportive words from Dan.

Feeling more positive today!

karencks

Having a bit of a wobble today. I’ve been feeling more positive but today I feel teary and scared.

Scared at the level of our debt and the mess I’ve created and scared at the fact that it’s going to take years to our right.

Annoyed and teary that I allowed this to happen

Willing2Learn

Hi Karencks,

Try not to worry too much. It takes a little while for a new budget to kick in and for any progress to be seen. But the fact is that you have made progress and are now actively looking to change things around. It's all about little baby steps...

benbenandme

The fact that it bothers you so much and the fact that you have still stuck around here and asked for support speaks volumes - you can do this! It isn't going to be an easy ride but it will become a way of life. You need to break it down into bitesize chunks so that you can see the small victories along the way x

karencks

Ok, I have had a hot shower, food and glass of wine and have picked myself up. No more self pity - it's not helping and it won't get me where I need to be.

I have looked at my SOA again and have tried to be more realistic. Still need to look at my energy tarrifs but that will come later .


I have included amounts for clothing, presents etc. Do these look realistic

I have also include an overpayment that means that we will be paying 2K per month towards the debts

No idea what I should budget for entertainment. This has been our main area of waste over the years so I think that I lost touch with reality when it comes to this area of spending. Based on our numbers, what would be a suitable amount of fun money?


r of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 2

Monthly Income Details
Monthly income after tax................ 1600
Partners monthly income after tax....... 3450
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 5050

Monthly Expense Details
Mortgage................................ 518
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 50
Gas..................................... 67
Oil..................................... 0
Water rates............................. 60
Telephone (land line)................... 15
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 25
Groceries etc. ......................... 250
Clothing................................ 50
Petrol/diesel........................... 175
Road tax................................ 12
Car Insurance........................... 100
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 120
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 10
Life assurance ......................... 37
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 50
Total monthly expenses.................. 1861


Assets
Cash.................................... 14800
House value (Gross)..................... 205000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 225800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 72580....(518)......1.75
Total secured & HP debts...... 72580.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
All debt minimums..............60790.....1387......0
monthly overpayment............0.........613.......0
Total unsecured debts..........60790.....2000......-


Monthly Budget Summary
Total monthly income.................... 5,050
Expenses (including HP & secured debts). 1,861
Available for debt repayments........... 3,189
Monthly UNsecured debt repayments....... 2,000
Amount left after debt repayments....... 1,189

Personal Balance Sheet Summary
Total assets (things you own)........... 225,800
Total HP & Secured debt................. -72,580
Total Unsecured debt.................... -60,790
Net Assets.............................. 92,430

benbenandme

Well done :T :T I would suggest you try to stick to that for September and make sure you write all your spends down, then at the end of the month *in theory* you should have £1189 left over, however in reality that may be quite different and that's okay ... then you can review what worked, what didn't and make adjustments where necessary. But, you will have thrown an extra £600 at the debts next month and you will have a clearer idea of what is do-able.

It's a bit like being on a diet - small changes (drinking more water, walking more etc) will all add up to make a big difference but if you try and do everything overnight you'll get fed up and give in. This is no different. You all need to be on board with what you are aiming to achieve, you all need to be honest about what works and what doesn't for your family if you are to stick at this x

tealady

Have to agree with Benbenandme, babysteps are the way forward.
Regarding entertainment, try having a look at what you spent money on and why.
For instance if you spent X going to the cinema with friends ask yourself was it an enjoyable day and if so could you do it cheaper (eg hire a film and have home made popcorn)
That way you can see if what you are doing is enjoyable or just a way to keep boredom at bay.
Have to say one of the best times I had with friends was an evening playing board games and eating home prepared food. Lots of good memories for all and great for those on a budget.
Enjoying yourself on a budget can be a challenge at 1st but when you realise what you can save it can encourage you to be more imaginative re what you do. And dont forget the smug feeling when your friends say how much they enjoyed their time with you but you don't let on how little it cost.
Good luck with the journey

Tjane

Hi well as they you have done the hardest bit by recognising the problem and tackling it head on. Your car insurance looks quite high to me. You can cancel and renew with another company part way through the policy. Rather than seeing this as a negative see it as a challenge.

Try and do something different every month to save some money otherwise it can be overwhelming. here are some suggestions.

Look at the amount of debt at the end of each month, if you have reduced it by £500 this month, aim to reduce it by £510 next month. I like to see how much is left to pay on my mortgage very few months and get great pleasure from seeing it reducing.

You can turn it into a kind of hobby by finding different ways to reduce spending. I would definitely do the car boot sale. Loads of people do car boot sales virtually every week.

To decide how much for entertainment, change the way you entertain yourselves. Rather than eating out or cinema, look at taking up something like cycling if you have bikes or hill walking. These have obvious other benefits. Have one bigger treat a month eg your trip to the cinema. It then makes it more of a treat, doing it all the time means it becomes normal. Look for bargain cinema vouchers on things like groupon and wowcher.

Try not spending for 5 days a week and only do your spending 2 days a week. This will help reduce unnecessary supermarket trips and buying magazines and coffees etc.

Raid your freezer and cupboards and work out how many meals you can make from the food you already have that means no spending.

At the extreme end of the spectrum there is a blog or site where an amazing lady shows how you can feed a family for £1 a day. Amazing isn’t it.

Write letters photos and tips etc into magazines like CHAT and Take a Break and earn anything from £25 to £75 at a time.

I hope I have not overwhelmed you but I hope some of these tips help.

Blog your journey and try and make some money from it.

Tjane

PS if you want more hints and tips just ask