Happy future starts now!

happy_money

Andyjflet wrote: »

Ive just applied for Christmas Casuals with my local sorting office, loads of jobs going for nights or weekend work. Look at Post Office recruitment

What a fab idea! Off to look that up now! Thank you!
I am currently doing nothing in my evening except for watching Netflix so can definitely do something more productive like this! :T

happy_money

Hello to anyone reading this!
I started this diary September last year and got sidetracked by life again! So I'm here to make a fresh start!
Unfortunately, I seem to have spent most of the savings I had built up so I am literally starting from scratch again.
I thought it would be best to write down all my expenses. I currently live at home so my outgoings aren't that much - but could be better!
The "holidays" are monthly installments/payments for holidays I'm going on later in the year. My sister pays for some of the Netflix account that we share so that's why it's at £2. I know my gym membership is a lot, but it's something that I love doing and pretty much go everyday so I won't be giving that up.


Monthly Income: £1,800
Monthly Outgoings:
Gym: £87.99
Phone (Handset): 66.45
Phone Contract: £31.60
Car Insurance: £141.47
Holiday 1: £88.89
Holiday 2: £191.67
Netflix: £2
Petrol: £80
Hair: £45
Music Lessons: £80
Food: £50
I also currently pay £100 a month to pay off my £3,000 credit card bill

I would like to save up the following:
1. Pay off £3,000 credit card bill
2. Save £5,000 for a car
3. Save £1,000 emergency fund
4. Save £50,000 for a house deposit
5. Save regularly into separate funds for a wedding, holidays and "fun stuff"

I'm not really sure where to start with the savings! I really do need to get a new car in the next couple of months depending on how much I can save/make extra cash!
How would people suggest I spilt my savings in to the different pots or is it best to save for one goal at a time?

Any thoughts and opinions are very welcome!
Thank you x

Sarahwithlove

Wow you have a lot of personal expenses. When do you stop paying for your phone? Gym and music lessons? What about your car insurance, do you have points or made any claims? It's very high for a monthly expense. 

GlendaSugarbean

Re the car, a) is it absolutely necessary and b) can you buy a reliable second hand car? Finance offers and leases seem to be a recipe for flushing money away!

Contract time left on mobile? Your monthly bill for the handset and the phone plan is eye-wateringly high. Check the MSE pages for good SIM only deals.

If you're serious about saving for a deposit, you are going to have to be absolutely ruthless with your spending. The holiday savings are also really high. Living at home is saving you a chunk on bills, so again you will need to think how you will cover these once you have moved out. 

Can you look for a cheaper gym? 

GlendaSugarbean

What I would advise is to track your spending and complete a full budget, even if it's only for you. You say you should be able to save, but you aren't. Where is that money going?

You also need to budget something for entertainment, presents, and an emergency fund so you aren't dipping into savings or the CC for unexpected expenses.

For tracking, I use YNAB which I like and usually has free trials. Lots of other options out there, including good old pen and paper or your own spreadsheet. 

Resources: check out Dave Ramsey, the YNAB blog and podcasts, also the Frugalwoods blog. 

Good luck! 

happy_money

Thank you @GlendaSugarbean and @Sarahwithlove for your advice - much appreciated!

I've had very expensive hobbies over the years and they took a huge chunk of money in the past.  I have cut down a lot to get to the bear minimum of spending I can get to right now.  My main concern is that I have no savings at nearly 40 years old!!! I've always seemed to be living pay check to pay check my whole life.  

I think most of my money goes on food, dinners out, coffees at work. So I have started taking my own coffee and food into work now so hopefully that will help.  I've decided to limit myself to £50 for the month for eating out with friends...I'm sure they will all understand that I'm saving for a house so am tightening the purse strings right now.
I'm also going to have a huge clear out this weekend and see if I have anything that I can sell to make a bit of extra cash to save 

Music lessons I have reduced to twice a month now instead of once a week so that halves my spending there to £40 instead of £80 a month.
Nothing I can do about the gym expense because of the style of training I do, I have to attend that particular gym near me.
I stop paying for my phone in October this year.

Yes my car insurance is really high and I don't know what to do about that?  Any advice what be appreciated!
I really do need to get a car, not an option not having one, but I am looking at a reliable second hand one rather than a lease. But I don't have any savings at all right now to pay for one, so maybe a lease would be better right now for me?

After all my bills and expenses come out every month, I have about £800 left over.  
I think the next few months, I need to put that into a pot for 'car fund' and then after I have enough for the new car, I can then start splitting that £800 into savings for 'emergency fund' and 'house deposit' etc

I find this whole thing overwhelming!  But trying to take it one step at a time.  I've cut back where I can so far, going to sell things to make some extra cash, and going to continue to look at where else I can cut back and lastly figure out a savings plan!

clickerty-click

Have you tried keeping a spending diary so you can track what you actually spend? It is easy to think you overspending in one area but actually find it is something else that is taking your pennies.

happy_money

clickerty-click said:

Have you tried keeping a spending diary so you can track what you actually spend? It is easy to think you overspending in one area but actually find it is something else that is taking your pennies.

I think you're right! I should probably do this for a week or so and see what I'm doing and where I'm spending!
Once I have a better idea of where my money goes I can start seeing what I can do about it!

happy_money

So not sure if this is the best way to go about things but getting a new car is really something I can't put off much longer - it's struggling and I can feel like it is about to go every minute I drive it! So I've decided that I will put every spare penny towards a car first before I tackle anything else right now.
I'm not sure which car and so I don't know how much I'll need.  I'm hoping that I'll be able to save up at least £1500 for a deposit in the next 2 months and then look at leasing a car. Not ideal I know, but I haven't got the time to save up for a car in the time the car might completely conk out on me!
Unless anyone else has a better suggestion - which I'm happy to hear!

Once I've got the car issue sorted then I can put all my money towards the emergency fund and debt payments 

happy_money

So earlier this year as part of the “new year, new me” thing, I signed up to yoga classes as something new to try out. 

Decided today that if I really want to, I can do that at home for free watching YouTube videos instead of going to a class and I can put that money towards my goals instead. So I contacted the instructor who has refunded me the £70. 

One more positive step forward and also mindset change win for me! ☺️