What a mess

datlex

Skintmum86 wrote: »

I am really really struggling at the moment.

My outgoings are more than my incomings and all available credit is within pennies of being maxed out. I have never missed a minimum payment.

On my SOA it says 2 adults 2 children my children are only with me 50% of the time and my partner is included just as the food bill covers their food aswell but all the outgoings are just mine and incoming just mine, our finances are separate. They have no debt and a very low income and give me £100 a month towards upkeep however this is hopefully increasing to £200 this month and £300 after christmas.

I don't actually spend £105 on gifts a month that is christmas and birthdays added together and split across the year, I would normally use a credit card for christmas but obviously cant now as they are full.


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1037
Partners monthly income after tax....... 0
Benefits................................ 822
Other income............................ 100
Total monthly income.................... 1959

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 695
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 29
Gas..................................... 29
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 0
Mobile phone............................ 6.4
TV Licence.............................. 12.95
Satellite/Cable TV...................... 40 have a chat with them, you probably can save a bit
Internet Services....................... 0
Groceries etc. ......................... 364 this is quite high, try different brands- you may like them better. Try places like Iceland. Do a dummy shop on line to make a list and see options before heading to the shops.
Clothing................................ 0
Petrol/diesel........................... 115
Road tax................................ 2.91
Car Insurance........................... 44.75
Car maintenance (including MOT)......... 3.33
Car parking............................. 2
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 23
Medical (prescriptions, dentist etc).... 9
Pet insurance/vet bills................. 5.33
Buildings insurance..................... 0
Contents insurance...................... 3.66
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 105 this needs cutting, tell people you are only getting presents for your children. You and your partner can gift each other needs or something you buy regularly. For £400 per child over birthday and Christmas (doesn't have to be £200 for each) would only £67 a month, reduce it to £300 and then you only need to pay £50 a month
Haircuts................................ 0
Entertainment........................... 73 I know people say you cannot afford this, but realistically with 2 kids you probably need some entertainment. However might be worth looking at what you do. I personally have one night out a week most weeks at a cost of £15. I know how much my drinks are, I share the cost of the evening with my partner. I budget for 2 drinks each- he buys 2 drinks each plus any extras he personally wants. Some weeks we don't go. I think you could cut back if you planned here. Depending on what you do for entertainment even changing venue can save you money- pubs charge different prices. I reckon if you went out once a month you could probably have a reasonable evening for £30-40 saving you nearly half on this
Holiday................................. 0
Emergency fund.......................... 0
Ipad.................................... 16.11 read how this is due to school, bit unfair this- do the kids get to keep it? If they had their own (maybe worth looking on e-bay) could they use that?
Pet food/Hay............................ 20.51 I am guessing you have a horse if you are paying for hay? If so why not find out if anyone wants to share ownership with you?
Table................................... 19.11
Total monthly expenses.................. 1764.06


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 4500
Other assets............................ 0
Total Assets............................ 4500

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Santander CC...................2681......61........18
Santander2 CC..................4199......110.......18
Next...........................2824......145.......23.9
Very...........................1195......20........0
MBNA...........................1785......41........18
Total unsecured debts..........12684.....377.......-


Monthly Budget Summary
Total monthly income.................... 1,959
Expenses (including HP & secured debts). 1,764.06
Available for debt repayments........... 194.94
Monthly UNsecured debt repayments....... 377
Amount short for making debt repayments. -182.06

Personal Balance Sheet Summary
Total assets (things you own)........... 4,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -12,684
Net Assets.............................. -8,184

Created using the SOA calculator
Reproduced on Moneysavingexpert with permission, using other browser.

I think you can make some easy savings without necessarily having to cut out anything. Reduce and adjust your spend on certain items.

RedFraggle

Are you buying hay from pet shops? Equestrian or country store type places are usually cheaper and you can get a whole bale for less than £10. We did that when we had rabbits.

monetxchange

All the advice you've had on where to cut stuff has been solid. The stand out for me is nearly £400 a month for groceries for two adults and two children (for 50% of the time, so effectively one child). You could definitely at least half this with effort. Buy budget, batch cook, eat less meat, learn to love lentils and beans!

In the nicest way possible, I also think you need a proper sit down and work out finances with your partner going forward. I know you say finances are separate, but they need to be moving towards being split equally, especially as you live together (in your place?) I understand the expenses for the kids would be yours rather than theirs, but £100 a month, even doubled, is a tiny amount for rent, accommodation, food, bills etc, and you simply can't afford a second person doubling your energy and food bills while you pick up the slack. It may be time to give them a gentle kick up the bum in terms of looking for any work they could pick up as of now to help contribute properly.

EssexHebridean

Addressing the issue about your partner's contributions first

Skintmum86 wrote: »

Hi, thank you for replying

The iPad is on interest free credit with my childs school, they all have to have an iPad its ridiculous. The table is on credit aswell but that is finished in about 3 payments.

Partner should be increasing to £300 very soon which will help a lot. they are younger than me and first full time wage started last month, I feel bad taking too much.

I am hoping to be able to afford token gifts for the children and my partner and not buy for anyone else at Christmas

SM

Don't feel "bad" - you're their partner not their Mum, and they are I presume a consenting adult so should be expecting to pay their way in life!

Skintmum86 wrote: »

Hi Thanks for replying

I know they need to be paying more but up until last month they only earnt £250 a month and they have their own car to run mobile bill etc. hopefully the £100 is going up to £300 soon

SM

And, bluntly, they are currently getting an absolutely superb deal living with you pretty much all expenses paid... You have the expenses of a full household to cover not just "car, mobile bill etc" and at the moment you can't meet those costs so from now your partner needs to start making a proper contribution - I'd suggest a 30% share of the outgoings like council tax, rent, heating, lighting and water, plus food, TV & internet would be reasonable allowing for the presence of the children some of the time. Add in to that paying 50% of anything where the spending is a joint decision like takeaways, days out etc.

Now on to other things...

Skintmum86 wrote: »

Hi, thank you for replying

I didn't know what to put for my car maintenance, its only 4 years old so its in good nick and just get the MOT done every year so I just divided that by 12. I should have included some money for new tyres etc really shouldn't I.

The £73 is actually takeaways which is going to stop immediately I was gutted when I worked it out and saw it was that much!

I think the presents amount is reasonable but then my ex used to pay for Christmas, now I'm paying for it myself I will massively cut back this year and just buy stocking fillers for the boys and one present each for them and my partner and nephews and everyone else will have to go without.

SM

Car: The annual cost of running your car (without fuel being taken into account) is Insurance + road tax + depreciation + servicing + MoT test - then divided by 12 gives you your monthly cost. If you pay insurance monthly you may want to remove that from the equation, but depreciation needs to include tyres, screenwash, cleaning, wiper blades...basically anything you spend on the car as "incidentals" through the year. Personally I always add a 10% contingency buffer as well.

Takeaways - yes, that amount certainly needs to stop!

Presents. No - that amount is far from reasonable. we have no debt and no mortgage and wouldn't even contemplate spending that much - we certainly wouldn't be doing so if we were putting it on a credit card!