Need to kick the habit before disaster strikes...

monetxchange

tunnie123 wrote: »

just realized as well we also have £500 in our "chip" account however that will most likely see us through Christmas and both DC birthdays are in November and January and wife's in feb so hopefully that money can be used towards these things.

That money could see you right for a while - no more putting £50-100 on cards each month would be necessary. Start managing expectations now on Christmas. Tell family you're tight, so there'll be no gifts for anyone outside your own two kids. Then it'll be one or two token toys for the baby and something affordable for your other. Same goes for birthdays. They're a luxury, not a necessity in your position. Something cheap for the kids. Your wife is an adult in £37k of debt and can't justify spending on hers at this stage, to be brutally honest. Instead have a homecooked meal in.

Once you start realising how not everything has to include a spend, you'll soon get into the habit of only spending when absolutely necessary! Try and think outside of the mindset of "it'll most likely last". Budget it, give every pound a job and it WILL last.

tunnie123

Your absolutely right we’re far to blaaze about spending especial on a card hopefully the envelopes will help, every pound had a job.. I like that saying

monetxchange

tunnie123 wrote: »

Your absolutely right we’re far to blaaze about spending especial on a card hopefully the envelopes will help, every pound had a job.. I like that saying

I can't claim it as my own, think it's a Dave Ramsey quote! Though getting an app/spreadsheet where you budget and separate out all your expenses into little pots or envelopes has worked for many on here, including me. It helps know where every pound has to go. I split mine up into a Monzo account, which is essentially the same as doing cash in envelopes. That way you know there's £100 left for groceries, £10 set aside for a haircut, £20 in the entertainment fund etc. Takes the panic out of hoping there'll be enough in the rapidly-diminishing current account where all the money is just lumped together and spent willy-nilly!

theoretica

At the moment your SOA has a lot of round numbers - groceries £300, petrol £100, insurances £20. In your second pass I would encourage you to refine these to more exact figures. Some will probably still have variation in them from month to month, but you should know both an average and how much below this you are aiming for on a normal month. Aim to keep your spending firmly in control so you don't 'end up' spending money.



"we normally say 200 to spend but always end up spending more so to be realistic i put 300"

enthusiasticsaver

As you are already aware the expensive cars were a mistake so I would definitely get rid of at least one.

You have to stop using the cards full stop or your position will get worse. You are already only paying minimum so paying minimum and spending on them puts you in a precarious financial position. Selling one of the cars should give you some breathing space as hopefully you will get enough on sale of the car to repay some of the debt ideally loan number 2. That would give you £180 back each month to cover the unrealistic soa as £10 on car maintenance is too low, there is no tv licence and nothing in entertainment. You need to get this sorted before that HTB loan needs dealing with.