Please may I have some advice?

Coffeelatte

Thank you for taking the time to look at my SOA.

I have a key meter for my electricity so yes, it is £30 a month.

£240 a year on clothes is accurate yes, I try not to buy new clothes too often as I have too many already. Most things I buy are usually from charity shops/eBay/Depop.

£190 a month surplus is not accurate and to be honest I’m a little confused with it. I wasn’t sure how to answer the details such as car maintenance which aren’t a monthly cost.

Apologies.

Willing2Learn

Hey, there is no need to make an apology. Are you able to go through your last years bank and credit card statements, to identify where your 'surplus' is actually going? If you really want a loan, or to consider a repayment plan for your existing debt and overdraft, then your monthly budget has to be accurate...

You may find it helpful to keep a spending diary. So that you can track all expenses. Right down to £2.50 spent on a latte or a sandwich or windscreen wiper blades or new tyres etc. All the little bits add up...

Sarahwithlove

What about a credit card that would allow you to clear over draft with it. Probably be a lower Apr then then overdraft. I'd recommend keeping a spending diary. I did it and it surprised me considerably where I was spending money without thinking about it. Could you have some very basic meals for a bit to help save on groceries etc.

elsien

Anything that's not a monthly cost, look at your statements to see how much you spend over a year, then divide by 12. Then you need to make sure that money is actually put aside till you need it. I have two current accounts for this, but it's whatever works for you.

MovingForwards

Can you go through 6 or 12 months bank statements to see where your money goes?

Also, stick to shopping lists and meal planning, you can then get your food bill down, I hope you are taking lunch to work! (I allow £25pw but frequently spend less than that for me and my cat).

Clothes, guessing you have enough for now, only buy smalls as needed (I only buy clothes in sales / charity shops).

Mobile - when is your contract up?

Hair - are you male / female / identify as other etc as depending on your hairstyle you could stretch it out and go less frequently.

Car repairs - £10 a month will barely pay for an MOT and oil change, you need at least £25 pm.

Entertainment - what do you do for fun when not working? Out with the guys / girls to the pub? Meals out? Cinema? If it's £25pw pub / meal, maybe do a night in with the lads / girls, do bring a bottle and nibbles, a share the goodies. You could save £15 a month that way.

What I did was start paying by cash, made it easier for me to see where my money was going. I would work out my wages, deduct bills and savings, what was left was then worked out by how many Fridays in the month and draw out a weekly amount, that would cover travel, food, fun etc, after a while I found I wasn't taking as much out as I would still have some left in my purse, til it got to the point I was only taking money out for my travel pass, bit of petrol and food.

Coffeelatte

I use Monzo for my spending as I find the budgets really helpful. My wage gets paid into my NatWest account and then I transfer £350 into my Monzo account and use that for petrol, food, eating out etc. Perhaps I need to review this more than I currently am. Bills are paid out of my NatWest account.

I think my issue is not having an emergency fund. I am very guilty of dipping further into my overdraft when I have an emergency.

Willing2Learn

Coffeelatte wrote: »

I think my issue is not having an emergency fund. I am very guilty of dipping further into my overdraft when I have an emergency.

Having a pot of money saved up as Emergency Fund is probably one of the most important aspects of all successful monthly budgets. It means you have your rainy day money and can 'roll with the punches'

Coffeelatte

@elsien Anything that's not a monthly cost, look at your statements to see how much you spend over a year, then divide by 12. Then you need to make sure that money is actually put aside till you need it. I have two current accounts for this, but it's whatever works for you

This is great advice, thank you!

Coffeelatte

@Willing2Learn Having a pot of money saved up as Emergency Fund is probably one of the most important aspects of all successful monthly budgets. It means you have your rainy day money and can 'roll with the punches'

Thank you Definitely inspired to create an emergency fund! So glad I came here instead of going ahead with the loan. I think I was lured in too much by thinking I wouldn’t have an overdraft anymore.

monetxchange

Second all advice re emergency fund. I feel so much better having money put aside in case the worst happens. Same goes for putting aside money each month for yearly expenses. So nice not to have to worry if you can manage to pay it once the time of year comes!

I got a balance transfer credit card at 0% to clear my overdraft. Might be something worth looking into if you’re eligible and if you’re sure you can trust yourself not to use it to create more credit card debt ��