Currently clueless...aiming for awareness

savingholmes

Sounds exciting re the potential job. Good luck.

I find immersing myself in others diaries, podcasts etc really helps keep me on track and motivated too.

Humdinger1

Ooh exciting @canvascamper; sending you good vibes for news in August! Totally agree with comments above re the difficulty of keeping to a plan that's a bit vague.  Is it a military saying that you have to define the objective as otherwise how will you know when you've won.  I know a decreasing overdraft is defined but might it help to put a figure on it? It's your process and you know what is going to work; it's as much about the inner game as externals I think and you are doing brilliantly at both.  Love Humdinger xx 

canvascamper

So, I did a thing...

I got an email from MBNA for a 0% money transfer offer for 18 months with a 2.29% fee. I decided to use it to pay off my overdraft in full and basically start a budget from scratch.
I've gone through all my accounts in detail and figured out (I think!) a budget using pots/envelope method that should work to get us back on an even keel. I've discussed it with OH but he really, really doesn't get it, he thinks money is so simple, I wish I had his mindset!! His attitude is very much "it's all fiiiiiinnnnnnnnnee". 

So, in the interests of transparency, (and so you can let me know what I've missed!) this is the plan -

Salary - £2045

Total necessary bills expenditure including debt repayments (my half) - £1241

Remainder to pots - £804

Pots to be split into (in no particular order)- 
Food and household £200
National Trust £12
Gymnastics £80
Cleaner £60
Karate £26
Tutor £90 (this finishes in October after 10yo sits the 11+ and then will be reallocated to a Holidays pot)
Credit card £60
Gifts £65 (this is for all birthdays and Christmas for 3 kids so is quite substantial!)
Kids' pocket money £30
Days out or eating out £80
Clothes and personal products £30
Tram to work £30
Fuel £20 (I hardly use the car)

This totals £783 which gives me a bit of a slush fund so I'll probably make a pot called slush fund to see how the budget works out for the next couple of months and then if I don't need it I can transfer the leftovers to savings.

Open to all of your advice (but please be gentle with me because I am feeling very anxious generally right now x) 

joedenise

I think your figure food is extremely low for 2 adults and 3 children - is this an ongoing figure or just for this month as you have plenty of food in the freezer and cupboards?  If it's just for this month as you've already got plenty in that's OK but I don't think it's sustainable for any length of time.

You also haven't included anything towards running costs for the car - MOT, tax, insurance, new tyres etc - all of these things will cause real problems with your budget.

I would suggest that you use the budget planner at the start of the DFW board to do a proper budget - link:  https://www.lemonfool.co.uk/financecalculators/soa.php

canvascamper

Ahh yes, sorry didn't explain it properly - We do 2 big food delivery shops monthly that OH pays for at £150 each so the £200 is for top ups and fresh fruit and veg.

Car tax and insurance is paid monthly as part of the £1241 and OH pays for all MOT/tyres/repairs because he works with a lot of car people who do mates rates. 

joedenise

Thanks for the explanation @canvascamper - in which case £200 in addition to the £300 deliveries makes that a good budget for 5 people.

BadBookkeeper

One of the best things  I did was move my overdraft to an interest free credit card and paid it off within the interest free period.  I have never used mine again so hope it’s the same for you.  It was such a motivator on pay day not seeing my wages swallowed up before I’d even started paying bills!  I think you’d made the right decision there. 

[Deleted User]

Brilliant news! I'd imagine you are feeling remotivated by not having the overdraft incurring interest etc. Really pleased for you xx

[Deleted User]

The only thing I was going to ask was whether you'd accounted for family gifts Inc Husbands birthday, Xmas, any siblings, relatives you buy for, children's friends, gifts and card for children's parties and the cost of hosting any birthday celebrations such as a party or extra food for a family get together. 

I'd imagine there will be extra costs over the summer around childcare and/or extra food and days out xxx

[Deleted User]

Ooohh what about hair cuts, any money you use for self care - hairdressers, nails etc, any family holidays & savings ? X