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SOA budget advice
edited 16 December 2022 at 12:20PM in Debt free diaries
41 replies 4.7K views
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As foxgloves says - "it's someone else's money" and that's just a highlight from their post.
The OP is hitting themselves over the had with a baseball bat then taking paracetamol. Well, stop doing it. Spent the money, had fun. Now it's payback time. Living in denial is not the answer.
OP - you must act, not ask for help then 'justify' why you can't do what the whole board advises.
You earn decent salaries but spent recklessly. Now it's pay back time.
In whose names are debts? And as asked elsewhere, you need to add the credit cards as well.
You might want to take a short break from the overtime, but you really need it and some massive cuts in your living costs. Maybe look at taking a holiday from overtime every couple of months.
Well holidays are never really essential, and I agree it's something that has to wait until you've paid your debts back. But I guess my point was that, but for the debts, £215/month for holidays isn't exactly unreasonable as part of an overall budget.
Of more interest are the gym memberships and protein supplements which really are a waste. And the OP definitely has a car problem, when you look at how much those are burning up every month.
I don't often comment but do enjoy watching other peoples Light Bulb Moments, having been there myself at nearly £50k of various debt.
I'm impressed with your stoicism.
It doesn't feel like you've really got your head around just how much debt you've got. The other post swishes in with oh I've got a bit of debt and 10.5k to clear it with .... completely ignoring the the rest of the mountain / nay avalanche
This one gives a clearer picture ... but ignores the Credit card debt.
And that's not counting the nearly £300,000 of mortgage. How long have you got on your fixed rate on that?
Forget £1000 a month on food
£60 on supplements?
£50 Emergency Fund but no Emergency Fund...
EDIT** Ebe_Scrooge has done a better job that me ...
You can't live like you're living.
I hope the LBM hit's soon. When it does, at least you have a reasonable income and plenty of wriggle room.
I'm also going to remind some respondents here of DFW's "No Judgement" basis - constructive comments are good, but there are some posts here that aren't really providing that so much as simply laying blame on the OP. No helpful, and worse, inclined to frighten people away which is really not what we want!
OP - I'm going to issue you with a challenge. Never mind the money you're being given - I want you to reduce your grocery spend enough this month that you can clear the remining sofa loan with what you've saved on it. First step here is to inventory your fridge, freezer and cupboards, then write a meal plan around the things you already have in. Write out as many meals as you can - not against specific day at the start, just a list of meals. As you reach the point where you are at "well I could make a chicken stew but I'll need to buy carrots" - write "carrots" on the shopping list. Think about the small additions you can make to your stores to make the food you have stretch even further. (So if you have peppers, tomatoes, bacon & mushrooms it might be worth buying eggs to make omelettes one night for example). If you buy pre prepared pasta sauces and similar, then making from scratch (perhaps by batch cooking and freezing extra portions) is a great way of reducing costs.
Without including the TV license - had you realised that your spend on "entertainment" totals just under £4000 a year? I think you need to take some tough decisions and see where some of that can be cut back I'm afraid. Have you checked whether there are better deals locally for gym membership for example? Personally I'd say the £100 for takeaways needs to go as well - if you can save enough from your monthly grocery budget to afford a takeaway from it, and that is how you choose to use that money, grand - if not, then best to go without and "fakeaway" at home instead.
Further suggestion on the shopping - start shopping in store - then you have to physically pick things up and put them in the trolley - and you'll see how much you're buying in a far more "solid" way than shopping online.
With the money, I'd be setting aside £2k for that emergency fund - that is ONLY to be touched in a genuine emergency - NOT because someone needs new school shoes and you forgot to budget for them, or because the car needs a service and you haven't been setting money aside for that, or because it's dark and cold and everyone's tired and ordering a takeaway is soooo much easier than throwing some pasta in a pan... (these are real examples of occasions on here that I have seen people saying they will "just use the EF" by the way!). Then I'd use the balance to clear most of the smaller Barclays loan. The sofa will already be paid if you decide to take my thrown down gauntlet above, of course. Add the £52 saved there to get the remaining balance on the smaller loan cleared sooner, then start working on the bigger loan.
The main thing though is to balance the books and trim the lifestyle I'm afraid. You can't "have it all" - from now on, you can only have what you can afford.
What's the benefits for?
Cut out the holidays and use that money to the debt. The quicker you pay off the debt the more you have in the future for holidays.
You say nappies and wipes but you say your child is 3 but not how old your husband's child..if they are.older than three could you potty train the 3 year old to save costs there..
Actual mortgage stating amount £75,150
Overpayment start date 1/3/23.
Starting balance £66,565.45
Current balance £63,787.16
Scrap the holiday plans, maybe a cheap UK caravan in a couple of years, but certainly not saving for Lapland or Center Parcs
Cut down on the grocery spend...start meal planning & batch baking/cooking
Cut out the date nights and takeaways, the gym membership and the vitamin supplements
Get the cost of haircuts down.
Get the cost of clothing allowance down. I'm afraid once you are in debt its the time to start making things last, looking on freebie pages on FB and using charity shops.
Get cheaper mobile packages.
LBM 2015 - debt £57K / May '23 now £34,568
Mortgage at 1st May 2023 £26,081 (Officially finishes June 2026, but plan to get MF well before that....watch this space)
Total Mortgage Overpayments in 2022 was £240.
Total Overpayments so far in 2023 is £70
EF #68 £100/£1000
Christmas 2023 #3 £5/£365 (as I am saving for Christmas & birthdays, total will fluctuate through the year)
Penny a day 2023 #12 £100.57/£667.95
Make £5 a day - June £5.51/£150
NSDs for June 0 /12
My debt free diary...https://forums.moneysavingexpert.com/discussion/6396218/we-will-get-this-debt-down-the-savings-up
I read on your other post that your mortgage is coming to an end in a few months' time and will be going up by £500 - I'm not sure if the others, that have said where you can make cutbacks have seen that - I'd heed their advice, these guys talk a lot of sense. Wishing you all the best, it can be done, I've been there, done that and got the T shirt !!!
The aim is to get to the point where you have two cars (maybe just one) that you own and that are not worth very much and therefore not depreciating, and that don't cost high amounts in road tax, insurance, fuel and maintenance.
I don't know where you are with your HP agreements, whether there are balloon payments at the end (maybe that lump sum could be used) or whether you might be best to just do voluntary terminations and use the lump sum to buy a sensible car.
But I think you need to plan a route from 'here' to 'there.'