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need to get a better handle on finances - where to start?
nomoneymoreproblems
Posts: 13 Forumite
I have so many money problems right now and I don't know where to begin sorting them.
- every month I'm down to zero in my current account by mid month. I then either can't spend a penny (except food shopping which I put the money for in a separate account) or I'm adding things to the credit card. this means I'm obsessing over money and eating into the food shopping fund for other things.
- myself, my partner and my eldest all work shifts. Meal planning is a nightmare but I know it would help me budget better.
- we need to remortgage as our rate runs out in October but I want to pay our credit cards down a bit first as they are almost all maxed out, this is easier said than done.
- We owe a family member £6000, they have told us to stop repaying it for now, the plan was to get a lump sum on top of mortgage to pay this back but I'm unsure how likely it is we will be able to borrow more.
- I am addicted to spending money on a stupid game on my phone. I have deleted my card from my phone last week so this is being dealt with as I can't continue this behaviour.
Has anyone got any advice of where to start. What a mess.
I have done a SOA which includes only my wage plus the money my partner contributes to the household bills.
[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]
Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 3[b]
Monthly Income Details[/b]
Monthly income after tax................ 1793
Benefits................................ 102.4
Other income............................ 1090[b]
Total monthly income.................... 2985.4[/b][b]
Monthly Expense Details[/b]
Mortgage................................ 585
Council tax............................. 175
Electricity............................. 79.84
Gas..................................... 100
Water rates............................. 35
Mobile phone............................ 28.38 ( for 2)
TV Licence.............................. 13.66
Satellite/Cable TV...................... 10.99
Internet Services....................... 38
Groceries etc. ......................... 803 (+ takeaway at bottom)
Clothing................................ 36
Petrol/diesel........................... 50
Road tax................................ 1.66
Car Insurance........................... 89.17
Car maintenance (including MOT)......... 7.5
Car parking............................. 1.95
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 4.45
Pet insurance/vet bills................. 119
Buildings insurance..................... 11
Contents insurance...................... 14
Life assurance ......................... 34
Other insurance......................... 12
Presents (birthday, christmas etc)...... 116
Haircuts................................ 5
Entertainment........................... 37.4
Holiday................................. 75
Emergency fund.......................... 100 (just begun)
Takeaways............................... 141[b]
Total monthly expenses.................. 2774[/b]
[b]
Assets[/b]
Cash.................................... 400
House value (Gross)..................... 160000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0[b]
Total Assets............................ 166400[/b]
[b]
Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 103000...(585)......5.74[b]
Total secured & HP debts...... 103000....-.........- [/b]
[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
cc1............................420.......30........29
cc2............................1450......50........27
cc3............................1250......58........29
catalogue2.....................1000......30........49
catalogue1.....................550.......40........40[b]
Total unsecured debts..........4670......208.......- [/b]
[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,985.4
Expenses (including HP & secured debts). 2,774
Available for debt repayments........... 211.4
Monthly UNsecured debt repayments....... 208[b]
Amount left after debt repayments....... 3.4[/b]
[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 166,400
Total HP & Secured debt................. -103,000
Total Unsecured debt.................... -4,670[b]
Net Assets.............................. 58,730[/b]
[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
0
Comments
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So where is your husbands wage going. You say your eldest works shifts, what does he/she contribute?
Those takeaways need to be cut out.0 -
800 on food is a lot + 141 takeaways, is it just for the 3 of you?Can't you find cheaper car insurance?If I were you, I will research every item and see if I can find cheaper deals.Note:I'm FTB, not an expert, all my comments are from personal experience and not a professional advice.Mortgage debt start date = 25/10/2024 = 175k (5.44% interest rate, 20 year term)
Q4/2024 = 139.3k (5.19% interest rate)
Q1/2025 = 125.3k (interest rate dropped from 5.19% - 4.69%)
Q2/2025 = 119.9K1 -
It seems like an aspirational SOA rather than what is actually happening at the moment because from what you’ve said it seems unlikely you are putting £116 a month away for presents, for example.
So if the money that your SOA says you should be putting aside for various bits of your budget is evaporating, do you know where it’s going, because that would be your first step?The phone game will be part of it, but what about the rest?All shall be well, and all shall be well, and all manner of things shall be well.
Pedant alert - it's could have, not could of.2 -
£200 a week on food is very high for 4 of you. I get you work shifts so meal planning is difficult but try to find time each week to do some batch cooking that can be frozen in portions so that they can be used at anytime. Even just writing a weekly meal plan will help, you may not always stick to it entirely but basing your grocery shopping around that will start to make a difference. The takeaways definitely need to stop!2
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there's 4 of us, 3 adults 1 child, but eldest child is only 18 so not really an adult. he works 2 shifts a week on top of college and contributes £100 a month lodge.
husbands wage is included, they give me 50% of all bills.
I did my SOA including presents and clothing and car tax etc because every time I see an SOA that leaves them off people say its not accurate. so no I don't put money away but after looking at 6 months of bank statements these are the averages.
the excess money is currently used to pay extra chunks off the debt and on my stupid game0 -
oh and I've got £284 expected this month on Clearpay.0
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this is this months SOA[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 2Number of children in household......... 2Number of cars owned.................... 3[b]Monthly Income Details[/b]Monthly income after tax................ 1793Partners monthly income after tax....... 0Benefits................................ 170Other income............................ 1090[b]Total monthly income.................... 3053[/b][b]Monthly Expense Details[/b]Mortgage................................ 585Council tax............................. 175Electricity............................. 74Gas..................................... 100Water rates............................. 35Mobile phone............................ 28.38Satellite/Cable TV...................... 10.99Internet Services....................... 38Groceries etc. ......................... 650Petrol/diesel........................... 50Car Insurance........................... 89.17Other child related expenses............ 66Medical (prescriptions, dentist etc).... 9.9Pet insurance/vet bills................. 182Buildings insurance..................... 11Contents insurance...................... 14Life assurance ......................... 34Other insurance......................... 12Entertainment........................... 200Emergency fund.......................... 200tax credit repayment.................... 20.99[b]Total monthly expenses.................. 2585.43[/b][b]Assets[/b]Cash.................................... 400House value (Gross)..................... 160000Shares and bonds........................ 0Car(s).................................. 6000Other assets............................ 0[b]Total Assets............................ 166400[/b][b]Secured & HP Debts[/b]Description....................Debt......Monthly...APRMortgage...................... 103000...(585)......5.74[b]Total secured & HP debts...... 103000....-.........- [/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRcc1............................420.......30........29cc2............................1450......50........27cc3............................1250......58........29clearpay.......................284.......284.......0catalogue2.....................1000......30........49catalogue1.....................550.......40........40[b]Total unsecured debts..........4954......492.......- [/b][b]Monthly Budget Summary[/b]Total monthly income.................... 3,053Expenses (including HP & secured debts). 2,585.43Available for debt repayments........... 467.57Monthly UNsecured debt repayments....... 492[b]Amount short for making debt repayments. -24.43[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 166,400Total HP & Secured debt................. -103,000Total Unsecured debt.................... -4,954[b]Net Assets.............................. 58,446[/b][i]Created using the SOA calculator at www.LemonFool.co.uk.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]0
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From what I can see, your catalogue interest rates are murderous and one of those could be paid off pretty swiftly by a combination of proper food budgeting, a month of paring entertainment to the bone, and freeing up some of that emergency set-aside.
An emergency fund is a great thing to set up, but if you can kill one of those ruinous catalogue debts almost immediately, I'd strongly consider that.
Main focus though has to be on setting and sticking to a budget that allows for both debt overpayment and emergency top up. Good luck, the process you're going through now of properly assessing your finances is tough but very worthwhile .
[Edited for typos]3 -
Including presents and car tax etc is fine, If that money is actually being put aside.
If you’re doing that from here on in then that works. If you’re not, and you still don’t know where the money is going, that’s when you need to dig a little bit more deeply into your bank statements, receipts, et cetera..All shall be well, and all shall be well, and all manner of things shall be well.
Pedant alert - it's could have, not could of.1 -
You as a family and certainly as a couple need to have a very serious talk about your financial state as it isn't sustainable. You are going to need to remortgage with your current provider as you can do that without any further credit check. You should be able to work out now which of their current offers is best. What is the new monthly mortgage cost going to be? As you need to budget for that now so you've time to work out your strategy for tackling your situation. Although you may be lucky considering the way mortgage rates are going.nomoneymoreproblems said:this is this months SOA[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 2Number of children in household......... 2 - actually three.Number of cars owned.................... 3[b]Monthly Income Details[/b]
Where is junior's £100 lodging income in this?Monthly income after tax................ 1793Partners monthly income after tax....... 0Benefits................................ 170Other income............................ 1090[b] Is this the 50% of bills partner "gives" you?Total monthly income.................... 3053[/b][b]Monthly Expense Details[/b]Mortgage................................ 585Council tax............................. 175Electricity............................. 74Gas..................................... 100Water rates............................. 35Mobile phone............................ 28.38Satellite/Cable TV...................... 10.99Internet Services....................... 38Groceries etc. ......................... 650 still high. You really need to cut this even if for some months.Petrol/diesel........................... 50Car Insurance........................... 89.17 is this for 3 cars, or just one? Where is the car tax, and maintenance costs?Other child related expenses............ 66. what is this?Medical (prescriptions, dentist etc).... 9.9Pet insurance/vet bills................. 182 this is very high, is this an old debt or just monthly insurance?Buildings insurance..................... 11Contents insurance...................... 14Life assurance ......................... 34 what sort of cover do you get from your employments? Have you double checked that you can't get cheaperOther insurance......................... 12Entertainment........................... 200 you simply can't afford this at the momentEmergency fund.......................... 200 and you need to reduce this in the short termtax credit repayment.................... 20.99[b]Total monthly expenses.................. 2585.43[/b][b]Assets[/b]Cash.................................... 400House value (Gross)..................... 160000Shares and bonds........................ 0Car(s).................................. 6000Other assets............................ 0[b]Total Assets............................ 166400[/b][b]Secured & HP Debts[/b]Description....................Debt......Monthly...APRMortgage...................... 103000...(585)......5.74[b]Total secured & HP debts...... 103000....-.........- [/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRcc1............................420.......30........29cc2............................1450......50........27cc3............................1250......58........29clearpay.......................284.......284.......0catalogue2.....................1000......30........49catalogue1.....................550.......40........40[b]Total unsecured debts..........4954......492.......- [/b]
These APRs are ruinous. Even your best see in the 30% range which makes paying them off very hard.[b]Monthly Budget Summary[/b]Total monthly income.................... 3,053Expenses (including HP & secured debts). 2,585.43Available for debt repayments........... 467.57Monthly UNsecured debt repayments....... 492[b]Amount short for making debt repayments. -24.43[/b][b]Personal Balance Sheet Summary[/b]Total assets (things you own)........... 166,400Total HP & Secured debt................. -103,000Total Unsecured debt.................... -4,954[b]Net Assets.............................. 58,446[/b][i]Created using the SOA calculator at www.LemonFool.co.uk.Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
The good thing is that although the interest rates are vicious, you don't actually owe a lot. So a couple of tight years would make a huge difference and you might even get a 0% offer at some stage. Have you actually checked with the MSE tool if that's possible now?
Your current budget looks aspirational as the emergency savings have just started and you've left out several items from the first budget, some of which weren't sufficient anyway? Go back to your statements (both of you) and work out what the household has actually spent over the last 6 months on all categories.
You want to reduce your debt but you don't want to reduce your lifestyle. Where are the essential maintenance costs? They need funding before entertainment. If your partner is giving you 50% of the bills but what is happening with the rest of their income? Nearly all of the rest of yours is accounted for in the budget. Even though you've got things like clothing, car costs missing altogether and nothing for maintaining the house. Does your partner have other costs they cover? Do they have additional debt?
Who is covering the costs of the third car? Presumably this is junior's with very high insurance costs?
Without the remortgage, you would have a choice of cutting back hard, tackling the most expensive debts first and closing those accounts, then slowly relaxing a bit and working your way through, or deciding a live a little more comfortably, trashing your credit record and doing a DMP. At least that would halt the interest and your credit record would be decent in 6-7 years time.
So you really need to look at your remortgage choices now. You'd be very unwise to try and increase your borrowings to pay off your family member or cover the debts. Fail to pay consumer debt and you ruin your credit rating. Fail to pay your mortgage and you lose your home.
What are the plans of your children (as in biological rather than legal status)? Are they staying in secondary education, going to university or working after college? If they work, will their income cover the costs of their personal needs and car? Once you and your partner have started to think about sorting out your difficulties, you both need to talk to junior so that they have realistic expectations about their contribution to their living costs. You don't have the slack in your budgets to massively subsidise them.
If you've have not made a mistake, you've made nothing2
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