Live on £4000 for a year - Part 2

mumzyof2

wendywitch wrote: »

So I don't count my rent, council tax, gas, electric, water rates? But I do count food, my debt payments, petrol, tv license, telephone and mobile, the vets etc?

Have I miss anything?

#
I think you count gas and elec, everything else you said is correct.

MrDT

wendywitch wrote: »

So I don't count my rent, council tax, gas, electric, water rates? But I do count food, my debt payments, petrol, tv license, telephone and mobile, the vets etc?

Have I miss anything?

I think the offical things to exclude are:

• Rent/mortgage
• Council tax
• Water rates

Every other penny spent counts.

Of course, a lot of us 'tweak' the rules to suit Personally I've omitted my commute costs, but count everything else. Some are saving up for a holiday or something so don't count the holiday spends in the total etc.

Maybe in your situation I'd exclude my debt repayments as eliminating debt would likely be my personal aim. e.g. if overpayments were allowed I'd do that and obviously that kind of sensible approach shouldn't mean failing the challenge! Overpaying back debt is essentially saving when you think about it

Nice of you to join us

bails

Hi everyone and welcome to newbies!
Janey, ooh ouchy, I can feel that! Hope it eases off soon.
FunBrum, fantastic that you quit your job for your health. We'll help you manange, don't you worry!
Mumzy, you seem back on form, sorry you were down the other day.
Nyk, the party will be fine, don't bust a gut okay? Glad the babysitting situation's sorted, that would've been a nightmare!:eek:
I really love the garden share idea too! :T I wonder how we could turn that into a reality? It would be such a bonus for all involved. Seriously, I think we should get our thinking caps on about making it happen...
Darn, time's up *think countdown clock* shortterm memory can't retrieve anything else! :rolleyes: Sorry if I've missed you out, I know there was loads more I wanted to say..OOH, Slowlyfading, crossing everything for you for 5 pm.
Things here are - hmm - not so great with OH but will get sorted. The problem is he went away this weekend and his parents arrive Wednesday for his graduation so we're struggling for time to sit down and work it all out, especially as he has his final shiatsu exams this weekend!
I went to the gym this morning though and had a lovely swim, sauna, steam and jacuzzi And I bought 210 of compost for £12, I'm hoping that's good? So I can finally sort out the rest of my garden. The cats have dug up all my lettuce, despite some (obviously not adequate) netting, so need to start those again :mad: Need to weed, pot up some strawberries, finish greenhouse and get some staging for the pepper plants and tomatoes. Need to have a think about what I can plant for the rest of the year too, thanks for reminding me Shaz.
Kittens are on lots of meds at mo so better go and give them the next lot.
Have a great evening all!

Frugaldom

wendywitch wrote: »

So I don't count my rent, council tax, gas, electric, water rates? But I do count food, my debt payments, petrol, tv license, telephone and mobile, the vets etc?

Have I miss anything?

Hi Wendywitch - you do not count rent, council tax or water rates.

You do count everything that it costs you to live - food, clothing, ALL household bills including TV, telephone, Internet, electricity, food, clothing and anything else that you NEED in order to live.

You do not count debts - these are paid directly from your income. For those who have finished paying their debts, the amount left over is for luxuries or saving.

You do not count any costs associated with work, such as lunches, travel, childcare etc - these are all dependent on your work situation.

This challenge is about cost of LIVING, not life in general, as we all lead very different lives.

Easiest way to work it out is -

1. Start with the absolute total you have coming in over a year, including all benefits, child allowance, tax credits etc.
2. Deduct all work associated costs if they apply (travel, road tax, MOT, insurance, childcare etc) for year
3. Deduct rent/mortgage/water payments for the year
4. Deduct buildings insurance (not everyone has this, so it is counted as house overheads)
5. Deduct all debt payments for the year (if any)
6. What you have left after paying all of the above is what you have to live on. (For some, this figure is actually less than £4000.)

£4000 is per household.

If you have more than £4000 then everything over that can be used to pay off debts and then for savings or 'luxury' spending.

Hope this makes it easier to understand and here's an example:

Total Annual income
£12,000 (£1,000 per month)

Essential Payments
Rent or mortgage + buildings insurance - £5,000
Council Tax - £1,180
Travel/work associated costs @ £15 per week (4 weeks holidays) = £780
Debts @ £20 per week = £1040
Total essential costs = £8,000

£12,000 - £8,000 = £4,000 This is the amount you would have left for everything else, regardless of how you spend it.

The above is just an example, it is not based on any particular person's circumstances, it's just that £1000 per month is an easy figure to work with. If you are left with more than this then you can try to live on £4000 and pay off debts faster or, if you have no debts, you can afford to save for whatever reason you want.

Part 3 of this challenge begins one week today! :eek: How time flies!

EDITED IN: I would be interested to know how far off the £4000 mark everyone is when they work out their actual annual budgets. How many of us on here really ARE below the £4000 mark?

sophiesmum_2

Hi frunchkins,:hello:

Have to add life insurance DD £14.49 and car insurance DD £26.28 to my total as both have come out of bank today. Not spent anything else though.:D
mumzy - sounds like you are back to normal now:D
janey - ouch!!!!! poor you!! Have you logged it in accident book at work?

Nyk - Glad you got DD sorted for Friday, sure you will have enough on your plate sorting out the buffet stuff. Pity you weren't nearby you could have used our catering kithen, it has everything.
Using unused gardens for veggies would be a great idea, pity it isn't promoted somewhere as I am sure there would be takers.Maybe we could all write to our local newspapers letters page and suggest the idea, it would need a coordinator though to match up gardeners with gardens Then I suppose it would get bogged down in health and safety and protection of vulnerable adult legislation and be sunk:mad:

slowlyfading - Good luck, hope you don't have to do another exam. If it's bad news have some chocolate for me too- had a stinking day at work and doing slimming world so no choc for me:rolleyes:

Jamiedodger - welcome back to the challenge:D
wendywitch - hi

bails - hope you get things sorted with OH.

shaz - Costco have 20kg rice for £14.97 if you know anyone who goes.

Busy day at work, water board have dug through our outside electrics with their digger. Been sorting it all day:mad: , also have a leak in roof which is now sorted, decking men came back to do some more work, kitchen contractor on site doing some remedial stuff,loft insulators putting down lagging, and electrician doing repairs on another property. Have been mowed out with bl**dy workmen all day:wall: :wall: must have done 10 miles round place running about with them all.

Feeling really lazy now Just going to crunch a few snails down the veggie garden then chill for the night.

Frugaldom

sophiesmum wrote: »

Just going to crunch a few snails down the veggie garden then chill for the night.

Euuuuuuuuuuuuuuugh ... really? :eek: :eek: :eek: :rotfl:

wendywitch

Thank you Nyk that is so much easier to understand. :T
I'll get the calculator out tonight and start working things out _pale_
hopefully I'll be ready for July

sophiesmum_2

nykmedia wrote: »

Euuuuuuuuuuuuuuugh ... really? :eek: :eek: :eek: :rotfl:

:rotfl: :rotfl: :rotfl:

As in crunch under my big feet .. not with my teeth:eek: :eek: :rotfl: :rotfl: :rotfl:

Sorry but my animal loving tendencies do not stretch to slimy things that eat my veggies:D . Anyway the resident blackbird and his wifey love me as they follow me afterwards collecting the free range snails for their babies:D

looby-loo_2

Hello, I've just been doing a bit of catching up with all your news. So many decisions in the last few weeks. DH has decided to retire so it'll be just me earning from August but we are all quite cheap to run except for his visits to the pub. He has assured me that when he finishes work he will no longer have any need to go to the pub:rolleyes: I doubt it.

I have bought one of these for my aunt. She always loved gardening but now she has no garden, just a patio. It hasn't come yet so I'm hoping it's as strong as it looks. http://www.grogardenproducts.co.uk/patiogro.html It will give her an interest, some food and exercise wartering it (her suggestion)

I'm keeping up to date with the spreadsheet but I'm way over on everything except food which seems really low - £32 total for three or four of us - is that low or normal? I keep thinking I must have forgotten something. (I'm spending more on blinkin pet food)

see you later

FunBrum

sophiesmum wrote: »

:rotfl: :rotfl: :rotfl:

As in crunch under my big feet .. not with my teeth:eek: :eek: :rotfl: :rotfl: :rotfl:

Sorry but my animal loving tendencies do not stretch to slimy things that eat my veggies:D . Anyway the resident blackbird and his wifey love me as they follow me afterwards collecting the free range snails for their babies:D

:rotfl: :rotfl: :rotfl: :rotfl: When the little blighters are nibbling at my garden and I'm in a mean mood, I use them as practice with my golf club. Fortunately for them...I'm not a golf player and I end up missing them!:rotfl:

I do think that they think twice before they pop into my garden again. I can just hear them saying to their slimey mates..."Don't go round to that mad woman at number 17. she swings a golf club at you!":rotfl: