Budgeting during the 'credit crunch'

Lucy1982_2

Hi Guys

I was just thinking about how the current economic situation is effecting my budget.

Now I live with my Mum so I am lucky there. I have recently made her up my rent to £240 a month to try and help out a bit more. But what really made me think was going to fill my car up last night.

Unleaded was on at £1.09.9 a litre :eek: :eek: I only but in £20 my weekly fuel budget.... and got less than half a tank :eek:

Everything seems to be going up... but how do we deal with this when we are ready budgeted to within an inch of our lives??

This is my current SOA, but I now don't think that I am budgeting enough for things...

Pay - £1100.16

Rent - £240.00
Contact lens - £10.00
RAC - £9.90 (I've had to call them out twice this year... Cam belt :eek: and I locked by keys in the car So worth every penny!!)
Car Insurance - £32.38
Car maintenance - £100.00
Petrol - £80.00 (this isn't going to be enough)
Mobile - £20.00
Loan - £284.34
Xmas/Birthdays - £20.00
Internet - £12.49
Spending money - £80.00 (£20 a week - split £6 Salsa Class and £4.50 Slimming World, with some left over for everything else I need.)

Total – £889.11

Leaving – £211.05

Now I know RAC will put this up because of the call out so I can shop around for that come May. My mobile isn't costing me anything at the moment as T-mobile have refunded me a repair.

Is there anything I can cut back on? My car insurance is due for renewal end of May so will shop around for that.

What I am aiming to do it pay off and extra £100 a month off my loan and I have a small amount on a credit card (£90)

Thanks I thought some general tips on getting through the next few months would be helpful to us all.

xx

CCCS_Matthew

Hi Lucy,

You seem to budgeting quite a lot for car maintenance. Is it a particularly old car? At the moment you are putting aside £1200 a year. Do you think you could take some money out of that and put it into your petrol costs?

I would also suggest budgeting on a calendar month basis. If you are paid on a monthly basis, it's best to ensure your outgoings are also on the same scale. At the moment anything you pay out for every week is multiplied by 4 to get your monthly amount. The problem comes when you get the months that have 5 weeks in them, as your budget hasn't allowed for any expenditure in the 5th week.

The best way to work it out is to times any weekly figure by 52 (weeks in the year) and then divide it by 12 (months in the year). For example, £20 a week petrol would actually be £86.66 a month. Hope that makes sense! That way you will ensure your budget is sustainable every month of the year.

Hope this helps
CCCS Matthew

Ames

I don't know about RAC but when I was with AA it didn't go up because I'd called them out. It was only once a year though.

Lucy1982_2

Thanks hopefully they wont put it up then.

Matthew - I will bare that in mind. luckily I can afford my debts, its just that everything keeps going up!

TurnaroundSue

Check when getting car insurance to see if they do roadside recovery in with it. Both mine and OH's insurance does. I'm with More Than and he's with Churchill, but I expect alot of them do it - so worth a check.

Lucy1982_2

Thanks I will do.

I currently have home start and recovery as well. Home start I've used, but recovery I haven't.

immoral_angeluk

Don't forget the cost of food is apparently going up to... :rolleyes:

Lucy1982_2

Yep and the fuel companies are annoucing massive profits, so that will keep going up and up!!!

So they will make up pay to breathe!!

Sorry a bit ranty at the moment.

bubbles0169

hi is there a way to cut down the amount you pay on birthdays
you could go halves with somebody else
look in the clearance section of shops and stock up throughout the year, end of season is the best time
look in charity shops too, one mans trash is anothers treasure!
or say youll do a service for somone for free ie if you have a friend with kids could you babysit one night, wash thier car whatever
and if they know your short just a card would be much appreciated i think
HTH

bubbles0169

also take a look through the 'birthdays, special occasions' thread

Lucy1982_2

I have been looking at things like that and I am doing ok on Pigsback and have nearly £20 there.

I've made my best friends birthday present. Photo album with loads of pics from the last 14 years. Which hasn't cost me a huge amount as I had most of the things I needed anyway.

I'm getting Mum a digital camera for her birthday in August, but she doesn't want an expensive one and we set a budget of £50 per birthday and christmas each.

I should really sit down and work out who I will be buying for and work out a cost for each person. I was working on last christmas which included ex OH and his family.

And I LOVE 3 for 2!! Oh and Boots points nearly £20 there as well.

I'm going to collect all these tips together and have a really good look at everything tonight and work it all out.