Banishing the black cloud

in Debt Free Diaries
219 replies 14.9K views


  • maggieconmaggiecon Forumite
    408 Posts
    Part of the Furniture 100 Posts Combo Breaker I've been Money Tipped!
    Thanks nintud and dollydreamer for stopping by and reading.

    Nintud, hubby is and always will be, a nightmare with money. I think once I get some sort of strategy worked out I will have to discuss it with him and try to get him on board

    Dollydreamer I have spent all afternoon devising a plan of attack. Will post details soon...
  • edited 13 August 2014 at 8:31PM
    maggieconmaggiecon Forumite
    408 Posts
    Part of the Furniture 100 Posts Combo Breaker I've been Money Tipped!
    edited 13 August 2014 at 8:31PM
    Well its the end of the week and I have managed to make it to payday with £45 left in my bank account. I have now transferred that to my direct debit account. I cooked dinner from anything I could find in the fridge and it turned out quite tasty, very proud of myself.

    Hubby has just informed me he got the sack because he took the three days of to study for his exam. Think he found out on Monday but didn't want to tell me until he had something else lined up. He starts a new job tomorrow, and will be earning an extra £25 per week, He thinks he gets his first pay cheque next Thurs. I hope he doesn't have to do a lying week.

    Silver lining for today... MIL sent in a lovely homemade maltesers cheesecake which I had for dessert and it was delicious. I now need to go and do anther one of my Brazilian butt workouts LOL. Also I have spent all afternoon working on my POA for my budget which I will share with you all tomorrow. Feeling excited about getting rid of this debt. Woop Woop.
  • edited 14 August 2014 at 9:31AM
    maggieconmaggiecon Forumite
    408 Posts
    Part of the Furniture 100 Posts Combo Breaker I've been Money Tipped!
    edited 14 August 2014 at 9:31AM
    After some serious number crunching, head scratching tea drinking and chocolate eating, I think I might have developed a workable budget. This approach will have three strands to it, based on our three sources of income.

    Strand One – My Income
    Firstly my D/Ds are all set up to come out of the joint account, working on a weekly figure (as I get paid weekly) these are as follows Mtg1 £145.14, Mtg 2 £120.37, Life Insurance £13.15, Car Payments £25.85, Internet £6.39, mobile phones £6.35. TOTAL £317.25I receive £100 per week in Rent towards Mtg 2 and £34.50 per week in Child Benefit which bring my total weekly D/D payments to £182.75
    I get paid £439 per week, after covering D/D I will have £256.25 left. I will need £30 petrol, £20 electric and £20 oil heating, leaving me with £186.25 per week. I think I can work on a budget of £25 per day for living expenses. Which is £175 per week. Leaving £11 per week in my emergency fund. If I overspend one day I will need to claw it back the next. I think by micromanaging and allowing myself a daily allowance I can finally crack this overspending. Any money left at the end of the week, will go back into the emergency fund.

    Strand 2 – Rental Income
    I have two flats which I inherited, they can’t be sold as they are above my family’s commercial premises but on a good week I get approximately £155 rent. I have decided to let this money accumulate in a saving account to pay other bills not included for above. Total rental income for the year will be £8060, from this I will need £2000 council tax, £1000 car insurance (2 cars), £500 house and Landlord insurance, £500 income tax on the rental income, £380 Car Tax, £300 car servicing and MOT. Leaving a balance of £3480. In reality this figure will be a lot less, as people are constantly not paying rent, upkeep of the rental properties etc. But whatever is left at the end of the year will be set aside to overpay mortgage or to do work to our house.

    Strand 3 – OH Income
    OH earns £325 per week, but this is very erratic, allowing £40 per week for petrol, £40 for spending and £20 to pay of his credit union loan. He should be giving me roughly £225 per week. This will form our debt busting/saving pot.

    I still need to work out the finer details of this plan, but I think it forms a good starting point, otherwise I have just wasted an entire afternoon J
  • Now that I have the bare bones of a plan I now need to work out the finer details to make sure it works.

    Firstly, as I am half way through the month, I will need to overpay into the Direct Debit account for the next four weeks. I will pay the £182.75 plus the oil heating and emergency fund money - £213.50 per week. I already have £80 in this account.
    Next, I have several large bills coming up this month, these are;

    1. My Daughter C’s Birthday present and party - £150
    2. My son B’s GCSE results next week - £100
    3. School Uniform for B - £200

    From revenue stream two I have already put aside £950 and I am due approximately £310 this weekend. I have been setting all this aside to pay the council tax / rates bill (£1750) which must be paid in a lump sum by the 28th September. If I miss this date I lose the 12.5% discount which equates to £250. I have calculated that if I take the £310 rent money this weekend and OH first weeks wages, it will cover the bills above. I will still receive enough rent between now and the end of Sept to cover the Rates.

    Next is the oil heating, the house was quite cold last night and it made me realise that we will need oil heating very soon. I have submitted my expenses claim at work today for £130 which I will be paid around mid-September- I will then use this to get my first refill.

    Emergency Fund, I have done some debt busting this month already and I think what I have achieved is enough to keep me going until September, I will therefore put any money from hubby’s wages into an emergency fund which we haven’t had in a while.

    Next, dealing with the kids and giving them some money. I will discuss this with them and try to put some plan into place for when they go back to school. C is away for two weeks to her dad’s house and B has just started a new job and will get £30 wages this weekend so they are covered for now.

    The last thing is how to actually put the plan into action.

    • My wages and direct debit account are both with Ulsterbank. I will transfer bill money every Thursday, when I get paid. This can be done online.
    • Rent money is paid to my brother by tenants. I will let him look after this and I will put it into my separate Santander account on a regular basis.
    • Petrol – I will top up every Thursday
    • Electric - I can buy online every Thursday
    • Oil heating - I think I will look into a pre-payment card for this
    • Emergency Fund – Not sure if I should let this sit in the bank. Will play it by ear
    • Daily Budget – As per emergency fund not sure I should keep this in cash or use the card?
    • Husbands money – I think I need another account set up to handle this money. Will look into opening one this weekend.
  • Week one, day one of my new budget. I have spent £19.48 in Asda on groceries so it's a good start as I am within budget.

    Hubby said new job is good and there is the opportunity for him to work half day Sat on full pay which would be £390 per week. Can't see him doing it too often though.

    Silver linings for today.. Hubby sat down and listened to me while I explained or budget to him and he has agreed to give it a go. I think I am finally getting through to him.

    Daily spend £19.48/£25
    Weekly spend £19.48/£175
  • NintudNintud Forumite
    191 Posts
    Seventh Anniversary 100 Posts Combo Breaker
    Plan looks good. I'll be amazed if overspending hubby sticks to £40 judging from past spending but hope he gets inboard, even if he only manages to reduce his spending short term it should help reduce the debt.

    I'll be doing something similar when we get back from Paphos next week. I have about 5 'savings' accounts with Natiionwide that I use to store money for big ticket items (Christmas, car etc). I raided them all before we flew out here but should be able to put a few pounds back into each when we get home as I've not spent as much as I thought I would.
    MBNA 120/17120.
    Santander 250/9000
    - - - -
    What matters is how we live and love and how we spend our dash. (L Ellis)
  • So day 2 of the budget is over and things are ticking along nicely. Having this plan of attack has let me relax a lot more, I now know that every bill that I have is being taken care of in the background, all I have to worry about is making the £175 per week stretch. I read a great tip on the YNAB website which said you should live on last weeks wages, therefore I am going to buy no wants this week only needs. and any surplus from this weeks budget will be next weeks extra spending cash and so on.

    I am completely amazed at the amount of money I am spending on food, Working on my grocery budget is my next challenge. I will monitor my spening in that area for the next week or two and then see where I am falling down.

    Hubby is playing his part nicely too, he took £10 out of the rent money yesterday to play indoor football and borrowed £20 this morning for petrol. He got one days pay yesterday - £65 and gave me the cheque to put in the bank, so I will take the £30 out of it and gave him the £35 that's left . Up until this week I would have be left to find the £30 that he took but not anymore:j:j

    Now that I have told him I need £225 per week from him, he has decided he will work Saturdays, so he was up and away to work this morning at 7am. :) that means he will have £165 for himself next week. I think he is trying to save a bit as he has three birthdays next month, mine, his mothers and his sisters. He is very generous and would often put himself into debt to make sure he got all three of us a present, so I think he is trying to avoid that this year.

    I downloaded a great app on my phone to help me monitor my spending. It automatically adds my £25 daily allowance as an income, so I just need to add my expenses, it also gives me a weekly, monthly and yearly balance. I can set the week to start on Thursday as well. It also allows me to set up additional accounts to monitor the rent money and hubbys wages pot.

    Daily £16.12/£25
    Weekly £35.60/£50
  • HI Maggie, sorry I've not been around much this week but have just caught up on your diary and it sounds like things are starting to work out for you.
    Good luck for the new budget.
    Did you decide to go to Dublin in the end?
  • Hey WW didn't get to Dublin... the budget didn't allow it. LOL. Hubby keeps joking with me about it. Every time he wants to do something he asks me does my app allow it. I just say "Computer says no", in my best Little Britain impression.

    Thanks for the pitta pizza recipe, everyone loves them and they are so cheap. We had them for lunch on Saturday and Sunday.
  • Glad the pittas worked out for you - I'm not known for my culinary skills:rotfl:
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