Why is spending money so easy......

Snwps · 19 June 2019 at 2:56PM

Here is my SOA

SUMMARY
Monthly Income £2,980.04
Monthly Expenses £2,102.91
Available for Debt Repayment £882.13
Unsecured Debt Payments £999.61
Left over -£122.48

Income
Income 1 £1,433.37
Income 2 £1,409.07
Child Benefits £137.60
Other Income £0.00
TOTAL INCOME £2,980.04

Outgoings
Mortgage £504.47
Council Tax £120.00
Gas & Electricity £158.00
Water £49.53
Telephone/Internet/TV Subs £53.90
Mobile Phones £70.81 (Contract ending Nov 2019 so will save £50/month switch Sim only)
TV Licence £13.20
Groceries £346.67
Clothing £20.00
Fuel £216.67
Road Tax £18.73
Car Insurance £40.04
Car Maintenance £20.00
Pet Insurance £11.46
Home Insurance £12.92
Life Insurance £32.19
Boiler Insurance £8.66
Nat West Bank Fee £2.00
Christmas £86.67
Birthdays £8.67
Haircuts £5.00
Entertainment £86.67
Holiday £0.00
Emergency Fund £86.67
Personal Spends £130.00
Pocket Money £0.00
TOTAL OUTGOINGS £2,102.91

Debts Monthly payment Total Debt APR
Hitachi Loan £145.17 / £3,130.82 / 15.90%
Hitachi Loan £223.63 / £3,774.42 / 9.20%
Tesco CC £65.00 / £5,797.84 / 0.00%
M&S CC £30.00 / £1,167.18 / 0.00%
Barclaycard £105.00 / £4,433.59 / 0.00%
Post Office CC £34.00 / £1,313.00 / 0.00%
Tesco CC £81.62 / £4,051.80 / 0.00%
MBNA £30.00 / £2,161.40 / 0.00%
HMRC £20.00 / £880.00 / 0.00%
Vanquis £65.15 / £1,660.86 / 26.39%
Capital One £93.99 / £2,582.96
Halifax £30.90 / £3,059.10 / 0.00%
Halifax £75.15 / £3,300.56
TOTAL £999.61 £37,313.53

Assets
Cash £0.00
House £125,000.00
Savings £0.00
Cars £2,500.00
TOTAL ASSETS £127,500.00

Mortgage £86,500.00
Unsecured Debts £37,313.53
NET ASSETS £3,686.47

As much as this shows I'm in a minus, I'm not too worried at the moment. We're keeping our head above the water as we're not putting anything into clothes/car fund/ hair cuts/emergency fund on a strict monthly regular basis as the SOA is showing. DH works varied hours from week to week so I've used his average over the past 6 months to use for the SOA. For the weeks that we have a surplus I can top up these funds as we go and keep some spare for the weeks that we're short. Not ideal I know.

Plus we're still tracking our spends so now that we're focused we should be able to streamline this to our means.

enthusiasticsaver · 19 June 2019 at 4:49PM

As you say you have no savings so presumably that soa is aspirational and there is no emergency savings. I am sorry to be blunt but I do find it strange you have saved £900 for xmas and nothing for emergencies. Can you reduce the xmas budget? Tell your friends and family now you are cutting right back and manage expectations for your children. We do not do presents for adults any more beyond our children, grandchildren and my DH and my brother as he has no partner. DH and I just do token presents. My sister was quite happy to abandon it as was my mum and stepdad.

Your gas and electric looks high. Have you done a comparison quote? Moving to sim only is definitely a good move. The entertainment could be cut. Is this childrens activities or takeaways etc? Can you reduce it at all?

Still it is a start and made you aware where you are spending and now you know there is a monthly shortfall you can look for ways to cut back. Good luck and keep posting.

Snwps · 19 June 2019 at 6:39PM

Thanks for posting. All good points which I'm looking into. We're still learning and picking up on issues and spending problem areas but it's a start. Hopefully things can only get better.

Snwps · 19 June 2019 at 6:59PM

Also worth mentioning that the Christmas saving is with Park so its not like its in a savings account that I can move to an Emergency Fund. There was a standing order set up paying £25 per week to Park, that's been reduced now to £5 which will be plenty for this Christmas. Will sort next Christmas in 2020.

The entertainment is being cut right back so that will save money. We used to be terrible for take away's and hate to think of the amount of money we'd spend on food. We've reduced it now to having one a month at payday.

Still loads of room for improvement so keep these ideas/suggestions coming. Thanks all

Snwps · 27 June 2019 at 10:35AM

Payday tomorrow can't come quick enough. Tomorrow is also bills day so will be nice to see my figures change over the next few days once DD's clear from the bank. Its been a boring couple of weeks waiting but here we go time to start seeing changes.

I've also realised that when reading other peoples diaries, it can take you quite a short time to read but in fact the diary has built up over months/years even. It feels like the person who's wrote the diary is getting their debt figure reduced rather quickly but in fact its taken quite some time and perseverance to get where they are. I need to remind myself of this point, this isn't a quick fix. And as much as I want it gone now this minute I also want to live and enjoy life and my kids growing up. So I need to find a balance of getting the debt lowered and living within my means. But be patient at the same time.

On a positive note my emergency fund is coming along now. I have £195 saved which is at least something.

I need to work on making some extra income with selling/ebaying etc so this weekend going to have a sort through to see what I've got.

Snwps · 27 June 2019 at 10:53AM

Things I need to sort:
- MOT both cars due in July.
- Wedding anniversary in July
- Really need to sort out a Will, this is something I've been meaning to do. I've had some prices at around £200 mark (eeek)
- Sort childcare/activities for summer holidays while kids are off school

Scott-Weiland · 28 June 2019 at 2:34AM

Few things too look at first would be this

https://www.moneysavingexpert.com/family/make-money/

You asked re getting a part time job or second job alot of guys on here do market research surveys too boost there income. I do them and on a good week i can make 40-50 quid week extra, most of the time its 20-25. Try prolific academic and Qmee and Opinion Outpost too start.

Re your SOA i would make some changes just minor ones, getting out of debt is about being wise and alot of baby steps that help the bigger picture.

Mortgage £504.47
Council Tax £120.00
Gas & Electricity £158.00 (get on topcashback.co.uk then do a quote on go compare, even a five too ten pound saving py usually results in clicking 50-60 pound in cashback for a dual fuel switch)
Water £49.53

Telephone/Internet/TV Subs £53.90 Who are you with?? Could you go internet only and survey with say freeview and Netflix and maybe say Now Tv. I use a friends Netflix they borrow my Now Tv pass, I pay 30 for broadband and tv.

Mobile Phones £70.81 (Contract ending Nov 2019 so will save £50/month switch Sim only) Good plan re the phones, when you switch use top cashback theres usually ten-twenty quid there for sim only deals.

TV Licence £13.20

Groceries £346.67
Too me thats slightly high, unless it includes dog food that 85pw, try discounters like home bargains or herons or b and m for a few items ie toiletries/cleaning products/fruit/washing powder you will find them cheaper.

Clothing £20.00

Fuel £216.67

Road Tax £18.73
Car Insurance £40.04 Do you know when this is up for renewal??

Car Maintenance £20.00

Pet Insurance £11.46
Home Insurance £12.92
Life Insurance £32.19
Boiler Insurance £8.66

Pet/Life/Home/Boiler Insurance i would individually re quote on these. Thats nearly 800 a year on those alone, it will take you 10-15 minutes if you pop on go compare through top cashback. I know animal friends and all sorts are on there re pets. Life insurance companies the same.

Nat West Bank Fee £2.00
Its only 2 quid but are you using the benefits if you are keep it.

Christmas £86.67
I would reduce that either that or i wanna be your partner/kids £1040 quid yikes. 60 or 70 would be a better number.

Birthdays £8.67

Haircuts £5.00
Entertainment £86.67
As another poster said thats the same try and cut lt.
Holiday £0.00
Emergency Fund £86.67
re this i wouldnt have it as high either, you have a boiler breakdown thingy, i would drop that too say 25 and pay the difference off debts that arent on 0 percent. Build your EF gradually and use things like; survey earnings maybe and cashback and say ebay or book sales etc too boost it faater.

Personal Spends £130.00
Pocket Money £0.00
TOTAL OUTGOINGS £2,102.91

Scott-Weiland · 28 June 2019 at 2:44AM

You mentioned takeaways in your diary do you use justeat??

Re decluttering look at these too

Music Magpie
Ziffit
We buy books.co.uk

All are really good, no postage cost or selling fees. All are on top cashback so you even get extra for selling your stuff using there site. You will see a pattern with me if i can earn cashback i will £1100 plus earned in 3-4 years.

Just seen your post re cutting Xmas vouchers sorry i missed that. well done on the saving.

I hope I havent given you too many ideas but my thinking is if you could see eek another 75 too 100 pounds out of your budget pm you could work first on getting shot of that sooner.

Vanquis £65.15 / £1,660.86 / 26.39%

Tiny savings on price comparison sites via top cashback all add up. I recently switched broadband i only saved 2 quid pm but will get 90 quid in cashback. Same with my motorbike insurance i recently switched that, 4.50 pm saving and 40 pounds in cashback. It all helps, the cash back when it drops i will split it a third on a night out or treat the rest off debt.

Shoppix is something else good too use, its an app you put on your phone, and all you do is everytime you go food shopping or whenever you get a receipt you upload a picture of the receipt too the after. After uploading so many receipts you get a paypal voucher

Snwps · 28 June 2019 at 7:38PM

Scott-Weiland wrote: »

You mentioned takeaways in your diary do you use justeat??

Re decluttering look at these too

Music Magpie
Ziffit
We buy books.co.uk

All are really good, no postage cost or selling fees. All are on top cashback so you even get extra for selling your stuff using there site. You will see a pattern with me if i can earn cashback i will £1100 plus earned in 3-4 years.

Just seen your post re cutting Xmas vouchers sorry i missed that. well done on the saving.

I hope I havent given you too many ideas but my thinking is if you could see eek another 75 too 100 pounds out of your budget pm you could work first on getting shot of that sooner.

Vanquis £65.15 / £1,660.86 / 26.39%

Tiny savings on price comparison sites via top cashback all add up. I recently switched broadband i only saved 2 quid pm but will get 90 quid in cashback. Same with my motorbike insurance i recently switched that, 4.50 pm saving and 40 pounds in cashback. It all helps, the cash back when it drops i will split it a third on a night out or treat the rest off debt.

Shoppix is something else good too use, its an app you put on your phone, and all you do is everytime you go food shopping or whenever you get a receipt you upload a picture of the receipt too the after. After uploading so many receipts you get a paypal voucher

Hi Scott, thanks for your post. You can never give me too many ideas for making/saving money. I need all the help I can get :rotfl:

I've taken all these points on board and will be setting up accounts later tonight. I've just made a spreadsheet to keep track.

Snwps · 28 June 2019 at 8:03PM

enthusiasticsaver wrote: »

As you say you have no savings so presumably that soa is aspirational and there is no emergency savings. I am sorry to be blunt but I do find it strange you have saved £900 for xmas and nothing for emergencies. Can you reduce the xmas budget? Tell your friends and family now you are cutting right back and manage expectations for your children. We do not do presents for adults any more beyond our children, grandchildren and my DH and my brother as he has no partner. DH and I just do token presents. My sister was quite happy to abandon it as was my mum and stepdad.

I've just been re-reading over my diary and wanted to clarify something on the xmas/emergency fund situation. It's only been recent that I've thought about having/needing an emergency fund. Reason being before I started, credit cards were my emergency fund. Car needs work - put on the credit card, need new washing machine - put on the credit card. In fairness about 3 or 4 years ago this was also how I funded xmas. It would all go on the credit card and worry about it later. At least for the last 2 years I've been saving, that's a start right??

I understand that I need to save Emergency Fund, xmas, car fund, clothes fund etc I'm still getting in the mind set of saving and I have made a start but this isnt something that's going to happen overnight. But I'm working on it.

Why is spending money so easy......

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free