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  • FIRST POST
    • MWorries90
    • By MWorries90 6th Jul 17, 12:26 AM
    • 1Posts
    • 1Thanks
    MWorries90
    Graduate, Teacher, desperate for help!
    • #1
    • 6th Jul 17, 12:26 AM
    Graduate, Teacher, desperate for help! 6th Jul 17 at 12:26 AM
    ..Hi, I feel my situation is quite complex so I will do my best to explain.
    I qualified as a teacher and have been employed as one since Sept 2016. I moved in with my parent (who rents a council house) to try save money. My school is in a different town, and before Christmas I was unable to drive so had a 2hr communte each way. Due to my own lack of money, I am now car sharing with my parent. I have the car Tues, Wed and Thurs, but use public transport on Monday and Friday. I have bus passes for two of the buses but have to pay for day tickets each time for the third bus/network.

    My contract has been made permanent, so I would like to move closer to my school to cut down travel time and possibly expenses.

    I am volunteering abroad over summer in exchange for food and accommodation, but had hoped to enjoy my time off and also an extra week i will be in the country to travel. When I booked flights, I had not realized how bad my credit card debt was, nor how little I would have in my current account.

    Here are my figures:
    Current account -960 (1000 student overdraft, no fees. 960 available)

    Savings account 275

    Credit card debt 1937 (1100 has an APR of 18.9%, interest is 1.45% each month. 837, I just moved over to have an offer of 0% interest until October 2018)

    My Salary is 22467 After tax, pension, NI, and student loan (10ish) I take home 1291.30 each month (25th)
    As a teacher I work all week. As I have mild narcolepsy, I try to keep weekends free to sleep, exercise and spend time with family.
    I go out for a meal maybe once a month. Rarely go out drinking.

    Expenses
    Board 340 (rent, bills, food, phone 13.50, difference in car insurance to add me on)
    Petrol 42 pw (maybe less if price is good)

    Buses for 1day (values taken from the bus passes):
    3.86 x2...7.72
    2.64
    4.20
    ...14.56 x2 each week for travel to work

    Weekend travel is minimal but usually I use the car.

    Netflix 7.49 pm
    Graze box 3.99 fortnightly
    School lunch 10pw quality food to allow me time to sleep at a decent time and not get up even earlier to prep (5:00 or 6:00 on a car day)

    Medication 8.20 every 2months
    Having realized my situation I have stopped buying breakfast. I don't shop for clothes and shoes regularly, just at seasonal changes when I need something. My gym membership was a one off payment so no monthly expense there. Mum is a hairdresser so I don't have that cost either.

    My situation has arisen from poor habits previous that I had lost control of. Where I need help now is: I need to work out what I can afford when looking for a property to rent with my friend so that I am closer to work (ideally on the bus route or walking distance and looking to move beginning of September or August if needs be-she would move in while I am away), what I can budget for summer (July pay 25th before I fly out, August pay 25th, I fly home on 3rd Sept), and what is my best approach to tackling my debt?

    I used step for change but it doesn't allow me to put in negative balance. I have already reduced my overdraft from 1500 to 1000. I feel like I'm drowning in money problems and can't plan for summer or moving because I'm worried I'll have nothing at all. Moving house will see a deposit and fees needed to be laid to secure the house at the very least...

    I hope that makes sense, I don't know who to turn to with these questions
Page 1
    • Arleen
    • By Arleen 6th Jul 17, 1:54 AM
    • 1,150 Posts
    • 863 Thanks
    Arleen
    • #2
    • 6th Jul 17, 1:54 AM
    • #2
    • 6th Jul 17, 1:54 AM
    I would suggest that you post a complete SOA, linke here: http://www.stoozing.com/calculator/soa.php and start a proper spending diary, noting down every single penny that comes in and out, it will quickly unearth where your money is going.

    Are your tickets transferrable? Did you calculate how much will that trip actually cost you on top of that? While you may have room and board provided, there will always be expenses on top of that. It may be cheaper to simply accept the loss of money on tickets than it is to go. Additionally, that would free your time here to maybe seek some summer employment?

    Becuase from what you are saying you have a lot of expenses ahead of you - deposit, first and last months rent, moving costs and then the expenses to make the place livable, and probably also a car of your own as sharing with parents won't be easy once you move out. And you don't have money to cover either of those, so spending money on vacations doesn't seem like a good financial choice, even if it means that the tickets will have to go to waste.
    • parsniphead
    • By parsniphead 6th Jul 17, 7:05 AM
    • 2,457 Posts
    • 15,626 Thanks
    parsniphead
    • #3
    • 6th Jul 17, 7:05 AM
    • #3
    • 6th Jul 17, 7:05 AM
    As Arleen says, you need to do a full and honest SOA. Also start keeping a spending diary. It's amazing to see where money is frittered away. You are spending 103.74 per year on Graze boxes alone. All the other little bits will add up too.


    There will be lots of support and help on here. Keep posting and good luck.
    My mini challenge: pay off MBNA by 31/08/18. 53.10/502 10.57%
    Total outstanding consumer debt - 53.10/ 7864.52
    Without ambition one starts nothing. Without work one finishes nothing. The prize will not be sent to you. You have to win it. -Ralph Waldo Emerson
    • EssexHebridean
    • By EssexHebridean 6th Jul 17, 11:22 AM
    • 8,682 Posts
    • 45,749 Thanks
    EssexHebridean
    • #4
    • 6th Jul 17, 11:22 AM
    • #4
    • 6th Jul 17, 11:22 AM
    Others have already advised on the SOA and I agree with that. Fill it in as accurately as possioble and make it reflect the situation as it is right now - NOT what you think you should be doing. An Aspirational SOA isn't the right place to start!

    One thing that does leap out at me from your post:

    Current account -960 (1000 student overdraft, no fees. 960 available)
    You don't have 960 available if your minus figure at the start of the line is correct. You OWE 960, you have zero available. You need to adjust your thinking to stop thinking of the 1000 overdraft limit as money that's available to you - it's not, and more to the point, it can be pulled away and recalled at any time.

    Have a look at the MSE Credit Club to see if you might be able to get any other 0% balance transfer offers for the remaining interest bearing card debt. Once all the card debt is on 0% set the direct debit for those to the current level of the minimum payment (so it stays static rather than dropping as you impact on the capital balance, meaning that ongoing, you pay more off without even noticing it) and throw everything else at getting shot of the overdraft, then move on to clearing the cards.

    Oh - and cut up the cards - until you're back on an even keel you won't be helping yourself by using them.

    I get that you're keen to move out of parents - must be hard going back after being away at Unit etc! At the moment though you're not going to be saving as much on travel as you will increase your outgoings by striking out on your own so I'd suggest putting that idea on hold for 12 months at least if you can. In the meantime you can pay off as much as possible on the debt and then re-evaluate.

    Good luck!
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 1229.00/944.19 (15/05/18)
    SOA Calculator for DFW newbies: Stoozing.com SOA Calculator
    • ReadingTim
    • By ReadingTim 6th Jul 17, 11:24 AM
    • 2,669 Posts
    • 3,815 Thanks
    ReadingTim
    • #5
    • 6th Jul 17, 11:24 AM
    • #5
    • 6th Jul 17, 11:24 AM
    It's not complicated at all - you simply need to spend less than you earn.

    Ditch the luxuries because you can't afford them - that means the netflix and the graze boxes. The school lunch argument is frankly rubbish - it takes 5 minutes to make sandwiches; and they cost far less than 40 per month. You're also buying bus passes, but only using the bus 2 days out of every 7, which I can't believe is cheaper - generally speaking, bus passes/travelcards etc cost somewhere between 3 and 5 times a daily ticket. So you pay for 3-5 days, and get the rest of the week 'free'. So ditch the bus pass and buy daily tickets for all buses on the days you use them, or better still, ditch the car and just use the bus. You'll also save petrol money too.

    You should also keep a spending diary to see where every single penny goes, as there's plenty of things you've missed off - never buy cosmetics for example?

    Finally, much as you might like to, you really can't afford the holiday after the volunteering, and, if I'm being brutally honest, I might suggest that you ditch the volunteering too, and find some additional paid work over the summer.
    Last edited by ReadingTim; 06-07-2017 at 11:30 AM.
    • Ilona
    • By Ilona 6th Jul 17, 11:51 AM
    • 2,064 Posts
    • 7,092 Thanks
    Ilona
    • #6
    • 6th Jul 17, 11:51 AM
    • #6
    • 6th Jul 17, 11:51 AM
    Tim is right, you need to find paid work over the holidays, and save it for your new place.

    A spending diary is a good idea, and filling out a Statement of Affairs. There may be some areas that you can reduce your outgoings.

    http://www.stoozing.com/calculator/soa.php

    Ilona
    I love skip diving
    • Ilona
    • By Ilona 6th Jul 17, 11:59 AM
    • 2,064 Posts
    • 7,092 Thanks
    Ilona
    • #7
    • 6th Jul 17, 11:59 AM
    • #7
    • 6th Jul 17, 11:59 AM

    Netflix 7.49 pm Dump this. It's a want not a need
    Graze box 3.99 fortnightly Dump this. It's a want not a need.
    School lunch 10pw quality food to allow me time to sleep at a decent time and not get up even earlier to prep (5:00 or 6:00 on a car day) Lunch prep the night before, put it in the fridge, get up, job done.
    Originally posted by MWorries90
    My suggestions.
    Ilona
    I love skip diving
    • Silver Queen
    • By Silver Queen 6th Jul 17, 12:44 PM
    • 373 Posts
    • 1,759 Thanks
    Silver Queen
    • #8
    • 6th Jul 17, 12:44 PM
    • #8
    • 6th Jul 17, 12:44 PM
    You must be paying a lot into your pension? I'm on a lower salary than you and my take home is a couple of hundred more than you per month. Is there any way you can reduce your pension contributions until you're back on an even keel?
    Debt Totals May 2018::
    350 Natwest Credit Card / Now 0 (paid off and closed 04/2017) 15,500 postgrad loan from parents/ Now 10,250 500 train ticket loan from parents / Now 0 (paid off 16/02/18) 2,000 Overdraft Now 0 (paid off 09/03/18)
    • anna_1977
    • By anna_1977 6th Jul 17, 3:28 PM
    • 684 Posts
    • 937 Thanks
    anna_1977
    • #9
    • 6th Jul 17, 3:28 PM
    • #9
    • 6th Jul 17, 3:28 PM
    I was thinking the same as Silver Queen - I pay into a pension and take home 200 more than you but earn 2500 less a year
    • tlc678910
    • By tlc678910 6th Jul 17, 4:19 PM
    • 522 Posts
    • 896 Thanks
    tlc678910
    Hi,
    I think moving out could be the right thing for you as it may not be much dearer if you are sharing with a friend, and if you can live close enough to school to walk or cycle you can manage without a car and have minimal transport costs. How much do you expect the property to be each?

    The workload of a new teacher is horrendous and if you can get back an extra hour or two each day from your commute it will be worth the extra sacrifice. A huge amount of teachers leave in the first few years so do whatever you can to make it easier.

    But to move out you need to find the money for deposit and rent upfront. Can you or will you need to decide between cancelling your trip or delaying your move?
    • MandM90
    • By MandM90 6th Jul 17, 10:22 PM
    • 1,369 Posts
    • 7,051 Thanks
    MandM90
    By my rough calculations that's about 600 unaccounted for which could clear your debts in 5 months.

    Honestly, I would forget about holidaying when you owe money, unless you would consider putting it on a credit card. Whilst you're in debt, and buying things, that's essentially what you're doing!

    I would also put off moving out quite yet as it will cost a lot more than 340 a month to live! As others said, you need to find out where all this money is disappearing. By the end of this year you could be debt free and preparing to move out, in total financial control.

    I would get out your bank statements, comb through each one and see where you're spending. Or use the YNAB free 30 day trial (no card details required) and download transactions, sort them, and see where it's all going.

    I fear if you go on hols, then move out, you're just burying your head in the sand....
    I'm a Board Guide on the Marriages & Family,
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    • tlc678910
    • By tlc678910 7th Jul 17, 8:30 AM
    • 522 Posts
    • 896 Thanks
    tlc678910
    The OP is suggesting they currently spend:
    340 a month on rent and bills,
    42 a week on fuel - say 160 approx
    14.56 *2 a week on the bus = roughly 30 *4 = 120

    So if they could live close enough to work to not pay for a car or transport they could save more like 620 rather than the 340 towards a new place/bills/food (and they will be sharing so splitting bills). Obviously might go to see family a few times a month and the other weeks they come to see you?
    Tlc
    • zippygeorgeandben
    • By zippygeorgeandben 7th Jul 17, 11:53 AM
    • 816 Posts
    • 1,048 Thanks
    zippygeorgeandben
    As a teacher myself and speaking to the OP and non teachers here, that first year of teaching is THE hardest year. There is so much extra work you have to do as part of your NQT year that if you don't recharge your batteries (and by this I mean doing low cost activities) then you won't feel ready to tackle the new year in September.
    It's concerning that you book flights without knowing whether you can afford them or not but you're on the DFW so you've realised you need to sort it out.

    I make it that you are 124 light on your salary? I presume you are contributing 7.4% towards your pension? (0-24999 salary) Your take-home pay should be around 1415 (give or take).
    Ditch the graze.
    Can you not have a dinner at school? Quite a few of us do (and for those old enough to remember, I'm not talking custard with a layer of skin on top!) and they'll make jacket potatoes, wraps or just have a school dinner. It's subsidised. I actually don't stop for lunch at school most days due to working but I take a couple of laughing cow/ryvitas in case I do.
    Last point - huge congrats on nailing down a permanent position at school, especially with doing that commute before Christmas. You have to be pretty strong as a character to do that. Any chance next year you taking on another responsibility and increasing your pay?
    End Sep 2016 End Apr 2018
    8236.57 0
    (Tesco 4.8%) 0pcm
    6185.75 0(Zopa 4.0%) 0pcm

    5344.50
    1630.04 (Sainsburys 0% until 06/19) 140pcm
    2000.00 [B]266.71/B] (Sister 0%) 133.33pcm

    Total debt
    19.766.82 1896.75 Original DFD May 2019.
    • cms-help
    • By cms-help 7th Jul 17, 11:55 AM
    • 172 Posts
    • 160 Thanks
    cms-help
    Your salary looks far too low.

    22467 per annum should (I think) be a take-home as follows:

    1872.25 gross

    134.80 pension contribution
    155.82 tax
    143.03 national insurance
    11.00 student loan

    Take home should be about 1425. Unless you've got other deductions you haven't mentioned, sounds like you need to speak to whoever looks after Payroll at your school.

    Presumably when you go back in September you'll move to the next level on the payscale too which will give you an extra 80 a month take-home.
    • marliepanda
    • By marliepanda 7th Jul 17, 12:05 PM
    • 5,624 Posts
    • 11,822 Thanks
    marliepanda
    As a teacher myself and speaking to the OP and non teachers here, that first year of teaching is THE hardest year. There is so much extra work you have to do as part of your NQT year that if you don't recharge your batteries (and by this I mean doing low cost activities) then you won't feel ready to tackle the new year in September.
    It's concerning that you book flights without knowing whether you can afford them or not but you're on the DFW so you've realised you need to sort it out.

    I make it that you are 124 light on your salary? I presume you are contributing 7.4% towards your pension? (0-24999 salary) Your take-home pay should be around 1415 (give or take).
    Ditch the graze.
    Can you not have a dinner at school? Quite a few of us do (and for those old enough to remember, I'm not talking custard with a layer of skin on top!) and they'll make jacket potatoes, wraps or just have a school dinner. It's subsidised. I actually don't stop for lunch at school most days due to working but I take a couple of laughing cow/ryvitas in case I do.
    Last point - huge congrats on nailing down a permanent position at school, especially with doing that commute before Christmas. You have to be pretty strong as a character to do that. Any chance next year you taking on another responsibility and increasing your pay?
    Originally posted by zippygeorgeandben
    She is having school lunches. That's the 10 a week/ 40 a month. You can get lunch much cheaper taking a pack up.
    • TonyMMM
    • By TonyMMM 7th Jul 17, 12:43 PM
    • 2,650 Posts
    • 2,921 Thanks
    TonyMMM
    Forget the summer trip you can't afford it.

    Get a paid job (ANY job) over the summer and reduce spending to absolute necessities only - save all the income you can.

    In Sept you will be in a much better financial place.

    If you go ahead with the trip - you are just going to increase your debt and make sorting out a move/rental much more difficult.

    Make sure your pay/deductions are correct and don't even think about not paying into your pension ... that is the best investment you can make.
    • kelpie35
    • By kelpie35 7th Jul 17, 12:54 PM
    • 1,551 Posts
    • 5,019 Thanks
    kelpie35
    Hope OP is not teaching maths.

    You need to start a proper. budget and live within your means
    • cms-help
    • By cms-help 7th Jul 17, 3:27 PM
    • 172 Posts
    • 160 Thanks
    cms-help
    Your expenses appear to be around 700 per month. I take it you don't have almost 600 left over every month (based on your stated take-home figure)?

    To clear your credit card before the 0% expires then you'll need to repay about 130 per month.

    As for what you can afford rental wise, you're currently spending about 625 on paying your parents and travel costs. You will need to factor in what your new commuting costs will be and look at the rental prices where you are looking to live.
    • andydownes123
    • By andydownes123 9th Jul 17, 9:44 AM
    • 206 Posts
    • 288 Thanks
    andydownes123
    For info. Teacher's pensions can be extremely expensive BUT they are usually the best type of pension. I'm paying over 9%.
    • zippygeorgeandben
    • By zippygeorgeandben 18th Jul 17, 8:25 PM
    • 816 Posts
    • 1,048 Thanks
    zippygeorgeandben
    I think I pay just over 10% Andy.
    End Sep 2016 End Apr 2018
    8236.57 0
    (Tesco 4.8%) 0pcm
    6185.75 0(Zopa 4.0%) 0pcm

    5344.50
    1630.04 (Sainsburys 0% until 06/19) 140pcm
    2000.00 [B]266.71/B] (Sister 0%) 133.33pcm

    Total debt
    19.766.82 1896.75 Original DFD May 2019.
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