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  • FIRST POST
    • ganderson1804
    • By ganderson1804 7th Feb 18, 1:20 PM
    • 19Posts
    • 7Thanks
    ganderson1804
    Budget advice
    • #1
    • 7th Feb 18, 1:20 PM
    Budget advice 7th Feb 18 at 1:20 PM
    Hi Guys

    I don’t think I’ve posted this in the right place so can someone please tell me the best place for me to list out our budget and get advice on it?

    Thank you

    Gillian
Page 2
    • EssexHebridean
    • By EssexHebridean 7th Feb 18, 7:58 PM
    • 8,623 Posts
    • 45,406 Thanks
    EssexHebridean
    It's because I originally registered when I had four kids and then went onto have two more!
    Originally posted by Mumoffourkids
    Thank goodness - I'd hate to have thought you had forgotten a couple!
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    • cms-help
    • By cms-help 7th Feb 18, 8:47 PM
    • 164 Posts
    • 149 Thanks
    cms-help
    Hi thank you for your reply

    In response:

    We are gas & electric but I couldn!!!8217;t find the split as we have a combined direct debit so just put it all in here.

    Yes sky is def a luxury !!!8211; but we are tied into a contract until October. This cost includes sky tv, broadband and phone line.

    Clothing is prob a little high but of my kids 1 is at school !!!8211; so is in uniform. My others are 2 !!!8211; needs new £30-£40 shoes every 6 weeks and the little one is only in 12-18m clothes with a November birthday so needs a size update in summer. This also includes stuff for me and my husband.

    The £75 a month is all in for the car excluding fuel. It covers insurance, tax, MOT, tyres, service etc.

    Haven!!!8217;t got anything in for car parking !!!8211; this comes out of our entertainment budget if we ever pop into town.

    Child expenses is their weekly classes !!!8211; swimming, hip hop, running club and toddlers.

    Buildings/contents insurance was an oversight on my part. I pay it annually and have the money sat aside for it from the month of of council tax.

    Presents budget isn!!!8217;t just for the kids, it includes all nieces & nephews, parents, mothers/fathers day token gift, cards, wrapping paper, class party gifts, Christmas.

    Entertainment is where we need to make a change I think.

    Emergency fund !!!8211; this is where I panic !!!8211; def need to build this back in.

    Bank acc !!!8211; this includes mobile phone insurance which we have used in the past. Also travel insurance, car breakdown. Plus we get a good £10-15 a month in cashback from this.

    Thank you so much for you reply !!!8211; really appreciate your time.
    Originally posted by ganderson1804
    I have to ask - why does a 2 year old need new shoes every 6 weeks? I presume from the price that these are Clarks and I understand their policy is that if a child has grown out of shoes within 6 weeks of being measured then they will provide you with the next pair free of child as it means their feet were not measured correctly in the first place (this happened to us just before Christmas in fact.) My 3 year old maybe goes through two or three pairs of shoes a year. And consider buying them in the sale or at their outlet shops. Uniform costs for 2 here would be £35 per month (that's buying 5 of everything as don't like doing washing on an evening) and that's buying all the school-logo items (would be cheaper for supermarket polo shirts and jumpers etc).

    As for childcare, have you checked out which scheme is better for you? Also, when will your 2 year old turn 3 and be entitled to their 30 free hours? Am presuming you will still need some form of wrap around care when all 3 are at school so you need to be planning ahead too if so.

    Presents really are expensive and could definitely be trimmed.
    • theoretica
    • By theoretica 7th Feb 18, 10:14 PM
    • 5,117 Posts
    • 6,376 Thanks
    theoretica
    This is based on our rock bottom income – my husband gets on call bonuses and overtime but none are guaranteed and vary month to month. We also have a much larger childcare bill than just £200 but we both take £243 in childcare vouchers.[/FONT]
    Originally posted by ganderson1804
    I don't see anyone commenting on this. How much extra does he get over a year? You need to avoid this being frittered away- it might make a good emergency fund as it won't matter if the builds up irregularly.

    What is your financial plan for replacing the car when it dies? I suggest you look at how long you are likely to have this one and start a separate saving plan for it.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • Dobbibill
    • By Dobbibill 8th Feb 18, 12:07 AM
    • 2,929 Posts
    • 3,907 Thanks
    Dobbibill
    Loads of good suggestions already so I'm not going to repeat those.

    With your insurances (car, buildings/contents etc) look at using cash back sites like TCB or Quidco.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    It's not about being the best -
    It's about being better than you were yesterday.
    • Sncjw
    • By Sncjw 8th Feb 18, 7:39 AM
    • 1,706 Posts
    • 1,031 Thanks
    Sncjw
    Why do you need to spend £30-40 on shoes every 6 weeks you can get shoes cheaper than that
    • ganderson1804
    • By ganderson1804 8th Feb 18, 8:26 AM
    • 19 Posts
    • 7 Thanks
    ganderson1804
    Why do you need to spend £30-40 on shoes every 6 weeks you can get shoes cheaper than that
    Originally posted by Sncjw

    Sorry the statement was possibly a little throw-away with regards my 2 year old but my 15m old is only on her second pair of shoes and I don't know where I can get them fitted properly an cheaper than that for first shoes? Maybe I'm missing something here.
    • ganderson1804
    • By ganderson1804 8th Feb 18, 8:27 AM
    • 19 Posts
    • 7 Thanks
    ganderson1804
    Loads of good suggestions already so I'm not going to repeat those.

    With your insurances (car, buildings/contents etc) look at using cash back sites like TCB or Quidco.
    Originally posted by Dobbibill

    Thank you x
    • ganderson1804
    • By ganderson1804 8th Feb 18, 8:29 AM
    • 19 Posts
    • 7 Thanks
    ganderson1804
    I don't see anyone commenting on this. How much extra does he get over a year? You need to avoid this being frittered away- it might make a good emergency fund as it won't matter if the builds up irregularly.

    What is your financial plan for replacing the car when it dies? I suggest you look at how long you are likely to have this one and start a separate saving plan for it.
    Originally posted by theoretica

    I couldn't tell you how much this is over a year without pulling it all out but this is what we had planned to do - transfer any cash that's left at the end of the month and stick it in savings.


    The car is only 2 years old so I'm hoping it won't give out any time in the immediate future.
    • ganderson1804
    • By ganderson1804 8th Feb 18, 8:39 AM
    • 19 Posts
    • 7 Thanks
    ganderson1804
    Thank you!
    I have to ask - why does a 2 year old need new shoes every 6 weeks? I presume from the price that these are Clarks and I understand their policy is that if a child has grown out of shoes within 6 weeks of being measured then they will provide you with the next pair free of child as it means their feet were not measured correctly in the first place (this happened to us just before Christmas in fact.) My 3 year old maybe goes through two or three pairs of shoes a year. And consider buying them in the sale or at their outlet shops. Uniform costs for 2 here would be £35 per month (that's buying 5 of everything as don't like doing washing on an evening) and that's buying all the school-logo items (would be cheaper for supermarket polo shirts and jumpers etc). No not clarks shoes but other brands from an independent local retailer. The comment was perhaps throwaway for my 2 year old but my 15m old had shoes at the start of December and got new ones this week and had gone from a 2.5 to a 4 so def should have had another shoe size in between. My 2year olds feet have grown very quickly,

    As for childcare, have you checked out which scheme is better for you? Also, when will your 2 year old turn 3 and be entitled to their 30 free hours? Am presuming you will still need some form of wrap around care when all 3 are at school so you need to be planning ahead too if so. Yes I looked at both schemes and they were pretty much pennies of a difference.

    Presents really are expensive and could definitely be trimmed.
    Originally posted by cms-help
    • ganderson1804
    • By ganderson1804 8th Feb 18, 8:57 AM
    • 19 Posts
    • 7 Thanks
    ganderson1804
    Comments in red as usual...



    OK you're on the right side of things but allowing for the stuff that's not mentioned there (insurances etc) you're closer than I'd be comfortable with, and with no EF set aside you're very close to the wind should anything break in a big way.

    If it were me I'd look to prioritise - sort out that contents insurance (and buildings although I suspect you do have that, just forgotten to put it in). Think about cutting back on the entertainment stuff a bit. Definitely cut back on the clothing for a while - force everyone to revisit what they already have and they might find some forgotten favourites lurking in the wardrobe! Knock presents down to a nice even £100 a month and make sure that budget gets stuck to. Shop to a list and write a meal plan - that could potentially save you £50 a month or so. Try to wiggle things about so you've got an extra couple of hundred pounds a month, and then stash that away into emergency savings for a while - work on just adding to this as you go along each month and don't have a fixed amount in ind to stop saving at.

    Agree that the HP needs to be looked at - it may be that if there is an option there to overpay you might do better to point some of the surplus at that. If there a balloon payment on the car at any stage? Again if so this will need saving for otherwise you'll find yourself in the situation of needing to hand the car back and take further finance for a new one, whereas obviously the ideal is to pay the current car off and keep it until you've saved for its replacement.
    Originally posted by EssexHebridean

    Mortgage – I know L it hurts a lot! We did an extension 2 years ago so this is why its so much. It has unfortunately been valued lower this time so payments are likely to go up but my dad has offered to pay a lump sum of the capital off to bring us down a band so this is something we’re looking into.


    Yes the HP is car payments.


    We are paying over 10. The CT free month this month is paying for home insurance and going to transfer next months into an emergency fund.


    Combined price for gas and electric as couldn’t find the split.


    Yes in Scotland – no water rates.


    Phones – yes 2 mobile phones – one in contract the other cheap sim only.


    Yes internet bundled with TV


    Groceries are tight to be honest – 2 still in nappies and one child dairy, soya and latex (banana, avocado) free.


    Clothing – it would appear we can make a cut here


    Yes car cost is all in covering all of its costs except fuel. It’s only 2 years old – so far maintenance costs have been pretty low.


    Buildings / contents was an oversight. I pay it annually and have save the money from not paying this month’s council tax for it.


    Presents – we could cut back here.


    Haircuts – we get done at home every 6 weeks – its needed – very hairy family! And I only get coloured every other time.


    Entertainment we can cut back.


    Emergency fund – we are looking to build this.


    At present we have £45 saved in activities, £684 in car, £91 in Christmas, £125 in clothes, £258 in emergency, £60 in gifts, £71 in home.


    We already meal plan so don’t think we can do any more there.


    At the end of the plan (2020) there is £8k to pay to keep the car or you can trade it in for another which is probably what we’ll do but on a cheaper make/model this time. But cars that fit 3 car seats across the back aren’t easy to come by!


    My kids are 5.5 (school), 2 past December and 1 past November. We did the extension for number 2 arriving and number 3 was not planned and was a very big surprise. We had to stretch maternity leave savings over a 2 year maternity so things got very tight.
    • EssexHebridean
    • By EssexHebridean 8th Feb 18, 11:00 AM
    • 8,623 Posts
    • 45,406 Thanks
    EssexHebridean
    Replies in red for ease...

    Mortgage – I know L it hurts a lot! We did an extension 2 years ago so this is why its so much. It has unfortunately been valued lower this time so payments are likely to go up but my dad has offered to pay a lump sum of the capital off to bring us down a band so this is something we’re looking into.sounds like a plan - you may need to pay legals on this though as Mortgage companies get a bit twitchy about gifted money.


    Yes the HP is car payments.


    We are paying over 10. The CT free month this month is paying for home insurance and going to transfer next months into an emergency fund. Think about switching it to 12 months and then saving monthly for the things you pay up for annually - it's a better way of budgeting really particularly if you're trying to clear down debt. (I'm assuming that you have the right to do this in Scotland the same as we have down here -
    I apologise if not!)



    Combined price for gas and electric as couldn’t find the split. In which case - turn the thermostat down, switch off appliances that aren't actually being used,
    read martin's energy saving guides and check you're on the best tariff you can be. Read Martin's guide re switching too - good info in there.



    Yes in Scotland – no water rates.


    Phones – yes 2 mobile phones – one in contract the other cheap sim only. And I see you're looking to get the second to SIM only as soon as out of contract - diarise for 3 months before end of contract to ring and quote a decent SIM only deal at your current provider and see if they'll match it and let you swap over to it early - EE are certainly open to this plan.


    Yes internet bundled with TV Have you checked whether this is the cheapest way of doing this?


    Groceries are tight to be honest – 2 still in nappies and one child dairy, soya and latex (banana, avocado) free.


    Clothing – it would appear we can make a cut here definitely.
    ebay is worth a look for clothes for littlies too - tots don't care where their clothes come from,
    just that they're warm and not itchy!



    Yes car cost is all in covering all of its costs except fuel. It’s only 2 years old – so far maintenance costs have been pretty low. Good work - just make sure the relevant amount goes to the savings account every month and that your costs are covered.


    Buildings / contents was an oversight. I pay it annually and have save the money from not paying this month’s council tax for it. Switch to saving for this monthly as that will ease cashflow with the CT switching to 12 months


    Presents – we could cut back here. You said it!


    Haircuts – we get done at home every 6 weeks – its needed – very hairy family! And I only get coloured every other time. Swap to home colouring to save some dosh? Maybe make your "milestone" treat for a level of debt clearance achieved a professional colour job?


    Entertainment we can cut back. Good work.


    Emergency fund – we are looking to build this.


    At present we have £45 saved in activities, £684 in car, £91 in Christmas, £125 in clothes, £258 in emergency, £60 in gifts, £71 in home. Excellent that you know all the figures here and shows that the system is working. Depending on when car service etc is due you might think about rebalancing some of that balance to the EF


    We already meal plan so don’t think we can do any more there.


    At the end of the plan (2020) there is £8k to pay to keep the car or you can trade it in for another which is probably what we’ll do but on a cheaper make/model this time. But cars that fit 3 car seats across the back aren’t easy to come by! You're in the wrong mindset here - you need to try to work to a plan of NOT taking on further debt when the current deal ends. At the moment you're caught into a loop that is designed to hook you into a continuous cycle of debt by making the balloon payment unachievable. Have a good look at the second hand car sites and star to get a picture of what you will pay to replace your existing car at term end with the sort of vehicle you're already thinking about - and start setting aside some money to put to this. Then when the time comes hopefully you will have cleared enough debt that you can get a straight bank loan for the balance between the value of your sensible, second hand, not over-flash car that suits your needs, and the amount you've saved towards it. That breaks the cycle of new car > unaffordable balloon payment > replace with new car and more finance.


    My kids are 5.5 (school), 2 past December and 1 past November. We did the extension for number 2 arriving and number 3 was not planned and was a very big surprise. We had to stretch maternity leave savings over a 2 year maternity so things got very tight.
    Originally posted by ganderson1804
    Seems to me you're working at this in the right way - but re-thinking a few things will help. The risk with using the CT from the two "off" months to pay annual bills is that those bills rise to a level where the CT won't cover them or particularly when no EF is in place another big spend comes up that is a priority meaning that the money isn't there when the annual stuff comes up. Making a budget work right across a year is a smoother way of managing things and avoids the risks of needing to rehome money for two months a year. It also means that you can use automated transfers to know that all your various savings pots are being filled as and when they need to be with the correct amounts.

    Remember to include the cashback from the bank account into your budget and make sure that gets transferred over to our EF as and when it gets paid to the account.

    The point made earlier about the overtime and bonuses is a good one too - again if you;'re budgeting for everything being worked out fro the basic level of income you need to make sure that anything extra to this goes at least mostly off the debt.
    MORTGAGE FREE 30/09/2016
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    • theoretica
    • By theoretica 8th Feb 18, 6:07 PM
    • 5,117 Posts
    • 6,376 Thanks
    theoretica
    I couldn't tell you how much this is over a year without pulling it all out but this is what we had planned to do - transfer any cash that's left at the end of the month and stick it in savings.

    The car is only 2 years old so I'm hoping it won't give out any time in the immediate future.
    Originally posted by ganderson1804
    Don't just hope there is money left at the end of the month- there probably won't be. Plan and prioritise savings at the start of the month.

    Good that your car is young, but that means you can have a fairly long term plan to replace it, not that you should ignore it until it becomes elderly.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • purpleheir
    • By purpleheir 9th Feb 18, 1:57 PM
    • 8 Posts
    • 17 Thanks
    purpleheir
    You can find lots of REALLY good budget apps on the App Store or Play Store. I suggest Monefy app for arranging your budget and expenses. You can easily look at it and be reminded if you regularly use your smart phone.
    • lambda
    • By lambda 9th Feb 18, 3:57 PM
    • 221 Posts
    • 724 Thanks
    lambda
    Hi,

    I'm sorry to say this, but I think it needs to be said. £507 a month is a completely insane amount of money to spend on a car. Over 4 years that is £24,336. Really!?

    You have to get rid of the car. You can't afford it. Sell it, or if it's HP you can usually just hand them back and cancel the contract. Go out and buy a cheap £500 banger, then put the £500 a way each month you were paying before into a savings account. After 6 months, you'll have £3000. Sell the £500 banger, buy a £3 grand car. No car payments, no deposits, no HP.

    The second thing is that you absolutely need to budget. You need to tell your money where to go instead of trying to figure out where it went.

    Good luck!
    October 2015 = -13242.16 DFD 28/10/2016 £0
    • warby68
    • By warby68 10th Feb 18, 5:57 AM
    • 928 Posts
    • 9,524 Thanks
    warby68
    Is husband's smoking in the budget somewhere?
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