Monthly outgoings

[Hoolajerry]

We are family of 6. 2 teens (14 &12) and 2 younger ones (9 & 6). We have managed to get some debt and I am desperate to pay it off. It shouldn't take long but I'm trying to work out a realistic figure to live off and would appreciate some context. How much do you have per month as a family after all bills are paid. I have accounted for bills and kids activities that are monthly. Weekly subs come to about £20. We spend between £120-150 a week on food (including pet food). I spend about £150 per month on fuel. It's all the extras I can't seem to get right - birthday presents, hair cuts, MOT. I think we're fine and then the car will need new tyres and it all goes down the pan. I just can't seem to set a realistic budget. How do you manage your outgoings to a budget?

What other people spend is irrelevant. You need to make your budget work for you, not other random people with different circumstances.

For a systematic approach to setting a budget, and getting the right help with your debt, have a look at the moneysavingexpert money makeover, and do everything suggested that is relevant to you.

www.moneysavingexpert.com/family/money-help/

I've had a look at the Money saving article. We are pretty savvy when it comes to bills etc. It's the day to day I struggle with. We have had some unexpected costs this last year which is what has set us back. At the beginning of each month I set myself a budget I'm just not very good at sticking to it and then there always seems to be something. Last month alone it was £200 for uniform £150 car tyres £100 school shoes and £50 deposit for a school trip. I'm clearly not being realistic with how much we'll need so I was wondering how others go about allocating it.

There's no point in telling you figures because every family is different, but I broadly categorise our budget in these areas:

Monthly fixed costs (ie things which are fixed in price)

• Nursery fees
• Nanny's salary
• Mobile phone bill
• Rent/mortgage

etc etc

Monthly outgoings which aren't fixed but which I set a budget for:

• Food shopping
• Going out (us and kids)
• Petrol
• Kids clothes
• Presents
• House stuff

etc etc

Long-term outgoings which we put money aside each month for, so its spread over several months and when the payment is due, the money is there ready and waiting:

• Car insurance
• House insurance
• School fees

etc etc

And then on top of this each month, we put aside a fixed amount for:

• Travel
• School/kid related costs

This is used to cover things like holidays, school trips etc

DH and I then keep back a small amount each for 'personal expenditure' eg coffee out, massages, round of golf etc etc, and then the leftover goes into a savings account.

You need to estimate an average annual amount for those things and put money aside in advance. It doesn't matter if it's exactly right, as once you get into the swing of things, you can build up a float to cover these things.

You need to stop thinking of all your income being available to spend this month. School shoes, car repairs, school trips are not unexpected costs. As a homeowner with DC and a car, these costs will arise, sooner or later and can add up to a decent amount.

For uniforms and school shoes, you've just spent £300, so that's about £28 pm, more if you'll spend more on uniform within the next year.

You probably need to put by at least £50 pm for car MOT, servicing, tyres and other repairs.

For insurances, look at the cost of last year's premium, and divide by 12 to get the monthly amount.

A good start would be to put £2/300 pm into a savings account that you only draw from if you've spent on something 'extra', but see if you can manage not to withdraw it all, so that a surplus builds up. You could try having a frugal few months, or selling unwanted possessions, switch your bank account and utilities for switching bonuses, etc etc to give your 'irregulars' pot a good start.