I'm useless with money.

[OnlyGodKnowsWhy]

As the title states. Since last Christmas I've basically lived pay check to pay check, with a monthly payday loan of £200 that I pay £240 to clear then reborrow each month. Christmas this year is terrifying me.

Long story short, I have four children aged between 7 and 12. I've been a lone parent for 7 years though I have reconciled with DH (not kids dad) 2 months ago. He is currently job hunting.

I work as a manager of a shop, 4 week days, one day and weekends off. Monthly wage is roughly a grand. However we receive £300 of our wage half way through the month, the rest is given on pay day so £700.

Universal credit varies as my hours can vary slightly depending on holiday cover, staff sick etc, so I'd average it out at £900 monthly.

I also receive 61.00 child benefit weekly and £81 child maintenance weekly.

Summary monthly income:

Wage: 1000
UC: 900
CB: 244
CM: 324
Payday loan: 200
Total: 2668

Outgoings:

Rent: 360
Council tax: 75
Payday loan: 240
Mobile (three contracts) 66
Internet: 40
Debt: 50
School dinners: 160
Electric: 120
Gas: 20 a month (will increase to same as electric in winter due to gas heating, single glazing and highlands of Scotland!)
TV licence: 24
Spotify family: 14.99
Netflix: 7.99
Pet insurance: 25
Pocket money: 80
Ejuice/coils: 50
Xbox live: 5.99
Gardener: 40 (big gardens)
Window cleaner: 8.00
Food: I don't know. I'd say 450 a month?
Argos card: 100-150

Total: 1980.

I know this doesn't take into account haircuts, clothes, childcare when needed. Basically I don't really know my income and outgoings because it varies each month.

I need a budgeting for dummies guide, how to work out what's being spent where each month and any other advice. Please!

[Fluffycloudland77]

Our electric bill is £19 a month. We use energy saving LED bulbs everywhere & we cook on electric too.

I would make the electric priority. There's loads of energy saving advice online & LED bulbs can be bought cheaply online or in ikea. The big DIY stores & supermarkets charge a fortune for them.

[OnlyGodKnowsWhy]

I have energy saving bulbs. There are four showers a day, tumble drier daily (Scotland is not known for its sunny weather!) heating from the lounge electric fire currently as I'm not using the gas for the whole house yet and only on cold evenings, lots of devices on charge, cooking, DH is addicted to coffee so much kettle boiling.

[Fluffycloudland77]

Are they LED bulbs or the compact fluorescent tubes ones?.

Devices charging cost pennies.

Big consumers;

Ovens
Hair dryers
Vacuum cleaners
Irons
Immersion heaters
Kettles if you boil extra water like my Dh.

If you can find a spin dryer for sale locally on eBay it'll remove another pint of water out of the washing & your electric bill will go down.

[HoneyWheeler]

Try this budgeting tool YNAB (You Need a Budget) - free for 30 days and well worth it

[OnlyGodKnowsWhy]

Straighteners, my two dd have wavy hair and straighten daily, as do i. Vacuuming is also daily due to a hairy dog.

The bulbs are the twisted LED energy saving ones.

I will have a look at that budgeting tool thank you.

I was also considering the zero budget idea because my income fluctuates.

[ScrubbyGarden]

If the bulbs are twisty they are probably compact fluorescent, so you probably can save a wee bit there by switching. But your electric fire and tumble dryer are most likely making a far bigger impact!

[RandomMess]

I think a pain free option is to stop spending on doing up the house for the foreseeable future.

Once you've got out of the payday loan cycle start saving each month - only once you've saved up can you spend on the house.

Get your DH to help with meal planning etc, if he's not working at the moment he can help with that and the gardening.

Above all get doing your money diary. Write down every £ you, DH and DC spend- you will soon realise where it's all going...

[OnlyGodKnowsWhy]

The tumble drier isn't really optional, poor weather and at least two loads a day. It's very old though and probably not energy efficient.

The plans are all in place for pay day, I'm actually getting excited about it weirdly.

[RandomMess]

Sounds like getting a better tumble dryer may be worth saving up for, BUT are you washing stuff that doesn't need doing? Are people putting stuff in the wash that's been worn but not dirty or whiffs because it's less effort than putting it away?

I used to sort my wet washing out and shake and fold if necessary anything that was being tumbled and put it in for a super fast spin before tumbling it. I assume you know to put a dry towel in the tumble drier too as it speeds up the process?

[bouyo]

We have a Lakeland dry soon and we never use tumble drier any more. I'd really recommend it.

here

Not exactly compact though!

[Numberonecook]

Try batch cooking and choosing food more wisely. Going for non branded or unpackaged from the market can make a huge difference. Quit eating or drinking outside the house unless you have made It yourself. Always carry a water bottle or coffee mug with you. Take instant coffee to work and make a brew! You say 2 of your kids need school dinners? What about the others? this could at least cut the dinner bill in half.

Bills, do a comparison and change to one of the not so popular companies. Sack the gardener and window cleaner and get DH to do it. Get the kids to share Netflix and choose a lower package. Spotify is free or listen to the radio. Choose free days out and take your picnic. Use your ecig stuff at work then buy cheaper for home.

Save all change in a jar. Try get that payday loan paid asap. Don't use the Argos card love! Children need love, warmth, shelter, food and guidance not things. Stop decorating. Don't buy new look for a preloved alternative. Try buy food in bulk to cut costs

Biggest tip is to write down every penny you spend for a few months. You will see exactly where your money goes and I guarantee you will find loads of stuff you buy and don't need. Good luck

[Numberonecook]

Oh dryer! I live in crappy Yorkshire do know winters are tough! I use the dryer for bedding and uniforms but everything else gets put in the airer. Cuts bills down

[GreenTulips]

When you pop to the shops and see something nice, think 'I'll think about that' and walk away.

You will have forgotten all about it the next day

Same with internet shopping, by all means add stuff to the basket and then walk away to think about it. When you return you'll wonder what you were thinking!

As for windows/gardener/childcare your DH could take over these tasks whilst he looks for work

Cut out anything that isn't necessary.

Yes to keep a diary lot of apps for this that produce charts so you can see areas that can be quite shocking!

Don't carry cash

Say no to the kids unless it's been pre agreed as a 'need' not a want friend saved £600 per month on this alone! Odd CD makeup brushes cinema etc

Learn how to have a good time at home with movie and home made popcorn 18p for 100g

[Ploppie4]

We have an expensive tumble dryer and electric clothes horse from Lakeland. The second runs much cheaper but also creates major condensation.

[OnlyGodKnowsWhy]

Hi all, pay day was yesterday so I have begun my mission to stop spending like a twat.

I made my own spread sheet last night, to update throughout the month. I have an app for receipts so I can see exactly what is being spent where.

I cancelled the gardener and the window cleaner.

I trawled through transactions on my accounts and am very embarrassed to admit I had two Netflix accounts, both with money coming out each month and didn't even notice. Also a tech pack fee that I took out last year that doesn't get used that can be cancelled. Also £18.00 on a mobile phone contract that has expired and the sim isn't used anymore. Terrible huh? Basically £35 out each month for nothing.

I've been thinking that laundry wise, it may actually be cheaper just to take it once a week to a laundrette, it would be about £30 but means there is no need for the tumble dryer which is going at least twice a day on full cycle. This should cut back the electricity too.

I've changed all my direct debits to come out of one account as close together as possible and I have another account to hold money left over after bills.

Meal planning is underway.

I think it's a good enough start anyways and thanks for all the great advice.

[CandyMelts]

Well done!

[Rainbowqueeen]

That is fantastic work!

Laundrette sounds like a great idea.

Hope the meal planning is a success

[antimatter]

Well done!!!!!

re:launderette - at least where I am clothes are never completely dry!
is £30 per month to do it?

[Fluffycloudland77]

For £30 you can buy a second hand spin dryer, get an extra pint of water out of each wash, dry it in your dryer & still save money without transporting wet washing around.

[RandomMess]

Clothes spinners are marvellous!!

[ivykaty44]

You have a pay day loan so you can pay a Gardner and window cleaner - that's really not sensible

Let the windows get a bit dirty and don't worry about the garden

Other have all pointed out the obvious things you are over spending on.

I'd say along with cancelling half your subscription and making sure you stop standing orders and DD

You'll save £160 per month if you get rid of the subscriptions and then not have to waste 40 per month on a loan saving around £200 per month

[mollifly]

I have been in this mess before and I know how difficult it is and what a spiral it can become.

Have you thought about contacting step to change about a DMP? They can reduce your monthly payments.

[OnlyGodKnowsWhy]

So with the day coming to a close, every expense has been documented in a spreadsheet. I'm tracking when electricity is put on and when it's almost out so I can get an idea of how much I should put on in one go.

Also realised that I waste £30 a month on 50p card charge at my local shop. I rarely carry cash and can be at my local shop twice a day sometimes. This will change anyways with me now meal planning and shopping elsewhere, still an eye opener though!

[RandomMess]

Well done, I'd forgotten you're on a key meter for electric?? Any chance you can switch - no wonder your electric is so expensive!! You're right in that case that the launderers may be cheaper...

[SciFiFan2015]

Blooming heck! Your updates for today are really impressive and quite inspirational. Go you! Keep this up and you'll be laughing. So whatever has motivated you right now - hold onto that feeling. And remember to join a credit union as soon as you can. You're brilliant you are.