Statement of Affairs

[JacktomyDaniel]

I’m new, first post about money so please be gentle!

I’ve seen the recommendation to complete an SOA and although I understand it, I’m really not sure how to work out what I’m actually spending? I know exactly all my DD and SO but I’ve not a clue how my general spending is broken up. I just use my card and pretend I have money. Is it just a case of printing a monthly statement and highlighting if all? If so do I write down what I’m actually spending or what I want to be spending?

My next issue is I want to do the 7 steps thing. Even though it says to save £1000 before anything else how do I do this while in my OD? Do I just start cutting spending and prioritising saving it over the OD?

I’m really sorry if these are stupid questions. My debt isn’t massive (2k plus 1k OD) but I should have so much more money left each month than I actually do. I yo-yo in and out of debt up to 10k and haven’t been out of my OD since 2010.

Any advice more than welcomed. Thanks

Sounds like your looking at Dave Ramsey...I'm on Baby Step 2!

I'd say a SoA is just your budget. I printed of 3 months worth of Bank and Credit Card statements and used that as basis of my budget. Write down your actual spending that way you will see what you have left every month.

I've stopped using cards and have switched to a cash envelopes system, saves us a fortune!

Before saving your emergency fund (Step 1), you should complete 'four walls/step 0' where you get current with all house related bills...this includes overdrafts and any gas, electric, rent arrears etc. Then save your £1000.

Start tracking every penny you spend, that will show you where it's all going.