How to cut down my outgoings/spending

[NoveltyFunsies]

My monthly take home pay is £1351
My outgoings come to £997 each month
This includes -
Rent/bills - £332
Car insurance - £46
Car tax - £27
Payment to Stepchange - £448
Premium bonds - £50. DP and I pay in each month, we currently have around £3000 so far but this is to pay for our wedding next year
Phone bill - £93

This leaves me £353. I budget £80 per month for fuel, £100 per month for food/eating out, and £40 for spending money on things I want. This leaves me £133 per month, which I feel like isn't very much if something were to happen, or if I had any unexpected expenses.

My rent is cheap because we currently rent an annexe from family. We are allowed to stay here as long as we want, but we would like to buy somewhere in the not too distant future, and need more money each month to be able to do that

The Stepchange payment is to pay off old debts on a no interest plan. The current finish date for this is September 2023, but I can bring that date forward by upping the payment

My phone bill also covers my smart watch and was taken out when we moved into a property with no internet, so I took out a contract with unlimited internet so DP could hotspot from it. This contract ends in Feb 2022 and will then come down to around £30 per month

Can anyone see any ways this can be cut back, or any tips for saving more and spending less on food etc?

@Whattheschitt we live in an annexe owned by DP's parents on their land. They don't subsidise food, we sort out our own. I don't eat breakfast, so it's only to cover 2 meals a day and things like fruit and yoghurt, that sort of stuff

@TerraNovaTwo that's just for me, DP is very fussy and doesn't like to eat the same as me, so he buys his own food. It's a stupid way of doing it, but I can't get him to agree to any other way

I don’t know why everyone is on at you to cancel the wedding, tbh.

Your debt is being managed. You have a payment plan and an end date.

You are saving to get married not getting further into debt.

You live in a property that’s as secure a tenancy as you can get, renting from family who aren’t going to chuck you out with no notice.

You have identified places where you’ve overspent in the past and know not to do it again when the phone contract is up etc.

You live and learn! You’re doing OK. Keep going.

[quote NoveltyFunsies]@Whattheschitt we live in an annexe owned by DP's parents on their land. They don't subsidise food, we sort out our own. I don't eat breakfast, so it's only to cover 2 meals a day and things like fruit and yoghurt, that sort of stuff[/quote]
If you are happy its enough then perfect.

I wouldn't cancel the wedding, you have the debt handled and on a repayment plan which is perfect.

You have an emergency fund building up which is amazing.

If you are happy you can afford it then do it.

[quote NoveltyFunsies]@NoSquirrels I try to pay for any car costs out of what I've budgeted for fuel. Luckily I've never had any big bills so far, but my car is getting older now, and I do worry how I'd pay if something big went wrong. I rarely buy clothes, but that will hopefully change soon as I'm in the process of losing weight. I'm going to wait until the last minute before buying any new ones

I just feel it doesn't give me much leeway if anything happened, but maybe that amount is better than I realise[/quote]
What I was getting at was, break that £133 down into chunks to give yourself peace of mind.

E.g. I want to save £300 to cover new tyres/car insurance excess/expensive repair. Work on saving up £300.

Next I want to make sure I’ve got a clothes budget for when I’m at my target weight e.g. £150 (or whatever you think you’ll need).

Ask yourself ‘What is the big thing that could go wrong?’ Then save towards it, like a safety net.

Maybe you’ll have to use it, maybe you won’t. If you don’t, it’s extra to the debt pay off to be debt-free sooner.

The only two things I can think of are join something like chip who’ll take money you won’t miss out of your bank account regularly (pays 1.25% interest on balances up to 10k) and look for anything you’ve got lying around that you can sell on!

FWIW you’ve saved for the wedding, you’re not getting in to debt for it, so you should enjoy the planning and the day! Sure, if you didn’t have the big do you could chuck more at the debt, but given it’s got a fixed end date and it’s interest free (and your housing is secure!) I’d not cancel it.

Can your dp pay half of that ridiculous phone bill?

I have unlimited internet and pay 16.50pm.

@ChunkySloth that's a good idea, I'll speak to him later and see. I can get much better deals on sim only so I'm going to speak to the phone company again and see if I can get out of my contract

@NoSquirrels that's a good way of looking at it. My bank account has target options and different savings spaces, so I will start doing what you suggested and break it into chunks

@MuchTooTired I have just started listing things to sell on Facebook, will have to scout around for more stuff as I'm sure I've probably got loads I can get rid of

You can buildup more nectar points if you do their surveys.

Quidco is good too, I use it for everything when I remember, but essentials like bdays and Christmas etc because they pay out on moonpig, interflora and argos 3 for 15 toys etc. I've got 50 quid in there just from essentials I'd have bought anyway.

I think you're doing well & certain PPs have been incredibly rude.

Keep your wedding, you need something nice to look forward to & it's getting married not just having a party.

Speak to Stepchange, you may be able to reduce it a bit. Also the phone company, tell them you're in financial hardship.

Sell the smart watch and put the money into the debt fund

@pianolessons1

Sell the smart watch and put the money into the debt fund

Even if she sells the watch she'll still have to pay the monthly contract I assume, isn't it like a phone contract? It doesn't matter whether you have the phone you have to pay what you've signed up to

I don’t know why everyone is on at you to cancel the wedding, tbh.

Your debt is being managed. You have a payment plan and an end date.

You are saving to get married not getting further into debt.

"You live in a property that’s as secure a tenancy as you can get, renting from family who aren’t going to chuck you out with no notice.

You have identified places where you’ve overspent in the past and know not to do it again when the phone contract is up etc.

You live and learn! You’re doing OK. Keep going."

I completely agree with this ^

The only thing I can add to some of the advice given is to look into a MONZO account. It's a bank account with built in budgeting tools and it's really helped me and DH plan for future bills etc

Has he asked his parents if you could pay a little less to allow you to afford the wedding? £600+ pm seems a lot for close family

@caughtinanet I would yes that’s correct. It has around 3 months left and then it’s done, and I could sell it after that

@SpnBaby1967 I did try that with the phone providers, I explained the situation and that I took out the contract when I could afford that much, unfortunately they couldn’t really give a shit and told me there was nothing they would or could do

@gigi556 I do already use Starling which I believe is similar to Monzo. It has definitely helped with seeing where everything’s going, and with setting targets

@BeaBeaBuzz I did used to think it was a lot, but it does cover rent, water, heating, wifi, Sky tv etc on a 2 bed house so now I think it’s not so bad. We’ve been looking to see if we can find anywhere cheaper, but the average price in our area is around £800+ per month which we can’t currently afford

How much would a one bed be?

@BeaBeaBuzz around £550/600. I don’t care how much space we have. We do have a dog but he’d be fine in a flat or something. I just don’t know if I’d be able to get anywhere with my credit rating as it currently is

Don’t move from a place where you have security to a place that’s privately rented - with a dog! - when you are dealing with debt and planning a wedding. You’re in a good housing situation and if it’s all bills included then it’s really not a bad rent. If you weren’t in it presumably other paying renters would be so just because it’s family doesn’t mean you shouldn’t pair a fair rent. I’d leave your housing as is, unless you really need to move.

Defo keep the wedding! Its a budget wedding its not like you are spending 40 grand on it. I would try and increase your income to give you some more leeway. An evening bar job/ stack shelves or temp xmas job just short term until the debt is shifted.

You're extremely lucky family paying your council tax for you!

Re cutting electric - check your usage. Most of us are guilty of leaving unnecessary lights on, leaving devices on standby or even left on altogether, charging etc when they don't need to be any more, not having sensible lighting set ups so you're not having to have loads of lights on or even decorative lighting! Not making sensible choices with cooking etc

Happy to help with cutting wedding costs too if you detail them?

Leisure spending - its usually possible to cut without missing out.

Do you have loyalty cards for every retailer you use? Many have deals on leisure venues/activities

Also google your local area and "free and cheap days/evenings out"

Join the social media pages for your most used retailers and leisure companies and you'll see their special deals when they come up and can enter competitions etc

Do things on unusual days/dates as that's when things tend to be cheaper

Clothes wise it can also be good to shop "out of season" fashions don't change THAT much within 6 months, and basics tend to stay the same for decades. Basics supermarkets and primark are fine for usually.

Sorry to hear your DF had a stroke, that must be stressful. I can see little things here you could save on. If you were desperate.

Your rent includes Sky TV but you also pay Netflix subscription. Ditch Netflix, and find a relative or generous friend who will let you piggy back on their account, or give it up altogether.

Also your rent includes heating presumably gas but not electric. So you aren’t in control of the gas, right? Can you get your gas and electric on dual fuel, it is usually cheaper, and get control of the account yourself? If that’s not possible, can you at least work with your family to help them switch annually to the cheapest deal possible. Program your thermostat so the heating comes on 30mins before you are home from work and before you wake up in the mornings in winter, and try and minimise the time it is on for. Also turn your hot water thermostat down - often it is set very hot and you can cope with it being somewhat cooler.

Are you paying TV license? Could you give up BBC and just use Sky, it is possible to live without it!

Could you break your phone contract or when it runs out, get your phone SIM onto the Sky account and pay it with the rent? I’m with them, 2gb data a month for £6.99 sim only, and any data I don’t use is banked, forever. They do 1gb deals too, I think?

Definitely still get married, but keep it very lean. Being really savage you might reduce the costs a lot, as you have indicated. What is left in that reduced £3k budget, maybe there is more you could strip out?

Your car - what do you drive? £27 a month for road tax seems high, mine is £20 a year (I appreciate I have a nice modern car, just seems like you must be driving an old tank or something!). I realise the car is essential, but trading in for a very small, cheap run-around might be better in the long run. Alternatively can you set aside savings each month now so you pay the tax annually rather than monthly? It saves a bit, and every penny counts.

When you shop for your new wardrobe, go second hand. When you are at a loose end not watching Netflix or BBC, get familiar with the second hand market on FB, Shpock, Vinted, Depop, eBay. So then you will know a bargain when you see it.

That phrase, “I don’t spend much on clothes… “ means what, exactly? This year I have bought a pack of 5 pairs of knickers and 10 pairs of socks as mine were too thin and in holes. I bought a pair of jeans in Primark, £5.99 as I had worn holes in my old ones. And I bought a pair of summer trainers for £4.99 in a sale, plus p&p but that was shared with shoes I bought at the same time for my kids. It is possible to almos eradicate your new clothes budget, next year I’m aiming for a zero spend.

Small things count. Stop buying brands, go own brand wherever you can is obvious, as you shop in Aldi already. But even there you can cut down - buy less meat, buy local in season fruit and veg.

Cleaning. Invest in a pack of 15 different colour microfibre cloths. Use them to clean with (dampen very slightly with after), you’ll save a lot of cleaning product. Stop buying paper kitchen towel, use the cloths instead, etc.

What do you spend on cosmetics? Can you cut down? Switch to bar soap in the bathroom as liquid soap is a rip off.

How about snacks? A bag of apples and a bag of carrots is a cheap and healthy way to fund snacks, avoiding crisps and chocolate.

Do you drink alcohol? Stop if you do.

Join a library - there are library online services too for free audiobooks and downloadable books - so you don’t need to ever buy books.

Agree with friends and family to have a no-adults-gifts policy for Christmas or birthdays, or limit the spend to a token amount.

There are loads of tips on money saving sites, read and absorb.

Regarding food it’s your partner, that seems weird - you don’t at the same things, or together? If one of you is turning the oven on to cook, it’s bonkers to only cook for one, so think about that side of things.

Are you paying TV license? Could you give up BBC and just use Sky, it is possible to live without it!

Op would still need a tv license to watch live tv no matter what channel/s

Otherwise some great tips

I saved £600 this month on a crappy NHS salary, I do earn a bit more than you because I'm older.
I have changed all of my direct debits to cheaper options using go compare - my electricity and gas is now down from £104 a month to £50.
I only fill up my car from the absolute cheapest petrol garage in town which is currently Asda - it makes a big difference.
Food for this month (and I eat very well) was £10. i cooked up everything in the freezer and bought an extra large Lidl chicken for £3, roasted it stripped it and made meals for the whole month with the meat.
The bones and skin made stock for soup. I also made a lovely soup from the frozen broccoli, kale and baby spinach I bought 6 months ago and haven't eaten and it tastes fantastic, I froze it into portions.
I keep bread in the freezer so it doesn't go stale, it doesn't make any difference to taste if toasted.
I don't pay car tax, I have a tiny car.
I have a fixed phone bill of £40 a month from EE, £98 is way too much and I don't have a landline. It covers all my calls and texts for the month and i never look at facebook if I'm out unless I'm using someone elses wifi.
I fill out all my meals with rice, potatoes and veg, I always buy frozen veg then there is zero waste.
I check my bank account daily.
I never buy lunch or coffees out.
I have a zero spend policy. I am spending this year saving every penny to pay off a £6k debt and I'm on target to pay it off in a year, no clothes, no shoes, , no lunches out, mend and make do. It's WW11 austerity in my house.

Also agree with the" live and learn " comment. DH and I made financial mistakes when younger, and accrued a huge amount of debt . It was the struggle to pay this off that made us determined never to be in a vulnerable financial situation again , and we worked more and spent less to achieve this . We continued to live below our means and paid off mortgage early enabling us to retire early too . Some mistakes help us in the long term . The only thing I would add @NoveltyFunsies, is you are getting married , you are a team . Work together jointly to look at your best way of clearing your " family " debt and managing your budget. Hope you have a great wedding .

if you have an extra £100 per month for "emergencies" then i'd knock that back to £50 and increase the step change payment.

sell car when you can and use that money against the stepchange debt.

the usual tips of "just get another job" and "sell everything you have"

use up what you have before buying more. stop saving things "for best" - i used to hoard beauty products for special occasions but now realised thanks to covid that special occasions are few and far between so am just using it up.

if you get regular haircuts, cut these back to every other month for example, stop beauty treatments if you have regular ones (maybe allow ones before your wedding) but aside from that.

use car less to save on petrol

can you renegotiate insurances for your cars? and pet insurance?

home insurance? are you on the best cover?

i'm not sure how council tax works in the UK - but does it get cheaper if you're married instead of two single people? also other taxes? married couples allowance on tax? as i said not sure how UK taxes work as i'm in Jersey and our tax system is different.

if you can ditch sky, i'd do it - noted its included in the rent, but could you say you dont want it and then reduce rent? and just have netflix?