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Original poster

Can I throw myself at the feet of mumsnetters and will you help sort my finances out?

145 replies

peckarollover · 06/01/2006 15:57

Not sure if anyone can remember my How Do I Tell Him thread of last year?

Basically I overspend massively (its probably fair to say Im a shopaholic), also far too generous with loaning money to family/friends etc.

Gave up work to be at home a year ago so survive mostly on one income though I do now childmind too.

Im sick of turning a blind eye and even though Ive done it many times before I really do now want to sort things out.

I have improved slightly as dont hammer credit cards as much as I did.

I am wasting small fortunes in bank charges not because we have no money but because its in a different bank or I have cheques mounting to hundreds of pounds sitting in the drawer.

HELP ME please

OP posts:
popsycalindisguise · 06/01/2006 18:53

pl lets think.
what is your biggest downfall?

Prufrock · 06/01/2006 19:07

pecka

I use a very simple accounts program on my PC - I have a spare copy you can borrow to put on yours if you want to e-mail me your address - that's something you can do tonight (prufrock at hotmail dot co dot uk)

What I then do is have 2 bank accounts (actually we still have 3 but one I need to get rid of) and one savings account. These are with Primeline so I can manage all my money online I can also call them 24/7 and they will let me pay in cheques etc by post with freepost envelopes. So all my banking can be done in the evenings if Mumsnet is slow! You also need one internet based savings account - your Smile one will do cos they pay reasonable interest.

Have all income- wages, maintenance etc paid into account 1, and put any extra money you have into this account. Set up all your regular outgoings - bills, loan repayments that are fixed amounts, money to sister etc, as direct dets from account number 2, and pay that exact amount into account 2 every month the day after payday. Take cash out of account 1. Wite as few cheques as possible.

Keep every credit card/switch receipt and cash advice slip, and enter them all onto the accounts package whenever you sit down at the pc - it takes no time, and it means you always know exactly what you have/owe. You can then work out how much you can afford to pay off credit cards to reduce your debt each month. I know this sounds onerous, but once you get into the habit it really does take no more than a couple of minutes every few days.

If you do want more specific help let me know - Sorting out peoples personal finances is the sort of job I'd love to do so I'd be happy to help - as long as you don't mind me being bossy!

popsycalindisguise · 06/01/2006 19:10

she needs bossy prufrock ;)

Original poster
peckarollover · 06/01/2006 19:22

Prufrock

I NEED you in my life

I am willing to pay (do you take credit cards? heheh)

OP posts:
Original poster
peckarollover · 06/01/2006 19:24

I have just been sorting my bedroom out

Picked two pairs of jeans off the floor

In one, stuffed up tenner in side pockets and 12 pound coins in back pocket and a credit card

In other, 2 fivers in back pocket and 7.40 in change in side pocket

OP posts:
popsycalindisguise · 06/01/2006 19:26

pecka
you are me
it is scary

mapleleaf · 07/01/2006 10:39

have you looked into opening a first direct account instead of an hsbc one ? new accounts opened get £50 as a joining gift and they are owned by hsbc so any money transfered from an hsbc account goes in immediately. they are really friendly and have a fantastic 24/7 phone facility based in the UK. plus with online banking you can control your spending better by seeing where your money goes to. They even have this cute pie chart which shows you how your monthly spending is split up. good luck !

WideWebWitch · 07/01/2006 10:43

Pecka, have you seen this very old thread but lots of good tips

Original poster
peckarollover · 07/01/2006 10:53

WWW I have read it before but could do with looking again, can I just ask - did it work for you? After starting the thread feeling broke did it start to get noticeably better after following some of the tips?

OP posts:
Surfermum · 07/01/2006 10:56

I'd second First Direct. They are very, very good, have on-line banking and are available 24/7. Their operators are really helpful and you get straight through to them. They also send text statements. I get one every Monday morning so I know how much money is in my account for that week. They will also text you to warn you that you are about to go overdrawn.

Apart from sorting out your accounts, I do think the first thing you need to do is write down exactly how much your income is, then all your direct debits and other bills, be they monthly, annually, whatever.

Original poster
peckarollover · 07/01/2006 10:57

Would first direct let me set up lots of little "pots" of money so I could start doing the piggybank technique and splitting income into different catergories?

OP posts:
Surfermum · 07/01/2006 11:02

I think so, you could have a current account each and a joint one maybe, and savings accounts. Did you want one account for all bills, etc and one for spending money?

bubblerock · 07/01/2006 11:19

If you use freefivers to open a first direct account then you get £50 put into your new account and £22.50 in your freefivers account - £72.50 for opening a bank account - not bad!

Sounds like you need to change your shopping addiction into a saving addiction, definately look at moneysavingexpert.com and try to get the saving bug, it can actually be quite fun seeing money grow, although you definately need to know all of your finances exactly first, hopefully prufrocks accounts prog can sort that one out!

I actually think it's easier to manage money if you have less because even a small saving seems like an achievement, whenever we've had more money I seem to be total unable to budget!

WideWebWitch · 07/01/2006 11:23

Pecka, main thing that made a diff was moving and getting a decently paid job really...

Original poster
peckarollover · 07/01/2006 17:00

I have just done weekly shop and stayed within budget of £50 for the week.

I even put back some ipod speakers I'd picked up without thinking that were £40

OP posts:
ggglimpopo · 07/01/2006 17:38

Message withdrawn

ZebraInCA · 07/01/2006 17:56

Pecka, have you ACTUALLY TOLD HIM? Have you laid it all out to your DH? You need to tell him. You need his support to motivate you & get on top of this.
As for everything else, pay in cash. That's my single best tip. And buy anything else you can in charity shops or trade with friends. Also, don't replace anything until it's broken. If you can live without it, don't buy it.

Original poster
peckarollover · 07/01/2006 18:37

Zebra, I have told him - in a way

He thinks debt is 15k and reducing when in reality its 20 something and staying the same (if not rising a little!)

He doesnt think spending is a problem, I reassure him its ok (if I admit it, its because I dont want him to get concerned and start clamping down on my spending)

OP posts:
Prufrock · 07/01/2006 19:05

Pecka - E_MAIL ME. Honestly - you need to get this under control - I would be so scared if I didn't know how much was coming in/going out on essentials each month.

Original poster
peckarollover · 07/01/2006 19:08

i need to strike whilst the irons hot and im ready to do it now

rebeccahills at btinternet.com

can you email me as i dont think cats will come through at the weekend?

pruf i have faith that you can save me!!!!

OP posts:
Surfermum · 07/01/2006 19:11

From what I gather though it isn't just the spending, it's how you're finances are organised that's causing a problem too. You're paying way too many bank charges that you needn't.

Original poster
peckarollover · 07/01/2006 19:31

Yes, your right surfermum the bank charges are all over the place. I get a charge every month on one particular account as the only thing that comes out is a 50 direct debit but nothing goes in. When I remember I transfer some across but always forget. Its embarassing really.

OP posts:
mancmum · 07/01/2006 19:37

only read this quickly but I would say given that you have a lot of debts, you should not have so many curent accounts as if you don't have a huge amount of money, it is easy to go overdrawn on them and get charged -- it is also harder to keep track of what is happening in more than one account...

So if you find it hard, stick to keeping it simple (this is what I did when hugely in debt)

-Have only 1 current account. close all others.

  • close all savings account -- no point saving when you have debts
  • draw up a budget think someone has pointed you at the money saving expert one I use it and it is great. -work out your spends for the week -take it out in cash and do not ever leave house with cards -- just use cash.
  • use a diary to keep track of wht you spend money on
  • don't waste money on gimmicks such as a 25 quid money box when you are trying to save money!!
  • post cheques off the bank now!!
Original poster
peckarollover · 07/01/2006 19:38

mancmum - are you still in debt? how did you get out?

OP posts:
mancmum · 07/01/2006 19:39

I am with FD as well and they are great I would not worry about having lots of pots you need to pay of debt the best thing I did was set up every single one my DD and SOs to go out the day I get paid that then leaves me with how much money we have for the month... keeps you very focused !

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