Debt support thread #2

[Nerfmother]

Here we are! Can't be bothered to think of an exciting title, sorry

Hi rosvita, feel free to join we're all very friendly. Horrible about the house stuff going wrong/needing replacing - you can't really ignore it.

Badvoc I can't remember exactly, but I've done it! I just googled 'remove card details from amazon' and 'remove paypal details from eBay' and found instructions.

Hi Rosvita, welcome! Have you tried using something like You Need A Budget? Quite a few of us on here use it, and the aim is to eventually have you living on last month's income, so you always have a good buffer in place. Sounds like that might solve your problems. It also encourages you to budget for every single last thing, so things like road tax don't feel like one big expense.

Morning all, and welcome Rosvita!

Reasonably unspendy weekend so far here. £15 top up shop on Friday weekend "treats" - salmon and salad for Friday dinner, a £4bottle of wine for me, and popcorn and snacks. All Aldi, of course.

Watched a movie last night so £3.99 for that on next month's TV bill - it was one we all wanted to see at the cinema but didn't because I was watching the pennies, so don't feel too guilty about that at £1.33 each.

Ordered two more gifts for DS2's birthday next weekend so £15 spend there too, still £18 in gift budget for card and a few little bits for him so that's good.

Today I have checked cupboards and freezer and have a very short list for Aldi and intend to stick to it! One week until payday and £300 in credit when I am usually well into overdraft by now. Thank you YNAB

I have added up what I spent this weekend (I've felt really down this weekend and have noticed the two are often linked). I have my balance to 0 this month without what I spent this weekend (no savings but no overdraft). I have 6 items on ebay - however much I make will determine how much of the stuff I bought I can keep.

Despite the money I spent, I haven't actually bought any of the things I used to obsess over (coats and bags mainly) which I kind of think is a plus. Once I am on top of my budget, the money I spent this weekend would actually be within my budget.

I have my debt repayment plan, and have been careful not to overstretch myself (which I've been guilty of in the past - debt repayments too high so stuff ends up on credit card and the cycle continues).

Although I am still spending, I can feel the compulsion stopping, there is a voice in my head that stops me with the big purchases, now just need to work on the little ones.

I'll get there ...

I have been working out our monthly spends and it's sobering :(
We don't drink or smoke, we don't go out often, we don't buy ourselves new clothes etc.
And yet...
After all the bills each month (which includes paying off the loan which has 3 years left) we have about £10 a week each left :(
We need to start budgeting for things like Xmas, mot and car tax etc (you know the stuff that comes round every year but always seems to take us by surprise!)
I know we need to work on getting the food bills down, but up don't see how I can cut back on other things...I only buy clothes in the sales or from e bay. I ask for toiletries/money for underwear etc for b days and Xmas.
Am feeling rather fed up today

I've spent a lot this weekend, £23ish in the pub on drinks for friends and £15 on hostess gifts for same friends. Going out tonight for dinner with other old friends, say £40 max (hopefully more like £30!)

But on the other hand, we rarely see these people, so it's worth it. I don't want to sacrifice friendships for a few quid.

We'll be spending money tomorrow in Homebase, nothing too extreme, but just want a few bits to keep sprucing up the house.

It's payday for me on Tuesday and I'll still have a decent lump sum to pay off the debt, so I'm not going to panic over a few spends.

I am in this for the long haul, probably a year or more!

Hello ladies-just wanted to thank you all for being so welcoming!i have written myself a loose budget for my money until 21st April (financially my months go from 21st-21st as this is when my credit card statement falls).If I stick to budget I should be able to save a decent amount when I get paid at the end of April.Just got to stick to it now!

Badvoc - I am the same with Xmas, car tax, birthdays etc and I am trying to start budgeting for them monthly in YNAB. Problem is that the"big one off's" still come around while you are trying to build these categories and so I find you steal from "Xmas" to pay "car tax", etc.

All I can say is that every little helps. I knew I had a big birthday month in March (plus Mother's Day) and tried to put a little aside in Feb, but ended up pulling most of it for another expense. I managed to leave £10 there though which was £10 less to find this month. I have a break in family birthdays next month but I will put money aside regardless so I can build up for June (4 birthdays and Father's Day) then October (DS1's 16th + 2 birthdays).

Car tax I realised is in 4 months, so HAD to start putting money aside this month. I have managed that. I've also started off Xmas fund with £50 but may steal from that depending on how much DS2's birthday ends up costing next weekend. The way I look at it is that even if I only leave £10 in the Xmas fund, it is £10 more than I had saved for it last year!

When is your road tax due? If after October, it can be done on monthly Direct debit from that point so perhaps doesn't need saving for?

I would work out your costs for birthdays/Xmas/car stuff and divide by 12. That's what you need to save. If it's too much, where can you trim it down? I assumed £20 average on most birthdays but when I added it up and included a bit more for DS birthdays, I was shocked! So I reduced to £15 average but am going to go nearer the £10 mark where I can.

For Xmas, we now do a family secret Santa with a £30 limit for adults - there are lots of us and it saves a fortune. I'm hosting this year so it will inevitably cost me more than usual, but saving on presents via secret Santa will help no end.

I was very depressed too when I started YNAB and found my "big one off" pots just kept getting raided, but I DO have some money in them now, albeit only a little, and I think it will get easier as time goes on.

I downloaded ynab but find it difficult to understand....no idea what to put where and there aren't any instructions for use...tips?
April will be disastrous on the money front...b days, new kitchen being fitted, Easter etc...
Ugh.

Badvoc have you switched all utilities and insurances recently? You could probably save a fair amount there. Martin Lewis' energy club is very good for utilities-you put in your usage and it works out which companies will be cheapest for you.

Yes we are on all the cheapest tariffs, also home and car ins too :(
As I said, just don't know where I can cut back aside from food :(

Badvoc sorry you're feeling so blue. I was very similar when i first started budgeting and just couldn't work out how our income was ever going to cover outgoings. I would suggest:

1. Watch the videos on the YNAB website showing you how to start using it. It is not intuitive initially, but it is well worth spending the time working it out and even if it's not perfect in the first month (it won't be), after 2-3 months you'll suddenly find it all slotting into place, so if you start now then you'll be on top of things before the summer.

1. Write a budget that includes EVERYTHING - budgeting for annual expenses, Christmas, birthdays, essential house improvements etc etc etc, and see whether there's a shortfall (we had a shortfall of something horrific like £1,000 a month, I was utterly when I did it).

1. Take "ishesingle's advice on the big one off pots - you'll need to rob Peter to pay Paul initially, but eventually you'll find there's a fiver or a tenner left in the big one offs 'envelopes' and that will gradually build. It will happen, I promise.

1. If you have a shortfall in your budget in step 2, you need to look at making not just tweaks (as in saving a bit of money on the food shop) but major lifestyle changes. We had to make the fairly major decision for me to stop attempting to grow my business for the next 4.5 years until all the DCs are in school, and get rid of all paid childcare as my income isn't covering it. It might be a case of looking at getting rid of a car/house move/sorting out a debt management plan to reduce loan outgoings. You need to change something if there is going to be a shortfall once big one offs are accounted for, there is just no getting around this fact, and it was probably the hardest thing for me to get to grips with.

1. Once you've got the budget to a place where there isn't a shortfall, but perhaps you have literally nothing leftover each month, you can look at trimming a bit on the food shop/cutting your own hair/doing your own home improvements to save the odd bit of money for some family fun money/pocket money for you and DH. Those sorts of savings are unlikely to save enough if you have a major budget shortfall, but can make the difference between having some spare cash each month and not having it.

MissAnnersley it sounds like you're doing brilliantly with the debt, I certainly wouldn't stress about a few spends before payday when you know you've got the money available.

Rosvita well done on writing the first budget! Don't be afraid to keep checking and tweaking it over the coming weeks.

I have just had a major but somewhat unwanted saving thrust upon me - our nanny (you may remember we cut her hours slightly and have agreed to make redundant at the end of May, once we've settled in with DC3) has just been offered a new job and I have agreed with her she should take it so she will go down to only one day a week with us from next week (was meant to be going down to 2.5 days from next week anyway). The timing is appalling (DC3 due basically now), but I just can't turn down either the money saving or the chance for her to have what sounds like a really good job opportunity. Luckily DH is taking 2.5 weeks paternity leave and then I have my mum and MIL helping out for a week or two, so plenty of recovery time really. And the money saving will be something in the region of £500 a month on our current outgoings, and £250 on what it would have been even with her at 2.5 days a week. Plus her fuel and kitty money, which will probably save another £50 a month or so. It will make a huge difference to how much debt we get into over the next couple of months while I really don't work at all (I will work evenings and weekends so no childcare costs after that). I am very about having her less (she is brilliant), but pleased that she has found a decent job and that we will save a big chunk of cash for the next two months.

possibly thanks it was less spendy than I thought at homebase as we had 2 tins of unopened paint which they took back, so we only spent £29.

Our lovely generous friends insisted on paying for dinner last night (apparently they've had a windfall and had planned the dinner as a treat when they invited us!) so no spend there which was completely amazing!

Afternoon all, meal plan done for next couple if weeks and have spent £48 today. That will last us til beyond April bar bread and milk. Planning lull at the moment as can't repay to overdraft til DP gets paid at end of the month

New here and to all this money worry
I've moved out of parents house there in jan never had a issue with money till now been worrying for 2 weeks now "can I pay this" "do I have enough to do that" etc my fears came to light today by the time I payed my credit card and catalogue then virgin media then council tax and put money aside for rent I would have had nothing left
Been using my credit card a lot too just to get by

Ive contacted money matters at my local council and I'm seeing them in May last thing I want is to get into debt so I'm hoping this is the right direction I'm taking I know paying my rent and council tax is top my list it's everything else

Any advice on saving money and coping till I see these people thanks

Thanks possibly. I have booked 2 do the webinars.

Hi Mitsi, welcome

Have you written yourself up a full budget listing all your incomings/outgoings, when they are due etc? That's always a good place to start. If I remember from your other thread you've recently moved out on your own...this is always an expensive time but well done taking bull by the horns and facing into your challenges...

The webinars are good to start you off Badvoc (and you might win a free copy!). Lots of experts on here too if you get stuck. I didn't believe the "ynab saves most users $200 in the first month" hype - but it worked for me, I am much better off already . It works. And I am a bit obsessed with it, I'll do without things just to keep certain money pots intact, and I check my bank balance twice daily on my app and am disappointed in there is nothing to "clear" in ynab. I reconcile constantly so I keep my bank and ynab in sync. It's like a weird strategy game. I think it is easier for me being a single parent as I am the only one spending on my accounts, probably harder in a couple, but I imagine it would make budgeting for a couple a lot less stressful. Let us know how you get on!

Wish TNAB worked without use if a desktop PC, I don't have one and know this would be right up my money saving street

YNAB even ... fat fingers lol.

I use it on my work laptop, as I don't have a personal one either. I seem to have no problem installing personal bits of software although I know some schools stop teachers doing that. I would buy a cheap 2nd hand Netbook just for YNAB if I had to, it's saving me that much it would be worth it.

lots of people getting their heads around their new way of living

impressed

I'm in the middle of my horrible cashflow month : lots of money earned but income will not hit my bank till late April
thank goodness for credit cards!

Afraid my work laptop wouldn't entertain unapproved downloads due to the nature of our business .. may start keeping an eye out on Facebay.

Dinner tonight was yum! 2 pork chops done in slow cooker (actually 1 huge chop I halved) cost only 91p! Had with rice and chips which I already had in. Spicy butternut squash made for lunch this week too...reduced bucket again, only 45p for the veg. Bulked up with some lentils so have enough for lunch at work all week

Butternut squash soup I should say ..