Finaly sorting ourselves out

[orenisthenewblack]

We're always overdrawn and money is always a worry. I've always wondered were we've been going wrong as we both have a regular wage (average for where I live).

So we sat down yesterday and discussed a way forward seeing as we were nearly at our overdraft limit and we've come up with a plan.

I've trawled through MN threads and read links shared and have decided it's time to start budgeting very late in the day, we're not youngsters

So, for the first time I'm feeling positive if not embarrassed for beinh in this hole and believe we can get out of this situation.

We have no excuses, there should be money at the end of the month.

So plan starts with a

1. 0% credi card which we can clear overdraft and put some other cc on. This will be £300 a month, but we won't be paying a fee and interest on the overdraft. This is doable and should be clear at the end of the 0% which is for 40 weeks
2. Weekly budget for food and petrol an an allowance each (£25 - which we'll bring down if we need to) This will be cash, so no temptation to buy this with the debit card.
3. Budget will mean no more treats, no more clothes buying, no more top up shopping which spirals out of control.
4. Stopped DD for Gym, no more cleaners, no more manicures.

Please share positive experiences with me to help with inspiration

Well I don't have a positive experience as of yet, but I am clearing debt so in a similar boat! Budgeting is great and it does give you a sense of accomplishment at the end of the week/month if you've worked within your limits xx

it feels good to have a plan and for once I am confident that we can stick to it.

I bet. We're coming to the end of our first month. I wouldn't say we've been perfect but I think we've certainly made progress (though how much I don't know yet).
Can I suggest Good Budget as a good app to use to keep an eye on spending. I've found it to be really helpful

I had a quick look in the AppStore yesterday bit got lost a bit!

Are you sure you can clear your overdraft with a credit card?

Make sure you budget for all expenses so annual insurance, vide by twelve and save that money each month. Start a Christmas fund now if you can etc. Don't just budget for things like food and petrol, budget for everything and record every transaction. When it comes to money you can't manage what you don't measure.

Have you checked out ynab? I find when I use that it really focuses me and I make progress very quickly

The credit card has 0% for 40 months. We've done our sums and we can clear it with in that 40 months. We were paying interest and a fee on the overdraft that was adding to our debt monthly.
We've budgeted so that we have money left at the end of the month for things like Birthdays (£10 and a card for everyone) and also for emergencies like car issues etc.
We have a Christmas fund anyway, £60 a month transferred by standing order ( which I have had to pinch money from this year)
My DH doesn't think he will need his allowance of £25 a week, so we could look at reducing this. I think I will probably keep the £25, and save what I don't spend to pay for haircuts and colour every 7 weeks. (I won't be colouring it myself as I've been there, done that, and it's not the look I want)

We know where we stand with monthly outgoings via Direct Debit. But both of us were spending way too much on an ad-hoc basis. Ordering stuff off Amazon willy nilly, basically buying stuff without saving for it.

We have a weeks staycation in two weeks with activities paid for. It will be an expensive week but we know it's coming and have budgeted for it.
The rest of the year will be spent doing things at home, with no meals out and no takeaways. Books will be borrowed from our library and not bought for the kindle.

We've been living beyond our means and it stops now.

New week and a new start. We can do this!

Recording every transaction is something I want ti do so will have a look at the apps you've suggested. Many thanks

@orenisthenewblack
You sound determined. Only one other suggestion I personally would make (& others may disagree with me) but I wouldn't say no to everything. For example, if I said right, no take aways, I would eventually fail and then feel terrible. I'd give yourself some wriggle room as it will give you a break when you need it xx

I wouldn't reduce the £25 but put it aside so if you want a takeaway etc it comes out of that pot.

I have an excel spreadsheet that details every single expenditure (it might even make a pie chart showing category spends). Every week I update DH as to how we're getting on.

I would wholeheartedly recommend online grocery shopping having menu planned.

I have got to the point where we have almost no food waste and I don't buy extra crap that I am tempted by.

No random extras at all!

Just started doing the same. Maternity leave has started and for the first time ever I need to stop living beyond our means. In the past I just finished paying off one lot of debt and immediately racked up a new one. My goal is to be debt free by 2020. Agree with other posters to write down every spend as this really flags up areas that could be reduced.

It's great you're being proactive! Are you sure the 0% applies to cash advances (which is what it would be to pay an overdraft, not a balance transfer)? Usually cash advances have a v high rate. Will you cancel the overdraft once it's transferred? You may risk unintentionally accruing more debt if you still have the overdraft available.

Great advice here! To be honest Clever, DH has dine the CC thing but I will definitely check before we sign and shop around if needs be.

I am partial to Asda's click and collect but shopping is DH's domain and he prefers Lidl even though I can get fruit cheaper at Asda. Menu planning is on the agenda, having looked before hand at what we have lurking at the back of cupboards/ freezer.

Both wages being paid tomorrow too, so we'll see how we get on!

Any free budgeting app around? Good Budget is £13.99 for three months :(

I've got it from the apple apps and it was free!

@WinstonChurchill I started filling it in yesterday and it only allowed me 10 free envelopes.
I suppose I could lump all DD into one , which would leave me with nine........ how have you done it?

I lumped in utilities into one, groceries, childcare, mortgage, insurances, petrol/train, mobiles, sky/bt, telephone & misc xx

Ok, will try again tomorrow! Thanks x

Still positive! I've cancelled some DDs and been in contact with some utilities to get a better price.
The staycation will set me back a bit, something's I have prepaid but other stuff I will have to pay on the day. Balancing this with picnics rather that eating out.
My heads above water .

Two months in and I'm seeing the light at the end of the tunnel. Still meal planning, still on a strict budget but enjoying a few takeaways. August and September we managed to save a £1k a month! Shocking where that money used to go.
Our DD for dual fuel was a staggering £246 a month. I've changed tariffs and got it down to £163 per month which is still huge. I think if we upgraded our 29 yr old boiler, we'd see a difference but first I will need to save for a new one plus ten new radiators guessing this will be at least £4k)
We've cancelled gym memberships and the cleaners, and I'm painting my own nails now 😀.

I love looking at my bank balance now, whereas four months ago I daren't look at it.

I use Money Monitor, dead simple to use, have opened as many accounts / pots as I want to, and it has been free to use so far - the paid for version is a one off £4.99. Good luck with your budgeting!

OP this thread has been a kick up the bum for me. It's motivating me seeing how well you are doing - I'm a single mum with a 16yo ds. Good job, got a mortgage etc but had a v expensive few months and a bit depressed at having to rein myself back in but back on the YNAB horse now and vowing to keep that budget up to date as that is where I fall off.

I've had an expensive few days. I've donated a £10 to a friends charity thingy, and given DD £20 towards a pair of trainers. Also an uni open day means we've had a day trip and lunch out, but it's really nice to treat DD once in a while.
In the big scheme of things, we're doing really well, oh and I forgot, our water bill has been reduced by £20 a month also, so between gas, electric and water, that's a saving of a £100 a month!