Please can you help me with a financial makeover (warning- we are rich)

[ohIdoliketobebesidethe]

After all the threads on money recently I have finally pulled my head out the sand and gone through our finances. I have looked at everything we have spent in the last 12 months. The money has all gone. All £106,000.

When I return to work in Feb, our childcare costs will be increasing and also in Feb our mortgage discount period will be ending and we will have to pay an extra £4000 a year in interest.

I know this is a undignified thing to do in our culture- but as you don't know me-I'm going to tell you where all the money went.

Any advice about cutting down any of it will be gratefully received. (eg. our landline/broadband costs seem high seeing as we barely use the phone, has anyone got a cheaper deal?)

3000 living where we live
400 having a car
2750 childcare
520 supermarkets
66 house/baby stuff
250 holidays
310 work related expenses
175 cleaner
180 charity
120 computer stuff
50 books
160 council tax
40 water
75 electricity
35 phone/ broadband
162 life insurance
140 healthcare/dentist/opticians
45 mobiles
120 presents
100 eating out
100 clothes
120 travel
15 newpapers
20 kids outings.

Please don't be too offended at what we spend. And I genuinely would like advice about cutting down.

400 having a car- can you car share? can you walk moire? cycle?

520 supermarkets- yuou can DEF cut down here. bulk buy stuff, and make and freeze meals in advance if you don't have time to cook each night. shop from cheaper places. bulk meat things out with lentils and veg.

66 house/baby stuff- necessary stuff???

250 holidays- don't go on holiday.

310 work related expenses- this is claimed back I presume?? if not, why not?

175 cleaner- if you can't afford it, it has to go, sorry.

180 charity- charity begins at home. admirable though it is, you could spend a lot less, or none at all.

120 computer stuff- what stuff? check out other offers. we're on virgin and get their 3 for £30 deal. phone, tv and broadband

50 books- don't buy them

35 phone/ broadband- see above

140 healthcare/dentist/opticians- private??

45 mobiles-0 search for cheaper contracts.

120 presents- for whom? start buying cheaper items.

100 eating out- stop eating out as much

100 clothes- don't buy unless absolultey necessary (ie, kids school shoes etc)

120 travel- you've already inc car costs, and holiday. what is this???

15 newpapers- cut back. read online

20 kids outings.- cut back a lot.plenty of free things to do with kids

Travel = public transport.

I used to walk 2 kids 3 miles a day (half up hill) to nursery but got a car and permit when I was pregnant and couldn't do it any more. I then get the tube into work

I reckon you could easily get your expenditure down to £7K

A nd, yes, to whoever said: £140 for private healthcare for 2 adults and 3 kids could easily cost £140 PM. I reckon we spned more.

But surely things like medical associations should be paid for you? Ditto conferences. Surely you aren't paying for these things yourself?

If you are, cancel them/don't go!

Look at the site moneysavingexpert.com - lots of ideas there for saving money. One key tip is to 'downshift' the brands that you're buying in the supermarket - and you can save at least 33% of your bill.

So, if you currently buy Tesco Finest/Sainsbury Taste the Difference, trade down to a brand. If you're a brand buyer, trade down to an own label. If you're an own label buyer trade down to a value/economy/basics own label.

god - sorry you have such a large mortgage. That is a killer in my view especially at the mo.
Clearly you can see how easily you could cut down on other stuff. Presents can be just as thoughtful when cheaper. Can your employer pay for your association expenses or are you self employed?

Childcare costs seem astonishing. Is that something you can tackle?

Otherwise I'd say you need to start living on an allowance. Decide how much you think is reasonable to spend each month and stick to it.

Go through every item and re-evaluate what you actually need and what you do with it.

You're just spending too much. £120 a month on presents!

Car -
Prob more exp this year than usual

£1600 on difference between buying second hand fiat multipla on ebay and selling renault
£844 petrol
£278.50 - had to tax old car before we sold it then had to tax new one
£718 repairs
£8 congestion charge
£765 (includes two parking fines)
£229 - AA membership
£393 - car insurance

Stop going away on hols - have staycations instead
Get rid of your cleaning and do spring clean during your staycations. And, if you stop eating out, you can spend time indoors doing the cleaning.
I'd cancel your charity direct debit and maybe consider making one-off yearly donation instead.
Join the library instead of buying books, or get your books from second hand bookshop
What computer stuff?? Surely you don;t need to buy new computer stuff all the time?
Get crafty - make your presents and when a bit more confident, you might even want to try and make own clothes.
Stop buying clothes. If you really need new clothes get them from charity shop / ebay.
Read newspapers online ... I know it;s not the same, but you can always treat yourself to the real thing on weekends.

what kind of car have you got? can you get one that is more economical..ie cheaper to insure,service and more fuel efficient.

that is alot of money!

You're spending £229 a year on AA membership for one car. What do they do? serve caviar and champagne in their big van with the flashing lights?

Healthcare - £250 antenatal scans
£550 blood tests etc not covered by dh insurance
dentist £160 (she is NHS)
opticians £710 - I got new glasses. Dh needed new lens

I think it is what the OP has spent monthly?

If I were you I would also consider the impact of any Christmas spending you need to do this coming month OP and start by coming down in areas such as non essential household stuff, cheaper presents and cards for childrens parties and go straight to the food shop in the Supermarket- do not browse anyother sections - e.g. books, clothes, cd's. What is included in computer stuff - can that be reduced if it is not vital to your job?

Just as an idea: If you use Ocado (which I know costs to deliver BUT) you can be really firm with what you order - no impulse buys or 'MUMMY I WANT THIS NOW' buys and they throw in a paper at the weekend I get a delivery on a SAturday and we get the Sat. times thrown in... Not much, I know, but makes life easier and I clean when I would usually shop so no cleaners bills either!

3000 living where we live - unless you move, you can't cahnge this, so you'll just have to pay it.

400 having a car - I'm presuming this is a car each, but again, I don't think you can cut down.

2750 childcare- How many chiddren?

520 supermarkets- sounds resonable, but if you really tried, and went for special offers, cut down alcohol, organic, meat you could save a bit here.

66 house/baby stuff- difficult if you were "poor" this is where you would cout down, but I'm sure you can justify this spenind. This is where you could go for two for one offers / sales.

250 holidays - Cornwall is lovely.

310 work related expenses - I hate these
175 cleaner - your choice -cleaner or dirty house, or you knackered. I no longer have a cleaner, but I have a dirty kitchen floor.

180 charity - you could stop this, but then you might end up in hell

120 computer stuff- What computer stuff?

50 books - very easily done. STAY AWAY from Watersones.

160 council tax - Unavoidable
40 water - unavoidable

75 electricity - ulenavoidable

35 phone/ broadband

162 life insurance

140 healthcare/dentist/opticians - NHS? This sounds a lot to me.
45 mobiles

120 presents - stop being so generous!

100 eating out - Stay in!

100 clothes- You could/would cut down if you were poor.

120 travel- Where to???
15 newpapers - stope these now! They are all available on line
20 kids outings. - Resonable.

work expenses - I am a Dr and get £800 a year towards conferences and courses.
In addition I pay
£390 GMC
£250 medical indemnity
£387 BMA
£50 Royal college fee

All these will go up next year when I get promoted (fingers crossed)
Conference to USA £1171
exam fees £762

Could you get a housekeeper to do cleaning and childcare and assist with some household stuff like utility supplier changing etc for less than you currently pay in child care and cleaner?

sorry to cross post...actually i am going to stop posting now as i dont have much to add!

thanks for posting all your outgoings...it is actually really interesting to see where money goes.

Your aa membership is massive & actually your insurance is pretty high (unless that's two cars?) You can often get car breakdown thrown in, or if you shop at Tescos for instance, you can use your clubcard points to buy breakdown cover since their worth x4 their face value.

I think you're right about the newspapers - half is for dh's economist - so will have to be persuaded.

Childcare is a nursery for 2 of them and is not something I want to compromise on. Likewise cleaner.
They are what makes going to work feasible for me.

3000 living where we live - presumably then this can't be changed
400 having a car - really £400pcm, have you 2 cars? could you lose one or swap it for a scooter?!
2750 childcare - am guessing too that this caouln't change, although can you get wage-replacement vouchers through your workplace to save on tax
520 supermarkets - can you shop online? Or shop at aldi/lidl. This is a lot, try withdrawing only £70pw and see what you can get, a lot i reckon
66 house/baby stuff - this could be reduced I imagineto around £45 pcm without you noticing much dfference
250 holidays - shop around, go out of peak season, don't go on as many weekends away, or if you do stay with friends, not as many meals out etc - i reckon you could save as much as £1000pa on this
310 work related expenses - if work related can't you claim back from your employers? IF not, cut it right back, surely you shouldn't be out of pocket by this much for a job, this is £3720pa
175 cleaner - wow, how much do you pay her?! Do you have a mansion?! my cleaner works 2 hours every week and gets £60pcm
180 charity - if you need to cut back this needs to be reduced
120 computer stuff - why?! this is a lot
50 books - really £50?! wow, again, try budgeting to say £20pcm if they are mostly needed, or ebay old ones to pay for new ones
160 council tax
40 water
75 electricity
35 phone/ broadband
162 life insurance - this is fairly high, have you shopped around recently? think dh and i pay 90ish for £260,000 ish of life insurance and £100kish of LI/CI cover
140 healthcare/dentist/opticians - am guessing this is for all of you? if not again try shopping around, or perhapos drop the healthcare if times are tough, the nhs isn't that bad
45 mobiles
120 presents
100 eating out - this could be reduced if you are dsperate to say £40pcm
100 clothes - as above, buy second hand
120 travel - where do you go? and why? is it necessary
15 newpapers
20 kids outings.

there, reducing just a few of the above could save you around £10k pa and thats not including house/car/childcare and the only thing i think you ought perhaps to reduce completely is the charity and work expenses until you are in a better position again.

HTH.

I got a new computer this year - so yes not usual expenditure

I take it you don't get working tax credits due to your income. Or do you?

But what about child benefit? Does the NHS do child care vouchers where a percentage is deducted before NI and tax towards child care costs.

Child care is one of your biggest expenses. Au pair, or are you decided on nursery?

Get your breakdown service from Autoaid. It's about £30 per annum for both people in the the family and any car.

You can get the details on the Moneysaving expert site.

I shop online - also a necessity for me if I want to work.
We use ocado - BUT I have done the exact same shop at Sainsbury's and it cost the same.
Lidl/morrisons/asda not an option here- there aren't any.

We don't buy organic and didn't really drink last year as I was preg.

sorry, but I can't believe an adult is posting on a forum on "how can they cut down monthly spending" when they spend
250 holidays
175 cleaner
180 charity
120 presents
100 eating out
100 clothes

PER MONTH!!!

for an obviously intelligent person, where do you think you could cut down??

and before anyone accuses me of being jealous, I'm not, just amazed