How to budget...
Discussion
I need a bit of help, I'm nearly 22 and crap with looking after my money. I'm always in my overdraft, currently got a limit of £150 between the accounts I have. Before it was just as a safety net to stop getting the huge fines if I went over, now its all the time.
I currently take home around £660 a month after tax and NI and the save as you earn share thing I have.
£150 goes to parents for rent
£20 - gym membership
£25 - Phone contract (wish I didn't get it now!)
£100 - Pay back gran/parents
My fuel bill is around £70 a month.
I also get some expenses with my second job, depends how many hours I do a month to how much I get, normally around £70-£100 a month extra.
Leaves me with around £295 left to play with, I used to see a personal trainer twice a week, but due to it being £140 a month, I've had to cut down to once a week, at £80 a month. I may have to cut this even more though!
Does anyone know of any ways to keep track of my money? I've noticed my statements are generally all from work, buying drinks and food, small amounts each time, £2 or £3 a time, but all adds up.
Any help would be great!
While I'm here, anyone know of any decent banks that don't charge for using an overdraft? Halifax charge £1 a day, and Lloyds TSB is £5 a month.
I know its not the worse situation to be in, but I'm starting to worry a bit about it. Got my car insurance due on Thursday and going to have to ask mum to put it on her credit card again...still not paid her back from last year!
I currently take home around £660 a month after tax and NI and the save as you earn share thing I have.
£150 goes to parents for rent
£20 - gym membership
£25 - Phone contract (wish I didn't get it now!)
£100 - Pay back gran/parents
My fuel bill is around £70 a month.
I also get some expenses with my second job, depends how many hours I do a month to how much I get, normally around £70-£100 a month extra.
Leaves me with around £295 left to play with, I used to see a personal trainer twice a week, but due to it being £140 a month, I've had to cut down to once a week, at £80 a month. I may have to cut this even more though!
Does anyone know of any ways to keep track of my money? I've noticed my statements are generally all from work, buying drinks and food, small amounts each time, £2 or £3 a time, but all adds up.
Any help would be great!
While I'm here, anyone know of any decent banks that don't charge for using an overdraft? Halifax charge £1 a day, and Lloyds TSB is £5 a month.
I know its not the worse situation to be in, but I'm starting to worry a bit about it. Got my car insurance due on Thursday and going to have to ask mum to put it on her credit card again...still not paid her back from last year!
GT03ROB said:
£150 overdraft....£20/month gym £80/month trainer, cut these 2 for 3 months only & you have a £150 positive balance. There now, not so hard to budget 
Here come the excuses! xDI need at least the gym membership, I've got a application for the Army at the moment, got a bit of weight to shift. I want to try and keep going to see my PT, as I work harder and enjoy it. But, am really thinking about stopping for a bit!
On the plus side...its my birthday soon so hopefully a bit of money coming in!
You need discipline.
I'm fairly crap with money, but have always avoided the cardinal sins: Loans and running up credit card bills. You have at least taken the option of using the "bank of mum and dad" which is a good way to borrow if you have to, but make sure you're borrowing and not stealing!
Anyway, prioritise your expenditure:
Vital:
Rent £150
Phone contract £25 (can't get out of it without large costs)
Fuel £70
Debt repayments: £100 (but may actually need to increase as it sounds like you're not actually clearing your debt).
Car maintenance? Do you run your own car? SOunds like it might be being provided for by parents.
Luxuries:
Personal trainers: £140
Buying food: £Who knows?! I bet this is where the hole in your finances comes from!
Going Out: £Again, who knows?
Clothes: £Who knows!
Entertainment: £Who knows!
Sit down with your bank statements and work out EXACTLY where your money goes. How much do you spend on lunches, phone bills, booze, car repairs? Until you know where your money is being spent, you can't stem the tide.
So, you're going to have to keep paying your "vital" costs, but can you reduce them:
Rent: Probably not.
Phone Contract: Can you re-negotiate? Often, nearing the end of the contract you can get a cheaper deal rather than a new handset and save a bit. At least you're not on a £45/mo Iphone 24 month deal!
Fuel: Can you cycle to work instead of drive? Can you drive more efficiently? Lift share with a colleague? Reduce your fuel spend!
Debt Repayment: Sounds like these actually need to go up. Pay off your mum before she gets peeved and kicks you out. Rent is more than £150 away from home!
Luxury costs:
Gym: Can you do a dal and get gym membership for £30 or so a month? Personal trainers? Sorry, they're for people who can afford them, you can't! Be your own personal trainer! Even better, couls you train as one and use it as an extra income?
Food at work: Buy a loaf of bread and some multipack crisps. Make up your own sandwiches and LEAVE YOUR CARDS at home. You will have to be hard headed about it.
I think that with some effort you should be able to bring your outgoings down to ~£450, leaving you £200 to pay back mum quicker, then save more so that next time you don't have to borrow from her at all!
The best way to keep track of your money is to... keep track of your money. consider every purchase. It's not easy living on £660 a month, I have done it and it wasn't fun! But we managed, and now 10 years on it's a distant but happy memory, because we managed holidays and fun times despite not having much cash.
I'm fairly crap with money, but have always avoided the cardinal sins: Loans and running up credit card bills. You have at least taken the option of using the "bank of mum and dad" which is a good way to borrow if you have to, but make sure you're borrowing and not stealing!
Anyway, prioritise your expenditure:
Vital:
Rent £150
Phone contract £25 (can't get out of it without large costs)
Fuel £70
Debt repayments: £100 (but may actually need to increase as it sounds like you're not actually clearing your debt).
Car maintenance? Do you run your own car? SOunds like it might be being provided for by parents.
Luxuries:
Personal trainers: £140
Buying food: £Who knows?! I bet this is where the hole in your finances comes from!
Going Out: £Again, who knows?
Clothes: £Who knows!
Entertainment: £Who knows!
Sit down with your bank statements and work out EXACTLY where your money goes. How much do you spend on lunches, phone bills, booze, car repairs? Until you know where your money is being spent, you can't stem the tide.
So, you're going to have to keep paying your "vital" costs, but can you reduce them:
Rent: Probably not.
Phone Contract: Can you re-negotiate? Often, nearing the end of the contract you can get a cheaper deal rather than a new handset and save a bit. At least you're not on a £45/mo Iphone 24 month deal!
Fuel: Can you cycle to work instead of drive? Can you drive more efficiently? Lift share with a colleague? Reduce your fuel spend!
Debt Repayment: Sounds like these actually need to go up. Pay off your mum before she gets peeved and kicks you out. Rent is more than £150 away from home!
Luxury costs:
Gym: Can you do a dal and get gym membership for £30 or so a month? Personal trainers? Sorry, they're for people who can afford them, you can't! Be your own personal trainer! Even better, couls you train as one and use it as an extra income?
Food at work: Buy a loaf of bread and some multipack crisps. Make up your own sandwiches and LEAVE YOUR CARDS at home. You will have to be hard headed about it.
I think that with some effort you should be able to bring your outgoings down to ~£450, leaving you £200 to pay back mum quicker, then save more so that next time you don't have to borrow from her at all!
The best way to keep track of your money is to... keep track of your money. consider every purchase. It's not easy living on £660 a month, I have done it and it wasn't fun! But we managed, and now 10 years on it's a distant but happy memory, because we managed holidays and fun times despite not having much cash.
Ki3r said:
Here come the excuses! xD
I need at least the gym membership, I've got a application for the Army at the moment, got a bit of weight to shift. I want to try and keep going to see my PT, as I work harder and enjoy it. But, am really thinking about stopping for a bit!
On the plus side...its my birthday soon so hopefully a bit of money coming in!
Running is free, great for shifting weight, and you'll be doing a lot of it when you get in!I need at least the gym membership, I've got a application for the Army at the moment, got a bit of weight to shift. I want to try and keep going to see my PT, as I work harder and enjoy it. But, am really thinking about stopping for a bit!
On the plus side...its my birthday soon so hopefully a bit of money coming in!
rash_decision said:
And walking just as good. Reduce your Fuel costs by walking to work if possible???
I walk every so often, but finish late at the moment (11pm) and have to walk though a area I would rather not at night!Taita said:
Bin the personal trainer. You don't need one to get into the Army.
What arm of the Army are looking at? Have you done ASDC?
Going for RMP. What arm of the Army are looking at? Have you done ASDC?
Not yet, got to get my run time down a bit more, hence the personal trainer at the moment.
Thanks for the replies, I've read them quickly, but half asleep at the moment...I'll re-read them tomorrow
.okgo said:
What is it you do that pays that for full time work? Below min wage isn't it?
Work in a petrol station at the moment, £7 a hour (not too bad really), only do 28.25 hours a week though...trying to get more hours, but apparently we are over staffed at the moment (ha yeah right!), trying to move departments to get more hours though. Taita said:
RMP, crumbs.
Bin the PT, google interval training and work hard. Put the effort in and you will improve rapidly.
RMP run time is huge isn't it? 1030 combat and 1130 combat service?
Didn't see this before!Bin the PT, google interval training and work hard. Put the effort in and you will improve rapidly.
RMP run time is huge isn't it? 1030 combat and 1130 combat service?
10:30 is the time I've been told...I thought it was 14:00...so still a bit of work to do!
I find it motivates me to go by myself as well, I know I wouldn't go at all otherwise.
Mum has said she would rather it takes me longer to pay her back, and to keep up the PT sessions as she knows its what I want. Will speak to my PT next time I see her and see if we can come to a better deal maybe.
Two obvious places to cut back -
1. Personal trainer. Cancel him and you'll clear your overdraft in 2 months. Cut back to twice monthly and you'll clear your overdraft in 4 months. Surely working less than 30 hours/week you've got stacks of time to be out running / cycling / swimming without having to pay someone to show you how to exercise?
2. Cash budgeting. Our finances have gone wildly out of control and the biggest single change we have made is to take out cash every Saturday to cover housekeeping for the week - then when it's gone, it's gone. You could even pin it down more finely and only put £5 / £10 in your pocket to go to work. Start drinking tapwater instead of cans of 'stuff' - good for your general health as well as being cheap (free). Take your own healthy snacks to work - you're paying a trainer £20 per session to get fit, then living on petrol station snacks to get through your night shifts. The two will cancel each other out big time.
Hope this helps.
1. Personal trainer. Cancel him and you'll clear your overdraft in 2 months. Cut back to twice monthly and you'll clear your overdraft in 4 months. Surely working less than 30 hours/week you've got stacks of time to be out running / cycling / swimming without having to pay someone to show you how to exercise?
2. Cash budgeting. Our finances have gone wildly out of control and the biggest single change we have made is to take out cash every Saturday to cover housekeeping for the week - then when it's gone, it's gone. You could even pin it down more finely and only put £5 / £10 in your pocket to go to work. Start drinking tapwater instead of cans of 'stuff' - good for your general health as well as being cheap (free). Take your own healthy snacks to work - you're paying a trainer £20 per session to get fit, then living on petrol station snacks to get through your night shifts. The two will cancel each other out big time.
Hope this helps.
WeirdNeville said:
Sit down with your bank statements and work out EXACTLY where your money goes. How much do you spend on lunches, phone bills, booze, car repairs? Until you know where your money is being spent, you can't stem the tide.
Yep. Or use software such as: http://www.moneydashboard.com/.Pay yourself first.
It's an old principle, but a good one. Every time you get paid, put 10% in to savings straight away. Live out the rest of the month on the rest of the money. You'll barely notice the 10% reduction in cash, but your savings will build up surprisingly quickly. Once they are more than your overdraft - pay it off. Then continue saving so that you have a buffer for the next big expense.
It's an old principle, but a good one. Every time you get paid, put 10% in to savings straight away. Live out the rest of the month on the rest of the money. You'll barely notice the 10% reduction in cash, but your savings will build up surprisingly quickly. Once they are more than your overdraft - pay it off. Then continue saving so that you have a buffer for the next big expense.
Ki3r said:
I've noticed my statements are generally all from work, buying drinks and food, small amounts each time, £2 or £3 a time, but all adds up.
Quite simply, stop doing this. You don't need to afford it. If you need to eat at work take things in with you from home (if you're at the 'rents it'll be free too!). The difference in cost is massive over time. Stop buying anything at all at work and you'll soon save money. You'll lose more weight too, as you'll be snacking less.If i bought a ready made lunch every day it would cost me over £100 a month. I take stuff in and it costs me less than a 5th of that.
Surely ask your parents for a free lodging presuming that you can pay it back interest free once you have a better job.
Is a more economical car an option?
Also,for fitness cycling burns off more than walking and you get there in a third of the time.
We get FAMILY sports centre membership for £20 a month so maybe shop around for a better price elsewhere.
Is a more economical car an option?
Also,for fitness cycling burns off more than walking and you get there in a third of the time.
We get FAMILY sports centre membership for £20 a month so maybe shop around for a better price elsewhere.
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