Budget blow out!
Hi Everyone
There have been a lot of comments from people who can't believe we'd 'struggle' on $68k. Well, I didn't think we'd be struggling either - but what I really can't believe is just how much we're over budget!!!.
We've put in our actual spending, or made reasonable guesses for some things, and loaded it into the Sorted Budget Calculator.
So anyway, here's the link to a screenshot of our results page.
Thx, Steph.
posted by sortme @ 5:16 PM
4 comments
4 Comments:
if you put it on your credit card, then make your minimum credit card payments back to your emergency fund, you will be better off. and, if you have an emergency in the meantime, you can take the emergency funds from your credit card (wont put you any further ahead, but its a risk you might have to take)
OK re your budget. Fist of all I can see you are paying approx $328 a month on a vehicle. That would mean you have quite a falshy vehicle. Step 1. Get rid of it. There are plenty of vehicles around for $2000 which may not be the flashest, but will serve your requirements to get from A to B. That reduces your defecit to $7863. Also your alcohol bill is astronomical. $100 a month is ridiculous. Take that out of the equation and you're down to $6,663. You still have an entertainment budget which can well be halved to $115 a month and include your alcohol in that which will still allow you to buy 4 bottles of wine a month and still have $60 odd to go to movies etc...now you are down to $5283. Your food bill is too high. You could easily spend $150 a week and still be very comfortable. That brings you to $603 defecit.You could either cancel your pay tv subscription or cancel your magazine subscription (keep one or the other) you must still have some pleasures in life. Stop buying gifts for people and start making them! Not only will it save you money, but people generally appreciate them so much more because you put more heart into them. It will keep you busy during the day too. It is important to keep some savings going so pay off the credit card and keep paying what you would have paid on the card into a savings account.
Your grocery bill is excessive for 2 adults!
I too think $150pw is a more reasonable amount to be spending (incl toiletries, cleaning products etc). Save approx $4500
Like my first post, plant a vege patch(although this will take time to grow... you will reap the benefits of fresh produce at minimal cost).
Stop buying 'top shelf' brands, and start buying no-name brands which have similar quality at a more affordable price. And stop buying luxury/comfort foods.
Buy meat from a butchery, or when on sale at the supermarket, and produce from a green grocer, although it depends on their location, because petrol cost to get there may outweigh the savings.
Perhaps (I don't want to assume), you could look at how much you eat (most of us eat more than we need to). Serve smaller portions, and see your food go further. Rather than eating until your plate is clean, save left overs for lunch!?
Pay TV & newspaper/magazine subscriptions
You don't need these!
Save $1080
As nice as it is to have 40 odd channels to watch, you don't need to have SKY tv. If there is a rugby game hubby just has to watch, surely he has a mate who would happily have him over to enjoy the game with!? And your magazine and paper subscriptions - you can always read the news online (or watch it on free to air TV)? Besides, how do you find time to watch tv with a young bub in the house??
Cut back on alcohol!
to $30 - $60pm
Save $480
I know it can be hard, when work associates and friends can be demanding that you keep up your pre baby social life, but it is time to face reality - right now you just can't afford it. If you must, buy hubby one bottle of his poison a month, and tell him to make it last. And perhaps only indulge in one or two bottles of *cheapish* wine a month.
Limit your reccreational activities
to $30 - $60pm (?)
Save $2040!!
Instead of going out with friends for dinner, why not have a 'pot luck' dinner once or twice a month? That way you get to socialise, but without the restaurant prices (or having to pay for enough food and drink for everyone?).
If are are avid movie goers, go on a Tuesday night, or go once the 'no complimentaries' has been lifted from the movie, and use the shopper docket two-for-one savings coupon on the back of your grocery receipt.
If hubby is the kind of bloke who MUST go to the motor racing at Pukekohe, the rugby, the cricket and on fishing charters with the blokes, he may have to think again... or forfeit his alcohol allowance for a few months in order to afford it?? Fortunately, most men are pretty stubborn and will insist on going regardless of the fact they can't afford it... (even more so when they are the bread winners!).
Great idea about making your own presents!
I wouldn't have thought of that one!
But I think $660 is reasonable (no savings here sorry!)
Grandparents would love home-made calendars with a photo of your cherished bub on it, or fridge magnets (again with photos of bubs on them).
Suggest to your present expecting siblings, that you would rather do away with presents (only buy for nieces/nephews). But again, social pressures and expectations may call for you to oblige!
Instead of buying cool toys for your bub (which get used for a relatively short time then stored), check out a local toy library.
Car
I can only assume that the figure provided is the running cost of ONE car, plus insurance, rego & WOF costs. As looking at your insurance cost, it is very small (our contents insurance & car insurance is about that - without having house insurance as well)? If that is the case, not much you can do here.
You could down-grade (depending on what kind of vehicle you have), and use proceeds of the sale (after buying another), to further reduce your debts).(??)
Debts
Is this solely mortgage? If so, fix at approx 8%pa over 30 years ($1549pm) or 25 years ($1629) approx. If this debt is in fact just mortgage this will save you $6769pa approx!!)
(shop around, or enrol the help of a mortgage broker) to get you a good deal. There are many non-bank mortgage providers who offer competitive interest rates, as well as the mainstream banks. Most banks will penalise you for breaking a fixed loan, but sometimes it may be financially beneficial to pay the fee and re-fix or go elsewhere!
IF this figure also includes HPs or personal loans, consider rolling these into your mortgage BUT set them up for a 1-4 year term (if your financial institution will allow). Adding your $3K HP to your mortgage for 30 years turns into $8.3K debt over the life of the loan)! (assuming 8%pa).
Managing your money!
I suggest you set up three bank accounts
1. Day to day (food, petrol, entertainment, alcohol, travel (to work) etc)
2. Utilities and insurance
3. Misc (presents, holidays, house maintenance, medical, clothing etc).
That way you shouldn't blow your budget!
YOU CAN MAKE IT WORK... AND MAY FIND YOU STILL HAVE MONEY LEFT OVER FOR SAVINGS! or, can allow yourself a *slightly* larger budget on some items than I have suggested.
GOOD LUCK,
Jolene
Ok here are my suggestions:
Buy a car that is cheaper to run like more fuel efficient. If I lived in Auckland I would ride a motorbike to work instead of car and that way you could ride through a traffic jam and motorbikes are heaps cheaper to run. If you have more than one car get rid of one and save on registration, WOF and maintenance for more than one vehicle.
You are spending $240 on food cut this way back, when I was last flatting $180 fed 5 adults and 1 kid and I was buying brand name products too. Do whatever you can to keep yourself healthy and save heaps on medical costs. Read the paper at work or online instead of buying a paper the same may even be able to be done with magazines. Download your music for free instead of buying CD's you can also download movies so forget about renting out DVDs all the time. Last Christmas we didn't spend a huge amount on gifts in fact instead we had a $2 Christmas. This is a good idea if your children are too young or too old to enjoy Christmas, last year we all just bought $2 presents and had fun playing with them on Christmas day.
The final solution is if you have a spare room take on a boarder or a home stay student thats if you can handle having an extra person in the house.
Post a Comment
<< Home