need financial advice-really bad with money

shadowcomplex

Im 33 ,earn 45k a year in a permanent job and I am really bad with my money, I have no budget and live from paycheque to paycheque and sometimes run out of money, my out goings are

rent 500 per month

loan 340 per month

and Im also trying to pay off an orthodontics bill which is costing 5k over 2 years

I dont have any other outgoings, no mortgage,no car, no dependents, I really am sick of not being able to have money for a holiday or having no savings and its really bad that I run out of money nearly every month, any advice except maybe a good kick up the hole, I never default on my debts though which is one thing going for me

careca11

well your rent, loan and orth-bill are fixed costs for the moment

what do you spend the rest of your money on? (if you don't mind me asking)

drunkmonkey

Any way work would pay you by the week, getting paid by the month you always feel broke even though your not.

fleet

Wow!

You're take-home pay is probably around 33k a year.

(500 + 340) x 12 = 10,080
+ 2,500 per annum on the dentist.
= 12, 580
Bills and food won't come to more than about 8k (I hope)

So you have around 12, 000 a year to spend on... Stuff.

That's 230 a week you "waste"... that's more then some people in Ireland raise families on!

ultra55ound

There are a few things you should do.

1) Know how much money you *really* have. As in make a list of things that are definitely coming out of your account each month, rent, bills, savings, everthing. Once you get paid, subtract that figure from your net pay and that's how much you've got to spend for the month. Divide that by 4 and you've got an approximate weekly allowance. Take that out at the start of each week and make it last.

2) Keep a spending diary. At the end of every day just log how much money you spent out of your allowance and a small description of what you bought.

I use a google docs spreadsheet for both of these and find it really helps. Before that I was just winging it and wasn't getting anywhere with savings.

I think the most important thing that it taught me was to be more aware of money, of how much I had, how much I was spending, and how much I was saving.

I didn't have to make any major lifestyle changes and didn't miss out on anything, but I now know for sure whether or not I can really afford something, or what I need to do to be able to afford something if I really want it.

shadowcomplex

Well the fact I dont have a car means that more often than not I get a taxi to work which costs a tenor each way , this is laziness on my part because I could cycle as it would only take me 25 mins to work and 15mins back, what else do i do with my money? I drink alot so alot of it goes on wine and beer, I like to eat out a fair bit also, steaks, indians etc, shameful I know, I also go the the cinema once or twice a week,the thing is if I was on 60k a year I reckon I would spend it all too, at 33 its time I started to kop on

coylemj

You need to budget by planning your expenditure a few months in advance. I never used to do this but the advent of free banking (provided you stayed in credit) was the impetus to budget, now I plan for he current and next month so I always know how much I have to spend in the next 4-7 weeks.

Draw up a spreadsheet with income and expenditure columns, on one side put your income and the other side your expenditure, keep tabs on your money and try to stay within income. If you have a credit card bill coming in, make sure that you take account of this for next month's budget to make sure that you can afford to pay off the bill in full every month.

Always know what's coming down the line and try to keep within your income. You've rightly pointed out that the way you spend money, you'd be no better off if you had piles of extra income so you need to rein in your spending and getting taxis everywhere should be the first extravagance to go.

shadowcomplex

Thanks for the help folks, I get paid biweekly and would actually prefer to get paid monthly but its not my companies policy to pay monthly, anotherway of saving money is to move from my apartment which im paying 500 a month on and move into shared accomodation which will only cost me 250 a month, the things is at 33 im not sure I want to go back living with people again

Stinicker

Well the money you are wasting on rent would be a good start, you could buy a decent house you'd own and have a mortgage for less than you are paying to your landlord, and at least you'd have something to show for your higher than average paying job.

Cut out the cinema, buy a 50" plasma and get yourself a decent broadband connection and that is that expenditure cut out, the cinema is €15+ a go if you get snacks and it sounds like you are spending over €120 a month on this, cut it back to once or twice a month for the good movies.

Learn to drive and buy a small cheap car as it sounds like you are spend near on a €100 a week on taxis, what utter waste at a tenner each way, a small petrol engined car like a yaris or micra would carry you back and forth and would cost under €1,500 a year or from €25 to €30 a week for tax, insurance and fuel on what sounds like a short commute.

Cut down on the takeaways and booze otherwise your money will be worthless to you if you end up dying young! This will save you money and improve your health!

Cookie_Monster

Stinicker wrote: »

Well the money you are wasting on rent would be a good start, you could buy a decent house you'd own and have a mortgage for less than you are paying to your landlord, and at least you'd have something to show for your higher than average paying job.

:rolleyes::rolleyes:

why do people persist with this stupid line. Mortgage interest is dead money, not mention you'll have to pay 3-4 times what the house is actually worth and that's if you can even get a mortgage. never mind the TV and car comments



As for the OP, immediately put 500-700 a month into saving as soon as you get your pay check, with the income and fixed costs you have that should be no issue. Get banking online, so you can quickly check you balances and spending. It always makes it easier if you can check what you have and when.

The rent is not that bad, nor are other fixed expenses. you must be spending an awful lot of money on leisure things to be broke at the end of every month though, whats tax home pay after tax, around 2800-3000? If I was earning that, I'd be saving 1000-1250 a month without any concious loss of spending money tbh.