Where am i going wrong financially?

I earn a reasonable salary, I have no debts except a low mortgage and yet I find that I am living from payday to payday, All my money seems to go. I pay an extra 拢100 a month on my mortgage and save a bit but I always end up using my savings if I need my car serviced or if something need repalcing in the house........where is the best place to start sorting out my finances.


I look forward to your replies

the same is happening to most of us. the price of everything is going up (but not our wages). petrol is one of my biggest drains.

You are spending more than you earn..

start making more money? :)))
I think you should gamble a little and try to invest it in something more profitable than mortgage :))).
maybe you should also see where most of your money that is left goes. and cut down on that. for example when i stopped buying a hole bunch of expensive cosmetics and sweets i saved a couple of hundred a month.

budget
70% living expenses
10% savings
20% (max) on debt
of take home pay!

Try setting up a monthly budget as a spreadsheet. How much cash are you bringing in? Where is the cash going?

Then you can check if you are happy with where the money is going.

You are not alone in this dilema today. So first take a pen and paper and write down all your expenses, where you spend money. So a coffe on the way to work, lunches out, dinners out, movies and other such expenses. Where else do you spend??? Take nice drives??? ONce you have written it all down on a daily basis you can see where your money is going and then see what you can eliminate daily or weekly and then you can start having pocket money again.

It is surprising if you eat out for several meals a week what the costs are. I know I spend too much as it is but for it to change I need to do somethings first.

Without knowing where your money is going you can not correct it properly as any measure will be based on only partial information. so start wrting and have fun finding lost money.

Your car is probably your biggest problem. If it is cheaper to use public transport or to walk you will be much better off. Or you have the option of a bike or scooter. I have never had a car so would not miss it! But if you are a rep this is not an option!

Write down everything that you spend for a month, and I mean everything. Even it is a pack of gum or a candy. At the end of the month look over the list and you will find that many of the things that you buy aren't necessities. You can then set some priorities in your spending.

My sister once said something that didn't make sense to me at first, but after I thought about it for a while, I understood. She said, "If you don't spend it, you don't have to earn it." That quote can probably be attributed to someone else, but I first heard it from her.

Why don't you consider taking out an insurance which you can't touch for 5 to 10 years. That way you can save without being able to get your hands on it and can look forward to a lump some at the end of the term.

Hey Andy

Once again I think I have a reasonable and very simple answer.

Have a sex change and offer yourself for lets say a 拢10 this time ( okay it's double what I suggested last time but your looks might have improved ) and basically hope for the best.

Alternatively get another job and spend less.

Look at your unnecessary expenses.
Do you eat out often?
When at the store do you buy things impulsively?
Do you shop for things that you need or things that you want?
Do you use credit cards frequently?
What are your interest rates? Can you get them lower?
Maybe you are putting too much into your savings, so you end up having to dig into it to make up for it.
Try this....
Before you do anything when you get paid, put away 10% in to your savings. The trick with saving is to make it a number that you will never miss in your day-to-day life. 10% will never be missed. Then never touch it even on a rainy day.
What ever is left over after bills, leave it in your checking account and let it build like a cushion, so when you need extra money, you don't have to touch your savings.
Go on a spending diet for a few months, don't buy anything that you don't absolutely need and that is where your cushion will come from. Then everything else can be tweaked like your interest rates. Most importantly don't use credit unless you need to. That is where most people go wrong. If you think about it, an item that cost a little will end up costing much more later.

Start by looking at what kind of lifestyle you lead . Do u cook your own meals or u eat out. Are u out most nights with your mates. Even changing your driving style can help. Small stuff like that can save you quite a bit.

The best place to start sorting out your finances is to sit down and write down all your outgoings. Instead of paying an extra 拢100 per month on your mortgage put that in a savings account, make do with an MOT on the car instead of servicing it. Pay all your bills by direct debit; I find that so much easier and you won't have to find a big chunk of money to pay those. Look at setting up an ISA that will allow you to save without being able to draw on it easily. Good luck.

Find out where the money goes. Itemize spending as you go (keep a notebook in your pocket) or at the end of the day from receipts kept. Seeing it in writing will help detect unnecessary spending. Do a yahoo search for "Oprah debt diet" (lots of examples of success stories). Good luck!!

Assuming you live in the UK - join the clan, we are all being stuffed by our corrupt, useless and incompetent Government.

It is not going to get better in your lifetime! With the hidden borrowings of:-
-Northern Rock
-"rentals" of hospitals/schools for the next 30 years on G.
Browns lunatic PFI schemes
-The cost of all the Government pensions
In addition to the huge (visible) existing borrowings means the country is basically bankrupt. Don't forget the 1.3 trillion owed by the population as well!

If you have a skill or professional qualification emigrate to Australia. They are operating a "we want you" policy at present for a great variety of skills.

Australia has lots of minerals etc that the Chinese want so the country is expanding.

Hi,

I know of a really good site which can help you plan better. It has loads of tips and resources to help you.

Thanks

http://good-financial-planning.info/