My Budget - thoughts please

**mopples** · 05-25-2009, 07:54 PM

Just wondering if i could get some thoughts on my budget please. This is a budget for my costs only as OH and i have seperate money. There are bills such as internet, home phone and cable that OH pays. Food shopping amount does cover the two of us and the pets and health insurance is couples cover.

I get paid fortnightly so im putting this down on a 2 pay month.

Income: $3,117.50 (net of tax)

Costs:
Rent: $700
Train Ticket: $120
Holiday Savings: $100
General Savings: $100
Food Shopping: $300
My Pocket money: $200
Health Insurance: $205.24
Car & Contents Insurance: $120
Mobile: $88
Bank fees: $6

Debt:
Personal Loan: $500-$810 per month (currently $500 until the CC is paid off, will then increase to $820 est mid August)
CC: Average $400 (to get paid off by mid August)
GE - store finance (interest free): $80

The left over amounts are kept in my saver account which is attached to my bills account as a buffer and also as a savings facility of sorts for large annual/quarterly bills such as car rego, electricity)

Any thoughts?

**miss_cas** · 05-25-2009, 08:52 PM

What about utilities, gasoline or toiletries? If you are not using the car, sell it. You can always get a rental going out of town.

**mopples** · 05-25-2009, 09:05 PM

Petrol is taken care of by OH as he does most of the driving and its claimed back on his business expenses. The only utilities we have are electricity and home phone. Electricity is covered out of the "buffer" amount, its usually around $150 per quarter each and home phone is paid with the cable by OH.

Just to clarify we split the following 50/50:
Rent
Electricity
Gas (if where we live has gas)

OH pays:
Petrol
Toll charges
Home Phone (we only have this for the internet)
Cable
Internet

**freshstart** · 05-28-2009, 04:45 AM

Why are you paying off the interest free one faster than necessary? Is that loan 0% for the duration or just for a set time period? If it is for the duration, I would pay the minimum on that and put the extra money towards whatever has the highest interest rate. You will come out better in the long-run.

**cheles2kids** · 05-28-2009, 04:45 PM

The first thing that pops out at me is that you have such a small amount going into savings??

A good general rule of thumb is *at least* 10% of your take home pay, which should be around $300.00 per month.
I would also strive for at least 3 months worth of income in this account, and really, 6 months wouldn't be too much.

So for 3 months, we're looking at about $9300.00, you could round that up to an even $10,000.00 just to be safe.
You don't mention how much you have in that account, so I'm just going by what you have listed.

I know you mention that you have a 'leftover amount' that goes into the savings, but you don't mention an amount?
I would put less into 'my pocket money' and more into savings, but that's just me.

As for your debt pay-offs they look good to me.
I know you already posted about it, but I agree with freshstart, when she mentions about making sure you pay off the accounts with interest first, which it looks like that is your plan.

I'm surely no professional by any means, because right now I'm trying to get all of my finances in order, but from what you have listed, everything else looks good to me.

**Preston** · 06-05-2009, 02:25 PM

first of all -- you OH pays cable.. Maybe cancel the cable and have him pay the electric bill? It seems like you're getting hit with the harder expenses.

"Food Shopping: $300"

This seems a bit high for two people. Maybe make more from scratch,buy in bulk maybe? or just cutting out meat would make a big difference too.

"My Pocket money: $200"

If you're in debt I'd consider keeping this number as close to zero as possible. Yeah, you have to have fun, but you can do it in cheaper ways (library books and movies, for example)

"Car & Contents Insurance: $120"

Downgrade to a cheaper car that doesn't cost so much to insure -- sell the one you have now and apply that amount toward debt.

"Mobile: $88"

Downgrade plan? Search for a different carrier. Seems like a bit much unless that is for both of you.

"Bank fees: $6"

Here in the US we have free checking and banking accounts. I'd look into that there.

**Preston** · 06-05-2009, 02:26 PM

sorry I read that wrong.. you and the oh split the rent and such... my bad.

Still cable is not a necessity, i'd put money toward something else.

**forHISglory** · 06-05-2009, 03:03 PM

Preston stated most of my thoughts very well! I'll admit that I am a little confused by how a budget works when a married couple decides to split costs, rather than work as a team on the expenses (my money and his money versus our money). So I don't think I can really give any other advice other than what is given.

**frugalfranny** · 06-11-2009, 02:21 AM

I agree with most of the other posters.

What jumped out at me was the food shopping...that seems high but not sure of food costs in your area. If this also included toiletries/laundry soap/etc. then that is different.
Thought the car ins. was probably 'in the ball park' for your age. But I would still check to see if you can get that amt. down.
I also agree with changing the 80 dollars going on interest free debt....if you can. If that is the min. payment then you are stuck.
Thought $200 'fun money' was a bit high too.....but....what are the costs in your area? What do you do with this that it takes $200??? Give some thought to this area........good luck!