IMs - I need your help. I always was one to preach "don't fight over money" but now that seems like all my partner and I do and I hate it! I worry it will eventually drive us apart. When we met, he had personal loans and nothing to show for them. I had savings. We have been together 2 years, have purchased a house with my parents going guarantor for us and we have a beautiful 8 month old. We are both professionals earning approximately $1600 each per fortnight.
I know to many people this may seem like a lot, and I'll admit, we are not poorly done by. We have food in our bellies, our home and our health.
Our problem being, we are so over-committed and drowning in debt we can't seem to get ahead. Our credit card is maxed out. We only use that for bills (ie electricity which comes in at a whopping $800/quarter. Yes, I know this is a lot yet neither of us are home during the day M-F. We cannot figure it out. Yes, we have solar panels).
I would like some help and guidance from other IMs about how you sorted your finances out? We have everything direct debited (insurances, Internet, phone bills, daycare, etc) so we don't miss any bills and get late fees.
We have an "overdraw facility" on our account so direct debits can still be made even if we don't have any money there (like another credit card).
We are *constantly* fighting and unhappy about our financial situation. I don't understand how we got here and I don't know how to fix it. We have tried writing our own budgets.
Every time something needs to be purchased it becomes an argument. I feel like I am always going without for personal items and do the groceries on such a tight budget trying to not dig ourselves any deeper. When we met I gave up my outings with friends, the car washes, the gym membership, the shoe shopping. Whereas he is a "pay now, worry about it later" kind of guy.
Please help. We have cut the unnecessaries. What worked for you? My partner is now contemplating another job at night or on the weekend. I am very much against this as I know we should be able to make it work with what we earn and then he will never see us!
Has anybody used things like My Budget? Do they work? Please help!
2 Replies
Yeah you are right it should be very doable! I can understand your frustration. I think it's time for some tough decisions and retiring some of that debt. Honestly I'd consider renting out your house and renting something much smaller and cheaper. Also have a look at your cars do you really genuinely need the cars you have?
Time to go to a financial counsellor, they don't sell products just advise you on how to get your debt organised so it's easier to pay off and you have a chance to retire the debt. Also they will look at your budget over all.
I would stop using the credit cards they have huge interest rates (it's an expensive form of credit).
Get an electricity audit. But things like turning off things that are on standby, running multiple computers and TVs, pool filters, big screen tvs all chew through power. Also electric ovens use a lot of power.
Me and my son live on one of your earnings a fortnight! So you can do it but you both have to be disciplined.
I have all my bills direct debited every week for a certain amount. Eg $40 weekly on rates that way when the bill comes in you don't have to pay using your credit cards. I buy all my meat from the Butcher in bulk saves so much money and always write a shopping list so im only buying what I need. I only give ourselves $100 each for our weekly spending any left over money goes straight to savings. We are living on $900 weekly and paying a house off and I still manage to save