Cash flow probs - need a rant and a few tips if poss!

This new house business is totally eating up cash as soon as money comes in. I'm not exactly in financial strife because I have something to show for it all but everything just has to be forked out together. I take home about €1460 a month, have a car loan of €320 credit union repayments of €100+ and my half of the mortgage is roughly €400. I can manage after that but its just like so many things have to be paid for like €200 here for paint/other materials €100 there for something else and by the time there's a bit of food in the fridge and petrol in the car i have a serious deficit. Partner takes home about €2000 monthly and pays more of the outgoings than me and we still barely have two pennies to rub together! He's 28 has a good job and has been walking around with holes in his shoes for the last two months!

We need to structure or cash flows better but there doesn't seem to be any possible way of doing this when we're forking out so much...

No easy answer here. I'm going to make a quess that the Credit Union loan was the deposit for the house. I could be wrong but that's quite common.

You're in the unfortunate position that in order to get onto the property ladder you've had to spend beyond your means. This means you have to cut right back.

No Holidays, no eating out, pubs, cinema, nightclubs etc. Except maybe once a month or something as a treat.

Also you may have to just accept that it will take a long time to paint and decorate the house. It'll get there eventually, but you might be better deciding on an amount each month say €100 that you'll put aside for doing up the house and then prioritise the things that need doing most urgently.

A budget is the only practical thing you can do right now, you need to know exactly where your money goes each month. Down to the penny. Then with maybe a month or two's figures see if you can find some savings.

Hope this helps, if you want to post some more details or if you want to post your detailed breakdown in a few weeks, people may be able to point you in the direction of some savings.

-Rd

keep your chin up

Set the heating thermostat slightly lower

set the washing machine at the lowest possible heat, and don't forget the half load button

use the economy setting on the dishwasher

Get priorities straight - no paint on the walls for another month is no biggie, but leaky shoes just make you miserable.

Economise on decorating & furnishing:
- I needed fitted shelves to make the most of a teeny house, but couldn't afford to have them made. I bought 3 bookcases in B&Q, spent an evening cutting them to fit and now have a whole wall covered in ceiling height fitted shelves for a total cost of e150.
- Use cheap paint to seal/prime the walls before giving a top coat of the posh stuff
- Buy standard paint colours instead of special mixes, nobody notices except you anyway
- Buy as much as you can in a builders suppliers, you really will save a lot

Do one weekly shop and before you go, figure out how much you have to spend. Make out a list of meals for the week and a shopping list to suit. Estimate the cost of each item on the list, add it up, and if it doesn't tally with how much you have to spend, re-do it or shop in Lidl

Shop in Lidl

Try to remember that this does get easier and remember to treat yourself regularly (I mean bottle-of-wine-type-treats, not foreign-holiday ones!)

Re: keep your chin up

It's an obvious point - but do you absolutely need a car? The repayments alone cost €320 a month before paying for insurance, running costs, etc.
Could you share a car with your partner or car pool with a neighbour? I know it's not always practical but ditching the car (even for a while) will put a lot more money in your pocket.

budgeting

OK, very roughly ...

Mortgage = 400
Car = 320
Loan = 100
Fixed costs = 820

Estimating:
Phone = 30 (120 per 2 months for 2 people)
ESB = 50 (200 per 2 months for 2 people)
Petrol = 150
Insurances etc = 50
Sub total = 280

Save per month = 100 (for car insurance, etc)

820 + 280 + 100 = 1200

That leaves 260 from your salary.
Your partner matches this with another 260.
That gives 520 per month for household expenses - food etc - for 2 people.

This leaves your partner with 540 per month available for paint, holidays, clothes etc for both of you.
(Assuming partner's salary is 2000)

Won't cover a lot of new clothes but it shouldn't be too bad when the interiors are out of the way.

Don't worry

I can't add a lot to the wisdom above and i'd agree with the general thrust. Especially regarding Lidl and builders suppliers.

However, you're in ok financial shape and I reckon the house will turn out a good investment. Your salaries should increase with inflation and career progression whereas your mortgage should remain as it is.

One small point, which I learned from bitter experience - budget your finances jointly and AGREE a spending plan. Conflict over money, especially when its scarce, can do serious damage to a relationship.

So don't worry, do a spending plan, share the responsibility and enjoy life!!