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Monday 12th August - Time For Cards On The Table

Blog: Frustrated Businessman
Posted by: knightrider45 Monday 13th August 2007, 5:56pm

For all sad words of tongue and pen, the saddest are these: “It might have been” - John Greenleaf Whittier 1807 - 1892.

I'm pleased, having read through the blogs, that Eddy2Socks is having a bit of good karma for a change, as its starting to give me a good slapping again. Thanks for all your replies on Friday gang - your advice and encouragement are both welcome and appreciated.

Hazel Eyes - thanks for the money saving blog link - I've spent close on 2 hours browsing that site over the weekend. Dewdrop - re-mortgage is not possible unfortunately. We had to remortgage just after moving down here to we could buy the Official Receiver's half of the equity of the house,having been made bankrupt (Thank you Inland Revenue & Customs), and then we remortgaged late last year to clear the debts then again as well.

RGP - thanks for your brilliant suggestions. But the freeview box is a no go at the moment. As my wife is now on her own for long periods of time, she uses Sky for the films and programmes that you can't get on Freeview. This Sky is the families only pleasure, and although it's cut off occasionally, things, somehow, aren't so bad when I can unite the family around the television at night whilst I'm out working. The Sky, silly as it sounds, brings the family together - not every night obviously - otherwise the kids go off and do their own thing, and the wife's on her own for ages. Nice, occasionally, admittedly, but lonliness can be horrendous once the novelty of nights of solitude wear off.

Okay, what I've done here is list my regular month. I've broken it down into two sections, the first is the essentials, and the second section is what else I'm expected to save for/pay out for over the year. We live on a day to day basis on the wifes wages, and I just chip in by £100 a month to fill the freezer up and stuff. See what you think?

Essentials

Mortgage £741.42

Secured Loan 142.49

Car insurance 18.00

Council Tax 94.00

Estate Fees 12.50

Telecom 73.74

TV Licence 10.00

Petrol 120.00

PowerGen 120.00

Medicines 21.00

Anglia Water 50.00

Heating Oil 66.67

Car MOT 25.00

Pocket Money 20.00

Grocery 100.00

CCard fee 20.00

Car Tax 16.50

So the total of my monthly essentials is £1651.11, which means I'm supposed to earn £2063.89 monthly before deductions. The daily cost, of essentials only, is £53.26 over 31 days.

I'm supposed to be paying £120 extra on the mortgage to clear arrears (Total £865 Monthly) and £66.51 extra on the Secured loan, again to clear arrears. So, at the moment, and for the forseeable future, my monthly essentials account is £1801.12, or £58.10 daily.#

Non Essentials:

Hughes Rentals (TV/DVD/Washing Machine) £40.00

Sky £42.00

Papers 31.00

Web sites 35.00

Printer ink 60.00

Mobile 15.00

Bank Charges 12.00

2nd Car Insurance 18.00

2nd Car MOT 25.00

2nd Car Tax 16.50

Birthdays etc 20.00

Christmas 100.00

School Uniform 12.50

Emergency Fund 25.00

Total £ 452.00 monthly, or £14.58 a day over a 31 day month. £107 of which is business costs, but as I'm not trading yet, I'm having to sub this out of my wages, but hopefully not for long.The business will, eventually, pay half the telecom bill as well.

So, putting the two sections together, I'm supposed to be banking £72.68 a day, or earning £90.85 a day, forever, taking into account the arrears payments.

When I work, I earn £96.00 per shift, but the problem here is that I have to have days off. This is where the whole plan starts to fall apart. I am only earning half the money I need to pay my way. And every month, the situation just builds on the last months poor performance, and why we have to remortgage every 18 months just to bale us out.

Since Christmas, I have fallen into arrears on essentials payments to the tune of £4007 - or £500.88 per month, which works out to be £16.16 per day.

But, taking into account the money I'm supposed to be putting into my savings account for the regular bills, the actual amount I'm behind is more like £5,816.50, which again works out to £830.93 per month since Christmas. Fantastic amount, isn't it?

So, in other words, I'm losing £26.81 a day, for life, for ever.

As an adult, I consider myself responsible. As a man, I'm supposed to shelter my family. Why can't I do just this one responsible, simple thing?

This is what I need to do:

Firstly, ensure that my income matches the outgoings/projected outgoings. As I can't cut down on the essentials, and I need to clear the arrears, I must earn more money - So I need to be looking at doubling my present wages, or as a daily basis, look at banking £26.81at least.

Secondly, I need to earn a minimum of £100 over the minimum amount monthly in order to start the Rapid Repayment to start getting rid of the debts, starting with the secured loan first of all. As each account is cleared, I will carry on paying the same amount onto the next bill to be cleared.

So, having said all that, can you see why I'm putting all my faith into the business and pulling itaround to profit as soon as I can. I'm not going to earn the amount of money I need working for someone else for £5.35 per hour am I?

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