# Help...In a mess and so worried



## asia1 (27 Sep 2007)

I would appreciate any advice on what seems to us, a huge money mess we're in. 
We're both 40, 2 kids age 2 & 6. I stay at home minding children, husband works as a full time courier. Works 6am to 7pm. 
Husband take home pay, aprox €5,000 per month (can vary, but not by much)
After struggling we did a budget, and our monthly expenses are €4590. Leaving us with very little left over. 
Our main outgoings are
Mortgage €564.34 (€100k over 20 years)
Car & Van loan €843 (both over 5 years, 3 left to run on car loan)
Diesel €1,000 ( my husband does huge milage in work)
Vat €900 (again, my husband has to work for the company as self employed)
The balance would be oil, esb, ntl, phone etc, life/house/motor insurance. Groceries about €600 per month. 
We have savings of €30,000. No credit card bills. 
So, my husband earns €5,000 but we pay out €4590 each month. 
I'm trying to get a weekend job. We never go out, don't drink or smoke. 
Where are we going wrong, or how can we fix it. 
Many thanks for any help.
PS: Childrens allowence per month is 320, which I bank to cover car loan.


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## niceoneted (27 Sep 2007)

How much is remaining on the car loans? I would use the 30K you have saved to clear these. Then start saving for when you need to change your car again. Take a look at daily expenditure - write down exactly what you spend for a month and I mean everything be it a paper or pint or milk, then take a hard look at it. 
Good luck with it. 
Oh it may also help if you used the lay out that Brendan did for the money makeover forum - you might get more response.


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## Sarsfield (27 Sep 2007)

Unless I've missed something I'm not sure you need to be so worried?  Your net income is €5,320 (incl childrens allowance).  You're spending €4,590.  In fact you've a surplus of about €8,760 per year?

I wouldn't necessarily use your savings to pay off your loans.  If your hubby is self employed then it's a good idea to keep a rainy day fund in case he's ever off sick etc.

But I do agree that a detailed record of expenditure might help trim the expenses a little.  Are you constantly looking out for better value on phone companies, insurance etc.?


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## Bronte (28 Sep 2007)

Your husband earns 5000 you say.  It seems to me he doesn't.  It's less 1000 for diesel, 800 for VAT and I guess the repayments on the van say 400 so his real income is circa 3000.  Not sure of this as I don't know anything about self employed couriers, so cannot fathom out what he is paying VAT on, can it be reduced by the VAT on the diesel he pays and the VAT it cost to purchase the van?


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## adorado (28 Sep 2007)

Bronte said:


> Your husband earns 5000 you say. It seems to me he doesn't. It's less 1000 for diesel, 800 for VAT and I guess the repayments on the van say 400 so his real income is circa 3000. Not sure of this as I don't know anything about self employed couriers, so cannot fathom out what he is paying VAT on, can it be reduced by the VAT on the diesel he pays and the VAT it cost to purchase the van?


 
As a self employed he would get the VAT back on the diesel etc...are you claiming all that you are entitled to?


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## sam h (28 Sep 2007)

Hi,

Just a few points:
 - You say your husband is self employed, so is the €5000 before or after tax
 - Is he claiming his expense.....deisel, insurance, tax, van loan etc
 - The VAT isn't an expense, he is a collector of VAT for the government 
 - He should visit an accountant to make sure everything is being accounted for and to assess his real income
 - If his net income really is about €60k, maybe he can put you down as an employee (doing the books) so you can take some income off him and pay less tax....check with an accountant!)
 - Keep a money diary and work out exactly where your money goes and decide what you can cut back on.....some great treads on AAM on this
 - Your situation isn't too bad overall as you have €30k in saving and a nice managable mortgage (compared to what some people have) and no other debts.  Many of the people you see living life to the hilt are maxed out on credit cards, overdrafts and loans.  At least you are living within your means!  
Good luck


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## asia1 (28 Sep 2007)

I appreciate all your replys, I know its hard to give advice when you don't have the full picture. Dh has an accountant, the €900 he pays in vat is lodged to a vat account and paid out each year. ( I'm not so clued into this end of things. ) I do know the €900 is allowing for vat claimed on his van and other expenses. The $5,000 is before tax. I have €10,000 left on the car loan, and my husband has $25,000 on his van loan. We seem to have €100 left spare each week, I know its better than what a lot of people have, but with 2 kids, it doesn't go far. I'm hoping to get some weekend work to bump this up.  I feel my husband is working so many long hours and paying half his earnings on vat, van loan, and diesel. Not a lot of driving jobs out there though. I've been keeping a spending diary and keeping to a strict budget. As I said, thanks for the replys, It helps lessen the panic when others point out its not so bad. Off to do the lotto now.


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## purpeller (28 Sep 2007)

If your husband is self-employed and operating out of your house, his business can pay for a portion of your heating and electricity.


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## Luckycharm (28 Sep 2007)

Does you husband get his Diesel from Stations or does he have Diesel card? You can often get better rates then PUmp prices with Diesel cards and they will invoice you so you could claim back the VAT if businees related.


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## asia1 (28 Sep 2007)

Luckycharm, I've never heard of a deisel card, is it like a loyalty card ? I'll look int it.


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## DrMoriarty (28 Sep 2007)

http://www.motorcard.ie/ is the Statoil scheme. It doesn't save 'ordinary' motorists a fortune, but with his kind of mileage it should be worth while. Also, you get itemised invoices by email, which saves a bit of bookkeeping.


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## asia1 (28 Sep 2007)

Thats a huge help, the statoil seems the best one. Will save us trawling through bank statements adding up totals anyway. I really appreciate all the tips and help. Feel tons better about things today.


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## sam h (28 Sep 2007)

Another small tip, use a separate bank account for all the business stuff if you dont already and don't cash (if you have to use the business account to write back a chq to yourself.  Easy to lose some reciepts....at least if you have a chq stub, you can prove you paid for it.
Also, for some extra cash:
 - take in students....pays about €140ish per week and you provide just a breakfast (jiuce and cereal) and a dinner (same as you're having your self).  Tax free up to the Rent a room allowance...about 7,000
 - after school care; your kids will be home anyway


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## SarahMc (29 Sep 2007)

If your husband works such long hours during the week, taking on a weekend job yourself is a desperate measure as your time together as a family is so precious.

Would you think of taking in children to mind, either pre-school or after school.  Its tax free up to 15K.


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## Luckycharm (1 Oct 2007)

asia1 said:


> Thats a huge help, the statoil seems the best one. Will save us trawling through bank statements adding up totals anyway. I really appreciate all the tips and help. Feel tons better about things today.


 
Here is another one,  http://www.texoil.ie/tdcs/ - you get invoiced and you have to pay by DD so you would get billed for everything in Sept eg and you pay that by DD on the 20th of October.


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## Welfarite (1 Oct 2007)

The thing that hits me is that you have savings of 30k but loans of 35k and are paying out almost 850 a month to service these loans, at, I'd imagine a fairly hefty rate of interest! Pay off those loans and start saving the 850 per month instead into a good interest paying account.


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## asia1 (1 Oct 2007)

Well, I managed to get myself a Saturday job, doesn't pay huge, but its money in my purse anyway. I'd love to take a child for after school care, but my car will only fit 2 childseats and we are not in walking distance of any schools. Welfarite, I know what you mean re: the savings. I would like to use them to pay off the loans, or even the car loan, but my husband doesn't want to do that. His van loan is the biggest at 27k, and he has to get a new van every 3 years, so he will always have a van loan. The childrens allowence covers my car loan every month. I suppose with things so tight, the savings are a bit of security. 15k of the savings were left to us, and we put by the other half. I'm grateful for all the advice, and taking it all on board.


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## asia1 (1 Oct 2007)

Actually, Welfarite, you got me thinking. Wouldn't it even make sense to clear the car loan out of my savings, thus freeing up the 320 childrens allowence to pay off the van loan. I get €200 per month for the saturday job, so thats the van loan covered, and we could save the €540 per month then. 
The car loan is fixed, €15,000 over 3 years plus €3144 intrest, does that mean I would have to pay all the intrest if I cleared it?


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## Thirsty (1 Oct 2007)

Asia1, you'll find many working parents have their children using the school bus (private or dept. of ed funded);  you just need to meet the bus and walk them home.


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## Luckycharm (2 Oct 2007)

Kildrought said:


> Asia1, you'll find many working parents have their children using the school bus (private or dept. of ed funded); you just need to meet the bus and walk them home.


 

What school bus - there are very few if you live in Dublin.


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## SarahMc (2 Oct 2007)

asia1 said:


> .... I'd love to take a child for after school care, but my car will only fit 2 childseats and we are not in walking distance of any schools. .....


 
Get on to your County Childcare Committee.  They offer grants to Childminders of up to €5,000 per childcare place for capital spending (like car).


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## edge (3 Oct 2007)

your on the ight track...sell the car and buy a banger for 3,000 it will do the job!


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## Megan (19 Oct 2007)

sam h said:


> Hi,
> 
> Just a few points:
> - You say your husband is self employed, so is the €5000 before or after tax
> ...



Can a self employed person employ their spouse. I think they can if they are set up as a company but not if they operate as self employed. Could someone clarify this please?


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## gianni (19 Oct 2007)

edge said:


> your on the ight track...sell the car and buy a banger for 3,000 it will do the job!


 
That's all I paid for my car but I wouldn't call it a banger  
3,000 will get you a decent, roadworthy, reliable car.


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