Surviving Financially...How?

I'm not sure about the UK but here in the USA......everyone seems to depend on credit in some form or another. I know of people who will rack up tens of thousands in credit card debt, car loans, etc and then (at least in the USA) file bankruptcy and then start all over again. I believe that this is part of the problem with the world in general (amongst many, many other things)

 

Hopefully you would have had chance to save a little before any of the unexpected problems occur but usually you put it on a credit card, get a loan or borrow from a friend or family if you don’t have savings. It can be quite stressful depending on what it is but you usually find a way and manage.

 

It is definitely stressful when money is tight and yes I can imagine even more so with a child but if you have some plan b’s ready just in case then hopefully nothing unexpected will happen.

 

Just a matter of budgeting. Most bills are pretty static like; rent, insurance, cable/internet, and the like. Utilities will fluctuate a little big depending on the weather. But you can figure an average after a few months. Groceries are only hard if you go shopping while you are hungry.

For little miscellaneous expenses, I carry cash. Basically my allowance from one payday to the next. Its for spontaneous lunch or picking up extra things to drink or snacks on those really long days. Anything I don't spend come the next payday goes into an ammo can I have for a piggy bank, along with all the pocket change.

Emergencies are handled by savings or credit card.

 

I can't speak for the UK, but my feeling in the US is you can't survive financially on one salary, unless you make really good money as a single person (which most people don't). Also, here, our government basically penalizes single unmarried people by making them pay more money in taxes. They want to incentivize marriage. A lot of single people here get financial help from their parents, and some married people do, too. Some people do run up CC debt, though. Some qualify for government assistance because of their salary.

In theory, unexpected costs are supposed to be paid for out of money you save every month from your paycheck. You're supposed to make sure you live in such a way that your pay can cover it and leave a little money over every month. So, you don't rent apartments that are too far out of your budget, you don't buy cars with monthly payments that cost too much for your budget, you don't live in neighborhoods or cities that are too far out of your budget. Everything is not supposed to be tied up in rent and bills. If it is, you're either going to end up with CC debt or go to your parents for help. But it's up to you to sit down and say, "I make X amount of money per month...that means I can afford an apartment that costs Y every month, a car payment of Z every month, estimate A amount on groceries every month and still will have B left over," and you definitely need to leave room for 'B' being left over.

 

Simple math. As mentioned you budget and basically base your surroundings and activities around the extra. Also as mentioned you could qualify for credit depending on your location. I agree with an above poster as well that it is super difficult to survive on a single salary at least here in the U.S. unless you have a college degree and in that case you're probably in massive debt from student loans, so really are you saving? Use basic math and add up all of your monthly expenses, at first if you're not use to it or in a new area you may have to use an educated guess on things such as electricity and phone/internet until you've gotten a few bills to see the common cost per month. Some bill pricing can change if moving locations. Take away all of this from your monthly income, with the remaining cash you need to subtract your monthly/bi-weekly necessities that you'll need such as food, hygiene products, gas/public transport cost, and feminine products if you're female. Now with the cash you have left you can indulge or you can save.
I do these things every couple of pay periods. I add everything up and make lists, it helps tremendously. Occasionally I struggle with a bill, but sometimes I have a few extra dollars and I always have the things I need, so I live pretty comfortably. I've also never relied on nor had a credit card or loan. I feel that these things are relied on too much and it's just a way for the government to entrap people in debt.
*Also. If your partner or parent was the person who always took care of bills you may want to set reminders for bills until you get into the habit of paying them yourself. Which there's usually text alerts or emails you can subscribe to remind you when things are due through the companies.

 

Hi LostinDaydreams. You absolutely need to get expert advice from a family law solicitor. You have contributed to the household finances for years. I have read a thread you posted about shared finances in October, and I was shocked like many of the posters there. To me, it sounds like maybe you don't have savings because you have over-contributed to the household expenses. Only a professional in your own jurisdiction can say what the law will require if you break up with your partner.

Good luck with applying for the job you mentioned in another thread. If you get it, I hope you might be able to start putting some of your salary aside to plan for your future.

 

Sadly, I think its the day-to-day budgeting where you might be struggling. If its true that you are paying for much of the household expenses then a talk with your partner about it might make sense to see what can be done. I'm note entirely aware of your whole situation so I apologize.

What a lot of people do is build the crazy unexpected expenses to their everyday budget.

For example, I put 84 bucks a month towards car repairs. That way when I need new tires, oil or a major change I will have some money saved up to cover hopefully most of the cost. On top of that, I also have my personal savings and the household savings. We separate them because I want to legally have access to my own money so I never have to depend on my husband entirely. He knows I have it, but doesn't know how much and he doesn't have access to it. We were going to put it on the prenup that whatever is in our own personal accounts is ours and ours alone, but sadly we got married when no lawyer knew how to create a solid prenup for same-sex marriages at the time.

All that to say is that sadly, you have to figure out a way to save money else the unexpected expenses will happen. They say that you should keep in savings at least 3 months worth of expenses. My goal currently is to save up a year. I am fortunate that I make an okay living and my husband makes really good money, so that helps. But maybe there is a way for you guys to find a way to cut expenses so you can save some money.