The grand plan for Catzpaws ... can it be done?

Catzpaws · 22 August 2009 at 10:01PM

Hello all :hello:

I'm a massive long time lurker of MSE. I''ve posted a couple of threads recently, but have decided that now is the time to get serious and sort my life out... I am hoping a diary will help me keep on the straight and narrow.. :rolleyes:

To give you a little bit of background about my circumstances, I'm 32, have been with OH, 34, for 9 years and married for 2 years - he's lurvely. We don't live excessively as such, but find it hard to resist temptation

so have managed to rack up a fair bit of debt... which we have been tackling - albeit slowly.

So, what's the reason for the renewed motivation?

Well, OH and I are looking to start trying for a baby in the next couple of months. Just earlier this year, I wasn't sure whether I was 100% ready (due to various things), but we decided to start trying. But, then after experiencing an ectopic pregnancy (which was a really horrible experience), I realised that I am actually definitely ready and have started to start really quite broody - an entirely new thing for me!

Having spent the last couple of days knee-deep in spreadsheets, I realised that I should definitely try my best to get my/our finances in order before baby comes along... This is the debt that want to sort out:

Priority debts

Pay off loan (was taken out for our wedding) - £6.5k
Pay off my credit card - £3K

Then, debt I would like to get rid of, but not sure if will be able to

Pay off car loan of £7.2k

Crucially, I need to accrue a pot of savings

Savings of £5k - to survive during maternity leave (mortgages and other bills don't pay themselves ... sadly)

Incidentally, the above do not cover OH's credit card debts) (about £7K now probably... will try and bust my own first...

Oh, and, I think that, for me, I need to strike a balance between total frugalism and being sensible. I know from experience that being too extreme (well, in my book anyhow) results in me being totally miserable and sulky!

Wish me luck with this... any words of insight from anyone would be much welcomed indeed.

Thnx

CP x

hypno06 · 22 August 2009 at 10:07PM

Hello and welcome to diaryland.....

Have you done a realistic household budget - either the SOA on the makesenseofcards website that a lot of people use, or Martins own budget planner that can be found on the right hand side of this site.......be honest with all your spending, bills, etc, and get yourself a starting point.

Then, work out what you can/are prepared to sacrifice in order that you get your workable middle ground - everyone has something that they are not prepared to give in on, but that other people think is ridiculous to keep paying for - so have a good look to see what it is that is your "must have" and if you can keep that, then you will be happier to give up other stuff.

Examples might be the weekly takeaway, sky telly, gym membership etc....keep one, but then compromise and ditch the rest.

Do the snowball calculator on whatsthecost.com and play around with that.

and keep browsing MSE the ideas and support are amazing!

milliemonster · 22 August 2009 at 10:12PM

second the snowball calculator, its a real eye opener!

welcome CP! sounds like you are really determined and have a good plan of action

good luck with your df journey

Catzpaws · 22 August 2009 at 10:25PM

Hi Hypno
I’ve done the household budget before, but it’s a bit complicated as OH and I keep separate accounts with a joint account for joint bills – part of the reason why we haemorrhage money, I’m sure. We talked about it this morning (when I presented my multiple spreadsheets!) and I suggested that we should amalgamate our finances more. OH agreed this was a good idea.
Since the start of the year, I have switched deals, cancelled gym, gone onto water meter, etc. But, typically of us, we then blow it all by getting a (gorgeous) dog and putting her into doggy daycare - every weekday. Hmmmm... you get the picture I think?!
But, will try and do a SOA tomorrow... and then wait to hear the harsh truth!
CP X

Catzpaws · 22 August 2009 at 10:28PM

milliemonster wrote: »

second the snowball calculator, its a real eye opener!

welcome CP! sounds like you are really determined and have a good plan of action

good luck with your df journey

Thanks milliemonster. I do feel really determined... but, the easy bit is the planning.... doing it is a bit trickier

ZiggyStardust_2 · 22 August 2009 at 10:54PM

Hello, and welcome! :hello:

I'm pretty new to this as well but I've started a diary and it does help keep you motivated (Whether it's setting budgets, sharing ideas or letting off steam etc!) It's great that you're starting to plan for having a baby

ZiggyStardust x

Catzpaws · 23 August 2009 at 11:17AM

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1940
Partners monthly income after tax....... 2136
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 4076

Monthly Expense Details
Mortgage................................ 635
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 99
Electricity............................. 105
Gas..................................... 49
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 12.49
Mobile phone............................ 28
TV Licence.............................. 10
Satellite/Cable TV...................... 33.7
Internet Services....................... 0
Groceries etc. ......................... 330
Clothing................................ 50
Petrol/diesel........................... 100
Road tax................................ 10
Car Insurance........................... 35
Car maintenance (including MOT)......... 20
Car parking............................. 7
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 30
Buildings insurance..................... 21.51
Contents insurance...................... 0
Life assurance ......................... 15.85
Other insurance......................... 0
Presents (birthday, christmas etc)...... 100
Haircuts................................ 30
Entertainment........................... 400
Holiday................................. 250
Emergency fund.......................... 10
(Unnamed monthly expense)............... 0
Dog training............................ 28
Doggy daycare........................... 200
Professional membership................. 15
Contact lenses/glasses.................. 50
Pet food................................ 55
Total monthly expenses.................. 2781.55

Assets
Cash.................................... 2880
House value (Gross)..................... 220000
Shares and bonds........................ 0
Car(s).................................. 14000
Other assets............................ 0
Total Assets............................ 236880

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 150000...(635)......1.08
Total secured & HP debts...... 150000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
A&L loan.......................6575......318.......8.4
Tesco loan.....................7217......186.......6.57
HSBC c/card....................3275......85........0
Virgin c/card..................8943......25........0
Overdraft......................1300......0.........19.9
Student loan...................426.......71........0
Total unsecured debts..........27736.....685.......-

Monthly Budget Summary
Total monthly income.................... 4,676
Expenses (including HP & secured debts). 2,781.55
Available for debt repayments........... 1,894.45
Monthly UNsecured debt repayments....... 685
Amount left after debt repayments....... 609.45

Personal Balance Sheet Summary
Total assets (things you own)........... 236,880
Total HP & Secured debt................. -150,000
Total Unsecured debt.................... -27,736
Net Assets.............................. 59,144

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

cookiecrunch_2 · 23 August 2009 at 11:25AM

I'm new too. I haven't got any advice but wanted to say good luck, both with debt and baby!
Cookie crunch

Catzpaws · 23 August 2009 at 11:32AM

Right, so now have posted SOA - including both mine and OH's expenses.

Looking at this, I find it extremely hard to believe that we have any where near £1482 at the end of each month!...

I think it's because we keep our own accounts as well as our joint one... this explains why we have cash assets (small savings fund for future maternity leave and OH's current bank balance) as well as overdraft (urm, mine).

Catzpaws · 23 August 2009 at 12:11PM

How hard is it to 'join' finances?

We have our separate accounts (which have wages paid in) and pay a set amount into the joint account each month to cover joint mortgage, bills, groceries, etc. We then spend our own money that's left over any way we choose.

We look like we have a lot of spare cash, but, we don't. I know we're probably quite fortunate to be earning fairly decent money, but this seems to be swallowed up on various things - bills, and lately, birthdays (lots of them) and weddings and lots more other much more mundane stuff.

At the start of the year, I felt really down about the finances. They felt totally out of control. Now, I feel we are in a better position (perhaps cos I think I know what I/we need to do), but still need to improve. To afford a baby, we need to slash our debt to reduce our expenditure. Not just that, OH works in an industry that is unstable at the moment, so the more stability we can gain, the better.

OH's credit card needs to go down. The 0% deal is not going to last forever. I set up a savings account for him and we put together a plan... but he's never put anything into it... grrr....

TBH though, I'm mainly focusing on my debt as having a baby will dramatically reduce my income whilst OH's won't be affected. I'll only get SMP, which is not very much. But, I think - first and foremost - we need to change our mentality and merge our 'pot of income/debts' together....hmmmm....

CP x

Fire_Fox · 23 August 2009 at 4:45PM

How joint to you want to be? Some people are happy to put their wages into a single joint current account, then spend from that as required, others do the same but both draw a modest amount of 'pocket money' into their own accounts for agreed non-essential spending (boys toys, clothes, magazines, etc.), others prefer to maintain separate money but the male puts more into the joint account than his partner whilst she is on maternity leave ... you already have a joint account so you are halfway to wherever you want to go.

Banks will often do a lot of the legwork of switching wages and direct debits for you BUT it's wise to check internet banking daily whilst the process is going through. Ask your current account provider if they offer a switching service and if they will waive any charges for a given period (A&L do for example). I would be inclined to move all standing orders and direct debits to right after payday so that you can't spend money 'earmarked' for a particular debt.

The grand plan for Catzpaws ... can it be done?

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