Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Treadingonplaymobil
    • By Treadingonplaymobil 12th Feb 17, 8:56 AM
    • 418Posts
    • 2,647Thanks
    Treadingonplaymobil
    £67,031.92 is a frightening number indeed....
    • #1
    • 12th Feb 17, 8:56 AM
    £67,031.92 is a frightening number indeed.... 12th Feb 17 at 8:56 AM
    £67,031.92. Seriously. £67,031.92. That is a SCARY number. I can't believe our debt has peaked (and it is the peak, I am determined) at this level.

    Our light bulb moment actually happened a few months back, but it's taken since then of wrangling utilities and carefully watching out income/outgoings (using You Need a Budget) to really figure out where we were overspending and how the monthly shortfall of anything from £200-£1,000+ was happening.

    We have literally nothing to show for this debt, it's just crept up over the past 8 years or so, and has always been at manageable levels, but back in October we realised we were spending more on credit cards each month than we were paying off.

    We committed that cardinal sin of taking out a consolidation loan, but alongside it we looked really carefully at our spending over the next couple of months, budgeted realistically for what we spend and have (I think) picked off all the easy 'low hanging fruit' of budget cuts and really identified why we were overspending.

    The main reason for the debt is, erm, me. Not that I'm the biggest spender (neither of us are amazing), but because I am self employed with a hugely variable income and basically worked out our budgets on the basis I would always earn my 'best' month's income. Which was, with hindsight, maybe a TINY bit deluded.

    The aim of this diary is to keep us on track with actually reducing our debt every single month, not doing it in a three steps forward, two (or four) steps back sort of way. Having sat down and put our numbers into the whatsthecost site, it appears that we are looking at 7 years and 1 month of repayments to clear the debt (and that's assuming we can get rid of the shortfall showing below). I REALLY want to reduce this term as that just seems bonkers.

    SOA below, with a couple of explanatory notes.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 250 (variable, but this is the minimum I have earned in any month in the last 5 years)
    Partners monthly income after tax....... 2711.86
    Benefits................................ 192
    Other income............................ 0
    Total monthly income.................... 3153.86


    Monthly Expense Details

    Mortgage................................ 698
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 174 (including overpayment for a period when we messed up during a house move 18 months ago and didn't restart the direct debit for the new property. Will drop by a little under £50 after either March or April, can't remember which)
    Electricity............................. 52 (gas and electricity are one combined DD, I haven't checked the exact split but the total is £104)
    Gas..................................... 52
    Oil..................................... 0
    Water rates............................. 104 (also including a debt from previous property, but I think this will be included for another 6 months or so. I'm not sure what our actual usage is)
    Telephone (land line)................... 18.5 (includes internet)
    Mobile phone............................ 85 (£45 for my contract, which I use for work as well, £40 for DH)
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 0
    Internet Services....................... 0 (included in landline cost)
    Groceries etc. ......................... 520 (Includes £40 for one lot of school lunches. I am REALLY struggling to reduce this, but feel I could and should be able to!)
    Clothing................................ 100 (growing children, plus see notes below re clothes)
    Petrol/diesel........................... 225 (90% DH commuting costs)
    Road tax................................ 16.27
    Car Insurance........................... 25.22
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 50
    Childcare/nursery....................... 70 (this will disappear in April as child 3 gets free 15 hours)
    Other child related expenses............ 81.85 (music/swimming lessons x2, cubs and beavers, National Trust membership as they love visiting them)
    Medical (prescriptions, dentist etc).... 5
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 27.07
    Contents insurance...................... 0
    Life assurance ......................... 16.26
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 90
    Haircuts................................ 20
    Entertainment........................... 135
    Holiday................................. 75
    Emergency fund.......................... 25
    Total monthly expenses.................. 2707.29



    Assets

    Cash.................................... 0
    House value (Gross)..................... 210000
    Shares and bonds........................ 0
    Car(s).................................. 800
    Other assets............................ 0
    Total Assets............................ 210800



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 173733...(698)......3.14
    Total secured & HP debts...... 173733....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclaycard....................6880.21...156...... .0
    MBNA...........................9614.71...98....... .0
    Parental loan..................20000.....0.........0 (see notes below)
    Tesco loan.....................21000.....377.......10
    Total unsecured debts..........57494.92..631.......-



    Monthly Budget Summary

    Total monthly income.................... 3,153.86
    Expenses (including HP & secured debts). 2,707.29
    Available for debt repayments........... 446.57
    Monthly UNsecured debt repayments....... 631
    Amount short for making debt repayments. -184.43


    Personal Balance Sheet Summary
    Total assets (things you own)........... 210,800
    Total HP & Secured debt................. -173,733
    Total Unsecured debt.................... -57,494.92
    Net Assets.............................. -20,427.92


    Created using the SOA calculator at stoozing.
    Reproduced on Moneysavingexpert with permission, using other browser.


    Regarding the (relatively) high clothes expense, it is a combination of 3 growing children (8, 6 and 3), plus the fact that my job is in the fashion industry, and as a self employed person I need to have the right sort of 'look' in order to get work (think along the lines of a self employed personal shopper - people need to see you looking good in order to book with you).

    The parental loan was for a house deposit. The parent in question has no idea about our debts. She is not desperate for the money back and isn't charging us interest, but has asked us to save £150-200 every month into a savings account and then once we've saved a decent sum to either repay them or 'reborrow' it for work on the house (basically they want us to be able to make repayments if they suddenly need the extra income, but meanwhile are happy for us to benefit from it. I am not saving the money while our debt payments are so high - we are hoping to have paid enough off that if the parent ever needs it that we can reborrow it and pay them back). This isn't great, but realistically I think the best solutions is to treat it as the lowest priority for snowballing - once we have paid back the other debts we will throw the entire £630+ at this debt.

    So, there is a freaking enormous shortfall every month, which is somewhat depressing. Most months it is covered by the fact that I earn more than my 'bare minimum', but it is those months where it isn't covered that the debt creeps up again, and I am a total disaster for going 'oh well, we've spent on the credit card, we might as well keep going' and buying more clothes or something for the house - this is probably a significant proportion of our debt problem.

    We have managed to get rid of the balance on the one credit card we were spending on, so the remaining ones are both on 0% deals (although one expires in September). I have not cut up the remaining credit card, because we don't have an emergency fund in case of eg boiler repairs, but it has not been used for all of a month, and I hope to keep it that way.

    A DMP or similar isn't really on my horizon right now - I feel like we should be able to make the cuts to make our budgets balance, and I am optimistic that as my income goes up (when I can work more as child 3 starts school) that we will be able to make overpayments.

    My plan for now is:
    1) Try to wiggle those budget numbers around enough that we don't have a shortfall any more.
    2) Make a plan for any months where I make extra - do I use it for an emergency fund, as a fund to cover future months' shortfalls, to throw money at the debt to try to reduce minimum payments in case of future 'shortfall' months?
    3) Try to make more money. Not quite sure how this will work as I am largely limited to working around DH's working hours (I work evenings and weekends and the 5hrs childcare per week we are paying for for child 3).

    Now that's all down in black and white I am feeling a combination of relieved (to be clear on the numbers) and immensely stressed (by the semi-regular £180+ shortfall).

    Onwards and downwards (for the debt, not me)!
Page 23
    • Treadingonplaymobil
    • By Treadingonplaymobil 16th Mar 17, 6:56 PM
    • 418 Posts
    • 2,647 Thanks
    Treadingonplaymobil
    Moderately productive day, not as much of a washout as the previous two were, at least.

    To do today:
    1. put a laundry on and get it out on the line this morning. Done.
    2. I was going to say NSD, but I need to order new moisturiser, so I'll aim to spend nothing except buying that. Pleasing to have the money ready and waiting in my personal kitty for this. Ordered moisturiser, didn't spend anything else.
    3. check valued opinions for surveys. Not done, no time.
    4. get some housework done while the older children are at school so we all have time to sit down and do some colouring or a game this afternoon - I've been so distracted all week that I've hardly spent any time actually present in the moment with them. Done, was nice to focus on them a little bit after school.
    5. try to get ahead on work this morning while child 3 is at preschool for three whole hours so I've got less to do this evening. Done. Have just finished work for the evening, 45 mins ahead of schedule.
    6. Don't comfort eat - instead aim for plenty of veg and a good walk to keep my head clear. Pretty much done, apart from a small chocolate bar incident. Definitely less bad than the last two days.

    To do this week:
    1. List old unloved handbag on eb@y.
    2. Order birthday presents for child 2 and child 3.
    3. Order any party supplies needed.
    4. Make more candles when oils arrive.
    5. Finish current socks and start knitting a new pair for my dad's birthday.
    6. Pay preschool bill (there should only be one more, smallish, bill after this one, then free hours kick in. Hurrah!).
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th February 2017/DFD: £67,031.92/1st December 2026
    debt on 6/3/17/DFD: £65,836.53/1st August 2026
    • Bobarella
    • By Bobarella 16th Mar 17, 7:07 PM
    • 10,111 Posts
    • 64,691 Thanks
    Bobarella
    Managed to start today by allocating an extra £50 profit from yesterday's sales, so that's nice. I've mentioned already that I already have April's 'salary' in my business account ready to go, and now I've almost made enough to cover May's business costs (this is for regular stock expenses, insurance, professional development and saving for accountant's fee) and will start putting by May's salary too. Even if I don't do any more business this month, my end of month invoices will cover all of the remainder of May's costs and salary and almost all of June's costs. Honestly, I haven't had such a handle on my business expenses and profit for years, so it's a total revelation to have money in the bank to cover future expenses and salary, takes such a weight off my mind. I'm very slightly further ahead than I was this time last month, which means I am inching my way towards being three months ahead with my expenses/salary.
    Originally posted by Treadingonplaymobil
    That is so impressive TOP. Well done!!!
    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £52.30 2016-£62.28 2015- £84.20)
    RYSAW17 £1475.90 2016 £2,535.16 2015 £1027.20
    • angelpye
    • By angelpye 16th Mar 17, 8:50 PM
    • 972 Posts
    • 3,405 Thanks
    angelpye
    As Bob says, very impressive indeed!

    Glad you managed to have some 'present' time with the kids and had such a productive day

    I have emailed company to ask for some advice about which products to try for my shrivelled face...I always allow a present for myself in the present budget as I only really get a token gift or two at birthday and xmas which are usually really practical. Thinking for my birthday I might treat myself to a product or two. Could go really mad with that brand...all the ethics etc but luckily they are in Spitalfields and I don't go there often anymore. Will make a considered purchase after much consideration. Like an adult and not a child in a sweet shop
    Happiness is wanting what you have...
    Debt Jan 2017: £2589.22 DFD: Sept 2022 April 2022 but this Marching Minimalist can beat that!
    Use it or Loose it gym target: Feb'17 5/6 Mar 4/6
    EF £0/£4200
    • JoJoC
    • By JoJoC 17th Mar 17, 8:09 AM
    • 760 Posts
    • 2,137 Thanks
    JoJoC
    Progress is definitely being made on all fronts! Glad you managed some quality time with your kids, that's what I plan for the weekend aside from my sister's wedding dress fitting. Lots of time doing whatever takes our fancy with the kids
    Mummy of two boys - Working hard to make better financial choices!
    *My debt busting and savings diary*
    • Treadingonplaymobil
    • By Treadingonplaymobil 17th Mar 17, 7:10 PM
    • 418 Posts
    • 2,647 Thanks
    Treadingonplaymobil
    Slightly spendy day today -visited a friend, so had train fare to get there and coffee and cake in a cafe. Did take a packed lunch for DD and me though, so it could have been worse. Also picked up DD some new leggings for preschool, but gave into demands for a tutu as well, so a £12 spend became a £20 spend. Room for all of these spends in the clothing/entertainment kitties, but it wasn't my finest frugal hour. Hopefully DH will manage better than me over the weekend - I'm working so he's flying solo with the DC.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th February 2017/DFD: £67,031.92/1st December 2026
    debt on 6/3/17/DFD: £65,836.53/1st August 2026
    • Loulou4321
    • By Loulou4321 17th Mar 17, 9:23 PM
    • 2 Posts
    • 13 Thanks
    Loulou4321
    Thank you, I'll do that!
    • Treadingonplaymobil
    • By Treadingonplaymobil 18th Mar 17, 4:53 AM
    • 418 Posts
    • 2,647 Thanks
    Treadingonplaymobil
    Week 5: Day 7

    Morning all! Busy work day ahead, but I'm hoping to find some time to do a couple of things as I'm really behind on all fronts - party planning, eb@y listing, laundry mountain, surveys, candle making. Everything.

    To do today:
    1. put a laundry on this morning and get it out on airers - might get the airers outside for a couple of hours this afternoon.
    2. NSD.
    3. Check valued opinions for surveys.
    4. Don't comfort eat - instead aim for plenty of veg and a good walk to keep my head clear. Managed this (mostly) yesterday and it does help.
    5. Social media during work
    6. Start next week's menu plan/food shopping.

    To do this week:
    1. List old unloved handbag on eb@y.
    2. Order birthday presents for child 2 and child 3.
    3. Order any party supplies needed.
    4. Make more candles when oils arrive.
    5. Finish current socks and start knitting a new pair for my dad's birthday.
    6. Pay preschool bill (there should only be one more, smallish, bill after this one, then free hours kick in. Hurrah!).
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th February 2017/DFD: £67,031.92/1st December 2026
    debt on 6/3/17/DFD: £65,836.53/1st August 2026
    • boxofpaws
    • By boxofpaws 19th Mar 17, 9:39 PM
    • 343 Posts
    • 1,275 Thanks
    boxofpaws
    Ooh my soya wax flakes arrived this week. I have no idea what to do with them and no other supplies, but I am very excited anyway

    I hope you got all your jobs done after your massive lie-in on Saturday
    Debt 03/01/17 = £42000
    Debt today = £37417
    • Treadingonplaymobil
    • By Treadingonplaymobil 20th Mar 17, 4:14 AM
    • 418 Posts
    • 2,647 Thanks
    Treadingonplaymobil
    Ooh my soya wax flakes arrived this week. I have no idea what to do with them and no other supplies, but I am very excited anyway

    I hope you got all your jobs done after your massive lie-in on Saturday
    Originally posted by boxofpaws
    at my massive lie in.

    Let me know if you have any candle making questions! Not that I'll know the answers, but we can be bewildered together. I have discovered Pinterest is a good resource for scent combination ideas.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th February 2017/DFD: £67,031.92/1st December 2026
    debt on 6/3/17/DFD: £65,836.53/1st August 2026
    • Treadingonplaymobil
    • By Treadingonplaymobil 20th Mar 17, 7:03 AM
    • 418 Posts
    • 2,647 Thanks
    Treadingonplaymobil
    Week 6: Day 2

    Monday again! Regular readers will know I like Mondays for the 'fresh start' feel .

    I have been SO FREAKING BUSY recently. Partly necessity, partly, I suspect, a subconscious effort to keep my mind off next week's hospital appointment.

    Good and bad financial things over the last couple of days.

    The good:
    - we have been ordering birthday presents for the children and I think will come in under budget (we did, I confess, top up the budget with £40 from the Christmas 'pot' which will need repaying, but no immediate family birthdays until September now and can buy smaller gifts for anyone outside the family, so should be able to top it up again quickly).
    - we're actually enough under budget (£30 left at the moment) to let DS1 choose a present for each of his siblings too, which I wasn't sure if we would be able to allow this year and would have been a real shame.
    - I've ordered pretty much all the party decorations etc on eb@y, mainly in the form of themed 'kits', which has meant I haven't had to buy 30 balloons and 12 paper plates etc, so even though i'm spending more per item, I'm getting what i need for less, with less waste. Got all the decorations and activities for £30 per child (two parties at the same time, so £60 total, but this is at least a 60% reduction per child on previous years). I still need a couple of bits like pass the parcel prize, but hoping to pick something up in the supermarket tonight fairly cheaply.
    - we still have £28 left in the family entertainment kitty to get through one last weekend of the month, which will mainly be taken up with parties, so we should end the month on budget in this area - this was one of the biggest budget cuts we made, so I'm pleased we've managed it two months running.
    - I had a booking yesterday for April which, assuming they pay (current client, so I am expecting them to, and they have promised payment within a couple of days), will mean I have all of April's AND all of May's money already in my business account before sending out my end of month invoices. The invoicing will then cover perhaps 50% of June's salary, which again is significantly further ahead than I was at the same time last month.

    The bad:
    - I think we're going to end up over our food budget this month. Partly due to party food - this week's food shop is set to come in closer to £110 than £75, which will leave us only £45 for the following week's shop, so I expect we'll end up a tenner or more over. Technically half of the following week will fall in April, but I'll be shopping (and budgeting) in March! Shortage of money allso partly due to being too ambitious last week and basically running out of food, so I've had to top up from more expensive local supermarket a couple of times (c.£10, would have been about £5 in Aldi if I'd bought it during the weekly shop).
    - I think we'll also go over on fuel, thanks to a weekend family visit that I forgot to account for in the fuel budget (basically a full tank extra). We normally come in £25 under budget, I suspect we'll be £20-30 over.
    - I'm not sure where these over-budget spends are going to come from. I can steal from next month's budget when DH gets paid on Thursday, or from savings pots, but obviously wherever it comes from it has to be paid back eventually, so it will remove next month's wiggle room. Emergency fund currently only £5, so no help there. Will have to sit down and look at the numbers.

    Back in a bit with lists for today and this week...
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th February 2017/DFD: £67,031.92/1st December 2026
    debt on 6/3/17/DFD: £65,836.53/1st August 2026
    • Treadingonplaymobil
    • By Treadingonplaymobil 20th Mar 17, 7:39 AM
    • 418 Posts
    • 2,647 Thanks
    Treadingonplaymobil
    Another mega busy week ahead...

    To do today:
    1. Eat healthily and walk 10,000 steps. I gained about 2lb last week in comfort eating, and was at the top end of my happy weight before that! Really need to get on top of this - feeling unhealthy and inactive really affects my mood.
    2. Put a laundry on and hang it out on airers. The weather is horrible now, but set to clear this afternoon, so might be able to stick the airers outside for an hour or two. Already done! Will stick the airers outside this morning, as it's still nice, but be ready to grab them in as the forecast is very changeable.
    3. Food shopping, including last shopping for party bits.
    4. Valued opinions for surveys.
    5. Social media for work.
    6. Make two meals while cooking this evening, so there is something ready for a lazy night this week.
    7. Help DC1 choose presents for DC2 and 3. Not sure whether to go to toy shop (perhaps nicer for him) or order online (cheaper and can get cashback, which would interest him, but harder to find ideas if he doesn't have something in mind).

    To do this week:
    1. List old unloved handbag on eb@y - this didn't get done last week, annoyingly.
    2. List old nursing chair on eb@y too, unless my mum wants it back (we 'borrowed' it 9 years ago, she had said before we can sell it when we no longer need it, but I will double check)
    3. Make more candles - essential oils are here and I am running low again! (I spent a fortune on scented candles before starting to make them!)
    4. Finish sock knitting and cast on socks for my dad's birthday.
    5. Pay preschool bill (they didn't give me an invoice last week, hoping it will be there this morning for me when I drop off DC3).

    On top of all the party prep (party food, printable decorations, excessively elaborate cake baking etc), I think all of that should just about wipe me out this week! I'm going to try to get as much done as possible over the next couple of days so I've got plenty of time for cake baking and construction on Friday.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th February 2017/DFD: £67,031.92/1st December 2026
    debt on 6/3/17/DFD: £65,836.53/1st August 2026
    • angelpye
    • By angelpye 20th Mar 17, 8:05 AM
    • 972 Posts
    • 3,405 Thanks
    angelpye
    Morning ToP, good luck with the birthday prep and baking. Its amazing how much effort goes into just a few hours of fun isn't it? They do appreciate it though
    Happiness is wanting what you have...
    Debt Jan 2017: £2589.22 DFD: Sept 2022 April 2022 but this Marching Minimalist can beat that!
    Use it or Loose it gym target: Feb'17 5/6 Mar 4/6
    EF £0/£4200
    • Treadingonplaymobil
    • By Treadingonplaymobil 20th Mar 17, 8:53 AM
    • 418 Posts
    • 2,647 Thanks
    Treadingonplaymobil
    Morning ToP, good luck with the birthday prep and baking. Its amazing how much effort goes into just a few hours of fun isn't it? They do appreciate it though
    Originally posted by angelpye
    Mine love their parties, and the cake is always the most exciting bit. Hopefully this year will live up to expectations!
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th February 2017/DFD: £67,031.92/1st December 2026
    debt on 6/3/17/DFD: £65,836.53/1st August 2026
    • angelpye
    • By angelpye 20th Mar 17, 9:54 AM
    • 972 Posts
    • 3,405 Thanks
    angelpye
    Makes it all worth it doesn't it when they so obviously appreciate it. My now adult DD still gets a home-made cake and would be most upset if it were otherwise.
    Happiness is wanting what you have...
    Debt Jan 2017: £2589.22 DFD: Sept 2022 April 2022 but this Marching Minimalist can beat that!
    Use it or Loose it gym target: Feb'17 5/6 Mar 4/6
    EF £0/£4200
    • Cherryfudge
    • By Cherryfudge 20th Mar 17, 10:47 AM
    • 87 Posts
    • 123 Thanks
    Cherryfudge
    Week 6: Day 2 - we're actually enough under budget (£30 left at the moment) to let DS1 choose a present for each of his siblings too, which I wasn't sure if we would be able to allow this year and would have been a real shame.
    ...
    - we still have £28 left in the family entertainment kitty to get through one last weekend of the month, which will mainly be taken up with parties, so we should end the month on budget in this area...

    The bad:
    - I think we're going to end up over our food budget this month. Partly due to party food - this week's food shop is set to come in closer to £110 than £75, which will leave us only £45 for the following week's shop, so I expect we'll end up a tenner or more over. ...
    Originally posted by Treadingonplaymobil
    May I suggest that as party food is both food and entertainment, some of the entertainment budget goes to help the food budget out?

    Hope the party is a great success!
    • Treadingonplaymobil
    • By Treadingonplaymobil 20th Mar 17, 12:06 PM
    • 418 Posts
    • 2,647 Thanks
    Treadingonplaymobil
    May I suggest that as party food is both food and entertainment, some of the entertainment budget goes to help the food budget out?

    Hope the party is a great success!
    Originally posted by Cherryfudge
    That's a very sensible idea! We have a school disco on Friday, which will inevitably result in a hot dog and a juice for each child, but once that's paid for I'll move the remainder into the food budget.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th February 2017/DFD: £67,031.92/1st December 2026
    debt on 6/3/17/DFD: £65,836.53/1st August 2026
    • Treadingonplaymobil
    • By Treadingonplaymobil 20th Mar 17, 12:26 PM
    • 418 Posts
    • 2,647 Thanks
    Treadingonplaymobil
    I thought it was about time I redid my SOA, as there's been a fair bit of jiggling around since the first one, and even the ones I did in the early days of this diary seem a bit incomplete or inaccurate now, so I'm posting this as a marker of how my budget will look in April, when the council tax payment drops back down to a normal level (plus 5% rise, boo), and the preschool fees drop down. In May they'll be down to zero, so no doubt I'll repost the entire thing again to show that minor change

    All comments and ideas for number rejigging are very welcome.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3 (8, 6 and 3)
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 120 (minimum, can be higher due to SE income)
    Partners monthly income after tax....... 2711.86
    Benefits................................ 192.3
    Other income............................ 0
    Total monthly income.................... 3024.16


    Monthly Expense Details

    Mortgage................................ 698
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 141
    Electricity............................. 51.06 (combined gas and electricity, haven't checked exact split. We have recently checked and this is the right DD for now, but we may be able to reduce in a few months)
    Gas..................................... 51.06
    Oil..................................... 0
    Water rates............................. 95 (slight reduction since LBM)
    Telephone (land line)................... 20.89
    Mobile phone............................ 90 (still immensely high. We are both still very wedded to our fancy iPhones and high data usage, and haven't wanted to compromise this yet)
    TV Licence.............................. 12.12
    Satellite/Cable TV...................... 5.99
    Internet Services....................... 0
    Groceries etc. ......................... 350 (we managed on £320 in Feb, I'm wondering if we could manage £325 in a regular month. March a bit erroneous due to 2 kids parties)
    Clothing................................ 0 (kids clothing budgeted separately below. This will go up to £30 for DH and I once the preschool fees drop off the budget, as 0 isn't realistic longterm)
    Petrol/diesel........................... 225
    Road tax................................ 16.18
    Car Insurance........................... 25.22
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 50
    Childcare/nursery....................... 50 (only April, then £0, but £30 already spoken for, see clothing budget above)
    Other child related expenses............ 71.85 (clubs, likely to go up by another £8.50 in May which will wipe out most of the remainder of the childcare savings)
    Medical (prescriptions, dentist etc).... 3.5 (dentist)
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 27.07
    Contents insurance...................... 0 (included in buildings)
    Life assurance ......................... 16.26
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 80
    Haircuts................................ 20
    Entertainment........................... 55
    Holiday................................. 50 (committed until August, could be dropped thereafter)
    Emergency fund.......................... 25 (have yet to actually save this, due to unexpected spends! I think those are all accounted for in this new SOA though)
    YNAB sub................................ 3
    National trust.......................... 9.25
    school trips etc........................ 10
    Kids clothes............................ 60 (might be able to reduce this at some stage if I find we have a good buffer in this category, but possibly not - three sets of growing feet is expensive!)
    School lunches.......................... 50
    Total monthly expenses.................. 2382.45



    Assets

    Cash.................................... 400
    House value (Gross)..................... 210000
    Shares and bonds........................ 0
    Car(s).................................. 1000
    Other assets............................ 0
    Total Assets............................ 211400



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 173454...(698)......3.14
    Total secured & HP debts...... 173454....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    Barclaycard....................6622.59...150...... .0 (minimum now slightly lower, but we are paying at least this)
    MBNA...........................9053.14...100...... .0 (minimum lower, we are paying at least this)
    Parental loan..................20000.....0.........0 (this is still not being addressed, beyond the plan to throw everything at it once other debts are gone, but it does nag at me)
    Tesco loan.....................21917.4...377.......10.29 (will let this continue on minimum payment until CCs are clear, although may reassess if we get good long 0% deals)
    Total unsecured debts..........57593.13..627.......-



    Monthly Budget Summary

    Total monthly income.................... 3,024.16
    Expenses (including HP & secured debts). 2,382.45
    Available for debt repayments........... 641.71
    Monthly UNsecured debt repayments....... 627
    Amount left after debt repayments....... 14.71


    Personal Balance Sheet Summary
    Total assets (things you own)........... 211,400
    Total HP & Secured debt................. -173,454
    Total Unsecured debt.................... -57,593.13
    Net Assets.............................. -19,647.13


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th February 2017/DFD: £67,031.92/1st December 2026
    debt on 6/3/17/DFD: £65,836.53/1st August 2026
    • Treadingonplaymobil
    • By Treadingonplaymobil 20th Mar 17, 12:33 PM
    • 418 Posts
    • 2,647 Thanks
    Treadingonplaymobil
    And, for the record, this is how I am splitting any additional income that comes in (varies between £0 and £500 extra, so enormously variable and unpredictable. Seems to be trending around the £50 mark since I have started using some of my SE income to build up a buffer for future months in my business account, to ensure that £120 minimum income is totally secure. Hopefully once that buffer is built up it will increase further, but no guarantees due to aforementioned unpredictability!

    20% debt
    10% holiday (until the summer holiday we are committed to is paid for, so that budget pot can be slashed sooner)
    10% my kitty
    10% DH kitty
    5% remortgaging costs
    5% entertainment
    5% food budget (I could probably reassign this - it gave me a safety net in the early weeks)
    5% house maintenance
    5% Christmas
    5% birthdays
    5% children’s clothes
    5% new bike for DS1 (badly needed and not budgeted for elsewhere)
    5% emergency fund
    5% money towards next month

    I feel slightly irresponsible assigning additional income to anything other than debt repayment BUT I also feel that our budget has been slashed SO dramatically since LBM - over £300 knocked off our outgoings - that it makes me feel we are rewarding ourselves for making extra money. Thoughts welcome.
    Last edited by Treadingonplaymobil; 20-03-2017 at 12:35 PM.
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th February 2017/DFD: £67,031.92/1st December 2026
    debt on 6/3/17/DFD: £65,836.53/1st August 2026
    • Bobarella
    • By Bobarella 20th Mar 17, 1:13 PM
    • 10,111 Posts
    • 64,691 Thanks
    Bobarella
    You are doing great TOP. Half the battle is knowing where you are at all times. I make myself write down everything and reconcile accounts daily. Because I have a horrible habit otherwise of forgetting small costs like the window cleaner (business) or netflix (us) you know where you are to a t and that's going to get you to the finishing line. I have so much faith in you.

    I really hope the birthdays will both be fantastic. And that you manage to keep your mind occupied re next week.
    Debt neutral 27/03/17 from £40k in the hole 2012.
    Roadkill 17 £52.30 2016-£62.28 2015- £84.20)
    RYSAW17 £1475.90 2016 £2,535.16 2015 £1027.20
    • Treadingonplaymobil
    • By Treadingonplaymobil 20th Mar 17, 1:47 PM
    • 418 Posts
    • 2,647 Thanks
    Treadingonplaymobil
    You are doing great TOP. Half the battle is knowing where you are at all times. I make myself write down everything and reconcile accounts daily. Because I have a horrible habit otherwise of forgetting small costs like the window cleaner (business) or netflix (us) you know where you are to a t and that's going to get you to the finishing line. I have so much faith in you.

    I really hope the birthdays will both be fantastic. And that you manage to keep your mind occupied re next week.
    Originally posted by Bobarella
    I know exactly what you mean about daily reconciling. I didn't add up my spends on Friday (I took cash to meet a friend) until Sunday, and it took me AGES to remember what I'd spent the money on. So easily frittered away, with no memory of it! Sometimes I'm amazed we're not in even more debt...
    £67,031.92 is a frightening number indeed... The debt free diary of one family and their enormous debt
    LBM debt on 12th February 2017/DFD: £67,031.92/1st December 2026
    debt on 6/3/17/DFD: £65,836.53/1st August 2026
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

704Posts Today

6,195Users online

Martin's Twitter