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  • FIRST POST
    • DrSpendLittle
    • By DrSpendLittle 22nd Aug 17, 4:30 PM
    • 208Posts
    • 770Thanks
    DrSpendLittle
    Reducing Debt - being accountable and taking responsibility
    • #1
    • 22nd Aug 17, 4:30 PM
    Reducing Debt - being accountable and taking responsibility 22nd Aug 17 at 4:30 PM
    Hi everyone!

    DFW newbie here! Been a lurker for a while but have been so inspired by reading others' DFW diaries - it's literally all I've done this weekend! - that I decided to take the plunge and join in the fun. Now's the time. Had my LBM a few weeks ago and can't wait to get started

    So, a little about me before I state my financial situation and my goals:
    - a happy, healthy and engaged homeowner
    - settled in my career with a fairly well paid job & annual increment
    - looking at starting a family soon as time is ticking!
    - enjoys sports and the outdoors and a healthy approach to life
    - has just started using YNAB
    - has a 'secret' unsecured debt of just over £10k (2 x cc's)

    About DF
    DF is debt free but doesn't actively save. He seems to spend what he earns which isn't great since we have a tiny mortgage and lowish bills. He had family money passed on to him a few years ago on the advice of his mother's accountants - she would NEVER give it away otherwise. This dosh acts as a financial cushion for him .....and, admittedly, me gosh, it really has meant I've been a wee bit lacking in the old saving malarkey Time to banish this false sense of security!

    About DF and I's financials
    DF and I don't have a joint account. All bills / mortgage come out of his current account except car insurance and broadband/phone which I'm responsible for paying. I give him £465 every month towards bills (includes a deduction for car insurance) and he gives me half of whatever the broadband phone bill is. This arrangement is, on reflection, part of my problem as I have too much 'distance' from the reality of bill payments and direct debits etc etc etc I'm sure you all know the score....

    DF knows I have some debts but isn't really aware of the current status of my 'net worth' He's one of life's worriers so I am taking this DFW journey alone for now. I'm completely settled and happy with this idea and I have been managing it all on my own thus far, so no need to change. I got myself into this situation so I'll be getting myself out of it.

    Why the DFW diary?
    Well, we're thinking of moving home since we could take a few leaps up the ladder. Its time for our dream home. This has caused my LBM. I want my dream home and the only thing stopping me is my poor money management skills! Its also time to move. We've been here a while and have never fully settled.

    My interim goal?
    To clear £4K of debt by January so when we put the house on the market, my debt levels are lower. I obviously also want to make sure we can maximise our borrowing, so I want to demonstrate good money management skills and a good pattern of spending and saving.

    My overall aim
    But, more than this interim goal, I just want to be in control of my money and no longer feel guilty for spending it. I want to save up for things and have that lovely 'I deserve this because I saved for it' feeling when I buy something. I want to be responsible. And, I am here to become accountable.

    My plan of action!
    So....this diary is my way of sharing my story, being accountable for my actions, taking responsibility and doing all this whilst my other half is oblivious!

    I hope you join me on my journey and I look forward to joining you on yours.

    My current financials
    I'll post my current financial situation later today - got some work things to get done before close of play. Its been one of those 'working at home' days which have largely comprised of obsessing over YNAB and lurking on DFW diaries, oh deary me A hint of my procrastinating / self sabotaging ways......

    DSL
    Last edited by DrSpendLittle; 30-09-2017 at 9:20 AM. Reason: I'm a formatting perfectionist :)
Page 1
    • laurag89
    • By laurag89 22nd Aug 17, 5:38 PM
    • 631 Posts
    • 1,236 Thanks
    laurag89
    • #2
    • 22nd Aug 17, 5:38 PM
    • #2
    • 22nd Aug 17, 5:38 PM
    Hello


    Great start making a diary, I find that and advice from others on here really helps!


    Sounds like you are really organized and motivated, I am in a very similar position - my fianc! has no debts either, so this is quite an independent journey for me too!


    Wish you all the best with your debt free journey!


    *Subscribed*
    Total debt to pay: £13,467.88/ Remaining: £13,110.01 Total paid: £357.87


    Wedding dress fund: £36 / £1500
    • DrSpendLittle
    • By DrSpendLittle 22nd Aug 17, 5:45 PM
    • 208 Posts
    • 770 Thanks
    DrSpendLittle
    • #3
    • 22nd Aug 17, 5:45 PM
    • #3
    • 22nd Aug 17, 5:45 PM
    Thanks Laurag89! About to post my financials whilst DF is busy and occupied making bread!

    Look forward to catching up with yours later!
    • enthusiasticsaver
    • By enthusiasticsaver 22nd Aug 17, 5:45 PM
    • 4,848 Posts
    • 9,155 Thanks
    enthusiasticsaver
    • #4
    • 22nd Aug 17, 5:45 PM
    • #4
    • 22nd Aug 17, 5:45 PM
    A spending diary is a good start so you can see where your money goes although if you are using ynab you may already know where your money is leaking out.

    Are the credit cards on 0% deals?

    Do you have an emergency savings account?
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • DrSpendLittle
    • By DrSpendLittle 22nd Aug 17, 5:49 PM
    • 208 Posts
    • 770 Thanks
    DrSpendLittle
    • #5
    • 22nd Aug 17, 5:49 PM
    • #5
    • 22nd Aug 17, 5:49 PM
    Yup, all CC's are 0% and I'm building up an EF as we need a new boiler (but have £1K stashed away for that already) but an emergency fund is also something I know I really need to help break the cycle of CCing every unanticipated expense - that has been my downfall over the years. Just prepping my financials now so will update shortly!
    • DrSpendLittle
    • By DrSpendLittle 22nd Aug 17, 6:25 PM
    • 208 Posts
    • 770 Thanks
    DrSpendLittle
    • #6
    • 22nd Aug 17, 6:25 PM
    Current Financials
    • #6
    • 22nd Aug 17, 6:25 PM
    Okay, here goes with the financials:

    Current Credit Card Debt as of 22/8/17
    - CC1 BoS: £1253.73 with £600 on 0% until 10/17; £618 on 0% until 4/18 and £34.59 on standard rate (this will be paid off on 1st Sept so not worried about that). Minimum payment is currently £12.99
    - CC2 B4rclayc4rd: £9124 with £800 on 0% until 1/18 and £8200 on 0% until 6/19
    - JL Card: £312 on standard APR. This is my food spend card and I usually pay it off fully each month but I put a birthday present on it a few months ago and I'm about 1 month behind. Will be paid off on 1st Sept.

    Other Unsecured Debt
    - Car Loan (PCP ended and I got a follow on loan to pay off the balloon payment. Currently sits at £1,894.92 at 7.9% APR and I pay £157.94 per month. This will end in August 2018. Car worth about £4100.

    Student Loan
    I did 3 degrees, one after the other (hence the username!) so didn't start repaying my student loan until 2008. Not sure on current balance but about £150 is taken from my salary monthly before tax. I don't treat this as 'real debt' since its all sorted through HMRC and my employer and I have never 'had' the money that is taken from me before tax. Is this wrong? Not sure on the interest rate, will have to check and get back to you.

    Bank Accounts
    - B4rclays bank account (no overdraft, its my ebay and paypal account). Had it yonks and it has £21.86 in it
    - BoS current account. My salary account and direct debit account. Have been in overdraft since before time began but I've managed to stay in the black this month and will end the month with a few pounds in it. My priority is to never go in my overdraft again. Really bad habit since student days. Currently has £144.47 in it. All payments and bills done for this month. Full fridge and freezer. Should be good till the end of the month.
    - Three BoS online savers: Emergency Fund £9.53; Car Maintenance £1; and Holidays & Presents £1.

    Personal Savings
    - Erm......
    - I have £9.53 in an emergency fund (new habit!) and we have £1K put away towards a new boiler. I'm due around £500 for a work fee so that will go in presents envelope on YNAB

    Income
    - My net monthly pay is £2250 after pension, tax, NI and student loan payments.

    Obligations
    - Immediate obligations inc. mortgage, bills, mobile, broadband & car insurance are roughly £750
    - After monthly expenses and filling my newly created YNAB envelopes (all the good budgeting practice ones), I reckon I can throw around £800 - £1000 at my debts.
    - Will post up a SOA / YNAB later this week and perhaps we can chew over the figures and you can make me justify each number.

    Reasons for Debt
    - Poor money management and lack of budgeting
    - Satisfying wants rather than needs
    - Living beyond my means
    - Self sabotage
    - My DF earns more than me a year and has no debts - I graduated with cc debt and student overdrafts and went down the dreaded consolidation loan route and the rest is history. DONT DO IT PEOPLE!!!!! I've been living his lifestyle!
    - And, finally, the usual 'oh, I'll stick it on the CC and deal with it next month' mentality

    Things I'm focusing on now
    - BUDGET, BUDGET, BUDGET I've been using YNAB for the past few days and its a revelation. I can't believe how well I have done so far!
    - using A*di for veg and fruit. Bit of an admission here - DF and I are Waitr0se stalwarts BUT we love to cook and enjoy our food and value quality. However, we've realised that there are things worth paying more for - we like organic meat and dairy, wine - but everything else is up for negotiation and I have to say, even DF is convinced by the savings to be had at A*di.
    - As above, I'm sorting out an SOA but that's more tricky as DF does all the direct debiting and we also have a % split on bills to reflect our salary differences. Again, another nice thing that DF has done that, on reflection, has enabled me! Will do over the course of this week.
    - Selling stuff on ebay - made £200 in the past two weeks!!
    - Switching utilities - done today and saving £220 per year
    - Switching car insurance - will do over the next week
    - Being more efficient with food, using up what we have and freezing left overs. We cook from scratch anyway but we are guilty of throwing away food we don't use.
    - Working at home more to save on petrol and parking costs

    Back later!
    Last edited by DrSpendLittle; 11-09-2017 at 5:11 PM.
    • redofromstart
    • By redofromstart 22nd Aug 17, 6:49 PM
    • 621 Posts
    • 3,528 Thanks
    redofromstart
    • #7
    • 22nd Aug 17, 6:49 PM
    • #7
    • 22nd Aug 17, 6:49 PM
    Good luck with it DrSpendLittle
    • Hiddenidenity
    • By Hiddenidenity 22nd Aug 17, 7:02 PM
    • 4,230 Posts
    • 26,461 Thanks
    Hiddenidenity
    • #8
    • 22nd Aug 17, 7:02 PM
    • #8
    • 22nd Aug 17, 7:02 PM
    Wow you're organised!

    Look forward to following
    • enthusiasticsaver
    • By enthusiasticsaver 22nd Aug 17, 7:14 PM
    • 4,848 Posts
    • 9,155 Thanks
    enthusiasticsaver
    • #9
    • 22nd Aug 17, 7:14 PM
    • #9
    • 22nd Aug 17, 7:14 PM
    You are in a really good position to get rid of this debt if you make and stick to a budget and don't get distracted from paying it off.

    Positives are you are on a fairly good salary and say you have around £800-£1000 per month to throw at your debts although I wonder if you are being overly optimistic there as presumably you have been spending this £800 to £1000 per month up until now? That is a large chunk of money to suddenly start throwing at debts so presumably you know where this has been going up until now?

    I think having the large savings buffer your DF has and his higher income and you not getting involved in day to day bills has sheltered you a lot from having to live within your income. It is almost like you living at home and paying bed and board but not taking responsibility for bills etc. At some point you both having a joint account with you both paying a contribution in would make sense rather than him paying the majority and you responsible for just one or two bills although I note you do pay 40% of the bills and have been switching utilities since starting your diary. My DH and I always had a joint account for salaries and all bills and a personal spends account each which had the same amount going in to both. This overcame the problem of me having lower earnings due to childcare responsibilities and working part time. I always overpaid into my pension as well to compensate for earning less.

    One thing I would say and please take this from someone who has seen people depend on their OHs for everything to provide for their financial security and then been badly burnt. None of us know what is around the corner so you are wise to get your own affairs in order. Don't let your DF get in the way of that by tempting you to overspend on things you don't need as he has the larger salary and substantial savings with more to come. Letting him know you are trying to clear debt is sensible as hopefully he will be more on board with you being a bit more frugal than you have been up to now. Spending outside your budget will delay you getting debt free.

    The majority of your debt is interest free until 6/19 so that is also good news. I would not worry too much about your student loan. You graduated the same year as my daughter so are on one of the older schemes but may be worth checking the interest rate on it.

    Your car loan is the most expensive debt at the moment but I think I would focus on the credit cards prioritising the ones with the interest free deals expiring first.
    Last edited by enthusiasticsaver; 22-08-2017 at 7:26 PM.
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • DrSpendLittle
    • By DrSpendLittle 22nd Aug 17, 9:38 PM
    • 208 Posts
    • 770 Thanks
    DrSpendLittle
    You are in a really good position to get rid of this debt if you make and stick to a budget and don't get distracted from paying it off.

    Positives are you are on a fairly good salary and say you have around £800-£1000 per month to throw at your debts although I wonder if you are being overly optimistic there as presumably you have been spending this £800 to £1000 per month up until now? That is a large chunk of money to suddenly start throwing at debts so presumably you know where this has been going up until now?

    I think having the large savings buffer your DF has and his higher income and you not getting involved in day to day bills has sheltered you a lot from having to live within your income. It is almost like you living at home and paying bed and board but not taking responsibility for bills etc. At some point you both having a joint account with you both paying a contribution in would make sense rather than him paying the majority and you responsible for just one or two bills although I note you do pay 40% of the bills and have been switching utilities since starting your diary. My DH and I always had a joint account for salaries and all bills and a personal spends account each which had the same amount going in to both. This overcame the problem of me having lower earnings due to childcare responsibilities and working part time. I always overpaid into my pension as well to compensate for earning less.

    One thing I would say and please take this from someone who has seen people depend on their OHs for everything to provide for their financial security and then been badly burnt. None of us know what is around the corner so you are wise to get your own affairs in order. Don't let your DF get in the way of that by tempting you to overspend on things you don't need as he has the larger salary and substantial savings with more to come. Letting him know you are trying to clear debt is sensible as hopefully he will be more on board with you being a bit more frugal than you have been up to now. Spending outside your budget will delay you getting debt free.

    The majority of your debt is interest free until 6/19 so that is also good news. I would not worry too much about your student loan. You graduated the same year as my daughter so are on one of the older schemes but may be worth checking the interest rate on it.

    Your car loan is the most expensive debt at the moment but I think I would focus on the credit cards prioritising the ones with the interest free deals expiring first.
    Originally posted by enthusiasticsaver
    Thanks so much for reading and replying. These are really pertinent things to ask of me and you offer me some really excellent advice - I very much appreciate you taking the time to read and comment.

    Something I've been thinking about recently and asking myself is what on earth have I been frittering away my income on? I can be quite faddy and certainly over the past two years I've got back into a few sports things and thrown money at them. Then there is the perennial clothes problem. And then I suppose it's spending too much on food. And the summer holidays. Then I got promoted at work and decided to spend proportionally even more. Also over the past few years we've bought a few new things for the house that we needed (okay, some were wants) and we decided on investing in 'quality' products (probably good examples of what you allude to about me buying into DFs 'affordable for him not me' way of life - I really liked that point you made as its so true). The big things got chucked on the CCs whilst I spent the monthly disposable income on living month by month.

    But, that said, right now, I can look at where we are and what I've 'got' and very happily and contently consider myself as wanting for nothing. I've got everything I need (rather than want) to hunker down for frugal 9 months and get to a position where I can be saving rather than paying off debts. The long term rewards are more valuable than the short term, instant hit of spending money on stuff. Or in theory! I'm very motivated so I'm just hoping to keep the MSE spirit alive on here and making myself accountable to you all to keep me on track.

    I agree with keeping the car loan as it is - I don't want to be credit checked in the next few months from getting a 0% BT CC as we're looking at getting the AIP in the new year. And, the car loan probably won't be included in the affordability calculations anyway as it'll have less than 6 months to run, so I'm happy clearing CCs as a priority and keeping out of my overdraft!

    As for the student loan, I'll check the details but yes, I agree that keeping it safely tucked away where it is will probably be best.

    Thanks!
    Last edited by DrSpendLittle; 11-09-2017 at 5:12 PM.
    • DrSpendLittle
    • By DrSpendLittle 22nd Aug 17, 10:20 PM
    • 208 Posts
    • 770 Thanks
    DrSpendLittle
    Student Loan Stuff
    Just checking through my student loan stuff to make sure I'm up to scratch with it all since I'm doing my finances. Might as well be comprehensive.

    I'm Plan 1, pre 2012 batch, which basically means I'm getting too old to be still having a student loan I get an annual statement and the next one isn't due until early October so I don't have any up to date info.
    However, from looking at last years statement for 2015 repayments and with my rough and dodgy calcs, I reckon my outstanding balance is circa £11,400 That's frightful, theoretically speaking. More on that later...

    The tinterweb site says the APR will be 1.25% from 1st Sept 2017.

    I'm going to ignore this 'debt' for now. I took it out when the government first introduced tuition fees and I used it to pay them as well as my (...with hindsight, poorly budgeted for...) living expenses whilst studying. I took out approximately £3200 each year totalling approx £13K. Then I stayed on to do another 1 year degree, then another 3 year research degree (both has scholarships attached so no more loans yay!), so I didn't earn enough to begin repayment until 2007/8, by which time the balance was around £17.9K with interest accrued. Ouch. Very ouch. So, to sum up, I've basically been paying interest on a £14K loan since 1999 that I took out aged 17 with no idea of the consequences.

    But...... I'm 100% fine with this - I see it as a graduate tax and I'm more than happy paying it in principle. That said, I wish i would have been given more financial advice as to the various scenarios for repayment etc. I wasn't even 18 when I applied for and agreed to take on this debt o. Anyway, a discussion for another day. Compared to today's graduates, I have it easy.

    UPDATE: I've sourced my SLC online login details and I've been able to determine my current balance, which is......
    £10,680.49!
    Whoo, under the £11K mark finally.
    I pay £146 per month pre tax and this amount will increase overtime as I (hopefully!) earn more dosh.
    I'm glad I don't view this as real debt
    Last edited by DrSpendLittle; 11-09-2017 at 5:13 PM.
    • DrSpendLittle
    • By DrSpendLittle 22nd Aug 17, 10:41 PM
    • 208 Posts
    • 770 Thanks
    DrSpendLittle
    A quick round up of Tuesday
    Today I've worked at home. Not my finest or most efficient working day it has to be said. My job is very discretionary as to how and where I spend my time. This means I can choose to work at home pretty much anytime I like, unless I've arranged meetings or decide to show my face so my colleagues remember I exist.

    Anyway, I'm wittering. Below is the main purpose of my post, to highlight my MSE wins for Tuesday. They are...

    - Got my sh!t together and created a DFW diary
    - Had a NSD and planning on another tomorrow
    - Had homemade soup for lunch, made yesterday using up left over veg, accompanied by DFs homemade bread (I've tasked DF with realising our new habit of bread making and he's scarily enthusiastic and engaged with the whole thing. I fully expect lots of random bread making products to arrive in the post over the next week. Face palm.)
    - Used up leftovers from the freezer for dinner. I always batch cook tomato sauce for pasta.
    - Got a bid on eb£y for a item I'm selling.
    - Used topc£shback to switch gas and elec suppliers, saving £220 per year and gaining £25 cashback

    Tomorrow I'll be working at home so I hope to have a NSD. My car probably doesn't have enough fuel in for the round trip to the office, so I'd need to top up and I've only budgeted £20 until pay day. Thus, my plan is to work from home for the rest of this week and then head into the office next week for some meetings. Very MSE.

    Might try and get an SOA done tonight.
    Last edited by DrSpendLittle; 11-09-2017 at 5:14 PM.
    • DrSpendLittle
    • By DrSpendLittle 22nd Aug 17, 11:17 PM
    • 208 Posts
    • 770 Thanks
    DrSpendLittle
    My SOA
    Okay, first attempt at an SOA based on my YNAB budgets. This therefore reflects my post-LBM spending.

    This SOA is also based just on my 50% share of our current household bills but includes my debt repayments. Right now, I probably pay a little less than this as we pro rata our bills in relation to our salaries. However, I want to start paying half since there is no reason not to. I plan to get a joint account set up so I can see all these direct debits going out and be 'closer' to the financial action.

    I haven't looked at switching car insurance or buildings / contents insurance yet. They are next on my list and I'm sure you'll identify those as potential areas for saving. Car insurance is ridiculous at the moment - multi car with Admiral and we auto renewed last December (I know, don't..). I reckon we can knock 1/3 off that easily and we'll pay annually to save credit check and interest.

    We have EE phone and broadband so I've put my half in the landline and kept the broadband empty. We might change this as the bill is variable monthly and it can get expensive, especially when DF is working from home.

    I want to pay more into an emergency fund after paying of a good chunk of debts. We already have £1K set aside for a new boiler.

    There is no holiday fund as of yet as I need to get these debts paid off as a priority.

    Mobile phone contract expires in November and I'm going onto SIM only after than since the handset is still in good condition.

    Thoughts very much welcome.

    [font=courier new]Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 2240
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2240


    Monthly Expense Details

    Mortgage................................ 278
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 81
    Electricity............................. 17.5
    Gas..................................... 28.5
    Oil..................................... 0
    Water rates............................. 18
    Telephone (land line)................... 17
    Mobile phone............................ 20.75
    TV Licence.............................. 12.2
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 10
    Petrol/diesel........................... 90
    Road tax................................ 2.62
    Car Insurance........................... 60
    Car maintenance (including MOT)......... 30
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 14.3
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 14
    Contents insurance...................... 18
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 8
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 50
    Toiletries.............................. 10
    Sport................................... 15
    Union Fee............................... 23
    Bike Maintenance ....................... 10
    Total monthly expenses.................. 1087.87



    Assets

    Cash.................................... 180.05
    House value (Gross)..................... 210000
    Shares and bonds........................ 0
    Car(s).................................. 4100
    Other assets............................ 0
    Total Assets............................ 214280.05



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 102000...(278)......2.5
    Total secured & HP debts...... 102000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    BoS CC.........................1253.73...12.99.....0
    B4rclaycard CC.................9124.13...205.2.....0
    JL CC..................312.34....11.98.....16.9
    Total unsecured debts..........10690.2...230.17....-



    Monthly Budget Summary

    Total monthly income.................... 2,240
    Expenses (including HP & secured debts). 1,087.87
    Available for debt repayments........... 1,152.13
    Monthly UNsecured debt repayments....... 230.17
    Amount left after debt repayments....... 921.96


    Personal Balance Sheet Summary
    Total assets (things you own)........... 214,280.05
    Total HP & Secured debt................. -102,000
    Total Unsecured debt.................... -10,690.2
    Net Assets.............................. 101,589.85
    Last edited by DrSpendLittle; 24-08-2017 at 4:23 PM.
    • DrSpendLittle
    • By DrSpendLittle 22nd Aug 17, 11:23 PM
    • 208 Posts
    • 770 Thanks
    DrSpendLittle
    Forgot the car loan of £157.94!!
    Will re do.....
    • DrSpendLittle
    • By DrSpendLittle 22nd Aug 17, 11:31 PM
    • 208 Posts
    • 770 Thanks
    DrSpendLittle
    Updated SOA (with car payment)
    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 2240
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2240


    Monthly Expense Details

    Mortgage................................ 278
    Secured/HP loan repayments.............. 157.89999999999998
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 81
    Electricity............................. 17.5
    Gas..................................... 28.5
    Oil..................................... 0
    Water rates............................. 18
    Telephone (land line)................... 17
    Mobile phone............................ 20.75
    TV Licence.............................. 12.2
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 200
    Clothing................................ 10
    Petrol/diesel........................... 90
    Road tax................................ 2.62
    Car Insurance........................... 60
    Car maintenance (including MOT)......... 30
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 14.3
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 14
    Contents insurance...................... 18
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 8
    Entertainment........................... 20
    Holiday................................. 0
    Emergency fund.......................... 50
    (Unnamed monthly expense)............... 0
    Bike maintenance........................ 10
    Union Fee............................... 23
    Sport................................... 15
    Toiletries.............................. 10
    Total monthly expenses.................. 1245.77



    Assets

    Cash.................................... 180.05
    House value (Gross)..................... 210000
    Shares and bonds........................ 0
    Car(s).................................. 4100
    Other assets............................ 0
    Total Assets............................ 214280.05



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 102000...(278)......2.5
    Hire Purchase (HP) debt ...... 1894.92..(157.9)....7.9
    Total secured & HP debts...... 103894.9.-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    BoS CC.........................1253.73...12.99.....0
    B4rclaycard....................9124.13...205.2.... .0
    JL CC..................312.34....11.98.....16.9
    Total unsecured debts..........10690.2...230.17....-



    Monthly Budget Summary

    Total monthly income.................... 2,240
    Expenses (including HP & secured debts). 1,245.77
    Available for debt repayments........... 994.23
    Monthly UNsecured debt repayments....... 230.17
    Amount left after debt repayments....... 764.06


    Personal Balance Sheet Summary
    Total assets (things you own)........... 214,280.05
    Total HP & Secured debt................. -103,894.92
    Total Unsecured debt.................... -10,690.2
    Net Assets.............................. 99,694.93
    Last edited by DrSpendLittle; 24-08-2017 at 4:23 PM.
    • enthusiasticsaver
    • By enthusiasticsaver 23rd Aug 17, 12:17 AM
    • 4,848 Posts
    • 9,155 Thanks
    enthusiasticsaver
    You can definitely get those insurances down. £384 for buildings and contents insurance is huge. Same with the car insurance.

    The groceries bill could come down if that £200 is just for you although I know you said you shop a lot at waitrose and go for high quality. That is just a consumer choice as obviously you can afford to pay your debt repayments it is just a trade off. I personally shop alternate weeks at Lidls and Waitrose which also happen to be our closest supermarkets. The fruit, veg and meat at Lidls are really good quality (sometimes better than waitrose) and british so low carbon footprint.

    I wonder if the car maintenance figure is high enough given that your car is worth £4000 so presumably not that new. The rest of it looks ok. Ignoring the John Lewis card which you say you pay off (normally) each month you will clear the credit cards in a year if you pay £865 per month. Could be tight but definitely doable especially as the car loan will be paid off next August.

    I work from home a lot as well especially at this time of year (joys of academia) and definitely saves a lot in fuel and time as long as I don't get distracted
    1 week to go until early retirement. Debt free and mortgage free.

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • DrSpendLittle
    • By DrSpendLittle 23rd Aug 17, 1:29 PM
    • 208 Posts
    • 770 Thanks
    DrSpendLittle
    Hi ENTHUSIASTICSAVER

    Thanks for the reply!

    Yeah, contents insurance is high but we do have a few high priced things (ahem, you can see where the dosh has been going.....) so that does bump up the necessary sum insured as well as individual items. However, I'll defo look at switching that and the buildings insurance. I wont tell you when we last switched these insurances......

    Cars - yes, on it. Need to wait for Sept salary and to get DFs details as he had a small fender bender in '15 and then had to go on a naughty speeders course a few years ago. I had some malicious damage last year. Tiresome to trawl through all the documentation but it'll be worth it. Will pay in full, I'm expecting around £380 - £400 all in.

    I will certainly revisit car maintenance. Its been well serviced over the 5 years I've had it. Just passed MOT and had two lots of brakes and one lot of tyres over the years. I average about 8000 miles per year, so not too excessive but I agree, the expensive things that always go wrong with cars will likely bubble to the surface over the coming years and I should mitigate against this. If I put in £40 per month, that should cover an 'expensive service' at £250, plus MOT at £50, plus a misc. £100 for tyres or brakes. Might up it to £50 actually, since that doesn't leave much for CAM belts and the like. Will reflect. Got a £250 service due around Dec/Jan so that's my saving priority for now.

    Foodwise, yup, the £200 is just my bit. But as you say, its our 'thing' we like to indulge in so I'll plan for £200 per month and see how I go. I'll seek to change my habits and try to use up what we've got in rather than nipping out to get something new for dinner and dropping £30 every few days, such was my previous habit.

    Right, back to work!
    Last edited by DrSpendLittle; 11-09-2017 at 5:16 PM.
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • DrSpendLittle
    • By DrSpendLittle 23rd Aug 17, 5:39 PM
    • 208 Posts
    • 770 Thanks
    DrSpendLittle
    Wednesday update and ruminations over 2017s spending thus far!
    Today has been a NSD as planned. DF will pop out later to get some beers and some cheese since he is diverting from this week's MSE meal plan I created. He wants quiche so we use up the left over roast and all we need is cheese. Still, he's paying so still a NSD for me.

    So, today I've been looking over my spending habits for 2017 thus far and boy oh boy is it erratic! Here goes....

    January:
    1st: £794
    4th £-13
    30th £-1005
    Overspend culprits: weekend away with girlies; new bedside tables

    February:
    1st £1172
    8th £-113
    27th £-758
    Overspend culprits: holiday deposit; sport hobby

    March:
    1st £1471
    13th £-14
    30th £-226
    Overspend culprits: sport hobby

    April
    1st £1600
    27th £322
    Overspend culprits: sport hobby; bedside table lamps

    May
    1st £2565
    22nd £-50
    30th £-221
    Overspend culprits: sport hobby; holiday gite payment

    June
    1st £1993
    19th £-21
    30th £-350
    Overspend culprits: clothes; dentist; haircut; sport hobby

    July
    1st £1225
    14th £-124
    28th £-639
    Overspend culprits: being on holiday; parking permit

    Aug
    1st £1438
    14th £32
    18th £227
    Underspend culprits: LBM Eb£y sales YNAB

    Other than the overspend culprits I've identified, I really don't have much else to show for the overspend. Such is a life of frittering away money and thinking of an overdraft as 'my money'.

    Well, no more!!!

    I knew I was throwing quite a bit of ££ at my sport hobby. I'm not sure whether I used my CCs much over this time. I think I may just have stopped paying off more than minimum payment.

    Around March, April, May time I did have a mini LBM but not to the extent that it made any significant changes. I was reassured from my April behaviours that I could stay in the black, but then came the final balance for the Gite and all was lost!

    I'm pleased with August's performance. I had my LBM when returning from holiday. I knew I needed to get my act together and I was determined not to go into my overdraft so went on a huge Eb£y selling binge to claw my balance back. This has worked and I'm really pleased.

    Might look over my CC statements and add in anything else that I've missed.

    DSL
    Last edited by DrSpendLittle; 11-09-2017 at 5:16 PM.
    Since 1st September 2017
    CC1: £paid off/£1,253.73 | CC2: £1,002.21/£9,124.15 | CC3: £paid off/£312.34 | Car Finance: £631.64/£1,894.92
    Total CC Repayments: £2,568.28/£10,690.22 (24.02%) | Total Debt Repayments: £3,200.00/£12,585.14 (25.42%)
    • Hiddenidenity
    • By Hiddenidenity 23rd Aug 17, 6:31 PM
    • 4,230 Posts
    • 26,461 Thanks
    Hiddenidenity
    You've done some amazing working out there! Good idea though to see where money leaks away with nothing to show.
    • redofromstart
    • By redofromstart 23rd Aug 17, 7:58 PM
    • 621 Posts
    • 3,528 Thanks
    redofromstart

    I'm Plan 1, pre 2012 batch, which basically means I'm getting too old to be still having a student loan
    Originally posted by DrSpendLittle
    It's all relative - I just voluntarily cleared the final balance of my last loan - taken out in 1994
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