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  • FIRST POST
    • justcheckin
    • By justcheckin 14th Sep 17, 5:53 PM
    • 5Posts
    • 0Thanks
    justcheckin
    SOA, for savings rather than debt shifting
    • #1
    • 14th Sep 17, 5:53 PM
    SOA, for savings rather than debt shifting 14th Sep 17 at 5:53 PM
    Hi,

    I was advised to post a SOA here but it's not so much debt shifting I need help with, it's more to see if my savings goals are realistic, and for future planning. But I know this part of the forum is where a lot of people good at looking over SOAs hang out.

    After some ill health, we are trying to build up our savings.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 4
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 150
    Partners monthly income after tax....... 3589
    Benefits................................ 377
    Other income............................ 0
    Total monthly income.................... 4116


    Monthly Expense Details

    Mortgage................................ 5
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 55
    Electricity............................. 40
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 69
    Telephone (land line)................... 10
    Mobile phone............................ 34
    TV Licence.............................. 0
    Satellite/Cable TV...................... 15
    Internet Services....................... 15
    Groceries etc. ......................... 90
    Clothing................................ 50
    Petrol/diesel........................... 75
    Road tax................................ 0
    Car Insurance........................... 45
    Car maintenance (including MOT)......... 40
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 243
    Other child related expenses............ 177
    Medical (prescriptions, dentist etc).... 120
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 20
    Contents insurance...................... 10
    Life assurance ......................... 39
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 45
    Haircuts................................ 10
    Entertainment........................... 75
    Holiday................................. 150
    Emergency fund.......................... 0
    cleaner................................. 140
    professional costs...................... 190
    Total monthly expenses.................. 1802



    Assets

    Cash.................................... 19527.3
    House value (Gross)..................... 300000
    Shares and bonds........................ 15000
    Car(s).................................. 10000
    Other assets............................ 0
    Total Assets............................ 344527.3



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 590......(5)........2.29
    Total secured & HP debts...... 590.......-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    all 0% cards...................24135.....455.......0
    Total unsecured debts..........24135.....455.......-



    Monthly Budget Summary

    Total monthly income.................... 4,116
    Expenses (including HP & secured debts). 1,802
    Available for debt repayments........... 2,214
    Monthly UNsecured debt repayments....... 455
    Amount left after debt repayments....... 1,859


    Personal Balance Sheet Summary
    Total assets (things you own)........... 344,527.3
    Total HP & Secured debt................. -590
    Total Unsecured debt.................... -24,135
    Net Assets.............................. 319,802.3


    Created using the SOA calculator at stoozing. com (not allowed to post URL
    Reproduced on Moneysavingexpert with permission, using other browser.
    Last edited by justcheckin; 14-09-2017 at 6:00 PM.
Page 1
    • enthusiasticsaver
    • By enthusiasticsaver 14th Sep 17, 6:12 PM
    • 4,679 Posts
    • 8,783 Thanks
    enthusiasticsaver
    • #2
    • 14th Sep 17, 6:12 PM
    • #2
    • 14th Sep 17, 6:12 PM
    It is a bit different commenting on soas for someone not in debt so you will need to take advice with a pinch of salt.

    Do you live in the south west as your water rates are really high although if on a meter there are 6 of you so I am guessing it may just be high usage?

    Are you sure your groceries figure should not be £90 per week rather than per month? Sounds extremely low for 6 people.

    Is there a reason why you are keeping that amount on 0% credit cards and not reducing it by more than £455 per month? Do you find it easy still to get deals when the deals expire?

    All your insurances are high but if you have health issues that might explain the high life assurance.

    If you have ill health I would focus on continuing to increase your emergency savings and maybe pension contributions depending on your situation. Is that £15000 in individual shares or funds? Individual shares are quite risky so in your situation I would be reviewing that if that is the case. If it is bonds or funds that is a different story.

    How old are you and are you and your partner planning to retire early? You seem to be in a fairly good position but as I am cautious I never got into stoozing which presumably is what you have done. How would you service the £455 if your partner lost their job or had to leave through ill health?
    5 weeks to go until early retirement in December . 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
    • justcheckin
    • By justcheckin 14th Sep 17, 6:26 PM
    • 5 Posts
    • 0 Thanks
    justcheckin
    • #3
    • 14th Sep 17, 6:26 PM
    • #3
    • 14th Sep 17, 6:26 PM
    It is a bit different commenting on soas for someone not in debt so you will need to take advice with a pinch of salt.

    Noted, thank you

    Do you live in the south west as your water rates are really high although if on a meter there are 6 of you so I am guessing it may just be high usage?

    no, Wales. We aren't metered, so I don't think I can reduce it unfortunately.

    Are you sure your groceries figure should not be £90 per week rather than per month? Sounds extremely low for 6 people.

    Yes it's monthly. I know it sounds bonkers but in my voluntary work I get to take home random leftovers which I stash the freezer with, and I try to grow most of our family's fruit and veg.

    Is there a reason why you are keeping that amount on 0% credit cards and not reducing it by more than £455 per month? Do you find it easy still to get deals when the deals expire?

    We've got 6k of headroom at 0% on these cards, and by that point of spending a lot of our regular savers will mature, so I'll likely punt it over to clear the balances.

    All your insurances are high but if you have health issues that might explain the high life assurance.

    Funnily no, I got ill after we set our premiums. So that's overly high for 2x life+crit cover?


    If you have ill health I would focus on continuing to increase your emergency savings and maybe pension contributions depending on your situation. Is that £15000 in individual shares or funds? Individual shares are quite risky so in your situation I would be reviewing that if that is the case. If it is bonds or funds that is a different story.

    OEICs. Thanks, I will review this.(funds of funds, high in equities)

    How old are you and are you and your partner planning to retire early?

    Early 40s and I hope for DH to retire early as I think it would be dangerous for him to work much beyond 60.

    You seem to be in a fairly good position but as I am cautious I never got into stoozing which presumably is what you have done.

    yep

    How would you service the £455 if your partner lost their job or had to leave through ill health?

    good points, I think the cash savings would service them for quite a while. DH gets 6m full pay, 6m half pay in case of sickness. (for half of his income stream) and job loss without replacement is very unlikely in his field, but yes, we do need more of a buffer. We are due an inheritance of 15k soon, so this will assist.
    Originally posted by enthusiasticsaver

    Thank you, I appreciate the time to comment. My responses are in purple.
    • copperclock
    • By copperclock 14th Sep 17, 6:27 PM
    • 217 Posts
    • 242 Thanks
    copperclock
    • #4
    • 14th Sep 17, 6:27 PM
    • #4
    • 14th Sep 17, 6:27 PM
    Hi,

    I was advised to post a SOA here but it's not so much debt shifting I need help with, it's more to see if my savings goals are realistic, and for future planning. But I know this part of the forum is where a lot of people good at looking over SOAs hang out.

    After some ill health, we are trying to build up our savings.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 4
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 150
    Partners monthly income after tax....... 3589
    Benefits................................ 377 What benefits are these? If CB are you sure you don't have to repay it via high income charge?
    Other income............................ 0
    Total monthly income.................... 4116


    Monthly Expense Details

    Mortgage................................ 5 £5??
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 55 This also seems low?
    Electricity............................. 40
    Gas..................................... 40
    Oil..................................... 0
    Water rates............................. 69
    Telephone (land line)................... 10
    Mobile phone............................ 34
    TV Licence.............................. 0 No TV?
    Satellite/Cable TV...................... 15
    Internet Services....................... 15
    Groceries etc. ......................... 90 Is this correct?
    Clothing................................ 50
    Petrol/diesel........................... 75
    Road tax................................ 0
    Car Insurance........................... 45
    Car maintenance (including MOT)......... 40
    Car parking............................. 0 You never park anywhere?
    Other travel............................ 0
    Childcare/nursery....................... 243
    Other child related expenses............ 177
    Medical (prescriptions, dentist etc).... 120 Are you making use of NHS prepayment certificates at around £10 per month per adult?
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 20
    Contents insurance...................... 10
    Life assurance ......................... 39
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 45
    Haircuts................................ 10 Seems low for 6 people
    Entertainment........................... 75
    Holiday................................. 150
    Emergency fund.......................... 0
    cleaner................................. 140
    professional costs...................... 190
    Total monthly expenses.................. 1802



    Assets

    Cash.................................... 19527.3
    House value (Gross)..................... 300000
    Shares and bonds........................ 15000
    Car(s).................................. 10000
    Other assets............................ 0
    Total Assets............................ 344527.3



    Secured & HP Debts

    Description....................Debt......Monthly.. .APR
    Mortgage...................... 590......(5)........2.29
    Total secured & HP debts...... 590.......-.........-


    Unsecured Debts
    Description....................Debt......Monthly.. .APR
    all 0% cards...................24135.....455.......0
    Total unsecured debts..........24135.....455.......-



    Monthly Budget Summary

    Total monthly income.................... 4,116
    Expenses (including HP & secured debts). 1,802
    Available for debt repayments........... 2,214
    Monthly UNsecured debt repayments....... 455
    Amount left after debt repayments....... 1,859


    Personal Balance Sheet Summary
    Total assets (things you own)........... 344,527.3
    Total HP & Secured debt................. -590
    Total Unsecured debt.................... -24,135
    Net Assets.............................. 319,802.3


    Created using the SOA calculator at stoozing. com (not allowed to post URL
    Reproduced on Moneysavingexpert with permission, using other browser.
    Originally posted by justcheckin
    My comments are in green
    • justcheckin
    • By justcheckin 14th Sep 17, 6:43 PM
    • 5 Posts
    • 0 Thanks
    justcheckin
    • #5
    • 14th Sep 17, 6:43 PM
    • #5
    • 14th Sep 17, 6:43 PM
    @copperclock, thanks for your thoughts, sorry I can't quote you properly but I'm in purple after your pasted words.

    Benefits................................ 377 What benefits are these? If CB are you sure you don't have to repay it via high income charge?

    yes, my partner makes pension contributions which reduce our ANI to below the threshold for his self-employed earnings. We also give £100 a month to charity- I realise I should have included this but the calculator didn't prompt me so I forgot

    Mortgage................................ 5 £5?? yes, we paid off all bar a token amount in case we wanted to take a further advance later.


    Council tax............................. 55 This also seems low? Gah, well spotted, it's £155, will tweak numbers accordingly, thanks.


    TV Licence.............................. 0 No TV? Whoops. We do have a licence

    Groceries etc. ......................... 90 Is this correct? see previous



    Medical (prescriptions, dentist etc).... 120 Are you making use of NHS prepayment certificates at around £10 per month per adult?

    Unfortunately it's chiropractic/physio/nit lotion/calpol/specs... all that stuff, we get free scripts in Wales.



    Haircuts................................ 10 Seems low for 6 people True. I cut DH and the children's hair and my own, but this is a bottle of hair colour and the bits I need, like new blades and kit.
    • copperclock
    • By copperclock 14th Sep 17, 7:01 PM
    • 217 Posts
    • 242 Thanks
    copperclock
    • #6
    • 14th Sep 17, 7:01 PM
    • #6
    • 14th Sep 17, 7:01 PM
    @copperclock, thanks for your thoughts, sorry I can't quote you properly but I'm in purple after your pasted words.

    Benefits................................ 377 What benefits are these? If CB are you sure you don't have to repay it via high income charge?

    yes, my partner makes pension contributions which reduce our ANI to below the threshold for his self-employed earnings. We also give £100 a month to charity- I realise I should have included this but the calculator didn't prompt me so I forgot
    Originally posted by justcheckin
    Are you sure? You indicate that your partner brings home £3589 net. CB starts becoming repayable from £50k ANI which is about £3065 net.

    A take home pay of £3589 suggests ANI of more than £60k at which all the CB will need to be repaid.

    Unless I am not understanding correctly.
    • Fireflyaway
    • By Fireflyaway 14th Sep 17, 8:31 PM
    • 1,296 Posts
    • 1,320 Thanks
    Fireflyaway
    • #7
    • 14th Sep 17, 8:31 PM
    • #7
    • 14th Sep 17, 8:31 PM
    Would it be helpful to have a miscellaneous category? I found that although I budgeted for bills etc there were always small unexpected things that would pop up such as school trips, something small that breaks in the house or a present if the kids are invited to a birthday party.
    • Mimi Arc en ciel
    • By Mimi Arc en ciel 14th Sep 17, 8:43 PM
    • 4,469 Posts
    • 5,768 Thanks
    Mimi Arc en ciel
    • #8
    • 14th Sep 17, 8:43 PM
    • #8
    • 14th Sep 17, 8:43 PM
    Just something to add. You mention about buying nit stuff and calmly. Do you have a pharmacy first scheme? These are free on that service
    Very proud mummy of 2!
    • justcheckin
    • By justcheckin 15th Sep 17, 7:33 AM
    • 5 Posts
    • 0 Thanks
    justcheckin
    • #9
    • 15th Sep 17, 7:33 AM
    • #9
    • 15th Sep 17, 7:33 AM
    Are you sure? You indicate that your partner brings home £3589 net. CB starts becoming repayable from £50k ANI which is about £3065 net.

    A take home pay of £3589 suggests ANI of more than £60k at which all the CB will need to be repaid.

    Unless I am not understanding correctly.
    Originally posted by copperclock
    Hi, I ran it through the .gov calculator again just to check, and I may not have written the OP correctly, but yes, the calculator is showing as nil tax charge due.

    Is it maybe the Childcare vouchers which are confusing things? They are also removed from the ANI.
    • copperclock
    • By copperclock 15th Sep 17, 10:34 AM
    • 217 Posts
    • 242 Thanks
    copperclock
    Hi, I ran it through the .gov calculator again just to check, and I may not have written the OP correctly, but yes, the calculator is showing as nil tax charge due.

    Is it maybe the Childcare vouchers which are confusing things? They are also removed from the ANI.
    Originally posted by justcheckin
    Ok. Sorry if I worried you!
    • justcheckin
    • By justcheckin 15th Sep 17, 1:41 PM
    • 5 Posts
    • 0 Thanks
    justcheckin
    no worries

    I've just completed a water meter assessment calculator, which gave me an approximately similar bill to our non-metered bill. Perhaps it seems high to some people because I haven't explained how we run both the dishwaher and the washing machine 1/2 times daily. (all 4 children are messy eaters!)
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