My S.O.A. How can I make it balance?!

skint-78

Hi, I am trying to sort my money out and thought I would start with a S.O.A.
Bear in mind that I am in a relationship with my partner who I live with in a privately rented house.
Due to the fact she earns double my wage, she agreed that we will total the bills for the house, and she will pay 2/3 and I will pay 1/3.
I will base the figures on me though, because she is not in debt, and I am!

INCOME

MY WAGE = £929

OUTGOINGS

RENT = £550
COUNCIL TAX = £88
GAS = £35
ELECTRICITY= £35
WATER= £22
TV LICENSE= £10.55
NTL(Phone, broadband & TV)= £50

SUBTOTAL = £790.65
MY SHARE OF LIVING COSTS= £265

From here on, these are my individual costs/outgoings.

OUTGOINGS Cont...

PETROL= £200
FOOD= £100
PAYG MOBILE= £20
PROFESSIONAL SUBS= £17.34
CAR INSURANCE= £52.55
CAR LOAN= £189.13
LOAN FROM MUM= £100

SUBTOTAL = £679.02

TOTAL = £944.02

CAR LOAN
Balance £4417.68
Settlement £4151.64
Interest 13.7%
Last payment Dec 2007 (21 months)

MUM LOAN
Balance £3300
Interest Nil
Last payment Jan 2009 (34 months)

STUDENT LOAN - deferred
Balance £700
Interest ? next to nothing

Obviously this doesn't take into account any spending for any leisure activities or socialising, or anual costs, such as additional professional subs, car tax, MOT etc.
I really don't know where to go from here. I would hate to put on my OH.

P.S I commute 80 miles (round trip) 3 days per week, hence the fuel costs.

skintchick

OK, here are my thoughts.

GAS = £35
ELECTRICITY= £35
These look high - I pay £35 for both. Can you switch suppliers to someone cheaper, or use a bit less?

WATER= £22
Again, perhaps this could be cut. go on a meter, or if you are on one then try and save water by using less.

NTL(Phone, broadband & TV)= £50
Ouch! This is HIGH. You need to find a beter package that's cheaper.

FOOD= £100
If this is just for you then it is twice what it needs to be. I spend no more than £60 a month on food for myself, so you really can cut back in this area quite easily. Look at the Old Style boards for ideas.

PAYG MOBILE= £20
You can use this less and cut down the cost.

PROFESSIONAL SUBS= £17.34
This is a lot of money - do you NEED it? Will it make a difference if you don;t have it, whatever it is?

CAR INSURANCE= £52.55
again, VERY high. I'm assuming you are young to be paying this much?

As you say, you still have to budget for annual costs so you need to think carefully about whether you should get a job closer to home. That petrol is a crippling cost. Can you car share? Move to another job? Move closer to teh job?

HTH

Chortle_2

Quick question re the 'Mum Loan' - you say its for £3300, and 0%.

So why are you paying £100 p/month for 34 months? Surely that means you're repaying £3400?

Agree with Skintchick re your living expenses - your gas/electric seem very high (or are you repaying arrears?) and NTL is very high - could you switch suppliers or reduce your package?

If you and OH are both shelling out £100 each per month on food, that is WAY too high. You could easily reduce that by at least £40!

Have you got contents insurance at all?

Your car insurance seems very high as well. Is there something driving this up, or could you switch providers to someone cheaper?

tyllwyd

Apart from the money-saving ideas, it seems pretty obvious that you need to look at your car loan and your mum's loan. Can you get a replacement car loan that is more suitable to your new income? Or would it be possible to reduce your payments to your mum while the loan is running, and then when it finishes, put all the money into repaying your mum? You could offer her interest, to make up for the fact that she is going to have to wait for the money.

skint-78

HI
Thanks for the replies both of you.
I will quickly explain a few things that you have asked between you. I hope I don't forget any!

*We have contents insurance £107.10 anually. My OH paid it by cheque in Sept.

*We don't pay any arrears in gas and elec. My worry is if we are allowed to move supplier because my Oh set these up. Don't know if there was any tie in. I will look into it though.

*I usually pay £37.48 car insurance which I thought was fantastic, but for the last few months left on the policy it has risen because of changing address. Also I am 27 so still classed as a little risky despite about 5 years no claims.

*PETROL! This is crippling me. I have a fab job, but I know it is too far from home. I am looking for other work much closer to home.
I can't car share because I work 3 days a week, random hours, and I am an essential car user and use my car in work. I would love to offer a lift to someone else, but my hours are too unpredictable.

*NTL. I knew they would screw us! It was a 3 for £30 offer we took in Sept when we moved in. I am certain this is a minimum 12 month contract. The additional money ontop of the 30quid is because we pay a package fee for inclusive national calls at anytime, and then some more calls ontop (like mobiles and 0870 etc). I would love to get rid, but we have til Sept. Unless there are any sneaky ways out? The other thing is that there isn't a BT line in the house or a normal TV arieal.

*Food. We are extravagant eaters aren't we! I said I would start shopping aroung. I usually buy everything in Asda or Tesco. Maybe I would do better to go to the market aswell.

*PAYG. I top up £20 and spend half the month without credit with a Teso mobile. I always thought it was a cheap tarriff but wondered if a contract might be better. What do you think?

*Water. Can't get a meter because it isn't our house. I always thought water charges were standard and weren't affected by what you use? I wish we could have a meter!

*Mum loan. I must have added it up wrong! It is definitely no interest.

*Professional Subs. This is my insurance to practice so I need it incase I screw up at work! (I am a health professional)

I suppose my 1st thing should be looking at gas and elec, and new jobs. If you have any ideas on the things I asked about NTL etc, would you give us a shotut please?

MUCH appreciated.

skint-78

The thing is that I have reduced from paying her £250 a month to £100. She is retired aswell now and likes the regular money from me.
I am just waiting for my credit report and then I will look into changing the car loan.
Cheers.

CLAPTON

i think it very important that you revise you SoA to include ALL your costs whether they be going out or annual costs otherwise you will have a false sense of security.
From what I can see your car related costs are (200+52+189)=441 and this doesnot seem to include car tax, mot, any servicing, breakdown service or provision for any repairs etc. Now presumably the car is essential for your work but its costing you about 50% of your salary...does this make any sense?
you say you work three days a week? would it be possible to get a second parttime job?

r.mac_2

regarding reducing your food bill - why not try menu planning with your partner, i.e. decide one evening what you will have for dinner/lunch/breakfast the rest of the week and only buy what you need from the supermarket. i found that i est just as well, sometimes even better than i used to with this. the thing is i don't have things going to wste in my fridge anymore!!!

regarding budgets, try looking at martins budget planner - it really helps.

you shouldn't be tied into gas and electricity suppliers and should be easily changeable.

perhaps most importnantly remmeber to talk to your partner about your situation and use their love and suport to help you get through this. having someone you trust hold you hand can be a very big help. *i mean emotionally of course!

remember to first make savings on everything that you have/do, then if there is still a deficit or debts to pay, look at cutting back. For example, could you change your car for a smaller model? or could you use freeview and not sky etc etc. sometimes a bit of creative thinking can work wonders!

best of luck x