Newbie needing advice!

spend_less

I moved jobs in January taking a 30% pay cut, and this has hit us hard! We have cut back but have just moved house and need to cut back more. Where do I start? Looking on here it looks like I post a Statement of Affairs?

Thanks in advance,
SL

Horace

Hi and welcome

A statement of affairs would help greatly https://www.makesenseofcards.com/soacalc.html - follow the instructions to copy and paste to MSE removing web linkies at the bottom.

Keeping a spending diary might help as well as meal planning, cooking in bulk and freezing and generally shopping wisely.

spend_less

Thanks. Filled it in. Can't quite work out why we're so overdrawn?!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1381.85
Partners monthly income after tax....... 1489.29
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2871.14

Monthly Expense Details
Mortgage................................ 748.4
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 20
Mobile phone............................ 20
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 15.99
Groceries etc. ......................... 300
Clothing................................ 200
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 20
Car maintenance (including MOT)......... 16
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40
Pet insurance/vet bills................. 0
Buildings insurance..................... 29.55
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 25
Entertainment........................... 400
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2216.89

Assets
Cash.................................... 0
House value (Gross)..................... 165000
Shares and bonds........................ 0
Car(s).................................. 900
Other assets............................ 0
Total Assets............................ 165900

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 135000...(748.4)....5.95
Total secured & HP debts...... 135000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 2,871.14
Expenses (including HP & secured debts). 2,216.89
Available for debt repayments........... 654.25
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 654.25

Personal Balance Sheet Summary
Total assets (things you own)........... 165,900
Total HP & Secured debt................. -135,000
Total Unsecured debt.................... -0
Net Assets.............................. 30,900

dancingfairy

Hi- some of your amounts seem very high - eg food and entertainment which wouldn't be such a problem if you knew where that extra 654 pounds a month is going. That is your main priority. I would definitely start a spending diary.
Best of Luck
df

TMoose

Looks like you're doing OK - you might want to do a spending diary to explain where your extra 654pm goes though!

If you have no loan/CC debt, then you're in fine shape - just need to detail everything you spend, and find out where the leakage is! If you do have other debts, post them up in a new SOA an we'll take a look...

If you really need to cut back - hit the entertainment £400pm is huge, and clothes £200pm?

misspoppy

Hi

Next step is for you and your partner to keep a spending diary for a month noting down every penny you spend.

I did mine on a spread sheet and put on it a figure that I budgeted for on each catagory to see if I was realistically spending on each area. It was very revealing.

Obviously people will tell you your clothing and entertainment spends are high but you appear to have money left over each month. Have you been through the bank statement for direct debits you've forgotten about?

Ames

spend_less wrote: »

Thanks. Filled it in. Can't quite work out why we're so overdrawn?!

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1381.85
Partners monthly income after tax....... 1489.29
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2871.14

Monthly Expense Details
Mortgage................................ 748.4
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 15
Telephone (land line)................... 20
Mobile phone............................ 20
TV Licence.............................. 11.95
Satellite/Cable TV...................... 0
Internet Services....................... 15.99
Groceries etc. ......................... 300 That's really high for just two of you, you could easily half it.
Clothing................................ 200 Surely that can't be every month? You must have loads of clothes already so you can cut it out for a few months, maybe ebay things you're not going to wear again?
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 20
Car maintenance (including MOT)......... 16
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40 What's this for? If it's regular prescriptions you can get a pre pay certificate that works out a lot cheaper.
Pet insurance/vet bills................. 0
Buildings insurance..................... 29.55
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60 This is really high, you could easily cut this. Presents only for the kids, or home made ones.
Haircuts................................ 25
Entertainment........................... 400 Ouch! This can be cut right back too, if you give a break down of what it is then people can suggest alternatives for free or a lot cheaper.
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 2216.89

Assets
Cash.................................... 0
House value (Gross)..................... 165000
Shares and bonds........................ 0
Car(s).................................. 900
Other assets............................ 0
Total Assets............................ 165900

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 135000...(748.4)....5.95
Total secured & HP debts...... 135000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 2,871.14
Expenses (including HP & secured debts). 2,216.89
Available for debt repayments........... 654.25
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 654.25

Personal Balance Sheet Summary
Total assets (things you own)........... 165,900
Total HP & Secured debt................. -135,000
Total Unsecured debt.................... -0
Net Assets.............................. 30,900

You seem to have missed off your debts? It's important that we know these and the apr's so we can advise on the best order to pay them off in.

I've put a few thoughts above. Your basic spending is fine, it's just the optional/luxury spending you need to look at.

spend_less

OK, will keep a spending diary. Thanks. Will have to work on the husband to do it!

I wonder if I have underestimated somewhere! We have just moved so it's hard to tell with some DDs as some recent repayments are artificially high due to paying off what was owed on the old place etc. We've also had moving costs and things associated like £122.50 to put a phone line in! Plus residents parking permits for the new area.

The entertainment is v.high as we have lots of friends getting married this year and are both going to the hen and stag weekends for these, plus then outfits (I have bought one dress but it wasn't cheap!) and booze on the day plus presents has added up horrendously. This will be over by the end of Oct when everyone we know will be married!

£200 a month for clothes is a guess - may have underestimated, will take a look at the bank statement again.

I have sold my lovely car and paid off the loan now I don't need it for commuting, and the husband now has a 10 year old van for commuting - hence the diesel costs, although he lift shares which has halved this.

Thanks for the advice all.

spend_less

Groceries etc. ......................... 300 That's really high for just two of you, you could easily half it. – Really?! We take our own lunch every day. My husband is 6ft4 and has a huge appetite! I will work out where we can cut back.
Clothing................................ 200Surely that can't be every month? You must have loads of clothes already so you can cut it out for a few months, maybe ebay things you're not going to wear again? – I have made £140 on eBay this month with selling old things. Is £100 each a month on clothes really a lot?
Petrol/diesel........................... 100
Road tax................................ 15
Car Insurance........................... 20
Car maintenance (including MOT)......... 16
Car parking............................. 5
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40 What's this for? If it's regular prescriptions you can get a pre pay certificate that works out a lot cheaper. – I wear glasses which are £150 a year, plus contacts which are £43 every two months or so. Dentist is about £200 a year for both of us for checkups and hygienist and plus a filling for the husband!
Pet insurance/vet bills................. 0
Buildings insurance..................... 29.55
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60This is really high, you could easily cut this. Presents only for the kids, or home made ones. – at least one wedding per month at the moment and I factored in Christmas and birthdays.
Haircuts................................ 25
Entertainment........................... 400Ouch! This can be cut right back too, if you give a break down of what it is then people can suggest alternatives for free or a lot cheaper. – each hen do and stag do is £200 at least and there is one a month each at the moment, so this is an underestimate but probably evens out over the year.

Edited to add that I have paid off my student loan and sold my car to pay off that loan. I wonder if I should be posting this on another board, sorry.

Horace

£100 on clothes is still a lot of money - try shopping out of your wardrobe, with clever accessories you can make it seem as though you have more clothes than you actually do.

As for stag and hen weekends - say that you can't afford it, no-one is going to penalise you for it. As for presents - don't spend so much money on them - if you are crafty then go into a charity shop and look at the glassware - you can sometimes find antique pieces of pressed glass (check for chips and cracks) for around a fiver - folks will never know especially if you give the glassware a good wash when you get home in warm soapy water.

You need contents insurance if you have a mortgage too and life insurance - use cashback sites to buy these.

It sounds mad but if your husband's van is 10 years old - would it not make more sense to get a newer vehicle under the car scrappage scheme? The tax and repair costs will be a lot cheaper and the vehicle will be less polluting.

misspoppy

Hi

Many people on this board live on next to nothing to throw everything at their debts. You are in a situation where you don't need to live the same, I don't think £300 on food is a lot myself and my BF spend that but like you we can afford to as we don't have any debt. The same with the clothes. I think what you need to do is look at where the money is being spent that you can't account for.

I use this board for inspiration and to remind myself that it all adds up and it doesn't hurt to take the advice from the many experts on here regarding budgeting.