any advice on SOA please

plzhelpmesave!

Hi guys

Need your help and expertise please! Am trying to get things organised so we can start 2010 with a proper money saving hat attitude and be able to manage our finances in the best way possible.
Ive recently started PT work, so am hoping that with my money coming in (not been paid yet), we will be able to start looking after our money better, and start saving more. All cc and family loan at 0% - which is something - although me and DH keep forgetting they are real debts as they are "only at 0%".

Any advice on where to cut back appreciated please!




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.................... 2
Monthly Income Details
Monthly income after tax................ 512
Partners monthly income after tax....... 2173
Benefits................................ 185 - child benefit
Other income............................ 324 CTC for nursery fees
Total monthly income.................... 3194 - omg, that's loads!
Monthly Expense Details
Mortgage................................ 705
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 97
Electricity............................. 49
Gas..................................... 50
Oil..................................... 0
Water rates............................. 37
Telephone (land line)................... 25 includes BB & wkend
Mobile phone............................ 34 2 phones-new contracts
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0 incl in landline
Groceries etc. ......................... 260 - joined GC challenge
Clothing................................ 100
Petrol/diesel........................... 200
Road tax................................ 30
Car Insurance........................... 65
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 336
Other child related expenses............ 90 religious club & swim
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 23
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 8
Entertainment........................... 25
Holiday................................. 0
Emergency fund.......................... 100
Total monthly expenses.................. 2286

Assets
Cash.................................... 0
House value (Gross)..................... 140000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 143000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 115000...(705)......5.39
Total secured & HP debts...... 115000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Virgin CC......................4000......25........0
Satander.......................4500......100.......0
Egg ...........................3036......35........0
Family loan....................5000......400.......0
Total unsecured debts..........16536.....560.......-

Monthly Budget Summary
Total monthly income.................... 3,194
Expenses (including HP & secured debts). 2,286
Available for debt repayments........... 908
Monthly UNsecured debt repayments....... 560
Amount left after debt repayments....... 348
Personal Balance Sheet Summary
Total assets (things you own)........... 143,000
Total HP & Secured debt................. -115,000
Total Unsecured debt.................... -16,536
Net Assets.............................. 11,464
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Tiglet

Hi, and well done for posting this.:beer:

From a very quick first glance, it seems your biggest expense is the mortgage, both in absolute terms and in terms of the interest rate. Are you tied into this, or is there any way you can get a cheaper rate than this?

As the other repayments are all at 0%, the question to ask with those is how long are they interest-free? Try to target your repayments towards the one with the shortest interest-free period, or shift the debt towards the ones with a longer period.

I'll keep looking and let you know if I think of anything else.

plzhelpmesave!

thanks tiglet - we took out a 10yr fixed rate at 5.39 last year so massive redemption penalties if we changed! was the best rate at the time, and we both wanted the security of a fix as we thought rates would rise!

I have joined a mortgage challenge today as well, as we want to overpay the idea of a 10yr fix was that I would start working again and use my salary to overpay the mortgage. I have luckily found a part time job, (6 month contract) and hope it will lead to a better paid, permanant job when the contract end.

We already use quido for cashback, and both have egg money cards with 1% cashback on all spending..with balances cleard off each month in full.

DH is starting a new business venture, which is also taking up money, and every month brings up something unexpeted.... like everyone else, i guess!

chivers1977

Just to check that you have checked that your child care tax credits are right with such a high jt income. WIth jt net income of £2600 we only get the basic tax credits

brummiebabe

chivers1977 wrote: »

Just to check that you have checked that your child care tax credits are right with such a high jt income. WIth jt net income of £2600 we only get the basic tax credits

It's probably because of nursery fees that it's that high...but it might be worth checking that the estimated income, given to HMRC for this tax year, is correct, as you don't want to risk being overpaid!!

Tiglet

I know it's often difficult with three kids, but I notice that you're spending £200 per month on petrol alone for two cars, compared to £348 left over after bills. Even if you absolutely must have the two cars, anything you can save on petrol will make a big difference. Can you walk or cycle to work, even occasionally?

plzhelpmesave!

thanks for the quick replies guys.

chivvers & brummiebabe - income is high due to the child tax credit which pays for my daughters nursery fees - double checked with them as i was surprised we would get help! Also child benefit does not count towards total income when they calculate - AFAIK?? i may be wrong though

tiglet - kids school and DDs nursery are in opposite directions so too much to walk every day and be on time for work. After school, I drop them to their religious classes and then pick up DD. have tried a couple of times to walk it, but ends up being 45mins each way, which is exhausting after work, and them getting home to cook! We do try to walk to school once or twice a week if possible. I also go out a lot less than I used to - would often drive to asda and tesco for certain cheap offers, and have really cut down on that now. Also get my sis to drive if I don't have the kids - she's finally passed after 15 years of on-off lessons!! Have used £75 diesel this month - and do try to use the cheapest petrol station..

Ames

Is the clothing amount a misprint? You can def save here, car boot sales, ebay, charity shops, freegle... there's loads of places to get cheap clothes from, especially for the kids. For you and hubby you need to be basics (ie underwear) only for a while.

Presents can maybe be cut a little, try buying only for kids and making as much as you can yourself, check out the freebies and comps boards to try and get great deals on presents.

Do your best to keep electric and gas down - put a jumper on before the heating, only heat rooms that are used, turn everything off at the plug, use energy saving bulbs etc. It's amazing what a difference you can make, I went from £50 a month to £33 in a year, and I'm not especially hardcore about it.

With petrol, make sure you're driving efficiently. In summer a 45 minute walk might not be too exhausting, or could even be fun, and you could slow cook on that day.

brummiebabe

plzhelpmesave! wrote: »

thanks for the quick replies guys.

chivvers & brummiebabe - income is high due to the child tax credit which pays for my daughters nursery fees - double checked with them as i was surprised we would get help! Also child benefit does not count towards total income when they calculate - AFAIK?? i may be wrong though

No you're right..Child benefit doesn't count. Just thought it was worth making sure the amount you've told them is right though. We have a joint income of £2400, 3 kids, nursery fees of £510-540 p/month and only get £250 Child Tax credits. I know it's also affected by past incomes etc...and is far too confusing for my liking!!!!!:D

Debt_Free_Chick

plzhelpmesave! wrote: »

Monthly Budget Summary
Total monthly income.................... 3,194
Expenses (including HP & secured debts). 2,286
Available for debt repayments........... 908
Monthly UNsecured debt repayments....... 560
Amount left after debt repayments....... 348

Assuming you have accounted for "pretty much everything" in your budget, then you have £348 per month left over :T

But do you? Or is it being frittered away?

plzhelpmesave!

Debt_free-Chick - I was shocked myself when I saw the earnings figures, but then although I have added my new wages of £512 a month, i haven't got paid yet! so I guess that means we are about £180 in OD each month - which we're not usually, so my figures are out somewhere
:rolleyes: The CTC goes out starightaway on DD nursery, and the CB is what I use normally to pay my own expenses (mobile, petrol, cccard) etc.

AMES - Clothing is def NOT £100 a month, but not sure what it is so need to start recording. Dh and I are really bad for buying things and then returning them a few days later (unworn!) but i think we both just like buying stuff! I have really cut down as I was always buying sale or cheap clothes for kids - have vowed not to buy anything now until they actually need it. Sales are on all throghout the year, so will buy ONLY as needed. Again, try not to spend a massive amount on pressies - my kids get less than £20 spent on their birthdays, only have family around to the house for a party. Try to buy stuff througout the year when on offer, and also recycle pressies! :money: Don't buy for many adults at all! Have £150 iin credit coming back to us from EDF as I have been much more careful with gas and leccy this year - we've all got fleeces and blankets - but have def been using heating more in the last couple of weeks so will keep an eye onm that! looked at switching but we already have a good rate that's no longer available, so don't wanna get stuck.

The main things we need to do in RECORD EVERYTHING. I know there is nothing like a "typical month" but need to know where we are just spending the cash. I reckon we must have about £150-200 a month on stuff:eek: We dont drink, smoke, eat out much or go out - GOSH, we do sound like a barrel of fun! we should be loaded, BUT we're not, so will start jotting down everything we can...

many thanks again for taking the time to look and advise! :beer: