Gadget Dad - Seeks Debt Free Life - SOA - Updates

InTheBlack

[FONT=&quot]I want to try and get back to scratch after a run of several years living an unsustainable lifestyle and spending pattern.

My wife and I now have a daughter and would like another child so I need to stop the spending.[/FONT][FONT=&quot] Since our daughter was born mid 2008 I have worked part time and my wife returned full time after her mat leave.[/FONT]

[FONT=&quot]I realize partly to blame is my love for gadgets and anything else that’s expensive according to the wife! We used to spend everything and more hence the mounting credit card debts.[/FONT]
[FONT=&quot]
I’ve (we) actually cut down dramatically! Here is my SOA. I really need encouragement I don’t plan to make sweeping changes to this statement as I already have. I am going to stop my share dealing account payment, although I will not sell any current assets.[/FONT]
[FONT=&quot]
Our grocery bill has been a revelation to both of us, we used to spend circa £600 per month on food and drink! Due to an dinking ban in the new year and a need to save some of the wood excess and waste. I have drawn out £200 cash for the food shopping which will have to last the month.[/FONT]
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So gentle please!
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[FONT=&quot]Statement of Affairs and Personal Balance Sheet

[FONT=&quot]Household Information[/FONT]
[FONT=&quot]Number of adults in household........... 2[/FONT]
[FONT=&quot]Number of children in household......... 1[/FONT]
[FONT=&quot]Number of cars owned.................... 1[/FONT]

[FONT=&quot]Monthly Income Details[/FONT]
[FONT=&quot]Monthly income after tax................ 1200[/FONT]
[FONT=&quot]Partners monthly income after tax....... 1835[/FONT]
[FONT=&quot]Benefits................................ 150[/FONT]
[FONT=&quot]Total monthly income.................... 3185[/FONT]

[FONT=&quot]Monthly Expense Details[/FONT]
[FONT=&quot]Mortgage................................ 793[/FONT]
[FONT=&quot]Secured/HP loan repayments.............. 165[/FONT]
[FONT=&quot]Council tax............................. 135[/FONT]
[FONT=&quot]Electricity............................. 83[/FONT]
[FONT=&quot]Gas..................................... 25[/FONT]
[FONT=&quot]Water rates............................. 32[/FONT]
[FONT=&quot]Mobile phone............................ 45[/FONT]
[FONT=&quot]TV Licence.............................. 13[/FONT]
[FONT=&quot]Satellite/Internet/Broadband...... 83[/FONT]
[FONT=&quot]Groceries etc. ......................... 200[/FONT]
[FONT=&quot]Petrol/diesel........................... 80[/FONT]
[FONT=&quot]Road tax................................ 12[/FONT]
[FONT=&quot]Car Insurance........................... 32[/FONT]
[FONT=&quot]Childcare/nursery....................... 120[/FONT]
[FONT=&quot]Other child related expenses............ 0[/FONT]
[FONT=&quot]Medical (prescriptions, dentist etc).... 34[/FONT]
[FONT=&quot]Buildings insurance..................... 17[/FONT]
[FONT=&quot]Life assurance ......................... 13[/FONT]
[FONT=&quot]Entertainment........................... 5[/FONT]
[FONT=&quot]CTF..................................... 50[/FONT]
[FONT=&quot]Share Acc............................... 100[/FONT]
[FONT=&quot]Union.................................. 14[/FONT]
[FONT=&quot]Total monthly expenses.................. 2051[/FONT]


[FONT=&quot]Assets[/FONT]
[FONT=&quot]Cash.................................... 0[/FONT]
[FONT=&quot]House value (Gross)..................... 200000[/FONT]
[FONT=&quot]Shares and bonds........................ 3000[/FONT]
[FONT=&quot]Car(s).................................. 12000[/FONT]
[FONT=&quot]Other assets............................ 0[/FONT]
[FONT=&quot]Total Assets............................ 215000[/FONT]


[FONT=&quot]Secured & HP Debts[/FONT]
[FONT=&quot]Description....................Debt......Monthly...APR[/FONT]
[FONT=&quot]Mortgage...................... 132000...(793)......5.19[/FONT]
[FONT=&quot]Hire Purchase (HP) debt ...... 3200.....(165)......Ends 02/12[/FONT]
[FONT=&quot]Total secured & HP debts...... 135500....-.........- [/b][/FONT]

[FONT=&quot]Unsecured Debts[/FONT]
[FONT=&quot]Description....................Debt......Monthly...APR[/FONT]
[FONT=&quot]Card1.........................9000......45........6.9[/FONT]
[FONT=&quot]Card2............................3500......100.......18[/FONT]
[FONT=&quot]Card3............................8000......200.......17[/FONT]
[FONT=&quot]Loan1............................4000......246.......Ends 06/11[/FONT]
[FONT=&quot]Total unsecured debts..........24500.....591.......- [/FONT]


[FONT=&quot]Monthly Budget Summary[/FONT]
[FONT=&quot]Total monthly income.................... 3,185[/FONT]
[FONT=&quot]Expenses (including HP & secured debts). 2,051[/FONT]
[FONT=&quot]Available for debt repayments........... 1,134[/FONT]
[FONT=&quot]Monthly UNsecured debt repayments....... 591[/FONT]
[FONT=&quot]Amount left after debt repayments....... 543[/FONT]

[FONT=&quot]Personal Balance Sheet Summary[/FONT]
[FONT=&quot]Total assets (things you own)........... 215,000[/FONT]
[FONT=&quot]Total HP & Secured debt................. -135,500[/FONT]
[FONT=&quot]Total Unsecured debt.................... -24,500[/FONT]
[FONT=&quot]Net Assets.............................. 55,000[/FONT][/FONT]

Tixy

Hi and welcome

The £200 grocery spend per month should be doable - key tips are to meal plan before you go to the shops and to try the drop a brand challenge (there are loads of tips on reducing costs on the oldstyle board if you need them).

Your elec costs stand out as very high to me - though gas seems fairly low - are you in part heating your house using elec? do you have arrears? are your bills always based on actual readings? have you tried reducing usage of energy hungry items (I guess some could be due to your gadgets?!)

Is your media cost a package? This is loads, I'm sure you know it could be reduced. Even if you don't want to compromise on the channels etc you have you may want to research if new customers get a better deal and ask your provider to match or something.

What do you intend to do with the £543? Is it all going to debt repayments? Have you used the snowball calculator to show you the best way to repay your debts? (essentially highest APR first!)

Good luck.

PNPSUKNET

dont really think you can afford the share save, this would be put to better use. The shopping is a great start, take a look at the snowball calculator also

MrsTinks

Sorry I think I'm missing something? What is it you want help with if you don't want advice or suggestions on making changes to your planned (ie not "actual") SOA?

InTheBlack

Firstly, Thanks All

Feel really confident about the Grocery shopping and feel that 'cash in hand' is the best way of going about this as it really does feel like your spending money, whereas a debit/credit card does not.

My Electric bill has slight arrears although nothing dramatic. I'm billed 6 monthly and just pay the direct debits. My gas is down to my sooper duper woodburing stove and new boiler, goodbye stored hot water!

$ky TV is a package as you suggest. Comprises of the Telephone/Internet and TV. I will reduce this but currently still have 4 or so months of the 12 month contract to run.

The remaing £543 + £100 that I will save by stopping my sharesaving will go on debt. In an ideal world I'd like to pay a minimum £1000.00 per month back across the three credit cards.

Thanks to both of you for the snowball calculator. I'm also game for the ebay thread and may try and move some clutter!

Many Thanks, I was a little dubious starting this thread but your replies have put that to rest.

Tixy

Ah, woodburning stoves are great. Do you have to purchase any wood for it or are you lucky enough to be able to source for free? (If you do buy some of it then remember to include in your SoA).

Once you get to the end of your sky package then do negotiate hard to get the best deal (threatening to leave often works wonders!)

InTheBlack

MrsTine wrote: »

Sorry I think I'm missing something? What is it you want help with if you don't want advice or suggestions on making changes to your planned (ie not "actual") SOA?

That is now my current and actual SOA of today. I have looked into and made many changes prior to posting this. My outgoings have been dramatically reduced already - so much so that it's already a bit of a shock.

I guess what I was saying is that I have already made sweeping changes: Gone is the gym membership, the second car, the nice watch, the cash reserves etc.

Just need the tweaks and encouragement. On further inspection I believe the term is 'debt diary'?

InTheBlack

Tixy wrote: »

Ah, woodburning stoves are great. Do you have to purchase any wood for it or are you lucky enough to be able to source for free? (If you do buy some of it then remember to include in your SoA).

Once you get to the end of your sky package then do negotiate hard to get the best deal (threatening to leave often works wonders!)

Fortunately I get the wood for free, a deciding factor in getting one. The woodburner is dead centre in our house. It therefore actually heats the whole house, hence the boiler getting so little to do. Even in this cold weather the boiler hardly ever kicks in!

I'll be sure to get a better deal next time round for $ky it's my wifes vice, although I'll admit I do watch the cricket

QueenBeruthiel

I think the SOA looks pretty decent OP. I think £200 pm on groceries might be a bit too restrictive.....

rictus123

Sorry i wont be adding much, just your SOA looks so healthy compared to most iv seen! Dont fret about it, just make some cutbacks, shop around a bit, dont waste anything and understand the difference between a need and a want!

foxgloves

I think this should be achievable. You will manage £200 a month for groceries, but only if you plan ahead, use the freezer and sort out menus for the week as it's the little extra popping out to the shops for bits & pieces outside of the main shopping which bust the budget. We cut down to £250 a month and our cupboards are heaving with food so we know it'd be possible to do it on a bit less. Our Virgin Media package is good & I think we pay about £46 for broadband, phone & loads of channels, on demand, V+ etc. Agree that when your Sky contract ends, you should ring & say you're leaving. You will almost certainly get put through to a special department that will offer you almost anything to stay.....that was our experience anyway. I am not bothered about gadgets but my partner loves them and has now come to terms with the fact that what he wants and what he can afford are two different things. We are both living a more eco-friendly lifestyle and that's helped him because he doesn't like the idea of all the gadgets he's upgraded going to landfill. So, we have agreed a new rule, and that's that when the TV, stereo, cinema system or phone or any of the other things he loves conk out and can't be repaired, he can choose what he likes (within our budget) to replace them but that an upgrade for the sake of it is no longer sustainable from a financial or an ecological ethos. I never thought he'd come around to this way of thinking but he has, and our overall mantra of 'If we need to put it on credit or overdraft then we quite simply can't afford it' is working too as we've both been big bad spenders in the past.