Realistic SOA for moving out?

LeeSouthEast

Inspired by another thread, I've decided to ask all you wonderful people for some more help, now you've helped me get DEBT FREE! :j

Come the middle of next year (after I've saved up enough money for an emergency fund, setting up costs, furniture and so on), I want to move into a flat closer to work. I'm currently living back with my parents following splitting with my ex in December 2008, and she used to run the household finances, so this is all a bit new to me.

Any advice appreciated.

Lee


Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1983
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1983

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 700
Management charge (leasehold property).. 0
Council tax............................. 85
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 35
Mobile phone............................ 15
TV Licence.............................. 12.08
Satellite/Cable TV...................... 0 (included in landline cost)
Internet Services....................... 20 (web hosting & laptop mobile broadband)
Groceries etc. ......................... 100
Clothing................................ 5
Petrol/diesel........................... 40
Road tax................................ 13.75
Car Insurance........................... 25
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 5
Entertainment........................... 50
Holiday................................. 50
Emergency fund.......................... 100
Total monthly expenses.................. 1440.83


Assets
Cash.................................... 15000
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 17000

No Secured nor Hire Purchase Debts

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


Monthly Budget Summary
Total monthly income.................... 1,983
Expenses (including HP & secured debts). 1,440.83
Available for debt repayments........... 542.17
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 542.17

Personal Balance Sheet Summary
Total assets (things you own)........... 17,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 17,000

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Horace

It looks ok to me but you may be able to reduce your grocery bill as you are only feeding yourself.

Remember to look in charity shops such as the Heart Foundation Shop (the larger shops) as they often have good furniture that has been pre-loved, I have picked up a few pieces in the past and have got the sandpaper out, sanded them down and re-varnished, cheaper than buying brand new and often the furniture is made from real wood as opposed to flim flam.

Requiem

Congratulations on getting debt free!

If you're wanting the savings to roll in quicker, there are certain things you could cut down on (bear in mind that this is all temporary, losing out in the short term to gain a lot in the long term, hopefully!). You're doing well saving over £500p/month, but do you definitely save this much? If you're finding yourself with less, a spending diary might be useful.

Cutting out the entertainment and holiday fund for a few months would boost your savings by £100 p/month. You could also save nearly £25 by cutting out your satellite/cable package and going for basic line rental + freeview/freesat instead. Could the mobile phone bill be reduced in any way?

All in all, with no debt and £500 savings you are in a good position, it's all about how much you're willing to give up (temporarily) to move out quicker

LeeSouthEast

Thanks Horace!

Requiem: This is my 'fantasy' SOA for after moving in. My outgoings whilst I live with parents now are actually in the region of only £350/mo. The rest goes into savings to get me to my goal of moving out and back into my own place. My SOA until I move out is truly bare bones! No entertainment, nothing. Just rent, food and fuel lol! Thanks for your time

Requiem

LeeSouthEast wrote: »

Thanks Horace!

Requiem: This is my 'fantasy' SOA for after moving in. My outgoings whilst I live with parents now are actually in the region of only £350/mo. The rest goes into savings to get me to my goal of moving out and back into my own place. My SOA until I move out is truly bare bones! No entertainment, nothing. Just rent, food and fuel lol! Thanks for your time

In that case, congratulations once again! Looks like you'll be in a great position even after you've moved

gonzo127

hm well first off really big congrates!!!!

well have you thought about buying instead of renting? the reason i bring this up is since you are debt free, and currently saving £1500 a month (whilst living at parents) you could get a massive deposit together very quickly especially since you show you have £15,000 already saved -

ok i dont know where in the south east you live but i expect you could pick up a 1 bed flat for under £100,000 and a quick look on rightmove in and around Ashford (random guess roughly in the middle of Kent) you can actually get a 'part buy/ part rent' property for £17,500 (available at a 25% share for £17,500, with approx monthly mortgage payments of £122.12, monthly rental charge of £65.63 and a service charge of £21.24 ) when you take it that you wouldnt actually need to pay the morgage since your deposit would pretty much cover this it might be something to at least look into

a bit more info here on this scheme
'What is 'New Build HomeBuy'?

Also known as 'shared ownership' or 'part buy / part rent' this scheme enables first time buyers an opportunity to own their own home. It's simple, you purchase as much as you can afford to buy of a home (minimum 25% share; maximum 75% share), and pay a subsidised rent to Moat for the share you don't own. At a later stage, when and if you can afford to do so, you can purchase more shares until you own the property outright.'

just thought i would bring this to your attention

LeeSouthEast

Gonzo: I hadn't considered buying just yet, but when you put those sorts of figures up, I think it's definitely worth looking into a bit more!! Hmm... that could be veeeewy interesting. Thanks for the thought.

danthemoneysavingman

If it helps, I would've thought your gas and electric would be a fair bit less living on your own in a 1-bed flat, more like say £30 each per month...

angelflower_2

I think you have done really well and the fantasy budget looks great.

I would consider such things as depreciation on your car and allowing your savings to purchase a new one when you want to instead of just your maintenance figure (if you build it in to budget now....you wont have to finance later)

Christmas/bithday savings seem a little low....do you honestly only spend £120 per year on presents, christmas nights out with work/friends, holiday season clothing etc...

I guess I would over budget your saving pots at this stage so you dont over stretch yourself with rent or with purchasing as having to reduce your lifestyle is hard!! You have the ability to increase these at the moment.

Tixy

Hi Lee

Well done on the continued savings you have built up. When I read about you becoming debt free and how quickly you'd managed it I remember feeling very in awe, and it made me realised that my own personal efforts are pathetic!

I'd say that for a budgeted SOA there is plenty of meat on your figures to be confident that you will easily manage. I too suspect the utilities etc will cost you less but always good to over-estimate.

Actually I've changed my mind -I think your clothing budget is way too small! I know you are a guy but you should definitely treat yourself more than that!:rotfl:;)

LeeSouthEast

Thanks to everyone who has taken the time to comment so far.

Dan: I think you're probably right, but I like the idea of over-estimating, rather than worrying I've not budgeted enough. If I come in under budget, then I'll be happy and just throw whatever is left into savings!

Angel: My savings spreadsheet actually already puts a percentage away for buying a new car in a few years time, but the SOA calculator doesn't really allow for that to be shown. Thanks for confirming I'm not very sad though I think I will need to up my presents pot, thanks for catching that. I was only thinking Christmas for some reason. Oops. Going back over my spending diary, presents cost me £450 last year :eek:

Tixy: Thank you :j but I'm only doing as well as I am because I'm living back with my parents. If I was trying to run a home as well, I wouldn't have got nearly as far as I have nearly as quickly. Everyone has to do things at their own pace. You're probably right about the clothing, but I tend to find I get bucketloads of clothing for birthdays and christmas from all over my family, so besides socks and undies, I actually spend very very little on clothing each year lol. :rotfl:

Thanks again guys and gals. :beer: