New user, SOA included

LittleMoog

Hi everyone,
I had a lightbulb moment a few weeks ago, when yet another month went by where I was out of cash 2 weeks before payday :mad:. Managed to get ourselves in to trouble by trying to keep up with friends with better paid jobs etc, and generally overspending. I can't believe I'd never done a budget until a few weeks ago, I feel like such an idiot!
Luckily we moved to a cheaper flat with much lower bills etc in September, and OH agrees that it's time we tackled our debts head on, so we've done an SOA (below), and found some extra money each month to snowball on the credit cards.
Any other suggestions would be extremely welcome though!

Few notes, sky subscription is for tv phone and broadband, and mobiles are up for renewal next month and will be moving to lowest possible tariffs, we know they're high atm. Petrol also high due to loooong commutes, will be moving closer to both our works in the autumn, when we should also be able to cut our rent by ~£200.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1470
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2870
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 675
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 47
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 70
TV Licence.............................. 12
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 25
Petrol/diesel........................... 400
Road tax................................ 20
Car Insurance........................... 50
Car maintenance (including MOT)......... 50
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...................... 7.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 80
Holiday................................. 0
Emergency fund.......................... 0
Sofa loan............................... 12
A&L Loan................................ 208
RBS loan................................ 190
Total monthly expenses.................. 2256.5

Assets
Cash.................................... 2500
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 8500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................4000......90........25.9
MBNA...........................3000......70........25.9
BBSRC .........................3100......100.......0
RBS............................500.......15........13
Mint...........................1800......35........20
Capital One....................5000......140.......9.6
Total unsecured debts..........17400.....450.......-

Monthly Budget Summary
Total monthly income.................... 2,870
Expenses (including HP & secured debts). 2,256.5
Available for debt repayments........... 613.5
Monthly UNsecured debt repayments....... 450
Amount left after debt repayments....... 163.5
Personal Balance Sheet Summary
Total assets (things you own)........... 8,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -17,400
Net Assets.............................. -8,900

WASHER

Firstly, welcome to DFW board.

Who is your mobile with? If its T Mobile then this doesn't apply. You can reduce your tariff today with all other companies if you are 9 months into your contract, simply phone them using your mobile phone and ask them to reduce your package, it will save you at least £10 per month today on two phones.

WASHER

julespickles wrote: »

Hi everyone,
I had a lightbulb moment a few weeks ago, when yet another month went by where I was out of cash 2 weeks before payday :mad:. Managed to get ourselves in to trouble by trying to keep up with friends with better paid jobs etc, and generally overspending. I can't believe I'd never done a budget until a few weeks ago, I feel like such an idiot!
Luckily we moved to a cheaper flat with much lower bills etc in September, and OH agrees that it's time we tackled our debts head on, so we've done an SOA (below), and found some extra money each month to snowball on the credit cards.
Any other suggestions would be extremely welcome though!

Few notes, sky subscription is for tv phone and broadband, and mobiles are up for renewal next month and will be moving to lowest possible tariffs, we know they're high atm. Petrol also high due to loooong commutes, will be moving closer to both our works in the autumn, when we should also be able to cut our rent by ~£200.

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1470
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2870
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 675
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 47
Gas..................................... 0 No gas?
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0 Landline to BT?
Mobile phone............................ 70 See my earlier post
TV Licence.............................. 12
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 250
Clothing................................ 25
Petrol/diesel........................... 400
Road tax................................ 20
Car Insurance........................... 50
Car maintenance (including MOT)......... 50
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...................... 7.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 80
Holiday................................. 0
Emergency fund.......................... 0
Sofa loan............................... 12
A&L Loan................................ 208
RBS loan................................ 190
Total monthly expenses.................. 2256.5

Assets
Cash.................................... 2500
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 8500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................4000......90........25.9
MBNA...........................3000......70........25.9
BBSRC .........................3100......100.......0
RBS............................500.......15........13
Mint...........................1800......35........20
Capital One....................5000......140.......9.6
Total unsecured debts..........17400.....450.......-

Monthly Budget Summary
Total monthly income.................... 2,870
Expenses (including HP & secured debts). 2,256.5
Available for debt repayments........... 613.5
Monthly UNsecured debt repayments....... 450
Amount left after debt repayments....... 163.5
Personal Balance Sheet Summary
Total assets (things you own)........... 8,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -17,400
Net Assets.............................. -8,900

I have added comments in above, do you really have £2500 in cash available, if so, use that money to repay one of your highest debts and APR, MBNA. You shouldn't have savings if you have debts as your interest on your debts is much higher than you will gain on your savings.

Well done for posting, its never easy seeing your SOA in black and white. You have a surplus left at the end of each month, so thats good news, if you do not see this, then start a spending diary and also check your bank statements and look how much cash you and your OH withdrew from the ATM last month, it may just shock you, it did with me! Also check your bank statement for your grocery shopping too, I thought I was spending £400 per month and in fact I was spending over £650 a month.

WASHER.x.

LittleMoog

Hi Washer,
Thanks for the quick reply, the £2500 is savings towards a house deposit, it was a gift from my father-in-law, who made it very clear that he expected us to save it as he (and grandma-in-law) are going to add to it through the next 2 years. We're hoping to get ourselves df by the time we have enough of a deposit to buy somewhere, at the start of 2012.

Mobiles are with vodafone, can downgrade to slightly (£5/month) cheaper packages, but have to commit to another 6 months. Hoping to be able to do better than that by threatening to leave when upgrades are due...

Numpty_Monkey

julespickles wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1470
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2870
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 675
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 47 Check comparrison and cashback sites
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0 is this in with rent
Telephone (land line)................... 0
Mobile phone............................ 70 good idea from washer
TV Licence.............................. 12
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 250 high for 2, use meal planning, batch cooking, drop a brand, OS board
Clothing................................ 25 reduce for now, wear what you have, sell stuff you don't wear, use charity shops
Petrol/diesel........................... 400 read Martins article http://www.moneysavingexpert.com/travel/
Road tax................................ 20
Car Insurance........................... 50 any insurance use comparrison and cashback sites
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0 no taxi's or buses
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 budget £10 here
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 7.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 80
Holiday................................. 0
Emergency fund.......................... 0
Sofa loan............................... 12 should be in debts
A&L Loan................................ 208should be in debts
RBS loan................................ 190should be in debts
Total monthly expenses.................. 2256.5

Assets
Cash.................................... 2500
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 8500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................4000......90........25.9
MBNA...........................3000......70........25.9
BBSRC .........................3100......100.......0
RBS............................500.......15........13
Mint...........................1800......35........20
Capital One....................5000......140.......9.6
Total unsecured debts..........17400.....450.......-

Monthly Budget Summary
Total monthly income.................... 2,870
Expenses (including HP & secured debts). 2,256.5
Available for debt repayments........... 613.5
Monthly UNsecured debt repayments....... 450
Amount left after debt repayments....... 163.5
Personal Balance Sheet Summary
Total assets (things you own)........... 8,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -17,400
Net Assets.............................. -8,900

Hi
it's not to bad but I'll bet you don't have the surplus, I sugguest you both keep a spending diary and find out where the surplus goes, list eveything you buy or spend on

The loans shoud e in the debts section , it gives you and us a full truer picture:o
and it will help if you want to do a bit of snowballing
http://www.makesenseofcards.com/snowcalc.html

HTH:A

Tixy

Hi and welcome. Well done on facing up to things and for posting your SoA

julespickles wrote: »

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 1400
Partners monthly income after tax....... 1470
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2870
Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 675
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 47 is all heating elec as well?
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0 is this in with council tax?
Telephone (land line)................... 0
Mobile phone............................ 70 hopefully you will get better deals next month
TV Licence.............................. 12
Satellite/Cable TV...................... 40
Internet Services....................... 0
Groceries etc. ......................... 250 this could be reduced if you try. Try meal planning before you shop, the drop a brand challenge and try cooking more meals from scratch. Perhaps aim for £200 in March and then a little lower still in April.
Clothing................................ 25
Petrol/diesel........................... 400 Until you move houses are you driving fuel efficiently to get the most out of your fuel money?
Road tax................................ 20
Car Insurance........................... 50
Car maintenance (including MOT)......... 50
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...................... 7.5
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 0
Entertainment........................... 80
Holiday................................. 0
Emergency fund.......................... 0
Sofa loan............................... 12
A&L Loan................................ 208 these all really need to be in the debt section of your SoA
RBS loan................................ 190
Total monthly expenses.................. 2256.5
+
Assets
Cash.................................... 2500
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 8500

No Secured nor Hire Purchase Debts
Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................4000......90........25.9
MBNA...........................3000......70........25.9
BBSRC .........................3100......100.......0
RBS............................500.......15........13
Mint...........................1800......35........20
Capital One....................5000......140.......9.6
Total unsecured debts..........17400.....450.......-

Monthly Budget Summary
Total monthly income.................... 2,870
Expenses (including HP & secured debts). 2,256.5
Available for debt repayments........... 613.5
Monthly UNsecured debt repayments....... 450
Amount left after debt repayments....... 163.5
Personal Balance Sheet Summary
Total assets (things you own)........... 8,500
Total HP & Secured debt................. -0
Total Unsecured debt.................... -17,400
Net Assets.............................. -8,900

The loans are also debts and if you have overdrafts don't forget to include them (and their APR) in your list of debts - so you can tackle your debts in the right order (for any overdrafts put in a typical amount of od the day before payday to give a true picture.

Are you going to be putting all your overpayments towards MBNA first? As its the highest APR that would make sense as a starting point, and once you have moved house you should free up plenty from reduced petrol & rent to start making real inroads.

Whats the limit on RBS? can you balance transfer an amount from one of your more expensive debts to this lower rate?

Good luck

Numpty_Monkey

julespickles wrote: »

Hi Washer,
Thanks for the quick reply, the £2500 is savings towards a house deposit, it was a gift from my father-in-law, who made it very clear that he expected us to save it as he (and grandma-in-law) are going to add to it through the next 2 years. We're hoping to get ourselves df by the time we have enough of a deposit to buy somewhere, at the start of 2012.

Mobiles are with vodafone, can downgrade to slightly (£5/month) cheaper packages, but have to commit to another 6 months. Hoping to be able to do better than that by threatening to leave when upgrades are due...

Fair enough on that, is it in the best ISA ?

WASHER

Have to commit to a further 6 months? I have never heard that before. Phone again and ask, I think that other person was on commission, I phoned and got my mothers mobile reduced with Vodafone no problem, and I certainly didn't commit to a further 6 months.

LittleMoog

Numpty_Monkey wrote: »

Fair enough on that, is it in the best ISA ?

it is, checked them out through MSE before opening it

LittleMoog

WASHER wrote: »

Have to commit to a further 6 months? I have never heard that before. Phone again and ask, I think that other person was on commission, I phoned and got my mothers mobile reduced with Vodafone no problem, and I certainly didn't commit to a further 6 months.

I didn't ring them, just checked through the my account section of the website, offered me two plans that were £5 cheaper, but said it would extend my contract by a further 6 months. I hadn't thought of ringing to see if they could do better *looks dumb* Will give CS a ring tonight and see what they can do for me, cheers

WASHER

How much are your loans, i ask because with the level of debt you have, you are probably going to have problems getting a mortgage even with a deposit, so i would suggest that the £2500 is used to repay MBNA and it would save you money in the long run as the interest is high, and you could put the £70 per month into an ISA and rebuild up the savings you were given. Does that make sense?