Can you help with my budget?

Engelbert

Hi

We are not in debt, but really want to stay that way so I hope it's not too cheeky posting on here!

I am going on maternity leave in August, and would like to take the full year. That means 13 weeks unpaid - eek!

I've written a budget, could you have a look and let me know

a) if it's realistic
b) if we can pare back any more!

I haven't included anything for fun and frolics, but I calculate we're going to need to save about £500 just to break even over the last 13 weeks of my maternity leave (plus realistically more for emergencies and some pin money).

Tithing is important to us, so we would like to keep that in.

1878.6 Income
860 Mortgage
187.86 tithe
30 life insurance
15 home & contents insurance
110 food
50 gas
20 electric
10 Breakdown cover
40 car insurance
10 car tax
30 car service/MOT
25 water
50 phones
119 council tax
315 train travel
130 petrol costs
2001.86 total

123.26 Defecit per month

Thank-you for your help

DarkConvict

That is a large tithe, a creditor kicked up a fuss not long ago about a much smaller tithe.

Here is the previous topic - http://forums.moneysavingexpert.com/showthread.html?t=2294751&highlight=tithe (worth reading)
As important as it is to your religious beliefs you should do it on surplus income not actual income. Without the tithe your surplus ~£50.

Overall on the budge,t mortgage is very high, but i guess you cant reduce this.
Phones is high, if a mobile and out of contract switch to PAYG.
Council tax is that paid every 10 or 12 months?
Train costs and petrol costs are high, can these be reduced by season tickets or boarding at a different train station?

CLAPTON

is this your current budget?
if so then it says you are spending more that your income but you say you have no debt
how can that be so?

LeeSouthEast

Religion is not supposed to make you broke. Ditch it (the tithe, not the religion!), until you go back, or as DC says, significantly reduce it.

milliemonster

Remember you will also receive around £80 a month child benefit and tax credits which will be at least another £40 probably more for the first year which means you will break even on those figures.

Your electric seems very low, this will undoubtedly increase when you are at home all the time with a baby, extra washing etc, you may find your gas increasing aswell

You also haven't factored in anything for clothing, even if not for yourselves, your baby will need a lot of new clothes in the first year which will cost. What about equipment for the baby?, birthday and xmas presents?

TV Licence? prescriptions, dental bills??

You would be better filling in a proper SOA so you make sure you don't forget anything,

Engelbert

Thank-you - it's good to have thoughts from people coming to it fresh as it were

The mortgage is a lot, we are buying at the moment, but it is only £100/month more than our rent (we live in the SE), and a house not a flat. It should be easily affordable when I go back to work!

Commuting is a big cost (train into London every day plus Oyster card) & not easily reducible. Do the petrol costs seem high, as that is an area I can easily cut down on. I am basing that on costs at the moment, but realistically may go down if I am at home. What would be realistic?

The phones I am in a dilemma about. We both have contracts, not sure when they will end, but could look at PAYG. I think looking at past bills, £50 is on the high side when I have had to call 0800 numbers etc, and it may be more like £40/month. My contract is a really good deal (friends and family half price) so I get a lot for £20/month, so don't really want to cancel that. H is on the most basic contract I believe.

CT is already over 12 months.

Will read the thread about tithing - thank-you

Engelbert

Oh sorry more replies

@ Clapton - It's a projected budget for next year, I'm trying to calculate how much we need to save

@ Milliemonster - income is £1700 H wages, £92 CTC (as far as I can work out from the website) and £86.60 Child benefit. SHould have said that earlier. I was thinking we would be OK for clothes for 13 weeks. We don't have a TV, & prescriptions & dentist will be free for me at least, (for H will have to come out of emergencies budget). Electric and gas are based on current and the fact it will be summer, but you are right they are probably quite hopeful!

Thank-you for replying!

DarkConvict

Use this to reduce phone call costs, instead of ringing 0800/0870/0845/0844 use the local numbers - http://saynoto0870.com/search.php

Petrol costs do seem high but it depends on your usage, and petrol prices are rising, and as you say if your off work won't be doing it as much. As your off work have you taken off the costs of travel you won't be doing whilst on mat leave.

Ask your operator about your phone bill, say you feel it is high and see if they can offer anything to reduce it, they may give you something as a goodwill gesture, or contract maybe on rolling 30 days, you never know unless you ask. Just becareful about agreeing new prices on the phone incase its a new contract, get changes in writing paper or email.

Im ethical, but not even slightly religious so i can only offer brief opinions on the monthly donation. I hope you find the topic useful, it was certainly very debatable at the time. And you are not going to be alone. What is probably best to do is speak to your local priest with regards to it and ask for their guidance on the tithing.

bargainbetty

A friend of mine wished to maintain her tithe when she was aiming to reduce her debts, but even her minister pointed out that she could not justify 10% of her income. He asked to har to make a nominal contribution, and turn up early before services to help with tidying up, putting hymn books out, etc.... giving of her time rather than money.

Personally, I cannot see how you can justify giving more to your church than you are allowing yourselves for food each month. I'm an atheist, but I can't envision any compassionate deity wishing you to shortchange your own child for any reason.

I wish you the very best of luck x

gonzo127

i think the tithe will always generally cause debate as creditors will usually not accept it as a outgoing - go figure in a country dominated by politcal correctness

anyways as the others have said it would be worth while talking to your church elder/priest about it as it is something that could be seen as a genuine need, which is what i am under the impression the tithe is payed to cover

one thing i do think you need to look at is the groceries, i am guessing you are planning on breastfeeding if possible however if you do this just remember YOU will need to increase your food intake so your body has the fuel needed to produce the milk, if not you need to think about the formula and nappies which are quite expensive so £110 might not be enough money for the 3 of you, i usually suggest people aim for about £60 per person per month

anyways for savings, not knowing what car you have this is just a thought, if you are not going to be driving as much and if your car isnt worth a lot of money have you considered dropping the level of cover from fully comp to third party or third party fire and theft, someone did this a few months ago and saved about £20 a month on their car insurance

also breakdown cover seem a lot! £120 a year is expensive do you need that level of cover? basic cover is under £30 a year (and is less if you buy from a cashback site)

could you also drop your mortgage to interest only? if only for the 3 months you will be without pay

the.individual

Hi Engelbert,

I personally feel it is already a good first step that you can identify with all the figures/expenses.

It makes a lot of sense after having these figures in writing you know.

ANyway, I have shared my experience on my money management, which you can find on my contact details.

Perhaps that might help with your budget? If not, do let me know if I can help in any other way!

Cheers...