New user...SOA help!

paulm_1974

Hi all, and what an amazing forum I must say!
I'm struggling to get my finances in order and possibly I have left it too late...

I am using some of Martin's tips, however additional expert help would be extremely helpful!!!

Here's my SOA:

Household...............2 Adults (married)
........................2 Children (under 9)

>>>>>>>> Total Income <<<<<<<<
My Salary...............2,240
Partner Salary............547
Child Benefit.............146
Tax Credit.................44
Share Saver................63 (One off of £750 every March)
Other income...............35 (see note i. below)

Total Income............3,075

---

>>>>>> Total Outgoings <<<<<<<
Mortgage................1,137 (5.29% fixed till 2013!)
Child Trust Fund...........20
Store Card.................60 (Lim. £3,600 - Bal. £ 630 - APR 26%)
CC_1 (mine)................15 (Lim. £8,500 - Bal. £ 448 - APR 18.95%)
CC_2 (mine)................58 (Lim. £9,400 - Bal. £8,554 - APR 17.95% and 0% on part of the balance till Mar-11)
CC_3 (partner).............42 (Lim. £2,200 - Bal. £1,857 - APR 14.9% on £476 + 6.9% till repaid on £1,341)
CC_4 (partner).............43 (Lim. £2,000 - Bal. £1,457 - APR 0% to Nov-10 then 19.9%)
CC_5 (mine)...............135 (Lim. £8,000 - Bal. £6,477 - APR 0% to Nov-10 then 16.9%)
CC_6 (mine)...............130 (Lim. £5,950 - Bal. £5,816 - APR 0% to Sep-11 then 16.9%)
OD Int. Account_1..........15 (Lim. £5,200 - Bal. £3,180 - APR 19.3%)
OD Int. Account_2..........20 (Lim. £1,750 - Bal. £1,750 - APR 18.9%)
OD Int. Account_3...........4 (Lim. £ 500 - Bal. £ 475 - APR 9.8%)
Council Tax...............125
Gas........................50 (switched in Aug-10)
Electricity................30 (switched in Aug-10)
Water......................14
Sewage.....................13
TV Licence.................12
Sky/Br'band/Tel/Calls......51 (see ii. below)
Mobiles (x2)...............60
Home/Content Ins...........13
Life & Critical Cover......81 (myself & partner)
Income Protection..........33 (myself)
Life Cover..................5 (partner)
Car_1 Ins..................50 (see iii. below)
Car_2 Ins..................55 (see iii. below)
Petrol....................100
Road Tax (2 cars)..........30
MOTs/Serv./Tyres/etc.......25
Breakdown...................4
Clothing...................20
Gym Membership (fam).......75
Children activities........69 (see iv. below)
Beautician.................34
Hairdresser................20
Contact Lenses.............15
Lottery....................10
Entr./Xmas/Hol/etc..........0 (see v. below)
Food/Main Shopping........380

Total Income............3,053

---

>>>>>>>>>> Notes <<<<<<<<<<<
i. Average 12 months income for Ebay, Cashback and Mistery Shopper.
ii. SKY incl. TV £22, Broadband £7.50, Tel line £11, Calls approx. £10
iii. Car insurances are high due to claim/points. Will gradually reduce from Nov-10
iv. This includes sports activities and language courses
v. Obviously this is unrealistic, hence new possible credit added to overdrafts :-(
vi. where needed all figures have been calculated monthly
vii. Some of the 0% CC are coming to the end of the interest-free period, hence repayments will go up.
viii. During the past 6 months I have been refused a loan once and credit cards twice... cannot tart anymore!
ix. No savings in household!

Thank you for your help.

Regards

looktothefuture

Hi PaulM... it might be easier if you do a proper SOA as it lists your income and outgoings in an easier format.

There are a few things you could change/cut down so I'll go through them and make a few comments shortly.

isy1011

Hello. well done for posting.

Can you convert your SOA into the one on this site. See SOA thread. Folks on here are more used to that format so you will get more replies I think.

looktothefuture

So there are a few things you can cut down on...


Lets look at the monthlies first

• Groceries - you can cut this down to £200 easily - Check out the Moneysaving Oldstyle board
• Road Tax - you don't pay £30 a month on Road tax - Divide this by 12 to get your monthly figure you should be putting away to pay for this at the end of the year/6 months
• Mobile - could you move to PAYG or reduce the package you are on?
• Sky - Reduce the package? Looks like you are on the same as I am so probably not all that possible!
• MOT - Same as above
• Petrol - Check out Martin's Blog on how to get more petrol for your money, if it doesn't work try limiting where you drive and perhaps use public transport for shorter trips into town or to the kids activities.
• Life Cover - Why does your partner need the £5 additional life cover? Is it a specialised cover ie cancer/woman cover? Is it really necessary?
• Life/Critical Cover - is it really necessary? Or a requirment of your mortgage?
• Income Protection - Same as above

Now for the luxuary items! (Sorry if this feels harsh!) There are more important things that you could be using your money toward right now. (Beleive it or not... they add up to a whopping £200 in luxuries a month - I spend £20 on 3 ppl a month!)

• Gym - it's not necessary - Cancel it/reduce it!
• Childrens Activities - it is not necessary, both children are under 9yo - Cancel it
• Beautician - It is not necessary - Stop these appointments!
• Hairdresser - Everyone needs a good haircut but £20 a month is not necessary.
• Lottery - Not necessary!

Good luck!

paulm_1974

Thanks so much for the quick response!

I will transfer all on MSE standard SOA and post again on this thread.

looktothefuture,

• Groceries - Thanks, I'll check the website
• Road Tax - I got to the £30 a month as follow: car1 = £68.75 (6 mths), car2 = £112.75 (6 mths). Total £363 for the year, divided by 12 = £30.25 monthly. I've looked at directgov and paid in advance for 12 mths the 2 cars would cost £330... saving me £2.75 a month. Every little helps.
• Mobile - Will try to shop around. btw this is for 2 mobiles.
• Sky - You are right, I only have the minimum here + £2 extra for kids and documentary channels.
• MOT - I've calculated for: 2 MOTs, 1 Service (as one car is old), tyres and (touch wood) something needing replacing. Then divided by 12, so it's just a rough assumption.
• Petrol - I'll check out the blog
• Life Cover - Not really sure what Assurances and/or Income Protections are required for the mortgage. Doesn't everyone have some? Is there anywhere on this site to find out more or to compare and switch like other insurances?
• Life/Critical Cover - see above
• Income Protection - see above

---

• Gym - Will try to pursuade the wife...
• Childrens Activities - You are right, but I'd rather go without eating than taking the boys out of football! Will try to cut down some.
• Beautician - same as the Gym
• Hairdresser - This is for the whole family, but I guess we could reduce and find cheaper saloons.
• Lottery - True, just hoping "It could be me...!"

Thanks so much for you input, much appreciated.

looktothefuture

paulm_1974 wrote: »

Thanks so much for the quick response!

I will transfer all on MSE standard SOA and post again on this thread.


looktothefuture,

• Groceries - Thanks, I'll check the website
• Road Tax - I got to the £30 a month as follow: car1 = £68.75 (6 mths), car2 = £112.75 (6 mths). Total £363 for the year, divided by 12 = £30.25 monthly. I've looked at directgov and paid in advance for 12 mths the 2 cars would cost £330... saving me £2.75 a month. Every little helps.
• Mobile - Will try to shop around. btw this is for 2 mobiles.
• Sky - You are right, I only have the minimum here + £2 extra for kids and documentary channels.
• MOT - I've calculated for: 2 MOTs, 1 Service (as one car is old), tyres and (touch wood) something needing replacing. Then divided by 12, so it's just a rough assumption.
• Petrol - I'll check out the blog
• Life Cover - Not really sure what Assurances and/or Income Protections are required for the mortgage. Doesn't everyone have some? Is there anywhere on this site to find out more or to compare and switch like other insurances?
• Life/Critical Cover - see above
• Income Protection - see above

---

• Gym - Will try to pursuade the wife...
• Childrens Activities - You are right, but I'd rather go without eating than taking the boys out of football! Will try to cut down some.
• Beautician - same as the Gym
• Hairdresser - This is for the whole family, but I guess we could reduce and find cheaper saloons.
• Lottery - True, just hoping "It could be me...!"

Thanks so much for you input, much appreciated.

No problem! Can't wait to see your proper SOA!

paulm_1974

Hi goodgirl80,

Thank you for your post.

Most of the "luxuries" are around wife and children, so I'll have to get the family around the table for a chat and we'll have to be realistic...

Regards
Paul

the_cat

paulm_1974 wrote: »

Hi goodgirl80,

Thank you for your post.

Most of the "luxuries" are around wife and children, so I'll have to get the family around the table for a chat and we'll have to be realistic...

Regards
Paul

I'm glad you posted that! I was about to make a less than charitable comment about the need to 'try and persuade' your wife about the reality of your situation

Is there an option for her to increase her income? She is presumably working part time and this option might be more palatable than giving up all her 'luxuries' (I still think she is going to have to give up most though;))

JWF1958

I think if you have young children full of energy then the cost of football activities may not feel like a luxury, if it keeps you all sane. Though the amount seems high.

btw, when my teenagers were toddlers, I bought hairdressing scissors from Superdrug. My 20 yr old now cuts my hair. Yes, a good haircut would be wonderful, the budget just doesn't allow it.

paulm_1974

Here's my SOA in standard format:

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 2
Number of cars owned.................... 2
Monthly Income Details
Monthly income after tax................ 2240
Partners monthly income after tax....... 547
Benefits................................ 190
Other income............................ 98
Total monthly income.................... 3075
Monthly Expense Details
Mortgage................................ 1137
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 30
Gas..................................... 50
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 21
Mobile phone............................ 60
TV Licence.............................. 12
Satellite/Cable TV...................... 22
Internet Services....................... 7.5
Groceries etc. ......................... 380
Clothing................................ 20
Petrol/diesel........................... 100
Road tax................................ 30
Car Insurance........................... 105
Car maintenance (including MOT)......... 29
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 69
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 0
Buildings insurance..................... 6.5
Contents insurance...................... 6.5
Life assurance ......................... 86
Other insurance......................... 33
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Lottery................................. 10
Beautician.............................. 34
Gym Membership (family)................. 75
Child Trust Funds (x2).................. 20
Total monthly expenses.................. 2530.5

Assets
Cash.................................... 0
House value (Gross)..................... 255000
Shares and bonds........................ 0
Car(s).................................. 4000
Other assets............................ 0
Total Assets............................ 259000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 185447...(1137).....5.29
Total secured & HP debts...... 185447....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Store Card.....................630.......60........26
CC_1...........................448.......15........18.95
CC_2...........................8554......58........17.95
OD Interest_3..................475.......4.........9.8
OD Interest_2..................1750......20........18.9
OD Interest_1..................3180......15........19.3
CC_6...........................5816......130.......0
CC_5...........................6477......135.......0
CC_4...........................1457......43........0
CC_3...........................1857......42........6.9
Total unsecured debts..........30644.....522.......-

Monthly Budget Summary
Total monthly income.................... 3,075
Expenses (including HP & secured debts). 2,530.5
Available for debt repayments........... 544.5
Monthly UNsecured debt repayments....... 522
Amount left after debt repayments....... 22.5
Personal Balance Sheet Summary
Total assets (things you own)........... 259,000
Total HP & Secured debt................. -185,447
Total Unsecured debt.................... -30,644
Net Assets.............................. 42,909
Created using the SOA calculator at makesenseofcards.
Reproduced on Moneysavingexpert with permission, using IE browser.

sueeve

I would have thougt £100 off your groceries bill should be an immediate aim.
If you don't draw back on the luxuries your debt will grow.