Our first SOA

Tizzi

Hi,

I've been lurking here a long time, and have just sat down with my husband to work out our SOA. And I'm pretty shocked and disheartened, to be honest. We've had a big year, with our engagement, wedding and honeymoon, but I'm still dismayed by the fact that we can't seem to get clear of these debts. And now that I'm pregnant too, we really need to get things sorted!

Could you wiser mortals cast your eye over our SOA and share your thoughts/tips etc?

Thanks very much!

SOA:

Incoming:

Main Salary: 1850
Second Salary: 784

Total: 2634

Outgoings:

Mortgage: 770
Council Tax: 130
Gas: 70
Electric: 40
Water: 48
TV License: 12
Sky: 43.50 *
Phone: 35
Mobiles: 26
Food: 400 *
Car Insurance: 55
Petrol: 120
Life Insurance: 150
Car finance: 102
Pet Insurance: 120 *
0% purchase plan: 67
Internet: 14.50
Health Plan: 4.40
Credit Card payments: 200

Total: 2407

Credit Cards:

3199 @ 0% until 2008
4750 - currently transferring to 0% with 2% fee, will be 0% until 2008

Overdraft:

332 @ 0%
4806 @ 29.6%

Savings:

2000 *

* Sky tv - am very reluctant to cancel this as I'm on modified bed rest due to illness during pregnancy, and so am watching a lot of tv at the moment.
*Food - part of this is special vet-prescribed diet for pet due to chronic illness. Cannot change this part of the outgoings, but need to work on reducing our own food outgoings.
* Pet insurance - not financially worthwhile due to high excess and percentage of claim payments. Do need some cover though, so plan to get a cheap plan for accident cover only, and put the money I'm currently paying on insurance into ISA. Dog gets ill infrequently, but when ill needs hospitalisation on a drip etc. V. costly!
* Savings - I feel that we should pay our savings into the overdraft with the 29.6% interest rate, to reduce the amount of interest we pay each month. Husband not keen, as feels vulnerable without any 'emergency' funds.

tyllwyd

Is your figure of £150 life insurance correct? Do you need that much cover? (Or is it an endowment?)

According to your SOA, you have £200 surplus every month. Do you find you have that much over, or does it all get spent? What does it go on?

yung

Welcome to the world of DFW. sky TV you don't need to cancel but you can reduce it by selecting the channel you watch. the more experience folks will advises soon.

Mizz_Pink

Hi :hello:

I wanted to reply as ive just put on a new avator thingy ! wasnt sure if it works !!

Right:

Life ins is high
0% purchase plan , what is that ?
Car Ins is high
Gas is high
Water is high

Check https://www.moneysupermarket.com for cheaper insurances

Start a spending diary to see where all the cash goes, you would be suprised how much you spend on going out, lunches, the odd treat here and there!

Well done for sorting out your cc's on 0%

Have a look on the old style board for meal making tips.

Well done

:j

Tizzi

No, unfortunately we don't have £200 left over each month. I don't really know where it goes, but I think it gets swallowed up by the overdraft and fees.

I do know that we're not blowing the money on going out, drinking, smoking (both non-smokers), glossy magazines, beauty treatments etc, so it's certainly not being spent on fun stuff!

ETA: The 0% purchase plan is the 12 month 0% deal we bought our bed on, when our old one fell apart!

Bestthingsinlifearefree

Hi Tizzi,

welcome to MSE.

Congrats on the pregnancy. What is your due date ? Will you get maternity leave ?

I think you qualify for tax credits.

Mrs bestthings had our 1st on Nov 5th (it is hardwork but an amazing experience:j )

Sky needs to cut back, maybe to the basic package (e.g we got rid of sky movies and sport and never even missed it).

Once you have cleared your debt you can get it back (but you probably will not even miss it)

Most important thing is to look after yourself and stay positive.

Best,

lynzpower

Hiya tizzi :wave:

Ive cast my eye over- you have loads of savings to be made here .


SOA:

Incoming:

Main Salary: 1850
Second Salary: 784 ( will you be going back to work?)

Total: 2634

Outgoings:

Mortgage: 770 ( repayment? or IO?)
Council Tax: 130
Gas: 70 ( super high https://www.saveenergy.co.uk - get boiler lagged, get the heating off, energy saving lightbulbs etc extra jumpers time etc
Electric: 40 ( slightly high as above )
Water: 48 ( a bit high too, are you on a meter?)
TV License: 12
Sky: 43.50 * ( you dont need this)
Phone: 35 ( whats this can you break it down)
Mobiles: 26 ( how? contract payg etc?Do you NEED yours while you are on mat leave?) ) [/COLOR]
Food: 400 * ( how much of this is the dogs needs, how much is food- flr a couple 150 is plenty on food/cleaning toiletries, use up what you have in and buy only the essentials!)
Car Insurance: 55 ( is this the cheapest you can get?)_
Petrol: 120
Life Insurance: 150 :eek: as twyllyd says, whats this!?
Car finance: 102 ( apr? ending when etc) Pet Insurance: 120 *
0% purchase plan: 67 ( how much owing? )
Internet: 14.50
Health Plan: 4.40 do you NEED this? Whos it with?
Credit Card payments: 200

Total: 2407

Credit Cards:

3199 @ 0% until 2008
4750 - currently transferring to 0% with 2% fee, will be 0% until 2008

Overdraft:

332 @ 0%
4806 @ 29.6%

youve missed off the 0% bed finance and the car finance here as well

Savings:

2000 *
you are correct. theres no way your savings will be getting 29.6% thus you are borrowing to save. Keep a few hundred aside for emergencies tho

youve also not written down
clothes, shoes, dental, prescriptions, car tax, car repairs, your transport

What have you got to sell? Could you get on ebay/ amazon etc and get shot of some stuff over the busy season?

Bestthingsinlifearefree

I agree with your husband re the emergency 2K fund (just my personal opinion).

Are your savings in a mini cash ISA to get tax free status ?etc etc

Could you not transfer your bank account to a lower over draft rate i.e a different bank or 0% deal ?

Or e.g do the shopping on a low IR (interest rate) CC (credit card) and use the shopping cash to pay of the over draft.ie transfer the debt that way, to a lower rate.

Keep posting :beer:

Best,

Bestthingsinlifearefree

Mobile seems very high.

Me and Mrs Best have pay as you go, for emergency calls only, we spend about £5 every 3 months (she is on maternity leave, I work)

The good news is you have lots of ways / room to improve your financial budget / position.

Just take small positive steps.

Mrs(no)money

Tizzi wrote:

No, unfortunately we don't have £200 left over each month. I don't really know where it goes, but I think it gets swallowed up by the overdraft and fees.

Write down everything you spend, down to the last penny, keep receipts etc then you can see exactly where the moneys going. It really does make a difference!

Tizzi

Thank you all for the advice so far!

I forgot to say about the mobiles - that's due to come down shortly. I've sent off for a free PAYG sim (husband already on PAYG), and will be cancelling my contract. I'm out of the 12 month minimum, so no penalty for cancelling. Just waiting for my O2 sim now!

Our baby is due next May, I will get maternity leave, but we're not sure yet about whether I'll be going back or not. Part of the wanting to get our finances sorted is to make this issue clearer, really.

Our savings are in a mini cash ISA at the moment.

The bed will be paid off next september, although if we have any spare money at any point we can pay it off early without penalty.

I know the sky is a saving to be made if we cancelled it or downgraded to a cheaper package. It's just being stuck on bedrest and not feeling well, watching sky movies is one of the things I can still enjoy. I'm not saying I wouldn't downgrade/cancel, but I would certainly attempt to make other savings first.