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Rough SOA, need some guidance

This is our rough SOA. It's the first time I've done this so hence why it's rough. My current wage is based on SMA as I am currently on maternity pay. My wage has also varied since I started maternity pay in February. My husband's wages are approximate as he works 12 hour shifts either 5 or 7 days a week so each month his wages are different.
We currently have a £2000 overdraft and are always using this, partly because hubby is quite a spender and spends too much - he finds it very difficult to control this and no matter how many times his mum, my mum and me say to him about it, he still carries on!
Ideally it would be great if we could win the lottery as this would solve our problems but that's not going to happen.
I'm trying to think of ways that we can control our overdraft - preferably get the account back to £0 and then sort it out via our wages making the account solely for paying bills and shopping rather than supporting my husband's wims (even though he has an account of his own).
*The payments regarding my car - car insurance, tax and mot - are made from my own account, not the joint account (I sometimes tend to use my ISA for this which is there for emergencies).*
I doubt we'd be able to get a loan as hubby has about 3 credit cards and I already have a loan which I had to take out to get a new car just under 2 years ago - my last car was on its way out so it was a bit of an emergency that we needed a new car.

Apart from the obvious - cutting down expenditure that isn't necessary and talking to hubby/taking his card off him etc - what else can we/I do to sort the joint account out?

I'm not due to go back to work until October but also intend on going back part-time (20-22 hours a week) however we will also obviously need to shell out for childcare for our little boy.

Any help would be greatly appreciated.

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details

Monthly income after tax................ 541.59
Partners monthly income after tax....... 1400
Benefits................................ 81.2
Other income............................ 0
Total monthly income.................... 2022.79


Monthly Expense Details

Mortgage................................ 256.3
Secured/HP loan repayments.............. 0
Rent.................................... 156.23
Management charge (leasehold property).. 0
Council tax............................. 113
Electricity............................. 22
Gas..................................... 25
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 29.33
Mobile phone............................ 66.08
TV Licence.............................. 12.37
Satellite/Cable TV...................... 79.95
Internet Services....................... 0
Groceries etc. ......................... 50
Clothing................................ 30
Petrol/diesel........................... 20
Road tax................................ 95
Car Insurance........................... 29.7
Car maintenance (including MOT)......... 40
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..................... 46.41
Contents insurance...................... 23.82
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1172.19



Assets

Cash.................................... 0
House value (Gross)..................... 135000
Shares and bonds........................ 0
Car(s).................................. 25000
Other assets............................ 0
Total Assets............................ 160000



Secured & HP Debts

Description....................Debt......Monthly...APR
Mortgage...................... 0........(256.3)....0
Total secured & HP debts...... 0.........-.........-


Unsecured Debts
Description....................Debt......Monthly...APR
BOS Preference.................0.........11.46.....0
River Island...................0.........8.01......0
Car loan.......................0.........99.93.....0
Total unsecured debts..........0.........119.4.....-



Monthly Budget Summary

Total monthly income.................... 2,022.79
Expenses (including HP & secured debts). 1,172.19
Available for debt repayments........... 850.6
Monthly UNsecured debt repayments....... 119.4
Amount left after debt repayments....... 731.2


Personal Balance Sheet Summary
Total assets (things you own)........... 160,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 160,000


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

Comments

  • Hi there. First, are you sure these figures are correct for the monthly amounts? The ones that jumped out at me are:

    Groceries - £50 - doesn't seem like enough to feed 2 adults and a baby
    Road Tax - £95 - £1140 a year is def. wrong!
    Petrol - £20 - won't get you far these days, are you sure?
    Buildings insurance - £46.41 - seems very expensive

    Other than checking those figures, I would also look to reduce or cut out the TV bill. But your SOA also indicates that you have more than £700 a month left. Since you are in your OD each month then this obviously is not the case.

    I would say that you need to produce a more accurate SOA so that you can see how much really goes where - this should include the total amounts of debts (including the OD) and their APRs so you can see how much they are costing you in terms of interest etc.

    You say that your husband has a spending problem - he needs to realise the impact this is having on your finances but you can't make him arrive at his "lightbulb" moment, he has to do it himself. But perhaps seeing a detailed breakdown like this will help him, especially if he can see in black and white how much money he is frittering away each month :)
  • FireWyrm
    FireWyrm Posts: 6,557 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    Hi Bach

    First, how come you're paying both rent and mortgage...shared ownership? Can you buy the rented part...just a thought.

    Cable/Satelite TV is awfully high...can you downgrade your package?
    Get rid of the landline unless absolutely required. You have a mobile (see my next point) and anyone you want to talk to presumably has your number.
    Mobiles...pay as you go? If you're stuck on contract, are you both stuck in it, can one of you sacrifice and go prepaid instead?

    Buildings and Contents insurance...are you sure you're getting the best deal? Try comparison sites for more competitive quotes.

    Cut down the clothing allowance? Cut the present's in half.
    Likewise, the Road Tax...can you downgrade the car...trade in your big car for a little runaround and put the balance to clearing the overdraft?

    Is that petrol bill for one month? £20, are you sure? It costs me £40 to fill the tank of a little 1ltr Peugeot and I use two tanks a month minimum.

    Are you sure you're sticking to that budget? When I started checking my finances, I found £80 a month in general cash withdrawals every month that weren't accounted for. Likewise, the groceries budget at £50? It takes dedication and it's certainly possible, but I'd be wary of using that figure. I used to fib to myself all the time, it's just a few things here and there, but those few things added up to hundreds.

    Car maintenance...£40 a month...every month? Are you sure?

    With regard to hubbies spending....can you go to a single joint 'house account' from which the bills are paid and then diseminate 'pocket' money to your private accounts? Hubby has to understand you are living a champagne lifestyle on a cider budget. No one, no matter self centred can fail to understand when the figures are put in front of them, but that depends on a full and frank conversation. He's probably thinking you are exagerating. How much of an argument do you want to get into. If the answer is that you've been ignoring the problem for the sake of a quiet life, then now is the time to deal head on before you get any further into trouble. The bottom line is that you are both in this together and he's making life harder than it has to be. However, I'd take a long look at your own habits before-hand or you run the risk of a 'well you do it too' type argument which doesnt help at all. You both have to be equally in this, together and pulling in the same direction.
    Debt Free! Long road, but we did it
    Meet my best friend : YNAB (you need a budget)
    My other best friend is a filofax.
    Do or do not, there is no try....Yoda.

    [/COLOR]
  • Sparkerly
    Sparkerly Posts: 144 Forumite
    One thing I would say is that you have to help your husband to have his lightbulb moment and not just force it on him - I know from bitter experience. One tip I was given which worked for me was to get all the figures together to show him a breakdown of whats coming in and going out, then show him where you would be in a years time if things didn't change, then have some ideaas that could help improve things. You are in the fortunate position that you have enough income to cover your outgoings, when I joined we were oversepnding by over £400 a month without actually realising :eek: We were still spending as if we had two incomes after I gave up work.

    It can be done and you have made the first step, but take it slow with your OH as you need him onside and not fighting against your cutbacks.
    June £25 a day 850.94/750 :beer:
    July £15 a day 220/465
    LBM - 26/5/11 - Debt £33,739.62 :eek: Now -£32,893.20

    Nifty Thrifty weightloss July 0/10lbs 0/£1,500
  • bach230
    bach230 Posts: 68 Forumite
    Apologies, either I misread the preview to the SOA or just didn't see that it was monthly payments.

    Groceries is approximately £50 a week, although I can spend alot less than that as I just make a list and get the essentials.
    Road Tax - £95 is for 6 months
    Petrol - can be £20 over 2 weeks or more as I'm not using the car much at the moment with being on maternity leave
    Buildings Insurance - (monthly) this has just renewed with Halifax each time, hubby took care of the insurance and mortgage for the house as I don't really understand it all!
    I have suggested to hubby about reducing the tv bill (with sky) as we don't really need all the channels but he's quite lazy in the sense of doing things!

    I might have to have hubby to help me with the SOA as I haven't got a clue about APRs and there are probably other things that I need to put into the equation.

    With regards to mobiles - I am on pay as you go but hubby is on contract. He won't budge on this and insists that it will come down, but it never seems to. He likes to use his phone an awful lot!

    The clothing allowance and presents were just estimates - I rarely ever buy anything for myself at all, let alone clothes. Hubby tends to mix buying clothes from his own account as well as the joint account. As for presents, it's a case of maybe £10-£20 per person for about 5-6 people or so for their birthdays, spread throughout the year.
    As for downgrading my car, that's not a possibility as the car I have is, at the moment, perfect for our now extended family.

    Hope that helps to explain a few things but I think I may have to readjust some of the amounts etc and get hubby's help in working out some things.
  • FireWyrm
    FireWyrm Posts: 6,557 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    bach230 wrote: »
    Apologies, either I misread the preview to the SOA or just didn't see that it was monthly payments.

    No problem, easily done. But I would go through your finances with a fine toothed comb. Seriously, since you are busting your overdraft regularly, your estimates are way out. I suspect you might be worse off than you think.
    bach230 wrote: »
    Groceries is approximately £50 a week, although I can spend alot less than that as I just make a list and get the essentials.

    Certainly try to get this down. Visit the Old Style thread for tips. It's definately doable and better to get this down. By the way, when you include 'Groceries' you are counting eating out, lunchtime sandwiches, the odd bottle of milk arn't you? You'd be shocked how much the average person (me included) just overlook that odd trip down the local corner shop. It all adds up.
    bach230 wrote: »
    Road Tax - £95 is for 6 months

    If this is what you have to pay, then fair enough, but just for comparisons' sake, I drive a little peugeot 107 and my tax is £35 per YEAR.
    bach230 wrote: »
    Petrol - can be £20 over 2 weeks or more as I'm not using the car much at the moment with being on maternity leave

    Fair enough, but keep an eye on it. With the cost of fuel going up daily, it's easy to overlook the odd trip out when you could have walked to the shop instead.
    bach230 wrote: »
    Buildings Insurance - (monthly) this has just renewed with Halifax each time, hubby took care of the insurance and mortgage for the house as I don't really understand it all!
    You cant argue your case and the household finances with him until you do. Can he give you exact figures, comparisons and why he chose these providers over any other?
    bach230 wrote: »
    I have suggested to hubby about reducing the tv bill (with sky) as we don't really need all the channels but he's quite lazy in the sense of doing things!

    Ditto.
    bach230 wrote: »
    I might have to have hubby to help me with the SOA as I haven't got a clue about APRs and there are probably other things that I need to put into the equation.
    Excellent idea. If you both work through it together and you are brutally honest, the answer the drops out at the end will give him pause for thought unless he's not the man you married.
    bach230 wrote: »
    With regards to mobiles - I am on pay as you go but hubby is on contract. He won't budge on this and insists that it will come down, but it never seems to. He likes to use his phone an awful lot!

    Then that's your argument. You've waited long enough for him to sort this out and it never gets better. I'd serve him a few baked beans on toast meals and ask him if he'd rather reduce his phone bill, or eat baked beans for months on end?
    bach230 wrote: »
    The clothing allowance and presents were just estimates - I rarely ever buy anything for myself at all, let alone clothes.
    Same for most women with families. You're not alone.
    bach230 wrote: »
    Hubby tends to mix buying clothes from his own account as well as the joint account.

    Ahhhh...that's a no no. While he's out buying that new polo shirt he absolutely must have, you're trying to feed a baby. Simple trade off. If you must have a clothes budget as such, either you both agree every purchase, or, you have a set amount in a seperate account.
    bach230 wrote: »
    As for presents, it's a case of maybe £10-£20 per person for about 5-6 people or so for their birthdays, spread throughout the year.

    Thought so, but I would spread this money around. Perhaps have a savings tin instead of leaving it in the main pot because my guess is that it gets left there and then chomped up when you need a new can of baby formula which means it isnt there when you want it - so, you use the credit card...just this once....and round it goes.
    bach230 wrote: »
    As for downgrading my car, that's not a possibility as the car I have is, at the moment, perfect for our now extended family.

    Fair enough, but there are cheaper models of car that have the same carrying capacity but not the same cudos. I dont know much about them myself, but a peugeot 107 for runaround and a bigger Fiat serves my family just fine. Perhaps some more expert advice needed here.
    bach230 wrote: »
    Hope that helps to explain a few things but I think I may have to readjust some of the amounts etc and get hubby's help in working out some things.

    Absolutely. You're both in this together. It isnt a get at Hubby exercise, it's a let's both get out of this mess exercise.
    Debt Free! Long road, but we did it
    Meet my best friend : YNAB (you need a budget)
    My other best friend is a filofax.
    Do or do not, there is no try....Yoda.

    [/COLOR]
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