Desperate to STAY out of debt - is this SOA appropriate?

CompBunny

Hiya,

Hope this post is suitable for this board, because I am a DFW! I just don't happen to be in debt right now!!

Last year my partner and I got into financial problems. My partner was owed lots of expenses by work, my health was rapidly declining and we were both utterly unhappy and depressed and lost control of our affairs and spending. We were in a city 140 miles from either of our family or friends and felt so trapped.

Its a long story, but we are now living with my mother back in my hometown. My partner has a new job, all our debts are paid (apart from student loans) and we are looking to move out again in the new year. We are very thankful that my mother has allowed us to stay with her for "at cost" rent to get back on our feet!!!

She is happy for us to stay for as long as we want to to enable us to start again from a strong position, I think saving up £3000 will enable us to be able to cover first months rent, deposit, a few hundred for BT connection etc and some "emergency money". We are also opening a car fund, as my banger is almost 20years old and will unforunately die one day and we need a car for my partner to get to work. If my forecasted SOA is correct, when we move we will have a surplus each month to save?

I'd really appreciate if someone could take a look at this SOA and say if you think I'm being realistic!

We have totally changed our spending habits, but I'm so scared of being in debt again and would really value your opinions.

Thankyou!
Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1464.75
Benefits................................ 468.21
Other income............................ 0
Total monthly income.................... 1932.96

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 130
Electricity............................. 50
Gas..................................... 40
Oil..................................... 0
Water rates............................. 30
Telephone (land line)................... 23 includes internet
Mobile phone............................ 28
TV Licence.............................. 13
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 40
Petrol/diesel........................... 50
Road tax................................ 12
Car Insurance........................... 60
Car maintenance (including MOT)......... 40
Car parking............................. 4
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7.2
Pet insurance/vet bills................. 12
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1284.2


Assets
Cash.................................... 1600
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 150
Other assets............................ 0
Total Assets............................ 1750

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 1,932.96
Expenses (including HP & secured debts). 1,284.2
Available for debt repayments........... 648.76
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 648.76

Personal Balance Sheet Summary
Total assets (things you own)........... 1,750
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 1,750

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

HappyMJ

If that was your actual SOA then it would be fantastic. There is a lot missing.

Tixy

How long have you been living back with Mum? In that time has this been realistic (ie have you been paying off £600 from your debts each month, or saving £600 a month?).

Are the costs your contribution to the household costs (ie council tax is your proportion - maybe 2/3 of the total?)

Is £150 what you actually spend on groceries for the 2 of you (and pets?) or is this what you want to aim to spend?

Is it realistic to spend nothing on entertainment? I'd budget something for this and you should still have a decent amount left over to save each month.

Edit - oh I've just wondered - is this what you hope your SoA will be once you move out again?

CompBunny

HappyMJ wrote: »

If that was your actual SOA then it would be fantastic. There is a lot missing.

Thankyou, what are the biggest things I am missing?

I didn't fill in entertainment as we adjust that for what money we have - usually playing cards or watching an old DVD to save money! Neither of us drink alcohol which also helps. What would be sensible to allow ourselves?

Oldernotwiser

£40 is a lot of money for clothes for two people when one of them isn't working.

You have pet insurance listed but what proportion of your grocery bill is spent on feeding your animal?

CompBunny

Thanks for replying!

Sorry, I should be clear, the above is what we hopefully WILL be spending

Tixy wrote: »

How long have you been living back with Mum? In that time has this been realistic (ie have you been paying off £600 from your debts each month, or saving £600 a month?).
We have been here since January, but my partner was unable to find a job until the beginning of September. His compromise agreement with his old job paid off most debts, and extremely frugal living paid off the rest. Of his first paycheck, all of it went into savings apart from contribution to Mum, the benefits I recieve went on food, fuel and everything else.

Are the costs your contribution to the household costs (ie council tax is your proportion - maybe 2/3 of the total?)
The costs are what I project our costs to be in a new rented property in the new year.

Is £150 what you actually spend on groceries for the 2 of you (and pets?) or is this what you want to aim to spend?
I have been doing the GC officially since September and unofficially since we moved back here and £150 is achievable for us and the dog Last month was £125-ish and I thought I'd been pretty lavish with our groceries!
Is it realistic to spend nothing on entertainment? I'd budget something for this and you should still have a decent amount left over to save each month.
I agree...yes I should try and set an amount to keep ourselves sane There are only so many strolls you can go on and card games you can play!

Edit - oh I've just wondered - is this what you hope your SoA will be once you move out again?
Sorry didn't see this! Yes it is

Niv

I cant really comment on the SOA itself too much as it is based on your educated guess of what you expect to spend. But I would say that if in a position to have over £600 surplus a month I would guess that most people would do some of the following:
1, spend more on food
2, get sky or cable
3, spend more on clothes
4, spend something on entertainment
5, spend something on a holiday

This is not a critisism of your SOA but I think concideration of the above should be taken into account to get a more realistic outcome. If you were in tonnes of debt you are more likely to be motivated to cut back on the luxeries in life, but with your predicted surplus sloshing around I find it much less likely.
Niv

mne2

£4 car parking seems an odd amount per month - is this correct?

Don't forget when you get your own place you need to budget for cleaning products etc (in case you missed these off your budget)

CompBunny

Thankyou

Oldernotwiser wrote: »

£40 is a lot of money for clothes for two people when one of them isn't working.

You are right, I didn't want to under budget! Last month we spent £14 on two jumpers for OH for work

You have pet insurance listed but what proportion of your grocery bill is spent on feeding your animal?
£16.80 every 3 months - he is only a little dog Its a good mid-range food.

mne2

Also you are paying more in insurance for your car than you pay in petrol - would suggest you aren't travelling far - perhaps consider the bus/walking instead?

CompBunny

mne2 wrote: »

£4 car parking seems an odd amount per month - is this correct?

Don't forget when you get your own place you need to budget for cleaning products etc (in case you missed these off your budget)

Yes, we allow ourselves one 30min trip into town per month parking and two or three trips to a pretty coastal area where they charge for parking

Good point about cleaning products, I buy about 80% of those used at my mum's house (I do all the cleaning, but she buys the products for her bathroom) out of my grocery budget. But should allow for a bit more for this!!

Niv wrote: »

I cant really comment on the SOA itself too much as it is based on your educated guess of what you expect to spend. But I would say that if in a position to have over £600 surplus a month I would guess that most people would do some of the following:
1, spend more on food
2, get sky or cable
3, spend more on clothes
4, spend something on entertainment
5, spend something on a holiday

This is not a critisism of your SOA but I think concideration of the above should be taken into account to get a more realistic outcome. If you were in tonnes of debt you are more likely to be motivated to cut back on the luxeries in life, but with your predicted surplus sloshing around I find it much less likely.
Niv

You have some fair points, but we have been in debt before and know what problems luxuries/lack of discipline can cause!! Also, as I can;t work I see it as my duty to spend tax payers money wisely, and also to contribute to our relationship by taking control of our finances. We certainly don't need sky, freeview is wonderful Although a holiday thats not in a caravan with clubcard vouchers would be nice one day!