My monthly budget - comments please

Southend1

Hi all

I'm looking for some constructive comments on my monthly budget please. It currently balances and I am left with a very small surplus each month which I save where possible. I am aware that I probably should have more savings for a rainy day but I bought my first house last November so am looking to build these up now I have budgeted for immediate works to the house. My work is fairly secure (fingers crossed!) - however my salary will remain the same for the next two years when it will drop by approx £3500 gross if I remain in the same job. Also, my mortgage is fixed rate until Nov 2013 but I am aware that rates are likely to rise. So I need to trim some fat from the budget.

I know I spend too much on my mobile (I do love my iPhone though! - cue comments from haters!) but I have a 2 year contract until Jan 2014. I also spend too much on drinking at home (love wine too) so should be able to cut back the groceries shopping. Lunches from Greggs are also a luxury I could cut out. But what else can you MSE people suggest?

Looking forward to reading any constructive suggestions. Thanks in advance.

Here's my SOA:

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1627
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1627
Monthly Expense Details
Mortgage................................ 578
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 77
Electricity............................. 16
Gas..................................... 28
Oil..................................... 0
Water rates............................. 41
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 21
Groceries etc. ......................... 160
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 18
Car Insurance........................... 47
Car maintenance (including MOT)......... 29
Car parking............................. 0
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 4
Pet insurance/vet bills................. 10
Buildings insurance..................... 27
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 17
Haircuts................................ 12
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 120
Newspapers.............................. 7
Lunches at work......................... 60
Union subs.............................. 14
House maintenance/DIY etc............... 25
Total monthly expenses.................. 1478

Assets
Cash.................................... 3500
House value (Gross)..................... 160000
Shares and bonds........................ 400
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 168900

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 115000...(578)......3.59
Total secured & HP debts...... 115000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan from family...............6000......50........0
Total unsecured debts..........6000......50........-

Monthly Budget Summary
Total monthly income.................... 1,627
Expenses (including HP & secured debts). 1,478
Available for debt repayments........... 149
Monthly UNsecured debt repayments....... 50
Amount left after debt repayments....... 99
Personal Balance Sheet Summary
Total assets (things you own)........... 168,900
Total HP & Secured debt................. -115,000
Total Unsecured debt.................... -6,000
Net Assets.............................. 47,900
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

getmore4less

I would seperate the booze out of your groceries either in entertainment or a new seperate entry

you can track progress on cutting back groceries as well as the booze.

Car is your big expense(after the house) and it a depreciating asset that will need replacing.
The cost of changing now may not save much imediately but there are plenty of £30 car tax that do 60mpg, if you could do without that might save more.

Southend1

Thanks for the comment getmore4less. I would estimate £12 per week on supermarket alcohol. The car I only bought last May and it's a nice one - I bought it with the intention to keep it until it dies. I don't do many miles, only shopping and family visits at weekend with the odd work trip. When I replace it, it is likely to be with a much cheaper model - changed priorities now I have the house to spend on! I have included cost of replacing in household emergency fund - there was logic in this (honestly!) as I will be flexible with how much I spend replacing the car (£2000-£5000) depending on what needs spending on the house. Also I am likely to inherit a small lump sum in the next 5 years so this would go towards replacing the car or stuff for the house depending on how things go.

Looking through my figures I've just noticed electricity seems on the low side so logged on to my supplier to look at my accounts and do need to increase the direct debit to £20 but also can cut gas by a few £ so it balances out overall.

Edited to add: Point about car tax and fuel economy noted - these will definitely be considered with the next car!

MFWannabe

Southend1 wrote: »

Hi all

I'm looking for some constructive comments on my monthly budget please. It currently balances and I am left with a very small surplus each month which I save where possible. I am aware that I probably should have more savings for a rainy day but I bought my first house last November so am looking to build these up now I have budgeted for immediate works to the house. My work is fairly secure (fingers crossed!) - however my salary will remain the same for the next two years when it will drop by approx £3500 gross if I remain in the same job. Also, my mortgage is fixed rate until Nov 2013 but I am aware that rates are likely to rise. So I need to trim some fat from the budget.

I know I spend too much on my mobile (I do love my iPhone though! - cue comments from haters!) but I have a 2 year contract until Jan 2014. I also spend too much on drinking at home (love wine too) so should be able to cut back the groceries shopping. Lunches from Greggs are also a luxury I could cut out. But what else can you MSE people suggest?

Looking forward to reading any constructive suggestions. Thanks in advance.

Here's my SOA:

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1627
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1627
Monthly Expense Details
Mortgage................................ 578
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 77
Electricity............................. 16
Gas..................................... 28
Oil..................................... 0
Water rates............................. 41 - should be much cheaper for you to have a water meter, check with your provider.
Telephone (land line)................... 0
Mobile phone............................ 35
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 21 - check comparison sites to see if you can get cheaper
Groceries etc. ......................... 160 - You should be able to cut some from this; even if it's £20
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 18
Car Insurance........................... 47 - check comparison sites to see if you can get cheaper
Car maintenance (including MOT)......... 29
Car parking............................. 0
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 4
Pet insurance/vet bills................. 10
Buildings insurance..................... 27 - check comparison sites to see if you can get cheaper
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 17
Haircuts................................ 12
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 120
Newspapers.............................. 7 - can you not look at these online instead?
Lunches at work......................... 60 - Definitely needs to be cut, make sure you take in a packed lunch; should be able to do this with current spend on groceries
Union subs.............................. 14
House maintenance/DIY etc............... 25
Total monthly expenses.................. 1478

Assets
Cash.................................... 3500
House value (Gross)..................... 160000
Shares and bonds........................ 400
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 168900

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 115000...(578)......3.59
Total secured & HP debts...... 115000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Loan from family...............6000......50........0
Total unsecured debts..........6000......50........-

Monthly Budget Summary
Total monthly income.................... 1,627
Expenses (including HP & secured debts). 1,478
Available for debt repayments........... 149
Monthly UNsecured debt repayments....... 50
Amount left after debt repayments....... 99
Personal Balance Sheet Summary
Total assets (things you own)........... 168,900
Total HP & Secured debt................. -115,000
Total Unsecured debt.................... -6,000
Net Assets.............................. 47,900
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

Hi
I've made some comments above where you could make some cutbacks. Also do you really need a car? You spend such a small amount on fuel and a lot on running the car; could you do without it for a while? then you could pay off family and build up savings more

nearlyretired2004

Would echo the water meter comment above - as a couple, our monthly bill is £17 !!

Probably the biggest saving would be on lunches, and you ought to be able to cut internet costs as well .....

Just also seen your Buildings insurance costs - for Buildings only?

I did a quote for Buldings AND Contents on Friday (which I will be taking out tomorrow....) and my house is valued at £260,000 .... quote was £132 per annum.

Southend1

Thanks for the comments. Can't believe I didn't do something about the water bill before. I am on a meter but this was installed about a week after I moved into the house so I think I'm making the payment calculated on rates even though I will be billed by the meter. I will call the water companies this week to try to change the payments and free up some cash.

I can't really get rid of the car because I need it to visit a very elderly relative who lives some distance away.

The Internet services amount also includes landline rental and basic cable tv (equivalent to freeview channels).

I know I need to stop buying lunch during the week and make my own, it just takes someone else to point this out to make me get off my lazy backside and do something about it! I've just made a sandwich to take to work tomorrow and will try to keep this up.

Thanks again for the suggestions and comments

Southend1

nearlyretired2004 wrote: »

Would echo the water meter comment above - as a couple, our monthly bill is £17 !!

Probably the biggest saving would be on lunches, and you ought to be able to cut internet costs as well .....

Just also seen your Buildings insurance costs - for Buildings only?

I did a quote for Buldings AND Contents on Friday (which I will be taking out tomorrow....) and my house is valued at £260,000 .... quote was £132 per annum.

The insurance is buildings and contents but it doesn't list the prices separately so I just put them under buildings. Am hoping this will come down at renewal but it is the first year I have ever had buildings insurance so no discount. £132 sounds very good, where did you manage to get that price?

nearlyretired2004

Sorry ... just seen your question

It was the AA .... for me they came out cheapest on all the comparison sites, but even though I key in the same information, each site gives a different quote.!!

Asked the nice lady at the AA why this was and she said diffeerent comp sites 'subsidise' the cost at varying levels (!?!)

( I actually believe its more to do with different comp sites making 'assumptions' - e.g. I specifically asked for £100 excess on all sites - some quotes come back with £250 excess and wont let me change it - even though when on the phone to the AA she could change it for that quote!)

She also said if she took one comp site quote and 'amended' it to exactly what I wanted (taking into account varying levels of accidental damage, excesses etc....) and then did the same with a second comp site quote, the resulting quotes would be the same .....

Guess what? ... they weren't .....

So I got her to do the same with a third quote .....

Different answer again .....

So in the end she advised me to go with the cheapest!

CLAPTON

do you really save 120 in your emergency fund?
and then do you really have a surplus of 99 at month end ?

Southend1

nearlyretired2004 wrote: »

Sorry ... just seen your question

It was the AA .... for me they came out cheapest on all the comparison sites, but even though I key in the same information, each site gives a different quote.!!

Asked the nice lady at the AA why this was and she said diffeerent comp sites 'subsidise' the cost at varying levels (!?!)

( I actually believe its more to do with different comp sites making 'assumptions' - e.g. I specifically asked for £100 excess on all sites - some quotes come back with £250 excess and wont let me change it - even though when on the phone to the AA she could change it for that quote!)

She also said if she took one comp site quote and 'amended' it to exactly what I wanted (taking into account varying levels of accidental damage, excesses etc....) and then did the same with a second comp site quote, the resulting quotes would be the same .....

Guess what? ... they weren't .....

So I got her to do the same with a third quote .....

Different answer again .....

So in the end she advised me to go with the cheapest!

Sounds typical for insurance companies... Random! Will definitely make sure I get a quote from AA next time round though.

Southend1

CLAPTON wrote: »

do you really save 120 in your emergency fund?
and then do you really have a surplus of 99 at month end ?

Yes to both. But....

Currently I have rounded up the mortgage payment to £600 monthly so the £22 odd comes off that £99. Also the emergency fund has been dipped into a lot recently to do some redecorating and buy new carpet for a bedroom.


As an aside, I have made packed lunch for work every day this week saving £12 so far!!