SOA, have i done this correctly?

Bufger

Heres my SOA. Firstly i'd like opinions and questions as i have a good spreadsheet i track my finances on but ive had to put stuff like 'takeaways and meals out' into the entertainment section of the SOA.

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.................... 1
Monthly Income Details
Monthly income after tax................ 2150
Partners monthly income after tax....... 1400
Benefits................................ 81
Other income............................ 0
Total monthly income.................... 3631
Monthly Expense Details
Mortgage................................ 822.6
Secured/HP loan repayments.............. 245.10000000000002
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 131
Electricity............................. 30
Gas..................................... 35
Oil..................................... 0
Water rates............................. 26
Telephone (land line)................... 10
Mobile phone............................ 30
TV Licence.............................. 12.54
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 20
Petrol/diesel........................... 170
Road tax................................ 2.5
Car Insurance........................... 35
Car maintenance (including MOT)......... 16.6
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 324
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 26.21
Contents insurance...................... 0
Life assurance ......................... 20.14
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 15
Entertainment........................... 45
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 2376.69

Assets
Cash.................................... 0
House value (Gross)..................... 146000
Shares and bonds........................ 0
Car(s).................................. 8500
Other assets............................ 0
Total Assets............................ 154500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 122444...(822.6)....5.99
Hire Purchase (HP) debt ...... 5930.....(201.1)....0<
HP2............................1584.....(44).......0
Total secured & HP debts...... 129958....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 3,631
Expenses (including HP & secured debts). 2,376.69
Available for debt repayments........... 1,254.31
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,254.31
Personal Balance Sheet Summary
Total assets (things you own)........... 154,500
Total HP & Secured debt................. -129,958
Total Unsecured debt.................... -0
Net Assets.............................. 24,542
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

I'm also not sure if i've filled this out correctly. I have a few debts:

Mortgage (good debt)
Student Loan (good debt, is this unsecured though?)
Car Finance (good debt, not hire purchase though, is it secured debt?)
Sofa (Bad debt but we did desperately need a new one).

I've put them all in but im not sure they're in the right place.

camuk81

That seems quite tight for you.

Couple of points: Can you cut down on the groceries? Petrol seems super high could any of these be cut back on, is the buildings insurance combined and is this the best deal?

Bufger

The reason im doing it is things will get even tighter when the mrs has our second kid in August! i'm trying to trim it all down now so we can get through the maternity bit and she can go back to work part time. The childcare will obviously reduce but so will the income.

yes its combined buildings and contents.

I find our grocery shopping goes up and down, some weeks (when i go shopping) i can do a 3 person shop for £50, when she goes its £70+ i make a habit of going on my own after work which controls it somewhat.

Tixy

Hi

Well at the moment it shows you have £1254 left after debt repayments a month. Does that seem about right? are you able to save this amout each onth at the moment?

In terms of your student loan - is this deducted direct from your salary? (yes its unsecured).
If the car finance is just a personal loan not secured on the car then it would be unsecured debt, but it wouldn't change your overall figures.

If you do have £1254 left then when partners income reduces to SMP it should look as through you would about breakeven a month. If some of the childcare costs would reduce at the same time then this would be better still.

If you don't have the £1254 a month left then does your spreadsheet show what it is being spent on? have you be paying off other debts untl recently? or overpaying the mortgage or anything?

lazer

From what i can see, you have a surplus off over £1k a month - where is this going at present, as you don't seem to have any savings?You will be losing your wifes income after she goes on maternity, but do you know how much her maternity pay is, and when is she due?What i would do in your situation, is try and save as much as possible every month between now and the maternity leave starting, and then ask the for a settlement statement from the HP companies, as if you could get rid of the debt payments each month, you could live on just one wage.

antonia1

Bufger wrote: »

Heres my SOA. Firstly i'd like opinions and questions as i have a good spreadsheet i track my finances on but ive had to put stuff like 'takeaways and meals out' into the entertainment section of the SOA.

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.................... 1
Monthly Income Details
Monthly income after tax................ 2150
Partners monthly income after tax....... 1400
Benefits................................ 81
Other income............................ 0
Total monthly income.................... 3631
Monthly Expense Details
Mortgage................................ 822.6
Secured/HP loan repayments.............. 245.10000000000002
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 131 Is this over 10 months or 12?
Electricity............................. 30
Gas..................................... 35
Oil..................................... 0
Water rates............................. 26
Telephone (land line)................... 10
Mobile phone............................ 30 If this is for 2 - well done, if 1 can you reduce?
TV Licence.............................. 12.54
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300 Pretty good for a family of 4
Clothing................................ 20
Petrol/diesel........................... 170 Are all of these necessary journeys>
Road tax................................ 2.5 Is this correct?
Car Insurance........................... 35
Car maintenance (including MOT)......... 16.6
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 324 Can you get childcare vouchers or child tax credit to cover some of this?
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 Need something here - even just dentist check-up costs
Pet insurance/vet bills................. 0
Buildings insurance..................... 26.21
Contents insurance...................... 0 Do you not have this, or is it included with buildings?
Life assurance ......................... 20.14
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10 If correct, this is excellent
Haircuts................................ 15
Entertainment........................... 45
Holiday................................. 0
Emergency fund.......................... 50 Do you actually have this?
Total monthly expenses.................. 2376.69

Assets
Cash.................................... 0
House value (Gross)..................... 146000
Shares and bonds........................ 0
Car(s).................................. 8500
Other assets............................ 0
Total Assets............................ 154500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 122444...(822.6)....5.99
Hire Purchase (HP) debt ...... 5930.....(201.1)....0<
HP2............................1584.....(44).......0
Total secured & HP debts...... 129958....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 3,631
Expenses (including HP & secured debts). 2,376.69
Available for debt repayments........... 1,254.31
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,254.31 Do you actually have this left each month?
Personal Balance Sheet Summary
Total assets (things you own)........... 154,500
Total HP & Secured debt................. -129,958
Total Unsecured debt.................... -0
Net Assets.............................. 24,542
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

I'm also not sure if i've filled this out correctly. I have a few debts:

Mortgage (good debt)
Student Loan (good debt, is this unsecured though?) AFAIK student loans are unsecured - but I'm post 98, so I'm not too clear on the earlier loans
Car Finance (good debt, not hire purchase though, is it secured debt?) Check your credit agreement. Not sure I'd class it as good debt tho
Sofa (Bad debt but we did desperately need a new one) This is what your emergency fund should cover .

I've put them all in but im not sure they're in the right place.

Okay, I've added a few comments. [STRIKE]It would help to know what your motivation is? On paper you have £1200 surplus each month. Are you trying to save for something, pay off the finance / mortgage early, or just figure out where your money goes? The answers will help the folk on here know how ruthless you need to be in cutting your spending.[/STRIKE]

ETA - is the benefit income correct? Should it be £80 / week (child benefit)? Also, ignore questions above, you answered them while I was typing!

Bufger

To be perfectly honest the bit thats hard to show is the fact that we got married last year and did about £1k of home improvements in January this year so we're only just financially recovering from that in our current accounts. The joint account has a buffer of £400-£500 in it and my personal ISA has £200 but my current account is only just coming out of an overdraft. I'm not sure how i'd capture stuff like that in a SoA!

The home improvements were safety related for the children, the living room was an accident waiting to happen although I admit I could have done it for half the cost in the end.

Over the next couple of months I should be able to save a few hundred in my current account and continue to put a standard £50 into the ISA. I also get a bonus and base salary increase next month that i'll stick straight into savings.

Tixy

So do you still have an overdraft in any current account between you (ie the balance the day before payday)? if so then thats a debt that you really should include on your list of unsecured debts.

You say you should be able to save a few hundred in a couple of months - so where will the rest of the surplus be spent? in a couple of months you should be able to save £2500 on top of your emergency fund.

Bufger

antonia1 wrote: »

Quote:
Originally Posted by Bufger
Heres my SOA. Firstly i'd like opinions and questions as i have a good spreadsheet i track my finances on but ive had to put stuff like 'takeaways and meals out' into the entertainment section of the SOA.

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.................... 1
Monthly Income Details
Monthly income after tax................ 2150
Partners monthly income after tax....... 1400
Benefits................................ 81
Other income............................ 0
Total monthly income.................... 3631
Monthly Expense Details
Mortgage................................ 822.6
Secured/HP loan repayments.............. 245.10000000000002
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 131 Is this over 10 months or 12? 10 Months
Electricity............................. 30
Gas..................................... 35
Oil..................................... 0
Water rates............................. 26
Telephone (land line)................... 10
Mobile phone............................ 30 If this is for 2 - well done, if 1 can you reduce? Its for 2 smartphones no less! Haggling
TV Licence.............................. 12.54
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 300 Pretty good for a family of 4
Clothing................................ 20
Petrol/diesel........................... 170 Are all of these necessary journeys> Its 90% work journeys and this factors in a lift share. We're trying to get a second to share too
Road tax................................ 2.5 Is this correct? Yep, £30 per year
Car Insurance........................... 35
Car maintenance (including MOT)......... 16.6
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 324 Can you get childcare vouchers or child tax credit to cover some of this? No idea, i'll check!
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0 Need something here - even just dentist check-up costs I dont go to the dentist often. I guess i'll put in £40 per year
Pet insurance/vet bills................. 0
Buildings insurance..................... 26.21
Contents insurance...................... 0 Do you not have this, or is it included with buildings? Included with buildings
Life assurance ......................... 20.14
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10 If correct, this is excellent It depends year on year. This year its correct but last year It was more
Haircuts................................ 15
Entertainment........................... 45
Holiday................................. 0
Emergency fund.......................... 50 Do you actually have this? So far its up to £200 in my ISA, ive had it started since christmas
Total monthly expenses.................. 2376.69

Assets
Cash.................................... 0
House value (Gross)..................... 146000
Shares and bonds........................ 0
Car(s).................................. 8500
Other assets............................ 0
Total Assets............................ 154500

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 122444...(822.6)....5.99
Hire Purchase (HP) debt ...... 5930.....(201.1)....0<
HP2............................1584.....(44)...... .0
Total secured & HP debts...... 129958....-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 3,631
Expenses (including HP & secured debts). 2,376.69
Available for debt repayments........... 1,254.31
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,254.31 Do you actually have this left each month? No. Every couple of months I come up against a big cost like the wedding, home improvements that just swallow this up.
Personal Balance Sheet Summary
Total assets (things you own)........... 154,500
Total HP & Secured debt................. -129,958
Total Unsecured debt.................... -0
Net Assets.............................. 24,542
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.

I'm also not sure if i've filled this out correctly. I have a few debts:

Mortgage (good debt)
Student Loan (good debt, is this unsecured though?) AFAIK student loans are unsecured - but I'm post 98, so I'm not too clear on the earlier loans. I'm also post 98. It comes out before my taxable income though
Car Finance (good debt, not hire purchase though, is it secured debt?) Check your credit agreement. Not sure I'd class it as good debt tho
Sofa (Bad debt but we did desperately need a new one) This is what your emergency fund should cover . Emergency fund is a late addition im afraid, its not big enough to cover any emergency currently! its getting there

I've put them all in but im not sure they're in the right place.

Thanks for your helpful comments, i have replied where possible.

Bufger

antonia1 wrote: »

Okay, I've added a few comments. [STRIKE]It would help to know what your motivation is? On paper you have £1200 surplus each month. Are you trying to save for something, pay off the finance / mortgage early, or just figure out where your money goes? The answers will help the folk on here know how ruthless you need to be in cutting your spending.[/STRIKE]

ETA - is the benefit income correct? Should it be £80 / week (child benefit)? Also, ignore questions above, you answered them while I was typing!

Tixy wrote: »

So do you still have an overdraft in any current account between you (ie the balance the day before payday)? if so then thats a debt that you really should include on your list of unsecured debts.

You say you should be able to save a few hundred in a couple of months - so where will the rest of the surplus be spent? in a couple of months you should be able to save £2500 on top of your emergency fund.

For the last couple of months i've been down to -£700 just before payday. I'd get paid circa £2100 after tax and then £1100 would go into the joint account and then i'd be paying for the entertainment, fuel etc. I guess we're leaking more money somewhere without it showing as obviously. These things ive noted on the SoA are known costs but i have about £200 cash withrawls per month and I would probably also attribute them to either lunch at work, the odd night out (once every 2 weeks max) or 'treats' when the pregnant wife is fed up. I really need to keep on top of these things too

antonia1

Sounds like a spending diary would be helpful for you.

Post-98 loans are unsecured, and I consider mine a tax. I pay it when I'm working, if I stop working I don't need to pay it.

Medical - that makes more sense. NHS dentists costs £17ish per visit, but your partner will get them free while she's pregnant and (I think) until the baby is 1 year old. So £40 per year will cover.

You can ask your council to change your council tax to 12 month rather than 10 to make budgeting easier.