SOA for a family who are trying to cut back

TryingToCutBack_2

Hello, I hope you lovely people can help.

I've recently had a baby and been made redundant. My DH and I would ideally like me to be a SAHM until my LO goes to school. We would at all costs like to avoid my going back to work due to my own health and our wish not to put our daughter into childcare

Prior to the baby/redundancy our joint income was high enough for us to live in a comfortable way, nothing too extravagant, but we didn't need to worry IYSWIM. Now our income has reduced and our family has 1 more member, we are very aware that we need to change our spending habits now to avoid getting into debt.

The SOA below demonstrates a surplus of £90.79 a month. However we are actually seeing a loss of about £100-£150 a month at the moment (We are starting a spending diary to account for the difference, but it seems huge!)

We would love to have a surplus at the end of the month at a level which would allow us to put some money away in my private pension and to save some for our daughter.

Please help with your painfree/not so painfree suggestions to cut back...



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................ 0
Partners monthly income after tax....... 1197.68
Benefits................................ 249.78
Other income............................ 0
Total monthly income.................... 1447.46

Monthly Expense Details
Mortgage................................ 248.9
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107.76
Electricity............................. 59
Gas..................................... 68
Oil..................................... 0
Water rates............................. 38.53
Telephone (land line)................... 11.66
Mobile phone............................ 10
TV Licence.............................. 12.13
Satellite/Cable TV...................... 0
Internet Services....................... 22.8 (I know it's a lot - conversations are ongoing with DH to reduce this)
Groceries etc. ......................... 326.84
Clothing................................ 31.27
Petrol/diesel........................... 61.07
Road tax................................ 2.5
Car Insurance........................... 34.27
Car maintenance (including MOT)......... 24.03
Car parking............................. 45
Other travel............................ 49
Childcare/nursery....................... 0
Other child related expenses............ 21.64
Medical (prescriptions, dentist etc).... 11.06
Pet insurance/vet bills................. 0
Buildings insurance..................... 38.17
Contents insurance...................... 0 (included in buildings insurance)
Life assurance ......................... 9.4
Other insurance......................... 7.89
Presents (birthday, christmas etc)...... 45
Haircuts................................ 20.75
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0 (already have savings)
Total monthly expenses.................. 1356.67


Assets
Cash.................................... 15000
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 5000
Total Assets............................ 171500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 69000....(248.9)....1.89
Total secured & HP debts...... 69000.....-.........-

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


Monthly Budget Summary
Total monthly income.................... 1,447.46
Expenses (including HP & secured debts). 1,356.67
Available for debt repayments........... 90.79
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 90.79

Personal Balance Sheet Summary
Total assets (things you own)........... 171,500
Total HP & Secured debt................. -69,000
Total Unsecured debt.................... -0
Net Assets.............................. 102,500

flippin36

Hello. The only thing that springs out to me is groceries - it seems a little high for 3 of you. Look to down shifting and changing your grocery habits. Aldi and Lidl are a place to start, looking for reductions late in the evening. Meal plan, have a calculator and the supermarket, put stuff back when you reach your budget. Use your freezer for stuff about turn (so you don't throw a thing away), packups for work/school, eat what is cheap/on offer/reduced rather than what you fancy. Do an eating out of the cupboard challenge. Use up everything you have before you go shopping again.

Look at every single thing you buy and find a way to make it cheaper...it takes months of practice. Good luck.

amyloofoo

TryingToCutBack wrote: »

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................ 0
Partners monthly income after tax....... 1197.68
Benefits................................ 249.78 I'm not an expert on benefits, but this seems slightly low, maybe checking turntous.org.uk would identify if you're entitled to anything else?
Other income............................ 0
Total monthly income.................... 1447.46

Monthly Expense Details
Mortgage................................ 248.9
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107.76
Electricity............................. 59 this seems reasonable, but have you checked you're on the best gas / electricity deals? There are some good cashback offers through quidco / topcashback if you choose to move.
Gas..................................... 68
Oil..................................... 0
Water rates............................. 38.53
Telephone (land line)................... 11.66
Mobile phone............................ 10
TV Licence.............................. 12.13
Satellite/Cable TV...................... 0
Internet Services....................... 22.8 (I know it's a lot - conversations are ongoing with DH to reduce this)
Groceries etc. ......................... 326.84 Whilst this isn't unreasonable, it could definitely be cut down on - there's plenty of tips on the old style moneysaving boards which could help. Also if you're currently staying at home then maybe you're in a position to bulk cook and freeze?
Clothing................................ 31.27 This is very specific lol, but seems pretty reasonable - are you selling old items to boost income? Ebay and Facebook are good for selling clothes & baby items.
Petrol/diesel........................... 61.07
Road tax................................ 2.5
Car Insurance........................... 34.27
Car maintenance (including MOT)......... 24.03
Car parking............................. 45 Could this be cut down on at all? I understand it's probably for work, but could you take advantage of park & rides, etc?
Other travel............................ 49 What is this for? Doesn't seem unreasonable but that depends where it's going :rotfl:
Childcare/nursery....................... 0
Other child related expenses............ 21.64 Again, what is this for?
Medical (prescriptions, dentist etc).... 11.06 As a new mum I think you should be getting help with this? Also if you're on tax credits then you shouldn't be paying.
Pet insurance/vet bills................. 0
Buildings insurance..................... 38.17 This seems a little high - maybe check to see if there are cheaper plans? Also, check the cashback sites before you move
Contents insurance...................... 0 (included in buildings insurance)
Life assurance ......................... 9.4
Other insurance......................... 7.89 What is this for?
Presents (birthday, christmas etc)...... 45 This seems a little high, there are tips on the old style board to help you cut down.
Haircuts................................ 20.75
Entertainment........................... 50 Where is this being spent? It's by no means unreasonable, but there are ways of reducing entertainment expenses, i.e. coupons.
Holiday................................. 0
Emergency fund.......................... 0 (already have savings)
Total monthly expenses.................. 1356.67


Assets
Cash.................................... 15000
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 5000
Total Assets............................ 171500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 69000....(248.9)....1.89
Total secured & HP debts...... 69000.....-.........-

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


Monthly Budget Summary
Total monthly income.................... 1,447.46
Expenses (including HP & secured debts). 1,356.67
Available for debt repayments........... 90.79
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 90.79

Personal Balance Sheet Summary
Total assets (things you own)........... 171,500
Total HP & Secured debt................. -69,000
Total Unsecured debt.................... -0
Net Assets.............................. 102,500

Firstly, congratulations on your little bundle of joy :j It's lovely that you'd like to be a sahm and a really good idea to make sure that you're budgeting properly for this! I'm glad you've started the spending diary as the little things add up and quickly lead a surplus to be a deficit, hopefully it will give you some insight into where the money's going.

All in all you're in a pretty enviable position so I don't think it should be too difficult to reduce the expenses a little and be in a position where you can comfortably be a sahm, good luck :T

Gazza1964

Hi,

I am a newbie at this myself and I am sure one of the more experienced wanabees will be along shortly to offer some good advice - at first glance - buildings and contents seems high - thats over 450 a year - and car insurance over 400 on a car you have valued at 1500 - have you tried the comparison websites?

Also your car is costing you around 1200 a year before you put petrol in it which is another 700 odd - so virtually 2000 a year - perhaps there is savings to make in this area.

Hope this helps and good luck

Gazza

Tixy

Hi and welcome

Congrats on your baby. Not so much on the redundancy (unless you got a payout and were going to give up work anyway I suppose).

Definitely a good idea to start a spending diary to find where else your money is going to.

TryingToCutBack wrote: »

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................ 0
Partners monthly income after tax....... 1197.68
Benefits................................ 249.78 have you checked you are getting all your are entitled to? are you getting tax credits? and will these increase now you are not working?
Other income............................ 0
Total monthly income.................... 1447.46

Monthly Expense Details
Mortgage................................ 248.9
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 107.76
Electricity............................. 59 elec looks high, and elec a little high - have you shopped around recently to see if you are on the best tariff? do you have arrears? could you reduce usage at all by being more energy saving?
Gas..................................... 68
Oil..................................... 0
Water rates............................. 38.53
Telephone (land line)................... 11.66
Mobile phone............................ 10
TV Licence.............................. 12.13
Satellite/Cable TV...................... 0
Internet Services....................... 22.8 (I know it's a lot - conversations are ongoing with DH to reduce this) should be able to save whilst still having a good connection.
Groceries etc. ......................... 326.84 Its certainly possible to manage on less than this (even fairly painlessly). Maybe try a gradual reduction of say £20 less each month? Is this including nappies/wipes/formula etc for baby? Have you tried shopping around for cheaper brands of nappies etc?
Clothing................................ 31.27
Petrol/diesel........................... 61.07
Road tax................................ 2.5
Car Insurance........................... 34.27
Car maintenance (including MOT)......... 24.03
Car parking............................. 45 is this needed? is it home or OHs work?
Other travel............................ 49
Childcare/nursery....................... 0
Other child related expenses............ 21.64
Medical (prescriptions, dentist etc).... 11.06
Pet insurance/vet bills................. 0
Buildings insurance..................... 38.17 look quite high compared to house value - try shopping around for B&C (mine is around 20 for a house worth a little more than yours).
Contents insurance...................... 0 (included in buildings insurance)
Life assurance ......................... 9.4
Other insurance......................... 7.89
Presents (birthday, christmas etc)...... 45
Haircuts................................ 20.75
Entertainment........................... 50
Holiday................................. 0 are you happy to manage without any holiday/weekends away? (I appreciate you do have savings but if you are going to spend each year you might want to budget for it)
Emergency fund.......................... 0 (already have savings)
Total monthly expenses.................. 1356.67


Assets
Cash.................................... 15000
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 1500
Other assets............................ 5000
Total Assets............................ 171500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 69000....(248.9)....1.89
Total secured & HP debts...... 69000.....-.........-

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


Monthly Budget Summary
Total monthly income.................... 1,447.46
Expenses (including HP & secured debts). 1,356.67
Available for debt repayments........... 90.79
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 90.79

Personal Balance Sheet Summary
Total assets (things you own)........... 171,500
Total HP & Secured debt................. -69,000
Total Unsecured debt.................... -0
Net Assets.............................. 102,500

If you were able to get to this monthly position with the £90 surplus then it looks like you should easily be able to manage - at least whilst your mortgage rate is so low, without needing any further cutbacks. So its just a case of trying to identify where else money is going. If baby is very 'new' have you been buying extra baby items that are one-offs that have been eating into your budget?

McKneff

Meal planning should bring your grocery bill down, if you are going to be a stay at home mum, you should have time to cook from scratch.

Doing a stew, or mince, or spag bol, do a double portion and freeze half, it is so much easier.

A water meter may be better for you if you can have one. If only 2 adults, it will be half what you are paying, it makes you think twice about leaving a tap running or watering the garden with 2nd hand water etc.

tallyhoh

Only £61.07 on petrol? is your car really necessary?

TryingToCutBack_2

Hello,
Thanks for taking the time to read and to comment. I'll try to respond to a few of the points raised:

My costings are quite specific aren't they, right down to the pence! I'd just copied and pasted them out of the budget spreadsheet I've just completed which averages our spending over the last 6 months (is that a reasonable time frame??)

Our car has a tiny 1.1 l engine, it's ridiculously fuel efficient (and cheep to tax) so that's why our petrol spend is so low (only costs £25 to fill up the tank ). We couldn't get by without it though. I know we spend a lot on parking - DH works in the city center and this is as cheap as it gets (it does work out as costing less than a bus) A park and ride wouldn't be an option because he'd have to drive further out of the city (petrol) and then pay for the bus fare

I've already started cooking in batches and freezing meals, and mostly we cook from scratch. We probably have a bung-it-in-the-oven meal (pizza +chips etc) once a fortnight and a takeaway once a month so we can cut back there. However I haven't found that batch cooking saves us money - am I doing it wrong???? It does save a lot of hassle on an evening!

Really do need to meal plan - we do waste food and often look in the fridge on an evening and say "hmm what's for tea?"

Do you think a water meter would make better sense for us? We tend to run the washing machine every night nowadays!!! Do you know of a comparison website or similar where I could investigate if this would be a cheaper option for us?

Our baby is now 1 (that time flew by), but there's always something extra to buy for her - next it'll be shoes!!! I try to buy clothes in advance for her in the sales, but she's always in need of something!

Yes the grocery bill includes all her nappies and wipes.
which we've downshifted to ASDA's own brand, she's breastfed and BLW so no costs of formula or babyfood

I'm interested that you think our house and car insurance is quite high - we do shop around each time and use Quidco. I suppose it must be the fact we live in a city??

I don't believe we're entitled to any more in benefits - but will check that website - thanks!

We are going to shop around for gas/electric to see if we can reduce these.

TryingToCutBack_2

Gazza1964 wrote: »

Hi,

car insurance over 400 on a car you have valued at 1500 - have you tried the comparison websites?

Also your car is costing you around 1200 a year before you put petrol in it which is another 700 odd - so virtually 2000 a year - perhaps there is savings to make in this area.

Hope this helps and good luck

Gazza

Hello, thanks for drawing my attention to this. We couldn't do without our car but it does seem to be costing a fair bit. The insurance is high compared with its value. We always look for the best deal, this is as good as it gets! Do you think 3rd party would be a more sensible option? or should we start by trimming off the curtousy (sp) car/legal cover etc fro our existing policy???

ilovecheese

Depending on your husbands work hours, is it possible for you to work 2 or three evenings a week? If this was an option you would not have to pay for childcare, and you would have a bit "extra" coming in every month??

McKneff

When you buy house insurance, check the difference between buying it direct and buying it through Quidco, you would be amazed how many companies up the prices through Quidco, to accommodate more than the cashback amount, its often a mind game.

When I did it, my house insurance was £258 through quidco with £20 back, when I rang them for a quote direct it was £220. See what I mean. I was saving more that way than the cash I was receiving through Quidco, I really dont bother with Quidco now.