How much for clothing/birthday/emergency funds? New SOA

RockPaperScissors

Morning all!

So I posted an SOA here https://forums.moneysavingexpert.com/discussion/4609691

Lots of lovely people pointed out some flaws for which I'm really grateful! (thanks R P W, redpete, blitzboy, see_the_light and harrysdad).

I am hoping to do my new SOA today which will take into account the feedback and was just wondering - how much do other people put aside for the following each month:

- clothing money
- emergency fund
- birthday presents

I know it will depend massively on what remaining budget you have after paying debts/bills but an idea of what everyone else does would be really useful as I've never had these pots before and don't know where to start. Is £10pm in the present fund too little? Is £20 for clothing per month too much?

Thanks all!

Tixy

As you say it will vary a lot based on different people and how tight a budget you need to live buy.

Your level of debts isn't particularly high, and your budget doesn't look to tight so you don't need to try to manage on the bare minimums.

For clothing remember this needs to include work clothes, shoes etc as well as day to day or 'going out' clothes.
I'd personally think £20 a month is too little, but it probably partly depends on your job, if you have to buy suits / smart shoes for work its going to cost more than if you are doing an outdoor job in scruffy old jeans. Some people also factor in personal toiletries/make up etc in to this line of the SoA (I don't I have a seperate budget for make-up!)

Presents - try to work this one out by thinking about how many people you buy for and how much you tend to spend on each for birthday and christmas. If you buy for your partner, parents, brothers/ sisters, best friend etc it can soon mount up. Personally I budget £40 a month (6 people a £40 present each christmas and birthday).

Emergency fund - always a tough one, as homeowners you need to think what you will do if you have a small emergency (washing machine breaks) or a large one (boiler needs replacing). Ideally you want to start putting larger amounts in to start with, and if you don't use it you can then scale back how much you put in a month.

RockPaperScissors

Brilliant advice thank you Tixy!

I am taking part in the sealed pot challenge which I'm hoping will cover much of my Christmas expense. I tend to do homemade hampers and gifts for Christmas which keeps my cost low and is nice and personal so that should be covered. Great advice for the birthday pot though! I think you're right £10 is pretty low so I'll work at £25 which should leave remaining to be rolled over at Christmas if its needed.

Re. clothes - I have a couple of smart outfits I use for client meetings but mostly just wear casual clothes. I haven't bought any (apart from for a wedding a little while back) for YEARS so would be great to start buying a few more staples. I think for now I will match the birthday fund at £25 and see how I go. I also have my birthday coming up next Sunday for which my family are all giving me money for a shopping trip (they obviously feel I need clothes too lol) so I won't have to worry as much for a couple of months at least!

Emergency fund - totally agree, we definitely need to be more aware of this now that we have a home to maintain. We are still in the process of buying odds and ends for it/redecorating which is covered by a generous gift from the in-laws so I'll work out with my new SOA what money I have remaining and divide that between savings and emergency money.

Thanks for the help!

[Deleted User]

How many do you buy presents for, and who are they?

You would usually spend more on a close relative, than an acquaintance.

You would tend to spend far less on a baby/toddler, than a 10 year-old.

Personally, I spend a grand total of £0 on presents.

RockPaperScissors

To be honest Bedsit Bob, I don't spend a lot. We don't buy for friends and just buy for parents, grandparents and siblings. We each cover our own family gifts too so for me that would be

- mum (30)
- dad (30)
- brother (30)
- nan (20-25)
- pop-pop (20-25)
- partner (dependent - usually around 40-50 but we are not buying this year due to house purchase - our gift to each other )

But I guess it would be best to add extra in case we decide to get others a gift and for mothers/fathers day.

This is my new SOA. I have still just done my totals as opposed to my partners because it gets tricky with his self employment and his personal debt and I want to see where I stand on my own as we will be paying our personal debt off before focusing on mortgage :-)

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1833.12
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1833.12

Monthly Expense Details
Mortgage................................ 378.4
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 76.83
Electricity............................. 20.83
Gas..................................... 20.83
Oil..................................... 0
Water rates............................. 21.08
Telephone (land line)................... 7.49
Mobile phone............................ 39
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 2.5
Groceries etc. ......................... 300
Clothing................................ 25
Petrol/diesel........................... 200
Road tax................................ 13.75
Car Insurance........................... 25
Car maintenance (including MOT)......... 20
Car parking............................. 100
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 13.44
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 25
Total monthly expenses.................. 1326.15


Assets
Cash.................................... 0
House value (Gross)..................... 175000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 182000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 165381...(378.4)....4.04
Total secured & HP debts...... 165381....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................1078.17...50........0
Grad Overdraft.................300.......25........0
Total unsecured debts..........1378.17...75........-


Monthly Budget Summary
Total monthly income.................... 1,833.12
Expenses (including HP & secured debts). 1,326.15
Available for debt repayments........... 506.97
Monthly UNsecured debt repayments....... 75
Amount left after debt repayments....... 431.97

Personal Balance Sheet Summary
Total assets (things you own)........... 182,000
Total HP & Secured debt................. -165,381
Total Unsecured debt.................... -1,378.17
Net Assets.............................. 15,240.83

[Deleted User]

So these figures would be for your half of the bills?

£757pm Mortgage? :eek:

£600pm on food, for 2 people? :eek:

BTW. What are APRs?

Also, no contents insurance?

RockPaperScissors

Yes my half of bills only OH sorts his and his debt himself.

Yeah £757 mortgage Is that a bad shocked face or a good one? ha

Yeah when we first decided to buy, I asked my best friend for a run down on what they spend on bills. This is what they told us they spent for the two of them (pre-baby). I kinda get that it's pretty high though and 2 of the last 4 weeks we have definitely spent less than this! I'm also a pretty good cook (if I do say so myself ) so know I can get this down. It's been pretty useful though with our first few shops as we needed a lot of essentials (washing powders, bin bags, cleaning products etc.) and have also been having a very cheeky weekly takeaway. I expect I will drop this to £50pw tops in the next month or so

We have joint buildings and contents insurance which comes to around £26pm for unlimited so wasn't sure what the divide would be - have just put it down as one figure as that's how it comes out of my account

APR's on CC are 0% (balance trans till December) and also 0% for the overdraft on the grad account!

thanks for the reply

RockPaperScissors

Also - the minimum on CC is actually £25 but I pay double in to try and clear it.

Grad overdraft technically has no minimum payment but I have a SO for the £25 each month

[Deleted User]

And the £600 for food?

RockPaperScissors

Yes that's what this bit refers to: (sorry should have specified food not bills)

RockPaperScissors wrote: »

Yeah when we first decided to buy, I asked my best friend for a run down on what they spend on bills. This is what they told us they spent for the two of them (pre-baby). I kinda get that it's pretty high though and 2 of the last 4 weeks we have definitely spent less than this! I'm also a pretty good cook (if I do say so myself ) so know I can get this down. It's been pretty useful though with our first few shops as we needed a lot of essentials (washing powders, bin bags, cleaning products etc.) and have also been having a very cheeky weekly takeaway. I expect I will drop this to £50pw tops in the next month or so

RockPaperScissors

No wait!

Sorry that should be half!!!

Just realised that's the only cost I haven't halved!! woops!

Amended:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1833.12
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1833.12

Monthly Expense Details
Mortgage................................ 378.4
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 76.83
Electricity............................. 20.83
Gas..................................... 20.83
Oil..................................... 0
Water rates............................. 21.08
Telephone (land line)................... 7.49
Mobile phone............................ 39
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 2.5
Groceries etc. ......................... 150
Clothing................................ 25
Petrol/diesel........................... 200
Road tax................................ 13.75
Car Insurance........................... 25
Car maintenance (including MOT)......... 20
Car parking............................. 100
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 13.44
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 25
Total monthly expenses.................. 1176.15


Assets
Cash.................................... 0
House value (Gross)..................... 175000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 0
Total Assets............................ 182000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 165381...(378.4)....4.04
Total secured & HP debts...... 165381....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................1078.17...50........0
Grad Overdraft.................300.......25........0
Total unsecured debts..........1378.17...75........-


Monthly Budget Summary
Total monthly income.................... 1,833.12
Expenses (including HP & secured debts). 1,176.15
Available for debt repayments........... 656.97
Monthly UNsecured debt repayments....... 75
Amount left after debt repayments....... 581.97

Personal Balance Sheet Summary
Total assets (things you own)........... 182,000
Total HP & Secured debt................. -165,381
Total Unsecured debt.................... -1,378.17
Net Assets.............................. 15,240.83