SOA really is a very useful starting point

thomathy

If, like me, you have browsed this forum enough to work out what an LBM is, and what an SOA is... try just getting started on the SOA.

I am only half way through it, collecting all the information. And so far have already learned some really valuable things, in a lot more of a convincing way than simply reading advice from others. In my case...

- I know none of the numbers in the SOA without looking them up first. Doesn't seem so bad if you say it quickly. But - how can you control what you spend, if you don't know what you spend?

- I can already see why I feel like I work very hard, but have nothing to show for it.

One thing I have found, is that the SOA makes you put everything by the month. Of course, expenses don't always come by the month. But it really does start to make sense and give you a good picture of where everything is going, and lets you compare what's going where even when some items are annual and some are monthly or weekly or just sporadic.

Looking forward to making progress. I don't feel like I completely understand how to make next steps, but the SOA is a nice straightforward task you can just get on with and 'do' without worrying too much about where it is taking you.

Look forward to posting it and making a plan!

Growurown

I agree, knowledge is power as they say. I think people need to put some time and effort into managing their budgets. I check my bank account regularly and know exactly what payments are going out, who to and when. When my bank card was cloned I knew straight away and reported it. It was only for small amounts a tenner here and there and I might not have noticed it had gone from my account at all if I hadn't checked.

It takes time to put an SOA together but once it is done you only need to update it when necessary, so it doesn't take much time to do.

National_Debtline

I couldn't agree more. It really is the absolute cornerstone of moving things forward. To know how best to deal with debts you first need to know how much it's going to cost you to get through the month. Many folks forget the little things such as TV license, car tax, hair cuts and so on - and they all add up! Having a comprehensive budget allows you to then see what's left over to pay the debts with. For those that can meet the minimum payments on their debts, they'll know how much they might be able to overpay by. For those that cannot meet the minimum payments, they'll be able to investigate which of the debt options might be best for them.

If anyone wishes to have a go at completing a statement which meets the industry standard format, you can have a look at one here.

Best wishes,

David @ National Debtline.

Depth_Charge

Hi

Just following on -giving a choice

Citizens Advice user friendly Moneysmart online Budget Planner designed to compliment the online cabmoney debt option / remedy resource - saves everything if you wish

http://moneysmart.nedcab.org.uk/budgetsheet.asp

http://moneysmart.nedcab.org.uk/index.asp

Quick budgeting & debt calculator (Financial Statement)

https://nedcab.cabmoney.org.uk/quickfsintro.asp

Cabmoney online debt option / remedy resource

https://nedcab.cabmoney.org.uk/debtremedy.asp

Cabmoney online self managed debt management plan resource

https://nedcab.cabmoney.org.uk/dmp.asp

All above sytems are totally independent & impartial, free to use, use recognised expenditure allowances, no fees, creditor donations and not funded by the banks & creditors

There are other resources around

Best Wishes

DC