Saving and Budgeting help

RyanWarner

Hi,

Me and my wife have decided we would like to save up to buy our own home, we currently rent and have decided before we start trying for a baby we would like to have achieved this first.

I have seen from other posts that you need to do an SOA, could someone let me know what this is and how I go about doing this, I will then post it up as I am sure we over spend on somethings (luxuries!)

How long does it take normally to save up for a deposit and how much will we need? We both work and earn an alright amount of money so I am hoping to do it in a yr as that is when we are going to start trying for baby number 1.

Any advise on how to cut back and not over spend will be very welcome we are both relatively young at 22 yrs old so we have got a lot to learn about all of this!

Ryan

bsms1147

SOA is available here.

You'll need a 5% deposit as a minimum.

Don't buy things you don't need.

RyanWarner

Thanks for the really quick reply and the link your help is appreciated!

grumbler

RyanWarner wrote: »

...How long does it take normally to save up for a deposit

How long is a piece of string?

and how much will we need?

Mortgages Homes
>> First Time Buyers Guide
>>> Chapter 2: Have you got a big enough deposit?

Also: HSBC launches record low 1.49% - just an example

We both work and earn an alright amount of money so I am hoping to do it in a yr

Any advise on how to cut back and not over spend will be very welcome

Shop around for everything, then...
Martin Lewis' Blog… | Money Mantras: never leave home without them
Stop Spending: Tips and tools - Money Saving Expert
MSE money mantras card: Stop spending when you shouldn't

Dobbibill

Do the SOA and many of the good people of the forum will come along and advise on where savings can be made.

Good luck

DB

RyanWarner

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1946
Partners monthly income after tax....... 1379
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3325

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 650
Management charge (leasehold property).. 0
Council tax............................. 78
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 16.99
Mobile phone............................ 80
TV Licence.............................. 145
Satellite/Cable TV...................... 16.99
Internet Services....................... 16.99
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 15
Pet insurance/vet bills................. 124
Buildings insurance..................... 0
Contents insurance...................... 15
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 50
Entertainment........................... 700
Holiday................................. 0
Emergency fund.......................... 1000
Total monthly expenses.................. 1610.97


Assets
Cash.................................... 1796
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 1796

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit card....................80........5.........39.9
Total unsecured debts..........80........5.........-


Monthly Budget Summary
Total monthly income.................... 3,325
Expenses (including HP & secured debts). 1,610.97
Available for debt repayments........... 14.03
Monthly UNsecured debt repayments....... 5
Amount left after debt repayments....... 1,709.03

Personal Balance Sheet Summary
Total assets (things you own)........... 1,796
Total HP & Secured debt................. -0
Total Unsecured debt.................... -80
Net Assets.............................. 1,716


OK so a couple of the bills I had to split into 3 equal parts as we have phone/broadband and TV for 1 set price. TV licence isn't 145 per month that for the yr but that is how we pay it as it worked out cheaper for some reason.

Our pet costs are higher as we have got 5 cats, not sure how that happened but we ended up taking them all on for various reasons and are committed to keeping them all healthy.

We don't have any travel costs as we both work within walking distance from where we live and we are very close to local town and family so quite lucky, I am planning to start driving lessons soon tho so will need to factor these in.

At the moment I am putting £1000 per month into our emergency fund, how much does this need so I know when I can start the new home fund?

Thanks for all the help,
Ryan

grumbler

IMO, emergency fund has to cover at least 6 months of your essential expenses, i.e. ~£8K in your case.

£15 p.m. content insurance?! It's just a drop in the ocean, but my house&content costs £10 p.a. (~£85 with £75 cashback). As I said, shop around (+ always check the cashback available).

P.S. Something wrong with your "Monthly Expense Details" as 650+300+700=1650 alone.

RyanWarner

By 15PM for contents insurance is just a drop in the ocean what do you mean?

Should I have more I don't have buildings insurance I thought my landlord would have that? I get life Insurance with my work do I need to get a privet one out too?

I have got around 7k in our emergency/rainy day fund should I move some of this now?

Sorry for all the questions, thank you for taking the time to reply!

Ryan

RyanWarner

I have just added it up I think it should say £2310? I think its because I just put the remaining amount after all bills and emergency savings into the entertainment bit at the end, sorry for the error.

Ryan

grumbler

RyanWarner wrote: »

By 15PM for contents insurance is just a drop in the ocean what do you mean?

I mean that it's a small amount in terms of your total income/expenses.

Should I have more I don't have buildings insurance I thought my landlord would have that?

You don't need building insurance now, but my point was that my building+content is 10p.a. compared to your £180 content only.

I get life Insurance with my work do I need to get a privet one out too?

Private.
It's up to you. Personally, I pay only for compulsory insurances.
Content isn't compulsory, but building+content normally costs just a fraction more than building only.

I have got around 7k in our emergency/rainy day fund should I move some of this now?

Move where? Generally, you don't need to move anything. You can have all your money in one place and just move figures in your head or a spreadsheet. And check the 'Savings' section here to make sure that your £7K (plus new savings) at least don't lose value because of the inflation.

ETA: you can edit your post #6 and change the total amount.

RyanWarner

Ok, I think I get it sorry new to all the Insurances I just went with my bank when we first moved in. I will deffo have a look at cheaper alternatives but I am pretty sure I am tied in for the next 6 months as I think its a 12 month contract.

Sorry for the spelling error, must learn to use spell check or type slower!

With regards to moving the savings I thought it might be wise to have two separate savings accounts 1 for the emergency and 1 for the future house deposit, that way we know where we are more.

Thanks again for your posts they have been helpful,

Ryan