SoA to avoid getting in debt

pollyanna24

Ma77hew wrote: »

Regards life insurance, you should look into it, I got a quote £15 pm joint policy covering £150k, I'm a smoker.

Did you check your bank accounts to get these numbers?

A question I would ask, is if you currently have £400 excess each month, where is it? Have you saved it? If not what was it spent on, could be some hidden costs or cut backs you might not realize you have to make.

As others have also said, Presents/Holidays aren't included could lead to some very tight months. Plus no contingency, for example might need new tyres on your car at some point.

Edit: just seen you responded regarding the holidays, personally I put money aside each month for them so i know we can go away at some point even if we currently have nothing booked, effectively saving for next years holiday this year.

I have just under £782 in my savings with another £850 odd going in this month. As me and my brother have decided to stop overpaying, I now have money to go in savings whereas before all my money was going on my mortgage.

Which is good as we have overpaid a lot in the last few years which enables me to be in the position of lowering the existing mortgage, therefore making it easier to get another one to buy him out.

You're right about the holidays, of course you are. I wouldn't mind taking them to Spain next year (as this year is sorted with the bro's wedding in Greece), so might start putting £50 (does this sound enough) away for this purpose for a summer holiday in 2016.

EDITED TO ADD: Plus that £400 surplus is when I actually take out the new mortgage. At the moment, I am only paying half the existing mortgage as my brother pays the other half.

The existing mortgage is more than what my SoA says though as when I take out the new mortgage, I will extend the term in order to make it easier for a few years with the intention of overpaying where I can.

notanewuser

pollyanna24 wrote: »

Which is good as we have overpaid a lot in the last few years which enables me to be in the position of lowering the existing mortgage, therefore making it easier to get another one to buy him out.

:huh:?

pollyanna24 wrote: »

You're right about the holidays, of course you are. I wouldn't mind taking them to Spain next year (as this year is sorted with the bro's wedding in Greece), so might start putting £50 (does this sound enough) away for this purpose for a summer holiday in 2016.

Highly unlikely. Depends what you define as a holiday and what you define as summer. You could easily spend £600 on flights.

sanfrancisco

Why can't you claim tax credits because your mum is talking care of little ones? Are you sure? You could post on the benefits board to check.

Are you getting all you entitled to benefits wise?

Check entitledto.

notanewuser

sanfrancisco wrote: »

Why can't you claim tax credits because your mum is talking care of little ones? Are you sure? You could post on the benefits board to check.

Are you getting all you entitled to benefits wise?

Check entitledto.

Tax credits can't be claimed for unregistered childcare.

pollyanna24

notanewuser wrote: »

:huh:?



Highly unlikely. Depends what you define as a holiday and what you define as summer. You could easily spend £600 on flights.

Guess i didn't explain it very well. Basically, I figured the lower the existing mortgage I had (ie through mass overpaying) would make it easier to take on another mortgage or do additional borrowing as there's only so much you can borrow in total.

Yeah, forgot how expensive holidays are. Might wrangle a holiday to Ireland to my friend who lives near a beach. They're kids, they don't need Spain.

pollyanna24

sanfrancisco wrote: »

Why can't you claim tax credits because your mum is talking care of little ones? Are you sure? You could post on the benefits board to check.

Are you getting all you entitled to benefits wise?

Check entitledto.

I get tax credits, but a small amount as I earn too much. My mum isn't a registered childminder, but I'd much rather my mum mind them than anyone else.

ReadingTim

Is Sky necessary, given the amount of stuff on Freeview?

You're also spending 50% more on yourself than on your kids, most of which seems pretty optional (going out, luxuries) - room to cut back or re-prioritise perhaps?

pollyanna24

ReadingTim wrote: »

Is Sky necessary, given the amount of stuff on Freeview?

You're also spending 50% more on yourself than on your kids, most of which seems pretty optional (going out, luxuries) - room to cut back or re-prioritise perhaps?

Not sure what I will do about Sky. At the mo, we have it in four rooms in the house, every single channel! My brother takes charge of this and I give him a small amount towards it, haha.

I know, I'm greedy! The spending budget gets mixed up as if I spend more on girls, I spend less on me, but it all evens out. Most of their treat stuff comes out of groceries, whereas my treat stuff (wine) comes out of my budget.

If I find I'm struggling, these are the budgets I will have to cut down on.