SOA Improvements?

Pepperoni

Hi,

Would anyone mind taking a look at our SOA below and offering any advice where they can. Does it seem realistic - anyone see anything missing? Its an SOA for intended spends. It probably seems frivolous in places, but I'm trying to not draw back too much as it is just leading to un-budgeted for spending.

Thanks.

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................ 1675
Partners monthly income after tax....... 1650
Benefits................................ 82
Other income............................ 0
Total monthly income.................... 3407

Monthly Expense Details
Mortgage................................ 481
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 92.5
Electricity............................. 30.25
Gas..................................... 30.25
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 0
Mobile phone............................ 7.5
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 31
Groceries etc. ......................... 350.03
Clothing................................ 150
Petrol/diesel........................... 100
Road tax................................ 12.5
Car Insurance........................... 16.67
Car maintenance (including MOT)......... 65.17
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 266.62
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 6.27
Contents insurance...................... 6.27
Life assurance ......................... 8.32
Other insurance......................... 0
Presents (birthday, christmas etc)...... 85
Haircuts................................ 60.11
Entertainment........................... 339.67
Holiday................................. 100
Emergency fund.......................... 0
Total monthly expenses.................. 2296.25


Assets
Cash.................................... 0
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 158000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 77500....(481)......3
Total secured & HP debts...... 77500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................4000......125.......0
Total unsecured debts..........4000......125.......-


Monthly Budget Summary
Total monthly income.................... 3,407
Expenses (including HP & secured debts). 2,296.25
Available for debt repayments........... 1,110.75
Monthly UNsecured debt repayments....... 125
Amount left after debt repayments....... 985.75

Personal Balance Sheet Summary
Total assets (things you own)........... 158,000
Total HP & Secured debt................. -77,500
Total Unsecured debt.................... -4,000
Net Assets.............................. 76,500

Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

KirstyO

Pepperoni 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................ 1675
Partners monthly income after tax....... 1650
Benefits................................ 82
Other income............................ 0
Total monthly income.................... 3407

Monthly Expense Details
Mortgage................................ 481
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 92.5
Electricity............................. 30.25
Gas..................................... 30.25
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 0
Mobile phone............................ 7.5
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 31
Groceries etc. ......................... 350.03 <This seems quite high
Clothing................................ 150
Petrol/diesel........................... 100
Road tax................................ 12.5
Car Insurance........................... 16.67
Car maintenance (including MOT)......... 65.17 <This seems a lot per month? Nearly £800 a year on car maintenance?
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 266.62
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 6.27
Contents insurance...................... 6.27
Life assurance ......................... 8.32
Other insurance......................... 0
Presents (birthday, christmas etc)...... 85
Haircuts................................ 60.11
Entertainment........................... 339.67 < £4000 a year...could some of this not be redirected to holiday fund? Or go in emergency fund? Or be saved to pay off CC if/when 0% is no longer an option?
Holiday................................. 100
Emergency fund.......................... 0 < This should have something in it. Judging by your monthly surplus this can afford to be built quickly.
Total monthly expenses.................. 2296.25


Assets
Cash.................................... 0
House value (Gross)..................... 150000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 158000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 77500....(481)......3
Total secured & HP debts...... 77500.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................4000......125.......0
Total unsecured debts..........4000......125.......-


Monthly Budget Summary
Total monthly income.................... 3,407
Expenses (including HP & secured debts). 2,296.25
Available for debt repayments........... 1,110.75
Monthly UNsecured debt repayments....... 125
Amount left after debt repayments....... 985.75

Personal Balance Sheet Summary
Total assets (things you own)........... 158,000
Total HP & Secured debt................. -77,500
Total Unsecured debt.................... -4,000
Net Assets.............................. 76,500

Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using Firefox browser.

Hi Pepperoni,


It's only a quick glance but I've highlighted in red bits where I think there are savings to be made. You seem to be in a good place with incomes so you can afford to do the things you've declared, be aware though that people on the YNAB way of thinking will tell you 'every £ needs to have a job'. You may be very controlled but I would need to take that £985 and put it somewhere safe to earn interest or work for me otherwise it would get frittered away.


In terms of spending, there is definitely room to reduce groceries per month. Do you use Aldi/Lidl/local markets? For things where top notch quality isn't the first priority the discount supermarkets can save hundreds of ££'s over a year, especially for basics like pasta, rice, cereals. Their own brand stuff is normally fairly good but much cheaper (don't believe watch the show that's on BBC at the moment about Living for Less!)
Your entertainment budget can come down if you want it to. It seems VERY high. Over £4k a year on entertainment? If you redirected some of those funds you could have a holiday more often, or a nicer holiday, or build the emergency fund, or invest some of it...so many options!


Your emergency fund needs SOMETHING in it. Most debt advisory services will recommend you have enough money tucked away to pay bills and debt repayments for three months. If the worst happened tomorrow and neither of you got an income any more you would need that to keep things ticking over while any issues were resolved and new incomes sourced.


The car maintenance seems quite high. Nearly £800 a year to maintain an 8k car. The value of the car says to me it's either very big, quite new, or over valued. Nothing wrong with keeping money aside for motor repairs, MOT etc, but to spend that much every year - I would maybe look at saving for a new car that would cost less to maintain. Just me though


You seem to be in a good position and its great that you've got 0% on the card. It might be worth building up a savings account so that if the 0% ever became impossible to achieve, you could clear most/all of it without being charged any interest.


I'm sure others will have different opinions. At the end of the day it's your income. You've both worked hard for it, do what you need to do

Pepperoni

Many Thanks Kirsty!

We were using Aldi but I've found it hard with baby in tow, so have switched to Tesco home delivery. I'm *trying* to stick to a limit each week, but don't have any control over OH when he nips to Tesco for X,Y,Z that I didn't realise we needed. We could lower the amount, but I've put it at £75 a week as an absolute maximum - to be honest, its rare we are under that but will keep trying!

The entertainment fund is made up of Slimming World & Football fees. Then £100 each for us to spend as we wish, plus another £100 for eating out / family days. Could, and should, bring this down.

The car maintenance is covering the basics - MOT, service, car tax, insurance and car washes (x2 cars, OH has company car but we pay for washes). Then the building of a £500 pot for any repairs that are needed at any point.

The plan is for the remaining £1000 to go to the credit card - but remain in a % earning account until it needs paid off.

andyfromotley

Hi Pepper,

I love checking out other peoples SOA.s! It does seem pretty healthy. Couple of things pop up.

Are you paying enough for gas and electric? Most people pay more than this, just be aware that you are not building up a debt with the company.

Your internet seems high. There are much better deals available on the MSE best buys even for Fibre.

The rest of the categories are difficult as you are not aiming to cut back to the bone. You spend a lot on Groceries, gifts, clothing and entertainment. Haircuts seems high but i know some people do spend a lot on their hair! Holidays may be a bit low but obviously this is dependent on where you go. I like to budget for everything including the spending money, for me with 2 kids, taking holidays in the school hold this is rarely below 2k.

So yup all looks good but you have plenty of scope for reducing it further if you need to. You should know if you are being realistic as you should have about 900-1k each month in surplus. If you haven't really focus on your spending and budgets to see where its gone. A good budgeting/spending program used ruthlessly should make this easy.

andyfromotley

oh as you are in a good position, a useful category might be 'car replacement' This can help avoiding a need for further credit down the line. just a thought.

Pepperoni

Thanks Andy! I love looking at others SOA too!

We have just switched from Utility Warehouse to Sainsburys Energy. Phoning with readings tonight so should find out if we were underpaying and that will give a better idea for Sainsburys. We did ring with readings a few months ago and it was all on par, so fingers crossed.

Have been playing around with Holiday column - deciding whether to do £100 or £125 a month. Will take a look again and try and be more realistic...!

I use YNAB but have a habit of deleting BAD months. Which is ridiculous given the purpose of the programme is to see why it was such a BAD month. I know what it boils down too though on a bad month - overspending on grocery shopping and me spending too much money buying clothes and other stuff for our baby.

andyfromotley

Yup well i didn't name it but i am an avid Ynab'er. Thats your answer. you have the tools, create catagories for every expense you can think of and monitor them. Don't delete bad months!!! But don't beat yourself up about them either. One of the rules is 'roll with the punches' move cash from category to category. If you have the mobile app you can literally check in the store to see if you have money in that category, it helps.

spot3

£7.50 is very low for mobile, is this real cost or something you're aiming for?

Pepperoni

Spot - real. Tesco mobile SIM card.

KirstyO

Double check your car maintenance....you've said above that you've included insurance and tax in that one category but it is also listed separately as well!

rockm87

Have you tried meal planning?

That way you can shop for what you need, and you wont require top-ups unless they are for specific fresh things, that are part of your budget.

You and your husband need to work together, and he needs to know the importance of sticking to a budget, so you can support each other and not just topple over!

there are loads of good ideas on the challenge pages and the oldstyle money saving boards.