SOA - would love some input, new ideas, and feedback

lazer-zxr

Family of 4 (husband & wife in early 30s, two children under 5)
Using YNAB to revolutionise my personal finances and debt repayment.

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I'd love some input on my SOA, my expenses and my income generation ideas.



I've managed to increase savings from £100 to £2100 in 3 months by doing the following:

Current account switching ..£750
Ebay ..............................£200
Quidco / Topcashback .......£200 - without buying anything
Matched Betting ...............£850

The above probably averaged around £35/hour

But now, my opportunities are becmoing less and less on the above.
I don't think the time v return of online surveys etc is good enough for me to do. I'm willing to stand corrected if I'm wrong.

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Car Plan:

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In July 2016, I'd like to purchase my company car for around £7k.

£900 work guaranteed bonus
£1920 from the £120 /month car saving
£3000 from the additional income from ebay, matched betting, bank bonus' quidco etc. - already at £2k in 3 months.
£1500 from money saved not paying the Tesco CC


I will then receive an increase to my salary of £426 / month after tax, if I replace our second car with a newer car 2 years old, and would use this £426 per month to run both cars and finance the replacement 2 year old car.

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S.O.A.

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Income

£GBP£
Monthly Salary............2,620 after tax
Wife's Salary.................779 after tax
Child Benefit Income......136 before tax - tax deduction shown in expenses below
Solar Power income.........40 tax exempt
Total Income..............3,575

Expenditure

Home
Groceries...........................400 Incl food, cleaning products etc ... everything I can get at Asda.
Internet............................ ..2.5
Line Rental ..........................14 paid annually
Property Maintenance.............20 Contracted in as part of our house agreement
Home insurance.....................8 paid annually
Council Tax.........................148
Gas & Electric......................63
Water................................46
Mortgage............................960
Mortgage Overpayment ........175 I know I should probably reduce this to pay S/T debt, but dont want to get out of this habit.
Mobile telephones..................7.50
Life Insurance......................56
Hair cuts.............................30 Wife's only, I'll ask her to cut my hair
TV Licence..........................12 Paid annually
Clothing ............................40 Usually only for the children
Dentist................................7 for 6 monthly checkups

Entertainment:
Going out...........................50
Hobbies............................100 All four of us have various hobbies
Caravan expenses...............44 Paid annually
Holiday..............................50 £600 annual for summer hols?
National Trust Membership ....6.5 paid annually


Transport:
Fuel..................................160
Public transport....................40 Wifes commute
Car Insurance......................32 Paid annually
Car Tax..............................13 Paid annually
MOT & maintenance..............10 Paid annually
Saving for replacement car ..120

Debt repayment:
M&S Loan...........................168
Yorkshire Bank Loan.............208
Tesco Credit Card.................300 and throwing any spare one offs at this aswell


Other:
Work Lottery Syndicates......15 The fear of the syndicate win keeps me in
Union................................ 1
Child Benefit Tax................95 Paid annually
Takeaways........................13 One per month
Other one offs / Treats........10
Presents............................20
Emergency fund ................ 50


Monthly Expenses...........3,494


Monthly Income............3,575
Monthly Expenses..........3,494
Net Income ......................81 Used to try and create a buffer




Assets & Liabilities:

Debt: £GBP£ Balance
Mortgage Balance..................147k 26 years left
Secured loan on mortgage........23k 26 years!
Total Mortgage......................170k Value of house is £185k, mortgage rate 4.54% ... about to look for remortgage deal

Tesco Credit Card ...........4,594 - used to buy caravan - (0% period 12 mnths remaining, currently paying £300 per month)
M&S loan......................6,996 - used to buy solar panels - ( 3.5% APR, 5yr term)
Yorkshire Bank Loan.......13,248 - legacy debt - (5% APR, 5yr term)

Total Debt......................£196k

Total debt excl Mortgage ....£49k

Current Account balances:
Account for annual spends & Saving.....£1900
Daily current Account.........................£110 at end of May with all expenses deducted
Savings account ...............................£2100


Value of house: £180k (was bought in 2006 for £215k, with a £205k mortgage)
Value of owned car: £400

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Mortgage plan:

Remortgage:the £153k away from NRAM, at a more favourable rate. LTV 84%
Decouple the £16k loan and payback over 5 years at something close to 3.6%

I want to decouple the 23k from the 147k mortgage, and remortgage 154 ish and get an unsecured 16k.

Im sure I can do this, where monthly repayments will not exceed my £1135 mortgage payments + £80 I have spare.
But not sure how good a mortgage I'll get considering debts, gambling transactions even through they're used for zero risk matched betting, and 84% LTV.

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I'd really appreciate some ideas, and comments.

Thanks.

Tixy

Hi

Looks like you have things well organised. And I'm guessing if your are using YNAB you haven't missed out any expenses, which people often do.

I suspect the level of debts and LTV could make a remortgage difficult but its definitely something to explore. Have you spoke to a broker at all yet?
When you say decouple the secured loan (£16k or £23k?) do you mean try to pay off with an unsecured loan?

On the £7k for the new car - will you have £1500 saved up from the tesco card by July 2016? It will take you 15 months to clear that card at £300/month so that sounds like it will be going until past July 2016?

Is the £426 a month increase then because you will no longer be provided with the company car?

lazer-zxr

Thanks for your reply.

I'll try to explain,

I want to decouple the 23k from the 147k mortgage, and remortgage 154 ish and get an unsecured 16k.

I havn't spoken to a broker, as I thought missing out the middle person, and looking myself speaking to lenders would be best?

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The tesco CC .... I need to clear this by Jan 16, that is when the 0% ends..... I know there is a gap, but I think if needs must, I'll find a way to do it.
I've got some additional income due to arrive:
£100 plusnet cashback
£200 talktalk compensation refund
£150 credit with energy supplier at beginning of summer

... these will be a start at getting this Tesco CC cleared by xmas.
More matched betting, ebay, and maybe ....

I am keeping an annual spend balance that is quite high. But at any one point in the year, the maximum annual spend balance isn't really required .... so I wonder if there's a more efficient way of managing it, and throwing the excess at the CC.

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Am I over complicating my personal finances??? I feel mine are more complicated than most, but cant see why?

Tixy

So you would be looking to get the £16k loan first? and then look to remortgage the remainder that is left secured on the property?

I'd think you could run in to problems, as you won't be able to do both deals as one deal (if you know what I mean) and you could then struggle on an affordability basis with needing to service £40k of unsecured credit.

lazer-zxr

I think I'd be ably to get a lend of £16k cash for a month or so from a nother source, lets call it friend/family short term loan .... so I could remortgage, and then look for an unsecured loan for the £16k

But this is helping, maybe this is too risky, and I should continue with how I am .... its just the opportunity to clear £16k of 23 yr secured loan over 5 yrs is appealing.

0

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It's worth noting, that 3 months ago when I joined MSE at my light bulb moment, I was in a mess, didn't know how much money was where. I cant believe how exposure to this forum and YNAB has helped me organise my finances, and how the money making and cost saving ideas on here have helped.

I just feel I'm now at the next stage, where I must be missing some tricks to speed this process up.

Tixy

Maybe worth posting for some advice on the mortgages section of the forum. There are a few brokers who post regularly who may be able to help advise as to the chances of remortgaging and clearing the secured loan etc?

rebeccatom

I think you may have hit the stage that lots of people do once the initial activity of sorting everything out after their lightbulb moment. Of what's next, it seems like nothing is happening/ moving forward.

This is the period where you just have to knuckle down and keep doing what your doing. There is often not a quick fix to get to the goal faster.

You are doing great, have made fantastic progress in the last few months. Make sure you don't get distracted by trying to cut corners. Keep using YNAB, recording everything and making sure the household budgets run as they are supposed to.

lazer-zxr

@rebeccatom
I think you've hit the nail on the head. I've been doing so much activity organising, cost cutting and earning, that I now find there's nothing new or novel about it.
Knuckle down it is then, and try to keep on track.
Thanks.

InsertWittyName

Might be worth considering increasing your work pension contributions to mitigate the child benefit clawback.

The effective taxation rate between £50k and £60k is 60% (40% income tax, 2% NI, 18% child benefit clawback), meaning you only get £4k in your pocket out of £10k!

Increasing your pension contributions to bring your salary to £50k would likely be a good idea.

Be careful of this though if you're looking to remortgage etc., as it effectively reduces your salary.

andyfromotley

lazer-zxr wrote: »

Family of 4 (husband & wife in early 30s, two children under 5)
Using YNAB to revolutionise my personal finances and debt repayment.

---

I'd love some input on my SOA, my expenses and my income generation ideas.



I've managed to increase savings from £100 to £2100 in 3 months by doing the following:

Current account switching ..£750
Ebay ..............................£200
Quidco / Topcashback .......£200 - without buying anything
Matched Betting ...............£850

The above probably averaged around £35/hour

But now, my opportunities are becmoing less and less on the above.
I don't think the time v return of online surveys etc is good enough for me to do. I'm willing to stand corrected if I'm wrong.

---

Car Plan:

---

In July 2016, I'd like to purchase my company car for around £7k.

£900 work guaranteed bonus
£1920 from the £120 /month car saving
£3000 from the additional income from ebay, matched betting, bank bonus' quidco etc. - already at £2k in 3 months.
£1500 from money saved not paying the Tesco CC As pointed out this does not add up.


I will then receive an increase to my salary of £426 / month after tax, if I replace our second car with a newer car 2 years old, and would use this £426 per month to run both cars and finance the replacement 2 year old car.

---

S.O.A.

---

Income

£GBP£
Monthly Salary............2,620 after tax
Wife's Salary.................779 after tax
Child Benefit Income......136 before tax - tax deduction shown in expenses below
Solar Power income.........40 tax exempt
Total Income..............3,575

Expenditure

Home
Groceries...........................400 Incl food, cleaning products etc ... everything I can get at Asda. This is good but does have wriggle room in if things are desperate. Old style MS forum will help.
Internet............................ ..2.5
Line Rental ..........................14 paid annually
Property Maintenance.............20 Contracted in as part of our house agreement
Home insurance.....................8 paid annually
Council Tax.........................148 Is this on the 12 monthly payments?
Gas & Electric......................63
Water................................46
Mortgage............................960
Mortgage Overpayment ........175 I know I should probably reduce this to pay S/T debt, but dont want to get out of this habit. This is an emotional decision rather than a financial one (and its hardly a bad one, but you can definitely put this money to better use. i see you are saving for an EF. I would stop this payment till that was where you want it.
Mobile telephones..................7.50
Life Insurance......................56 Seems highish, are you sure this as cheap as can be, use comparison site
Hair cuts.............................30 Wife's only, I'll ask her to cut my hair
TV Licence..........................12 Paid annually
Clothing ............................40 Usually only for the children
Dentist................................7 for 6 monthly checkups

Entertainment: Savings on all of these if desperate but youre not and they all seem ok
Going out...........................50
Hobbies............................100 All four of us have various hobbies
Caravan expenses...............44 Paid annually
Holiday..............................50 £600 annual for summer hols?
National Trust Membership ....6.5 paid annually


Transport:
Fuel..................................160 (can you car share any days?)
Public transport....................40 Wifes commute
Car Insurance......................32 Paid annually
Car Tax..............................13 Paid annually
MOT & maintenance..............10 Paid annually (this isnt much for these bills? especially major services, what about savings for tyres, exhausts, brakes etc?)
Saving for replacement car ..120

Debt repayment:
M&S Loan...........................168
Yorkshire Bank Loan.............208
Tesco Credit Card.................300 and throwing any spare one offs at this aswell


Other:
Work Lottery Syndicates......15 The fear of the syndicate win keeps me in (id get rid)
Union................................ 1
Child Benefit Tax................95 Paid annually
Takeaways........................13 One per month
Other one offs / Treats........10
Presents............................20
Emergency fund ................ 50


Monthly Expenses...........3,494


Monthly Income............3,575
Monthly Expenses..........3,494
Net Income ......................81 Used to try and create a buffer




Assets & Liabilities:

Debt: £GBP£ Balance
Mortgage Balance..................147k 26 years left
Secured loan on mortgage........23k 26 years!
Total Mortgage......................170k Value of house is £185k, mortgage rate 4.54% ... about to look for remortgage deal

Tesco Credit Card ...........4,594 - used to buy caravan - (0% period 12 mnths remaining, currently paying £300 per month)
M&S loan......................6,996 - used to buy solar panels - ( 3.5% APR, 5yr term)
Yorkshire Bank Loan.......13,248 - legacy debt - (5% APR, 5yr term)

Total Debt......................£196k

Total debt excl Mortgage ....£49k

Current Account balances:
Account for annual spends & Saving.....£1900
Daily current Account.........................£110 at end of May with all expenses deducted
Savings account ...............................£2100


Value of house: £180k (was bought in 2006 for £215k, with a £205k mortgage)
Value of owned car: £400

---

Mortgage plan:

Remortgage:the £153k away from NRAM, at a more favourable rate. LTV 84%
Decouple the £16k loan and payback over 5 years at something close to 3.6%

I want to decouple the 23k from the 147k mortgage, and remortgage 154 ish and get an unsecured 16k.

Im sure I can do this, where monthly repayments will not exceed my £1135 mortgage payments + £80 I have spare.
But not sure how good a mortgage I'll get considering debts, gambling transactions even through they're used for zero risk matched betting, and 84% LTV.

---

I'd really appreciate some ideas, and comments.

Thanks.

I have added some comments but it seems as if you are doing great. Not huge savings to be made anywhere.

You seem really on top of things. Your finances will swing on two things, your remortgage. Get onto the mortgage thread but i suspect there are definitely savings to be had there. And the car. You will receive a substantial rise with the car (and some additional expenses of course) but will help you kill this debt. Whatever you do i suspect if keep going with the same focus you will be fine.
Andy

lazer-zxr

InsertWittyName wrote: »

Might be worth considering increasing your work pension contributions to mitigate the child benefit clawback.

I've just ran a couple of scenarios, and it is a great saving, but the time value of money to throw at debts is conflicting:

Currently, if I sacrifice £71 per month, my pension fund will end up £166 per month better off (the 2k above the 50k threshold)

In the future, at the new car stage .... if I somehow sacrificed the 8k over the 50k I will end up £71 per month worse off than I am now, £284 worse off than I wouldve been then, but pension contribution will be £666 per month better off. wow. But I think I'll need the money in the now, not the future? Its very tempting.