Can afford to save on paper, not in reality

dcouponzzzz

Hey all,

So according to my SOA I should have no problem saving a chunk a month, but the budgeting tool begs to differ showing a £40pcm defecit (mostly due to e-cigs or full fats, and lunch purchases). My current spending habits are funded by the 0% interest bank of Mum and Dad where I borrow week 3, and pay back in full on pay day.

If things continue as they are I'll never have an emergency fund, annual holidays, or anything of value without getting in to debt (which isn't an option). I'm hoping you friendly lot have some suggestions/tips/tricks on saving I've read most of Martin's guides and plan on opening multiple bank accounts, each with a specific saving purpose.

If there are any useful forum posts I've missed I'd be more than happy to be redirected there, cheers!

Note: SOA shows home and utilities cut in half, as I own my house 50/50 with my sister. Essentially they are the only bills we share.


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1558
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1558
Monthly Expense Details
Mortgage................................ 303
Secured/HP loan repayments.............. 159 (Tesco loan - car finance)
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 63
Electricity............................. 30
Gas..................................... 30
Oil..................................... 0
Water rates............................. 16.45
Telephone (land line)................... 6
Mobile phone............................ 44.99
TV Licence.............................. 6.06
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 30
Petrol/diesel........................... 225 (commute Liverpool to Manchester)
Road tax................................ 15
Car Insurance........................... 104.16
Car maintenance (including MOT)......... 11.25
Car parking............................. 50
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14.99 (Dental care)
Pet insurance/vet bills................. 0
Buildings insurance..................... 5.96
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 34 (not insurance, monthly lottery DD)
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1358.86

Assets
Cash.................................... 15
House value (Gross)..................... 73000
Shares and bonds........................ 0
Car(s).................................. 6500
Other assets............................ 0
Total Assets............................ 79515

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 55000....(303)......4.47
Secured Debt.................. 7500.....(159)......8
Total secured & HP debts...... 62500.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
First Direct OD................200.......0.........0
Total unsecured debts..........200.......0.........-

Monthly Budget Summary
Total monthly income.................... 1,558
Expenses (including HP & secured debts). 1,358.86
Available for debt repayments........... 199.14
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 199.14
Personal Balance Sheet Summary
Total assets (things you own)........... 79,515
Total HP & Secured debt................. -62,500
Total Unsecured debt.................... -200
Net Assets.............................. 16,815
Created using the SOA calculator at Stoozing
Reproduced on Moneysavingexpert with permission, using IE browser.

grumbler

You definitely can't afford wasting £45 p.m. on your mobile toy. Does this include internet?

What's "other insurance" that costs you £400 p.a.?

Aim to pay for all insurances annually, not monthly, - this can save you a lot, especially in your expensive car insurance. Even a credit card can be cheaper if you can get one.

If you pay 50% for energy, £30+£30 looks too big unless the house is very old.

B_G_B

dcouponzzzz wrote: »

Hey all,
So according to my SOA I should have no problem saving a chunk a month, but the budgeting tool begs to differ showing a £40pcm defecit (mostly due to e-cigs or full fats, and lunch purchases).

First thing that I would suggest is put your e-cigs and lunches on the SOA.

I found the SOA calculator to be a brilliant tool providing that I put everything down, including the bits that I don’t want to. I am a smoker. Do I want to put my fags down. Do I heck. I found that the SOA was useless unless I was honest. Also, the little spends i.e. £1 a week lottery (£52 a year) all add up. Also intermittent miscellaneous i.e. wedding presents. The process is ongoing for me.

Once I have an accurate appraisal in front of me, in black and white, instead of rattling about in my head, then I can really look (with help from others) at what I am willing / able / unwilling / need to work on.

Purplesky_2

dcouponzzzz wrote: »

Hey all,

Note: SOA shows home and utilities cut in half, as I own my house 50/50 with my sister. Essentially they are the only bills we share.


Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 1558
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1558
Monthly Expense Details
Mortgage................................ 303
Secured/HP loan repayments.............. 159 (Tesco loan - car finance)
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 63
Electricity............................. 30} This seems high, given that
Gas..................................... 30}you say this is half the bill. Changed suppliers lately?
Oil..................................... 0
Water rates............................. 16.45
Telephone (land line)................... 6
Mobile phone............................ 44.99 (£45 a MONTH? If you have been on the contract a while, ring them and ask to renegotiate)
TV Licence.............................. 6.06
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 120
Clothing................................ 30
Petrol/diesel........................... 225 (Where are you commuting to? Mars? Seriously, this is really high. Check you are getting the cheapest petrol around (Check near home and near office). Is your car just inefficient? Could you lop some of that off by looking at hypermiling/driving more efficiently? Could you look for a job closer to home? How much would the same journey take on public transport? It MAY actually be cheaper for you to run the car for home errands and commute differently.
Road tax................................ 15
Car Insurance........................... 104.16
Car maintenance (including MOT)......... 11.25 - I think you're low balling this. We set aside £200/year for a small v.v. reliable car - you drive much much more than we do. You gotta take wear and tear into account.
Car parking............................. 50 (This is also really high. Check your local council's parking restriction maps. Could you park a little further away and walk?)
Other travel............................ 10
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14.99 (At that price, it might be cheaper to see if you can get something over the counter that's cheaper, or more generic - I buy hayfever meds at Wilkinsons for about £2/month. If that's all or mostly on prescription, get a pre-paid prescription)
Pet insurance/vet bills................. 0
Buildings insurance..................... 5.96
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 34 (What is this?)
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0 (You REALLY need this)
Total monthly expenses.................. 1358.86

Assets
Cash.................................... 15
House value (Gross)..................... 73000
Shares and bonds........................ 0
Car(s).................................. 6500
Other assets............................ 0
Total Assets............................ 79515

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 55000....(303)......4.47
Secured Debt.................. 7500.....(159)......8
Total secured & HP debts...... 62500.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
First Direct OD................200.......0.........0
Total unsecured debts..........200.......0.........-

Monthly Budget Summary
Total monthly income.................... 1,558
Expenses (including HP & secured debts). 1,358.86
Available for debt repayments........... 199.14
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 199.14
Personal Balance Sheet Summary
Total assets (things you own)........... 79,515
Total HP & Secured debt................. -62,500
Total Unsecured debt.................... -200
Net Assets.............................. 16,815
Created using the SOA calculator at Stoozing
Reproduced on Moneysavingexpert with permission, using IE browser.

As soon as it makes sense, you should really, really look at your car. Sell your existing car and pay off the loan. Set up some savings now where it would be challenging for you to get at them. Use this money to buy your next car. Buy used. Buy with cash. Buy something reliable and efficient. This also benefits you in terms of tax. We bought a used AYGO. It's lovely and surprisingly spacious. £20 tax for the YEAR, £30 petrol, low insurance and low maintenance.

You should set up some regular savings. Just have an account somewhere other than your usual bank, ideally with a passbook so that you have to go in and get money out in branch. Don't sign up for internet banking for this account. Too much access. A day or two after your pay goes in, that amount goes out. Then you just live on what you have.

Seriously, you car is a HUGE drain on your resources. You are spending a THIRD of your take home wage on your car in various ways. and it's not even worth the loan you're paying for it. In this year, you will have spent £6772.92 on your car, going by your estimates, and as I say, I think you're being optimistic with the maintenance. Say £7,000 for ease of numbers. What else could you do with that money? A big holiday, probably. A few show or concerts. Some emergency savings. Some home repairs (which you currently have no money set aside for). Hell, it would buy a roof, a £1000 emergency savings buffer, a lavish holiday on the continent, and a couple of concerts. And your car is costing you that EVERY YEAR. Is it worth it?

Could you give up the car and commute some other way. Could you join up for a car-sharing website? Would your sister allow you to borrow her car for any errands that really need a car?

For reference, we spend £950 a year on our car. I spend about £300 commuting and visiting friends on the train.

dcouponzzzz

Thanks Grumbler, I'm 2 months into a new contract and use circa 10gb data per month average. Unfortunately this can't be reduced. The 34 in insurance was a direct debit for lottery tickets which has since been cancelled. Our house is currently on a prepay meter, through summer gas+leccy is approx £30 per month, double in winter. I'm currently exploring options for switching.

BGB, cheers! I'll work on figuring out lunch + cigs outgoings but it's sporadic and unpredictable, so may take some time.

Purplesky, thanks for the time you put in to the reply! I commute between Liverpool and Manchester daily. The cost of public transport is actually higher than petrol costs, and my shift begins at 7am before regular trains are scheduled. My car is definitely inefficient, managing 35mpg before this month, and 40mpg after I've started driving efficiently. The maintenance costs are based on service + MOT, but I've never had any other issues in 18 months to base a cost on. I'll use £200 going forward. As I work in Manchester city centre the only available free parking is 25mins walk away and in an area known for car vandalism! I've looked in multiple car sharing sites but no-one makes the same commute as me for the times I need, my sister doesn't drive.

I've been applying and had 1 interview so far for jobs close to home, but failing this the opportunity to rent out my property and pay for somewhere closer to work is an option.

Regarding my car, I would be gutted to sell it but would be willing to do so for the benefits. I'm 18 months into a 5 year finance for 7500 at 8%, so it may not be financially viable to sell so soon with the car having lost 1-1.5k in value since purchase. I'll look in to it!

Purplesky_2

Hey, Hey! That used to be my AREA!:beer: I used to get the train to Atherton, and our nearest 'big' town was Wigan! Presume you hop on the East Lancs and power through?
I get it, going between Liverpool and Manchester is a bit of a pain.

Could you split the journey? Could you drive as far as Salford or Warrington and get the train from there? I knew someone who did a similar thing from Daisy Hill in Atherton. Have you considered getting fuel in one of the smaller towns along the way? It's probably cheaper? Lowton or Leigh maybe? Might be worth having a look online.

Did you know that you can rent parking spaces from people who have them included in their property? It might end up being cheaper than where you're parking now.

Have you looked into working closer than you are now, but not close close, as a bit of a stop gap? St Helens, Warrington, Preston, Chorley? Don't know what industry you're in (Or where in Liverpool you are), but there could be a compromise distance for now. Closer than Manchester anyway! Also, have you checked coaches? Coaches might work?

I would suggest that you devote a little time to making food for the day. You could make up a big batch of cous-cous salad, for the first couple of days and then have some premade soups in the freezer, with sliced nice bread, also frozen. Take it out and let it thaw over the day, then heat it up for a meal! probably only need half and hours prep on a sunday, and then it's just grab and go!

As for the mobile, it's unfortunate, but at least you can use it to your advantage a little. Call halfway through the contract and ask to reduce the price. Then towards the end of your contract, ring them again and ask them to tell you what your actual usage is. Some people call loads, but don't really text etc etc. This will mean that you get the absolute best deal next time you look, because you know exactly what you need!

Since you spend so much on petrol, have you considered a Santander 123 card. http://www.santander.co.uk/uk/credit-cards/123-credit-card they give you money back on your petrol purchases and trains at 3%. (As well as department stores and supermarkets, at 1% and 2% respectively), although there is an annual fee. Their bank account is pretty good too for paying bills and getting interest/cashback http://www.santander.co.uk/uk/current-accounts/123-current-account/ - even on your council tax and water/energy bills. Your mobile phone contract put through there would give you 3% back? It's worth a look anyway. http://www.santander-products.co.uk/banking/calculator/123ca.html (If you paid all the household bills through you and this account, you would get back £64/year on bills!). And you'd get 1% as a minimum for as much of the month as you can keep your figure above £1000 to start with. Beware, reaching the next level of savings can become addictive!

I would also ensure that you use cashback sites for your insurances. Gonna get fleeced for insurance since you're (I'm assuming) under 25 and male based on your insurance costs, you might as well get some of that back in cashback?

I would set yourself a challenge. To be able to pay off £50 of your car loan each month through additional income/savings. Ebay/not buying a shirt you really wanted/cashback/using coupons at the supermarket/cheapening your shop even further by seeking out a market/finding the cheapest place for petrol/using points instead of buying something with money etc etc etc.

grumbler

Purplesky wrote: »

As for the mobile, it's unfortunate, but at least you can use it to your advantage a little. Call halfway through the contract and ask to reduce the price.

You have to be very lucky to get the bill reduced.

Then towards the end of your contract, ring them again and ask them to tell you what your actual usage is. Some people call loads, but don't really text etc etc.

Is this not what the itemised bills are for?

anoncol

Regarding the car fuel cost are you traveling 100 miles a day like me?

Purplesky_2

grumbler wrote: »

You have to be very lucky to get the bill reduced.
Is this not what the itemised bills are for?

Well, possibly, but what's the worst they could say. No? Then you're no worse off.

Itemised bills will tell you on a monthly basis, but to get a better idea of the average, (and save you deciphering their bills!) you could just ask?

dcouponzzzz

Yeaa :beer: at the moment I hop straight on the m62 and it's a straight line, about 40miles give or take. Starting at 7am means no traffic to contend with, but also no trains or coaches running Before a promotion a year or so ago I started at 8.30 and was on the national express coach with my kindle every day!

I might do a scout around because I work smack bang on Piccadilly, the closest houses are the ones I mentioned where vandalism is rife, and the application for a parking space beneath work is a 50/50 chance so would be worse off committing to renting a space. I get the £4.10 earlybird price in an NCP for days I don't get assigned a work spot.

The jobs I've looked at have been as far as chester or Warrington like you say, I'm an IT Service Desk supervisor and without the Team Leader experience it's not looking good for an easy move.

Regarding my mobile I've got this thing.... like an addiction where I have to have the latest gadget when there's a new feature. I was there day 1 of the iPhone, and now I have the s6 edge. Maybe I should see a hypnotherapist... :wall:I have had contracts reduced in price in the past but definitely further down the line.

I've seriously considered the Santander 123 CC, and still am. My problem is I've never been in control of credit in this way and I'm apprehensive. I'm doing my research and until I fully understand how the interest and repayments work I'll hold off. Perhaps the bank of Mum and Dad have some advice The bills are getting switched over to Santander shortly as well but my sister is organising that.

Close enough, I'm 26, male, only held my license since April 2014. I did get fleeced but I used my annual bonus to pay the car insurance off in full. I can't assume I'll have that luxury next year so it's on the list to be saved for...

At the moment I have a 2011 Renault Megane maxing at 40mpg, paying £225 p/m petrol and £160 finance. I'm in a position with my finance to request a loan increase at a lower % interest. If I currently owe £7k, my car's worth £6k, is it financially viable to increase the loan to buy a Clio Dci (82mpg £30 tax, £9.2k) or a golf bluemotion (88mpg £0 tax, £9.5k)? Off the top of my head I think I'd actually be spending less per month to have a better car...

anoncol

I'd recommend the 123 current account for bills as well. For the cc make sure you pay the card in full every month. I do ours automatically.