Can afford to save on paper, not in reality

dcouponzzzz

Anoncol unfotunately I've already switched to the First Direct current account last week. I'm taking the opportunity to use the 0% £250 overdraft buffer so I don't have to borrow from any other source at the end of the month.

anoncol

Don't forget you aren't limited to only one account. Different accounts have different benefits.

lee111s

Can you remortgage and get a cheaper interest rate? You look like you're around 75% LTV. I have a mortgage rate of 2.19% at that LTV.

dcouponzzzz

I wasn't aware you could have multiple current accounts Anoncol, I assumed because they're offering switching bonuses you could only have one but I guess that's based on it being the primary income/outgoings account. I'll look into it.

Lee the mortgage began April 2012 on a 5 year fixed rate, I had a very quick look into it and to buy out and switch would negate the savings. I might revisit it and contact my current bank for definite figures. Regarding LTV would that be based on current value? It's 75% if so, but on purchased value it stands at 88%

DCFC79

Get broadband and get a cheaper Sim only plan when the phone contract ends, surely will work out cheaper than the £45.

dcouponzzzz

Hey DCFC, I actually moved this week to SEE for phone and broadband, so my broadband is free and it's £12 a month (6 for me) line rental only for 2 years. I was on a SIM only plan for the past 2 years with 3 mobile for £18 a month unlimited internet, so when this contract is over I'll be moving back to something similar

Purplesky_2

Hey, I had a look at some cars in the general vicinity and found some ideas. I have made a spreadsheet (hence the late reply!), with some ideas for cars and also the capability to tweak some of the values. I'm afraid that I can't seem to send it to you via pm or right here. I'll see, but if you feel comfortable, pm me your email address and I'll send it to you

What I would say is that you could probably negotiate better loan terms if you went to a bank, rather than relying on the car companies. I would say that you should be able to get a car and pay off the difference between your original car and even get a better rate (I put in 4.5% as a guess, but you'd have to double check - there's a tool here I think that does a soft search). I reckon you could save yourself about £2000/year in running and loan costs :eek:. Even without moving or getting a job closer to your house.... :T

TBagpuss

Definitely include you cigarettes and lunches in your spreadsheet.

oe thing ou may find useful is to get a little note book and wwrite down eveything you spend, as you spend it. And I mean everything it can be really helpful in helping you to identify where money goes, and to focus your mind on what you are spending.

Buying lunches is expensive. It's much, much cheaper to make your own (and often healthier!)

If you normally buy sandwiches, consider making these instead. If you keep a loaf of (sliced) bread in the freezer you can make the sandwiches while the bread is still frozen - by lunch time it will have thawed but in the mean time will have helped keep the filling cool and fresh. And for many fillings you can also make a whole batch of sandwiches at the weekend and freeze them, (individually wrapped) and then take one package a day. If you want crisps or soft drinks, they are cheaper if you buy multipacks and take one in a day than if you buy individual packs each day. Same with fruit.

If you like heartier lunches - thinks like soup, noodles, curry etc. can be made ahead of time - either microwave them at work or if you don't have access to a microwave, invest in a wide necked thermos.

Smoking - keep track of what you are spending. My neighbour gave up smoking some years ago - he told me that what he did was that every time he wanted to buy cigarettes, he would instead put the money into a jar (and then into a savings account) and once a year he would let himself spend that money - he said that making the conscious choice not to buy the package of fags each time was helpful to him, as he felt less guilty (and therefore didn't give up trying to quit) when he did slip and buy some, and that it was inspiring to see the money build up. Now he puts a set amount away each week based on what he used to spend on cigarettes. This year it was enough to cover the cost of replacing his bathroom. He said that keeping the money separate as a 'reward' for not buying cigarettes was really helpful for him.

I agree that your car and phone costs seem pretty high.

dcouponzzzz

Hey, update for anyone interested:

Traded my 35mpg Megane for an 80mpg Polo (displayed figures after daily commute). Due to negatve equity on previous car even with the petrol savings I expect to be paying out almost the exact same amount per month, however this car is on a 3 year secured finance, cutting a year off the previous unsecured loan. This will give me the opportunity to save £265 per month in the year following the final payment date. Did I also mention Costco is 109p per litre of diesel?!?! I was debating a Santander 123 credit card (£24 annual fee) for the 3% fuel cashback but for my £25 costco membership I save more!

Finance info: Trade in value £5k, New car £6988, Total finance £8976, 4% flat 9%apr, Total to be paid = £265p/m or £9540 over 36months

Regarding household and phone bills I did move mine and my sister's joint account to a Santander 123 current, should get a bit back from there. I know this would have covered 1st year annual fee on the 123 CC but I already paid off my Costco membership. We also switched from Plusnet (£24p/m) to SSE (£12 p/m) and are also considering moving away from prepay energy.

I took the above advice and have been bringing lunches in to work, although that was the most blaringly obvious moneypit on my bill.

I've recorded every unnecessary outgoing payment, and I'm spending an inordinate quantity on a category I like to call 'Unplanned Groceries'... basically trips to a supermarket for snacks, cigarettes, milk, bread, fruit etc... I've cut out daytime smoking to reduce that cost and will only have a couple in the evening now, and will plan my weekly Aldi shops with more accuracy to reduce emergency trips down the road to the Co-Op.

I've set up a regular saver account for £50 a month which potentially could increase, but will cover my car insurance upon renewal at the very least. Also will be adding what I can afford to a cash ISA and an E-savings for large purchases and an emergency fund.

If anyone has any more tips/tricks or if I'm making any mistakes please let me know!

dcouponzzzz

Updated SOA

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................................ 304
Secured/HP loan repayments.............. 256
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 63
Electricity............................. 20
Gas..................................... 10
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. ......................... 150
Clothing................................ 20
Petrol/diesel........................... 120
Road tax................................ 0
Car Insurance........................... 50
Car maintenance (including MOT)......... 11.25
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 22.5
Pet insurance/vet bills................. 0
Buildings insurance..................... 5.96
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 4.99
Presents (birthday, christmas etc)...... 30
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1191.2

Assets
Cash.................................... 153
House value (Gross)..................... 73000
Shares and bonds........................ 0
Car(s).................................. 6000
Other assets............................ 0
Total Assets............................ 79153

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 54000....(304)......4.9
Secured Debt.................. 9400.....(256)......4
Total secured & HP debts...... 63400.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 1,558
Expenses (including HP & secured debts). 1,191.2
Available for debt repayments........... 366.8
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 366.8
Personal Balance Sheet Summary
Total assets (things you own)........... 79,153
Total HP & Secured debt................. -63,400
Total Unsecured debt.................... -0
Net Assets.............................. 15,753
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using IE browser.