Opinions on my SOA please?

Lala2015

Morning all,

This is for the purpose of the question - Should I buy or continue to rent.

I have another thread, which is more like a diary, on the 'How much have you saved?' section, but as I'm all rolled-into-one as it were, I think I'm not reaching many people (not complaining! It's holding me accountable!) BUT, I would like some feedback on what people think I should do?

My thread is the one from 14/7, located here:
https://forums.moneysavingexpert.com/discussion/5272022

In the same breath, would someone be able to give me some feedback on my SOA?
I'm wondering if I can in fact, save anymore than I am and if anyone has any tips? my rent/bills etc (as having one sole income) is making it very difficult!

SOA:

Monthly Income Details
Monthly income after tax................ 1836
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1836

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 895
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 26
Gas..................................... 0
Oil..................................... 0
Water rates............................. 21
Telephone (land line)................... 0
Mobile phone............................ 33
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 18
Groceries etc. ......................... 100
Clothing................................ 0
Petrol/diesel........................... 90
Road tax................................ 0
Car Insurance........................... 50
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 50
Netflix................................. 7
Car Finance Payment..................... 140
Total monthly expenses.................. 1560

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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........

Monthly Budget Summary
Total monthly income.................... 1,836
Expenses (including HP & secured debts). 1,560
Available for debt repayments........... 276
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 276

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -0
Net Assets.............................. 0

*For clarification*:
TV licence, contents insurance, car insurance & breakdown paid - per annum
I save for the 'per annum' spends by putting aside 20-50 per month depending on the month & then pay these in one sum every year.

I don't put aside anything for socialising as I only really do for 'events' as such. When I know I've got somewhere to be, I'll put away money for it separately.
Same goes for things like haircuts etc.

I already live as close to my current job as I can be. Driving, it's 20 minutes but would take me over an hour and a half to walk.

I can't get rid of my car - I'm over halfway paying for this and have had the car for nearly 3 years. If I didn't drive, I couldn't get anywhere - Well, it would be very difficult.
I'd also still need to pay the remainder of the loan.

I need to add: I live in central surrey and looked for a place to rent for a while - This was the cheapest I found which wasn't falling apart. All of my friends/family who rent in the same area are paying £1000+ per month!
Thanks in advance

HappyMJ

That's great with a few missing items as advised on the previous thread.

Whenever considering buying you need to do a rent/buy calculation which basically means doing another SOA pretending it's a month after you've bought the house of your dreams....don't just buy any house. Buy a house you intend to live in for a very long time. Moving is very expensive. You can easily leave a rented property with little cost but trying to sell up might cost you all your savings.

I know you've added the note regarding paying an annual thing each month but it really should be divided by 12 and put into the SOA. It doesn't need to be an expense in that month it can be savings towards a future expense. It gives you a more accurate picture as to what is spare each month and what you can spend on having fun each week/month. I think your fun/entertainment/events money isn't actually £276 per month that more than £60 per week. If you don't go out often it's probably much less so where is the rest?

rockm87

How about a pushbike?

Are you able to get a lodger to help with the rent?

Sharon87

In regards to buying, have you saved anything towards a deposit, as that obviously is the first step. If I were you I would work towards buying a place, as the rent is quite high in your area, usually a mortgage is cheaper than the rent you pay.

As for your SOA, don't you have gas in your place? Your electric is also very low, if that's accurate well done on getting it so low!

The only thing I can see to reduce on your monthly outgoings is your phone - when your contract ends would you go onto a sim only plan or are you always after the latest upgrade? I finished my contract 7-8 months ago and went on Sim only, it went from £36 a month to £20 a month for the same plan. My phone is still going strong, although I may need to change the battery in 6 months, that's still a lot cheaper than a new phone.

determined_new_ms

Have you considered a house share/room in a house? Easily halve your rent costs

Lala2015

Sharon87 wrote: »

In regards to buying, have you saved anything towards a deposit, as that obviously is the first step. If I were you I would work towards buying a place, as the rent is quite high in your area, usually a mortgage is cheaper than the rent you pay.

As for your SOA, don't you have gas in your place? Your electric is also very low, if that's accurate well done on getting it so low!

The only thing I can see to reduce on your monthly outgoings is your phone - when your contract ends would you go onto a sim only plan or are you always after the latest upgrade? I finished my contract 7-8 months ago and went on Sim only, it went from £36 a month to £20 a month for the same plan. My phone is still going strong, although I may need to change the battery in 6 months, that's still a lot cheaper than a new phone.

Thank you

Yes, The figure I've saved for my deposit is in my signature - aiming to hit £40,000.
I've saved separately for all the different costs, so already have those covered.

No gas in my maisonette, only electric. I did a lot of comparison to get it that low!

The latest upgrade doesn't concern me - I've found some brilliant deals on Giffgaff, but I have my contract until next June

Lala2015

rockm87 wrote: »

How about a pushbike?

Are you able to get a lodger to help with the rent?

The issue with changing my transportation is I'd still have to pay off the remainder of the loan... So may as well have the car?

I've recently managed to get my bicycle back from my ex, so will be using the car less, yay!
I can't get a lodger, as my tenancy contract is only for me and then there is the issue of only one bedroom!

corbyboy

How essential is it for you to live by yourself? If you moved into a house share or became a lodger you could easily put away a grand per month. Especially since you only have one bedroom anyway. You could save a huge deposit in a couple of years.

rockm87

How much is your car loan? Could you sell it? then use your bike to get to and from work?

or get a second job to boost your income?

Lala2015

rockm87 wrote: »

How much is your car loan? Could you sell it? then use your bike to get to and from work?

or get a second job to boost your income?

Hi Rockm87,

I've got £3k left. I'm not legally allowed to sell it until the loan has been paid

Muser1

What about paying the loan off out of your savings? Then top your savings up with the £140 finance payment. Great deposit savings.

Have you had a go on the mortgage affordability calculators? How much can you borrow? Would this get you what you need in the area you want to be in?