SOA Help

funkypriest

HappyMJ wrote: »

So how much is it worth? You've put zero which implies to me that it's worth nothing.

You really need to be accurate. The advice from me with a car worth nothing and no assets would be to consider a DRO or Bankruptcy but as the car has value you would lose it if you went bankrupt.

The benefits are paid to you as a couple. You need to include all benefits you get as a couple and put down an increased figure for groceries. If you're spending £200 a month on groceries and another £200 (of the child benefit and child tax credit) on groceries too then it also makes the advice I give inaccurate as £400 a month for three would then be quite high but £200 a month is excellent.

Car is on finance and in my partners name. My partner pays for the car finance/childcare and costs of our child's food and other bits and pieces. I purely buy household goods and groceries from my budget. We do not get Child Tax Credit - only Child Benefit.

anna_1977

funkypriest wrote: »

Car is on finance and in my partners name. My partner pays for the car finance/childcare and costs of our child's food and other bits and pieces. I purely buy household goods and groceries from my budget. We do not get Child Tax Credit - only Child Benefit.

As HappyMJ has mentioned your SOA needs to reflect household income and outgoings to be as accurate as possible . If she's also paying car finance is she earning ?

funkypriest

anna_m wrote: »

As HappyMJ has mentioned your SOA needs to reflect household income and outgoings to be as accurate as possible .

I appreciate that however my expenses are as they are and my partner is already saving and managing, it's me who needs to sort out my monthly finances hence only including my bills and income on the SOA.

HappyMJ

funkypriest wrote: »

Car is on finance and in my partners name. My partner pays for the car finance/childcare and costs of our child's food and other bits and pieces. I purely buy household goods and groceries from my budget. We do not get Child Tax Credit - only Child Benefit.

Do you not combine finances? It's very confusing....your income looks like you're entitled to child tax credits.

You are a family you need to combine all income and expenses.

I think a lot of your money is going on the family but you just don't know where. Can you look at you bank statements and reconstruct a SOA from that? Cash withdrawals may have to go down as Entertainment if you have no idea what they were spent on.

foxgloves

Hi Funkypriest,
Ah, well it's that word 'unplanned'. I don't know if you actually physically sit down & budget your money each month, but that's the stage where you plan ahead. All cars need tyres, MOTs, servicing, etc, so it's all plannable. As someone who used to have to stick all car expenses straight on credit, now that I've discovered budgeting in a big way, I put £50 cash aside every month in an envelope for car maintenance. If tyres need replacing or I've a service to pay for, the cash is ready. I also have envelopes (with differing monthly cash amounts going in) for clothes, household maintenance, entertainment, presents & holidays. This system also focuses us a lot more on what we spend. If there is only £20 in the clothing envelope, we can easily see that is the case & so we know it's not the time to be buying non-essential clothes.
With the Car Maintenance envelope, a whopping car bill could cost more than we've got in there, so in that case, we would bail ourselves out with our modest emergency fund. If you have no emergency fund, it's definitely worth getting one in place. Even £10 or £20 a month saved would give you a £120 or £240 headstart in dealing with an emergency this time next year.

HappyMJ

funkypriest wrote: »

I appreciate that however my expenses are as they are and my partner is already saving and managing, it's me who needs to sort out my monthly finances hence only including my bills and income on the SOA.

Your bills and income are fine.

anna_1977

funkypriest wrote: »

I appreciate that however my expenses are as they are and my partner is already saving and managing, it's me who needs to sort out my monthly finances hence only including my bills and income on the SOA.

But according to your SOA you should have a lot left each month.

funkypriest

foxgloves wrote: »

Hi Funkypriest,
Ah, well it's that word 'unplanned'. I don't know if you actually physically sit down & budget your money each month, but that's the stage where you plan ahead. All cars need tyres, MOTs, servicing, etc, so it's all plannable. As someone who used to have to stick all car expenses straight on credit, now that I've discovered budgeting in a big way, I put £50 cash aside every month in an envelope for car maintenance. If tyres need replacing or I've a service to pay for, the cash is ready. I also have envelopes (with differing monthly cash amounts going in) for clothes, household maintenance, entertainment, presents & holidays. This system also focuses us a lot more on what we spend. If there is only £20 in the clothing envelope, we can easily see that is the case & so we know it's not the time to be buying non-essential clothes.
With the Car Maintenance envelope, a whopping car bill could cost more than we've got in there, so in that case, we would bail ourselves out with our modest emergency fund. If you have no emergency fund, it's definitely worth getting one in place. Even £10 or £20 a month saved would give you a £120 or £240 headstart in dealing with an emergency this time next year.

Thank you Foxgloves, that's the problem at the moment is the unexpected bills.

I'll look into the envelope method, seems like something that could work for me.

funkypriest

HappyMJ wrote: »

Do you not combine finances? It's very confusing....your income looks like you're entitled to child tax credits.

You are a family you need to combine all income and expenses.

I think a lot of your money is going on the family but you just don't know where. Can you look at you bank statements and reconstruct a SOA from that? Cash withdrawals may have to go down as Entertainment if you have no idea what they were spent on.

What's the threshold for Child Tax Credit?

We each pay for certain bills, as I earn more I pay for the groceries/petrol and my partner pays for the child expenses and car finance payment.

HappyMJ

funkypriest wrote: »

What's the threshold for Child Tax Credit?

We each pay for certain bills, as I earn more I pay for the groceries/petrol and my partner pays for the child expenses and car finance payment.

Around £25,000 household income per year for one child.