New decade, new me 24 January 2016 at 1:51PM in Debt free diaries 8 replies 793 views

brokeapproaching30

Having been eating into my savings for the past 3 years, it is time to take back control of savings and spending habits. I used to earn more than I do now but had to take a hefty cut to go part time for health issues. The problem was that outgoings remained the same.

I'm getting help each month from relatives that I haven't included in SOA to keep things from dropping further, but I don't want to have to rely on that going forwards.

Clearly a long way to go, but having done SOA I can see why I'm running into trouble. Essentially what comes in isn't enough for what goes out, and so I begin to face the hard truth that I must start cutting my coat according to my cloth! It'll be a long road but here we go.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1909
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1909

Monthly Expense Details
Mortgage................................ 442.4
Secured/HP loan repayments.............. 185
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 20
Mobile phone............................ 50
TV Licence.............................. 12.12
Satellite/Cable TV...................... 20
Internet Services....................... 15
Groceries etc. ......................... 150
Clothing................................ 50
Petrol/diesel........................... 80
Road tax................................ 11
Car Insurance........................... 25
Car maintenance (including MOT)......... 10
Car parking............................. 20
Other travel............................ 50
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 2
Pet insurance/vet bills................. 30
Buildings insurance..................... 20
Contents insurance...................... 20
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 30
Haircuts................................ 25
Entertainment........................... 30
Holiday................................. 50
Emergency fund.......................... 40
Professional fees....................... 200
Pet care................................ 80
Total monthly expenses.................. 1897.52


Assets
Cash.................................... 4000
House value (Gross)..................... 130000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 134000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 98476....(442.4)....2.29
Secured Debt.................. 400......(30).......0
Hire Purchase (HP) debt ...... 8724.....(155)......4
Total secured & HP debts...... 107600....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
CC.............................1900......190.......16.95
Student Loan...................9460......120.......1.5
Total unsecured debts..........11360.....310.......-


Monthly Budget Summary
Total monthly income.................... 1,909
Expenses (including HP & secured debts). 1,897.52
Available for debt repayments........... 11.48
Monthly UNsecured debt repayments....... 310
Amount short for making debt repayments. -298.52

Personal Balance Sheet Summary
Total assets (things you own)........... 134,000
Total HP & Secured debt................. -107,600
Total Unsecured debt.................... -11,360
Net Assets.............................. 15,040

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

brokeapproaching30

So credit card taken the first major hit of the year to pay for a new boiler and associated works. £2300 roughly.

I despair. As soon as I make a pledge to start saving something comes to rain all over it! Grrr. Also had to pay £420 professional fees (which I can claim tax back on but its the cash flow issue) at the same time.

Hurriedly written a letter to Mr Taxman after I realised I've spent close to £2000 on professional fees over the course of the year and not had my tax code changed.

In positive news, cut down on my take out coffees and making use of my thermos flask! Every little helps!

Kitten868

When I first embarked on my df journey I wrote down all of my dds and endeavoured to reduce each one. Plus with quidco get cashback. I definitely think that you could save money doing this. Internet/house phone is always a big earner on quidco and saver for me.
Why is your student loan listed on here and why are you paying so much?
All the little changes like coffee are important and do make a difference. Keep going x

themull1

You can get your house contents/buildings cheaper than £40, ditch holiday, presents and entertainment, and use some of the 4 grand to pay the 1900 credit card?

Kitten868

Ouch! Just seen your Apr pay off the credit card and the secured debt now! Theres another £220 free a Month! You have so many areas to save on. Make a start and you'll be back up to your savings total soon x

brokeapproaching30

Thanks guys. Some changes that I have made - paid off £900 of cc from my savings and moved the rest over to a 0% card so gives me a bit of time to pay off. I need to keep some savings as my work contract finishes in June so work future is uncertain.

Also changed my home insurance to cheaper, works out as £23/month instead of the £40

Listed student loan as I want to list all the money that I owe etc. Payments are high, I need to look into it - I used to work full time but for health reasons had to cut down my hours, not sure student loan has been amended.

Stopped shopping for food exclusively from aldi and lidl, amazed at difference in cost at the till!

Walking into town more (takes about 40mins) instead of driving and paying parking costs which are extortionate. Also added bonus of getting some exercise!

belleandthebudget

If you're earning 1909 a month then that student loan amount looks about right to me. I earn 1850 and have 110 taken out of my pay each month. If there are any savings to be had there they'd be very small.

Good luck! Sounds like you're already making strides in cutting down bills!

brokeapproaching30

Thanks Belle. Ah, sad no savings to be made on student loan, but it is what it is!

Also have cut back on holiday budget so definitely taking note of advice

brokeapproaching30

Paid £100 to the CC - so getting that down nicely. Decided to start a spending diary, detailing every penny spent as I wasn't sure my SOA was the full story. It isn't. February was my first completed month and it transpires I end up spending a few pounds here and there several times a week on things I don't need. Mainly coffees and make up products only to discover I actually already have whatever item I have just bought. Seriously need to get a grip!

Hoping my March spending diary has less unnecessary rubbish on it!