Not in any real Debt but need opinions if ok :)

NewHouseMoveHelp

Hi all,

I am planning on moving into a house later in the year and need some help with budgeting. I have read these forums in the past and found them helpful and I hope it's ok to post in here even though I'm not really in debt. I just want to make sure I don't get into debt by overspending. So I hope I'm posting in the right place.

There will be 2 of us moving in me and my partner. My partner is a mobile hairdresser so has her own car etc and what she earns covers the cost of running her car, mobile phone and a little bit extra. So I haven't included any of that because she doesn't get much but she is slowly building it up. So I don't want to rely on any of her income for now.

I will post my SOA and see what you think, do you lot think it's realistic?.

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................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 60
Gas..................................... 50
Oil..................................... 0
Water rates............................. 70
Telephone (land line)................... 19
Mobile phone............................ 19
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 11
Groceries etc. ......................... 200
Clothing................................ 10
Petrol/diesel........................... 150
Road tax................................ 22
Car Insurance........................... 32
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 145
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 100
Holiday................................. 100
Emergency fund.......................... 100
Total monthly expenses.................. 1290


Assets
Cash.................................... 16000
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 143000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................4200......96........0
Total unsecured debts..........4200......96........-


Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including HP & secured debts). 1,290
Available for debt repayments........... 10
Monthly UNsecured debt repayments....... 96
Amount short for making debt repayments. -86

Personal Balance Sheet Summary
Total assets (things you own)........... 143,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,200
Net Assets.............................. 138,800

Created using the SOA calculator at (Not allowed links).
Reproduced on Moneysavingexpert with permission, using other browser.

Also I should mention I don't want to be dipping into my savings to make ends meet and I can fully pay off my 0% card before I move in because the 0% end soon anyway.
Thanks in advance for all your help.

Gettingtherequickly

No rent or mortgage?

Smodlet

Hi and welcome. Perhaps a little elucidation? No rent or mortgage but you pay council tax and water rates. Either you live with parents and these are by way of room and board, not because you have an amount for groceries, or you own your current place outright?

Your water rates look extremely high to me but I know some areas are way higher than here. Your entertainment budget is extremely generous, given you have so little left over at the end of your SoA. How are you planning to pay a mortgage?

Sorry, it is difficult to advise with confusing data. If you would like to explain, I am sure you will get plenty of help.

redux

Are you buying the house outright, or intending to add mortgage details to the budget later?

sourcrates

NewHouseMoveHelp wrote: »

Hi all,
I am planning on moving into a house later in the year and need some help with budgeting.

OP possibly does not have a figure in mind for this as yet.

EssexHebridean

As others have said, there does appear to be a hole currently where rent or mortgage payments should be - this does make things a little sketchy, and if you're intending to add that figure in once known, as has been suggested, then currently you have a shortfall.

Initially though, looking at the known cost items you've included, I'll make comment in red..

NewHouseMoveHelp wrote: »

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................ 1300
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1300

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110 If this is over 10 months consider requesting a 12 month payment plan as that makes budgeting easier.
Electricity............................. 60 If you're using gas for heating then this is very high for electric - I use electric for everything bar cooking and currently pay half of this figure per month!
Gas..................................... 50
Oil..................................... 0
Water rates............................. 70 In the South west by any chance? Consider changing to a meter - for just 2 of you in the property it may well work out cheaper.
Telephone (land line)................... 19 Look to pay this upfront to reduce the cost - then set aside a figure monthly ready to pay the following year's lump-sum when due.
Mobile phone............................ 19 Contract? Look at SIM Only deals if you're not tied in.
TV Licence.............................. 12 picky - but £12.12
Satellite/Cable TV...................... 0
Internet Services....................... 11
Groceries etc. ......................... 200 You can shave this down a bit for two of you if you keep an eye on things, cook from scratch, and shop well
Clothing................................ 10
Petrol/diesel........................... 150 Read Martin's guide to driving economically to challenge this
Road tax................................ 22 Do you pay this by monthly Direct Debit? If not them you need to set up an account for car expenses in my opinion, and set aside your costs into there so you have the money ready when needed.
Car Insurance........................... 32 Look to pay this upfront to reduce the cost of paying on instalments - then set aside a figure monthly ready to pay the following year's lump-sum when due.
Car maintenance (including MOT)......... 50 This is quite high - we currently allow around £75 per month per car which covers tax, insurance, maintenance and depreciative costs like tyres.
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 145
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 20 Assume you're estimating this cost for combined buildings/contents?
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10 Are you sure this is realistic? You're reckoning to do partners, parents, friends (and presumably a child's) christmas AND birthday presents on £120 a year?
Haircuts................................ 0 Never?
Entertainment........................... 100 If ends meet this is fine, but you need to keep an eye on things to make sure that remains the case, and shuffle things accordingly if not.
Holiday................................. 100 If ends meet this is fine, but you need to keep an eye on things to make sure that remains the case, and shuffle things accordingly if not.
Emergency fund.......................... 100 Technically you already have an emergency fund built up - personally I'd be inclined to divert at least some of this to a "household fund" which will then cover things like buildings/contents insurance upfront, and small appliance replacement when needed.
Total monthly expenses.................. 1290


Assets
Cash.................................... 16000
House value (Gross)..................... 125000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 143000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................4200......96........0 Yes, you definitely need this gone before you move.
Total unsecured debts..........4200......96........-


Monthly Budget Summary
Total monthly income.................... 1,300
Expenses (including HP & secured debts). 1,290
Available for debt repayments........... 10
Monthly UNsecured debt repayments....... 96
Amount short for making debt repayments. -86

Personal Balance Sheet Summary
Total assets (things you own)........... 143,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -4,200
Net Assets.............................. 138,800

Created using the SOA calculator at (Not allowed links).
Reproduced on Moneysavingexpert with permission, using other browser.

Smodlet

sourcrates wrote: »

OP possibly does not have a figure in mind for this as yet.

... Which will make it somewhat difficult to budget...

EH, girlfriend is a hairdresser... If you can't get a free haircut under those circumstances ;0)

MrsTinks

The short answer is that no it's not realistic UNLESS you won't be paying any rent or a mortgage...

If you are planning on buying using a mortgage (this really would help us answer you... knowing what you mean by moving into a house...) then you will probably struggle because there simply isn't room in your budget for it and a mortgage provider looks at affordability as well as debts, savings and credit history.

So the real answer is we need a bit more info to go on to judge if this is realistic

EssexHebridean

Smodlet wrote: »

... Which will make it somewhat difficult to budget...

EH, girlfriend is a hairdresser... If you can't get a free haircut under those circumstances ;0)

Fair one! :rotfl::rotfl:

NewHouseMoveHelp

Ooops I seem to have missed out the most important bit about the house sorry.
This is all based on the house being owned outright by my partner. It's a slightly complicated situation with her family but if all goes to her fathers plan she gets the house.

She wants to move in immediately and I said I'm happy to pay all the bills considering she is basically paying for the house. So that's why I want to make sure I plan everything out and can afford it.

To EssexHebridean thanks for your detailed comments. Yes I am know south West for water so a meter sounds like a good idea. Also I will look at adjusting the other numbers based on your comments.

Smodlet

That'll make the tea leaves a bit easier to read... :rotfl:

Honestly, we are not prying, just missing salient facts. You still have not said if you are already in this house and, if not, what your circumstances are now. Are you liable for the cost of repairs in your current home? If not, you will need a significant budget for these. What condition is the house currently in? Does it require work now? All these things need to be taken into consideration as, although you have an appreciable fund in reserve, there are always unexpected costs with any house move. Will you be liable for legal costs or is your OH's father covering these? Will the house be in your joint names or just your partner's? Something to bear in mind, just in case...

I am sure there are many other things I cannot bring to mind atm but I am not trying to put you off, I just want to help you avoid pitfalls; that is what this forum is for.

I wish you the best of luck with your move and HTH.