£67,031.92 is a frightening number indeed....

Treadingonplaymobil

Week 21: day 2

Morning! Have been waiting until I had the time to properly look back at my numbers and do a full round up before posting this first post of the month. First up, important things. The debt total today stands at

£55,821.62

So we're down £2,786.51 in total. A smallish monthly reduction this month of only £394.48, because of a balance transfer fee during June, which was several hundred pounds. It's definitely not amazing or groundbreaking, but it is all progress.

June roundup:
I was really interested to see how using weekly pots affected our monthly totals for our worst regular overspending categories - food and entertainment.
Food - we only started using weekly pots when we were already a full week into the month, and it really shows - week one was our worst week! We had a total spend of £435, which is still £80+ over budget, but is a dramatic improvement on the previous month's £532. I'm hoping to get it even closer to our budgeted £350 in July, despite camping trips.
family kitty/entertainment - Again, the first week was by far the worst week, and we spent a total of £219, a £20 reduction on the previous month. Not as good as I'd hoped, but inching closer to our £125 budget.

There were a couple of other categories in which we were not entirely triumphant:
house makeover - we spent another £200 on this, but the front of the house is completely done, bar one more tin of paint to do the front gate, and we won't start another project on any part of the house before September. There isn't really budget allocated to this, so it came out of my business account cushion, which isn't a long term strategy, so I'll need to think about that before we start another project.
Holidays - we had to pay the final instalment of the holiday we are committed to in August, so had to find an extra £100 on top of the £50 we have been budgeting. I'd love to say we now have no holiday costs, but due to the camping commitments and DH and I both needing new walking boots for all the walking we will do (both of ours wore out last year and haven't yet been replaced), that pressure isn't going away any time soon.

So I'm going to declare June disappointing but not disastrous in terms of MSE stuff. We could have done better, but it was an improvement on May, our worst month since LBM in February.

I'm going to redo our SOA shortly, as I think it will be good to make a note of how it looks these days, and then I'll do my list for the week and some monthly aims.

Edited to add: whoops, I miscalculated the monthly reduction! Correct number now in place.

glass_half_full

Hi,

Great progress! I'm thinking any reduction is an achievement. Knowing exactly where you are and why is an achievement.

Treadingonplaymobil

Here's our current SOA. It looks incredibly tight (and it is). The reality is that we have been overspending on this and propping it up because I have been earning more with my self employed income. BUT that extra should be going towards (a) debt repayment, (b) a bigger cushion for my monthly business expenses and future salary an (c) an emergency fund. At the minute my business account cushion is only one month, whereas it was up to four months only a few months ago.

Notes added in colourful font.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 150 the most variable number in the budget, but this is the minimum.
Partners monthly income after tax....... 2825.64 not certain, but no less than this - haven't had a payslip since pay rise.
Benefits................................ 192.3
Other income............................ 0
Total monthly income.................... 3167.94

Monthly Expense Details
Mortgage................................ 698
Secured/HP loan repayments.............. 0
Council tax............................. 141
Electricity............................. 95 gas and electricity
Gas..................................... 0
Water rates............................. 112 extortionate, but we live in an expensive area
Telephone (land line)................... 20.88 includes internet
Mobile phone............................ 92 cough
TV Licence.............................. 12.12
Satellite/Cable TV...................... 5.99 netflix
Groceries etc. ......................... 350
Clothing................................ 60
Petrol/diesel........................... 225 mainly commuting for DH
Road tax................................ 16.27
Car Insurance........................... 25.22
Car maintenance (including MOT)......... 20 this is too low, but I don't have a means of increasing right now
Car parking............................. 0
Other travel............................ 48 train for DH once a week if I need car
Childcare/nursery....................... 0
Other child related expenses............ 123.35 clubs, sports, music etc
Medical (prescriptions, dentist etc).... 5
Buildings insurance..................... 27.07 includes contents
Life assurance ......................... 16.26
Presents (birthday, christmas etc)...... 80 not enough
Haircuts................................ 20
Entertainment........................... 125
Holiday................................. 50
Emergency fund.......................... 0 feel free to avert your eyes
YNAB subscription....................... 3
national trust.......................... 9.6
DC1 school lunches...................... 30
iCloud subscription..................... 2.49
audiobook subscription.................. 7.99
Total monthly expenses.................. 2421.24


Assets
Cash.................................... 400
House value (Gross)..................... 210000
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 211200


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 172508...(698)......3.14
Total secured & HP debts...... 172508....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................14317.2...330.......0
MBNA...........................590.19....39........21
Tesco loan.....................20914.2...377.......10
Parental loan..................20000.....0.........0
Total unsecured debts..........55821.59..746.......-


Monthly Budget Summary
Total monthly income.................... 3,167.94
Expenses (including HP & secured debts). 2,421.24
Available for debt repayments........... 746.7
Monthly UNsecured debt repayments....... 746
Amount left after debt repayments....... 0.7

Personal Balance Sheet Summary
Total assets (things you own)........... 211,200
Total HP & Secured debt................. -172,508
Total Unsecured debt.................... -55,821.59
Net Assets.............................. -17,129.59

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

Silver_Queen

70p remaining! :rotfl:

That is certainly a squeaky budget but better than having a negative number

Treadingonplaymobil

So that's lot of rounding up of June, how about some forward planning?

Aims for July:
1. Pay some extra off the MBNA card - I'd like this card gone asap.
2. Pay for camping holiday commitments out of self employed income rather than adding to debt (it will mean not growing the cushion much more, but that can take precedence in September).
3. Stick to the budget even more closely than in June!

to do today
1. Get on top of all budgeting, SOA, June roundup etc. Already done!
2. Menu plan and shopping list for the week.
3. Get a couple of laundry loads out on the line.
4. Plan week's work out.
5. Plan July and August work time.
6. Write camping shopping list.
7. feed the sourdough
8. Text various people about playdates and lift swaps to clubs for children - I have a long list of logistics to sort!
9. Unpack and tidy away from weekend.
10. ironing
11. Clean and declutter the children's room.

to do this week
1. Buy a washing up bowl!!! (bets on whether it happens?!)
2. Order camping gear needed
3. Clean the house thoroughly one room at a time
4. scribble out some plans for the architect to look at (don't panic, I'm not commissioning him for any work for the near future!)

Weekly round up
Last week's debt total £56,025.55
This week's debt total £55,821.62
Total paid off last week £203.93
Grand total paid off £2,786.51

warby68

That's a lot of detail work there ToPM and you do sound a bit deflated but I really think you're getting closer and closer to the right idea of splitting your spending into essential (to come from fixed income) and discretionary (to come from your earnings above the minimum)

The SoA is probably still optimistic as you have never got food to £350 yet (although on the way) and your holiday/leisure spends already committed for the next 2 months are above what you have in the SoA so make sure the first of any s/e income is applied to these as you go. I also think something should go to an emergency fund early doors and try hard to leave it there.

Your water bill looks terrible - is that really what it is or are there some arrears?

Hub's commuting costs are quite painful too - has he explored all options here eg train season ticker versus car or working from home etc

Not sure why you say £80 pm is too low for presents - that's still nearly £1000 a year? Is it because you want to include birthday parties etc there? Really that should come from your entertainment in the relevent month if you want to get steadily stricter with yourselves.

Really glad that weekly pots seem to be working better - I can see why. A tiny splurge every 5-7 days is easier to wait for than a bigger one at the beginning of each month but then throws you completely off very early on. Again, easier to have a scrimpy 3 or 4 days than 3 or 4 weeks. Next step will be to wait for 'treats' until you have money left over from the previous week. Gradually getting a bit more ahead and a bit more realistic how far your budget stretches.

I think you are quite careful in your diary not to ever say exactly what your self employed earnings have been , or an average of them so its hard to see what else you can reasonably 'play with' but I assume you personally have the exact numbers to hand based on trends, seasons and averages etc . I still suspect you might earn quite a bit in each month, spend it all but don't quite disclose the detail of it here as you know it will be on 'naughtier' categories. You don't have to of course as long as you are winning in the self-awareness stakes and feel free to tell me off if you really did only earn a couple of hundred, didn't buy any clothes and frittered precisely that £7 coffee just the once

Good luck for July

PS Washing up bowl not looking like a necessity actually now you've gone so long without one

Cherryfudge

I see you are still winning. Slightly worried about that little cough that's slipped into your SOA though... are you taking anything for it?

I agree the MBNA is a good target for July. If you get rid of, or shrink, that, you will be able to put more on your washing up bowl fund! Or controversially, you may discover that having lived without one for so long, you no longer need the bowl. I'm not placing bets though.

Your lists are inspiring me to go and create some of my own but I'm so distractible I might even go and do some off your list for you. You will be pleased to know the laundry is nearly finished. Saved you a job. Now to do mine...

Cherryfudge

Crossed posts with Warby there .

The washing up bowl is attracting attention!

Silver_Queen

Frankly, I think you're doing brilliantly

You've redecorated the whole of the front of your house without adding to the debt!

Treadingonplaymobil

warby68 wrote: »

That's a lot of detail work there ToPM and you do sound a bit deflated but I really think you're getting closer and closer to the right idea of splitting your spending into essential (to come from fixed income) and discretionary (to come from your earnings above the minimum)

The SoA is probably still optimistic as you have never got food to £350 yet (although on the way) and your holiday/leisure spends already committed for the next 2 months are above what you have in the SoA so make sure the first of any s/e income is applied to these as you go. I also think something should go to an emergency fund early doors and try hard to leave it there.

Your water bill looks terrible - is that really what it is or are there some arrears?

Hub's commuting costs are quite painful too - has he explored all options here eg train season ticker versus car or working from home etc

Not sure why you say £80 pm is too low for presents - that's still nearly £1000 a year? Is it because you want to include birthday parties etc there? Really that should come from your entertainment in the relevent month if you want to get steadily stricter with yourselves.

Really glad that weekly pots seem to be working better - I can see why. A tiny splurge every 5-7 days is easier to wait for than a bigger one at the beginning of each month but then throws you completely off very early on. Again, easier to have a scrimpy 3 or 4 days than 3 or 4 weeks. Next step will be to wait for 'treats' until you have money left over from the previous week. Gradually getting a bit more ahead and a bit more realistic how far your budget stretches.

I think you are quite careful in your diary not to ever say exactly what your self employed earnings have been , or an average of them so its hard to see what else you can reasonably 'play with' but I assume you personally have the exact numbers to hand based on trends, seasons and averages etc . I still suspect you might earn quite a bit in each month, spend it all but don't quite disclose the detail of it here as you know it will be on 'naughtier' categories. You don't have to of course as long as you are winning in the self-awareness stakes and feel free to tell me off if you really did only earn a couple of hundred, didn't buy any clothes and frittered precisely that £7 coffee just the once

Good luck for July

PS Washing up bowl not looking like a necessity actually now you've gone so long without one

The washing up bowl and the water bill are closely entwined . We are in a very expensive water area, on a meter, so anything we can do to reduce usage will help - I actually usually use a mixing bowl (which is even smaller than a washing up bowl) but DH does 80% of the washing up and will not countenance such a stupid idea. :rotfl:

I don't go wildly into my self employed income, but actually it's not wildly exciting. I take 20% of any profit for work clothes, and the remainder goes into the business account cushion. It's that cushion that suffers when we overspend, so, for example, in a month like last month when we spent an extra £100 each on food and entertainment and another £200 on house stuff, and didn't add anything more to the business account cushion, I spent all my profit from that month (last month I earned pretty much exactly £400 on top of my £150 minimum). It's not careful so much as not calculated until I do my books at the end of the month, because it goes into our joint account in dribs and drabs as we overspend on various categories. It might help accountability if I did keep an eye on that I suppose, but I already feel like I spend 60% of my working time balancing budgets rather than working! It would be even better if I just stuck to the household budget and didn't need to tap my self employed profit.