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

warby68

All I really want to say at this stage is well done, really well done for facing the elephant in the room - the non working budget for this year.

Apart from just one major point on your income. You only seem to be considering an increase in terms of increasing the amount of current income you allocate to the everyday budget. What I (and I suspect others) have meant by increasing your earnings is increasing them full stop, ie earning more than £700/£750pm rather than just increasing the fictional £250 requirement. CAN you actually earn more if you choose to? Its the obvious answer to most issues you are wrestling with. I can't help thinking also that the costs (financial and time) of actually producing that net income are rather high compared to a regular job. The income is already overstated as you don't expense the phone and travel costs. The related question is of course do you get economies of scale ie are your costs all fixed or are they always a proportion of any income? If the former, a small increase in work will be significantly more valuable.

Keep going ToPM - I suspect its quite painful at the moment but wholly worth it in the long run

wishingthemortgaheaway

Why don't you look at group tuition for the 11+? Find out if classes are run locally, rather than pay out for 1:1 which costs a fortune.

The 11plus is meant to be 'tutor proof' as it tests verbal and non verbal reasoning, not knowledge. Yes, familiarity with the type of questions is beneficial as is test technique. But im sure that is something that can be done in a small group or you/dh can support at home with practice papers and past papers.

Mum2Nan

Hi ToMP

I've delurked to say I think you should definitely be separating your mileage and phone between business and pleasure. You should be reimbursing yourself for your previous month's expenses as you would if you were in a regular job and adjust your SoA accordingly. Perhaps you could do this at the same time you do your monthly invoicing? Both RAC and AA have a mileage calculator and at 45p a mile it's worthwhile doing.

Treadingonplaymobil

warby68 wrote: »

All I really want to say at this stage is well done, really well done for facing the elephant in the room - the non working budget for this year.

Apart from just one major point on your income. You only seem to be considering an increase in terms of increasing the amount of current income you allocate to the everyday budget. What I (and I suspect others) have meant by increasing your earnings is increasing them full stop, ie earning more than £700/£750pm rather than just increasing the fictional £250 requirement. CAN you actually earn more if you choose to? Its the obvious answer to most issues you are wrestling with. I can't help thinking also that the costs (financial and time) of actually producing that net income are rather high compared to a regular job. The income is already overstated as you don't expense the phone and travel costs. The related question is of course do you get economies of scale ie are your costs all fixed or are they always a proportion of any income? If the former, a small increase in work will be significantly more valuable.

Keep going ToPM - I suspect its quite painful at the moment but wholly worth it in the long run

My costs are fixed, so anything I earn over my monthly costs (which were set at £166 but I will now set at £200ish to allow for phone, mileage and something else which escapes me right now ), while not quite pure profit, only has the stock and other basic deductions attached (like tax and 5% for clothes or whatever pathetic amount it is now), so my profit increases proportionally when I work more as those set monthly costs for the accountant, professional fees etc don't change. I would also reduce my clothing percentage proportionally from higher earnings.

In terms of can I earn more, I think the answer is that with more hours, I can earn more, but finding more hours is tricky (especially at the moment with DH working overtime). In order to work significantly more hours rather than grabbing the odd extra hour, I think I would have to commit to childcare costs, which after the nanny disaster (I didn't earn enough to pay for it and it was a huge factor in our debt) I'm completely phobic of doing. Saying that, I have been able to increase my hours each year or so since DC3 was born as our childcare has naturally evolved and increased, and it will increase again in September when she starts school, by around 6 hours a week once half day settling in is finished.

I have, in the past few weeks, refocused on also grabbing those odd hours, and it's had an instant (if small) positive effect.

So yes, I suppose an increasing income is a reasonable expectation, but it's a gradual rather than a sudden 'I can earn an extra £3k now', so I think I need to make the budget earn with my current income (which is, after all, £500 a month more than I am 'admitting' on the budget), and worry about an increase next year when I can look back at the 18/19 tax year.

Treadingonplaymobil

wishingthemortgaheaway wrote: »

Why don't you look at group tuition for the 11+? Find out if classes are run locally, rather than pay out for 1:1 which costs a fortune.

The 11plus is meant to be 'tutor proof' as it tests verbal and non verbal reasoning, not knowledge. Yes, familiarity with the type of questions is beneficial as is test technique. But im sure that is something that can be done in a small group or you/dh can support at home with practice papers and past papers.

Group tuition round here is, randomly, fractionally more expensive than sharing a tutor with one other person (which is what we are doing) because the groups are fixed for two hour chunks per week (and you have to sign up for a term at a time) and shared is one hour. However I know the tutor we are using recommended a previous pupil stop seeing him after 8 months and just do papers, as he had it all down pat, so I'm hoping he will do the same if DC1 is able enough.

I absolutely wouldn't feel able to do it myself. I know plenty do, and successfully, but I am absolutely not cut out for it. I am hugely impatient and will not be up for explaining anything more than once, ever.

Eager_Elephant

[QUOTE=Treadingonplaymobil;74415212
Internet Services....................... 18.99 3. This is terrible internet now the DC are getting older and we are often all using it at once - the speed is a real issue. I would like to be able to go for a faster/more data deal in the next few months.
[/QUOTE]

I don't post often but do read every day.

i think you are doing so well with this new budgeting/debt repayment that you have embraced.

I just wanted to comment on this line on the SOA.
I am with Plusnet and up until a few months ago paid £20.99pm for broadband which included unlimited downloads as I have kids who watch netflix/play xbox online etc.
I knew that fibre had been installed in our village as I saw them doing it but thought the cost was too high.
I got a random call from Plusnet to offer fibre - cost £21.49 for ever (no half price and then increases) :eek::eek:

I couldnt say no and now we have superfast broadband and to top it all I have now been informed that I am in a low user area (as defined by them) and by fibre broadband is now £14.99pm!!!!

So after all that waffle I just wanted to say that it is worth seeing what your provider has to offer and then compare with other companies.

(I like Plusnet because they are part of BT and I always think its better to be the people who own all of the telecoms wires/equipment as repairs are done so much quicker!!)

Treadingonplaymobil

Thanks for the broadband tip eager_elephant! I'll do some research.

Treadingonplaymobil

Working on this has been a distraction from something really traumatic happening to a family member (not DH or DCs) today. I'm in such an emotional state that I've no idea how I'm going to feel about this budget when I'm feeling more rational, but this is my proposed budget so far, and I'll see what I think about it in a couple of days when I've calmed down a bit.

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................ 725 This is £700 salary, £25 buiness expenses towards the mobile bill. Mileage to be tracked in an app and will be added as required at 45p per mile.
Partners monthly income after tax....... 2893
Benefits................................ 192
Other income............................ 0
Total monthly income.................... 3810

Monthly Expense Details
Mortgage................................ 709
Council tax............................. 147
Electricity............................. 80
Gas..................................... 0
Water rates............................. 75
Telephone (land line)................... 0
Mobile phone............................ 70.94
TV Licence.............................. 12.37
Internet Services....................... 18.99
Groceries etc. ......................... 460
Household/bulk supplies................. 40
Petrol/diesel........................... 240 Reduced slightly from SOA on the basis that it was partly my business spend, and that will be tracked and added as required.
Road tax................................ 16.62
Car Insurance........................... 32.74
Car maintenance (including MOT)......... 95
Car parking............................. 0
Other travel............................ 57
Buildings insurance..................... 31.84
Life assurance ......................... 16.26
Haircuts................................ 28
Entertainment........................... 150
Holiday................................. 90
National Trust.......................... 10
Christmas............................... 100
Tutor................................... 30
Emergency fund.......................... 50
Extension savings....................... 460
YNAB subscription....................... 3
Dentist................................. 5
Birthdays............................... 120
Music lessons........................... 15
Sticker subscription.................... 0
Pocket money............................ 5
School trips............................ 10
House maintenance....................... 40
House stuff............................. 30 I have divided up genuine maintenance above and house 'bits', as I have been lumping them in together which has enabled me to overspend on 'stuff' with the excuse that it's for the house. Try not to laugh.
Children's clothes...................... 110 £10 reduction on SOA
DH kitty................................ 40
My kitty................................ 20
iCloud.................................. 2.49
Netflix................................. 5.99
Swimming................................ 34
Cubs and beavers........................ 30
Total monthly expenses.................. 3491.24


Assets
Cash.................................... 1600
House value (Gross)..................... 225000
Shares and bonds........................ 1000
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 228100


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 191971...(709)......2.25
Total secured & HP debts...... 191971....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard....................10541.....260.......0 This is less than we have been paying, but still £15 over the minimum.
Virgin.........................2753......28........0
Parental loan..................20000.....30........0 Small repayment added here.
Total unsecured debts..........33294.....318.......-


Monthly Budget Summary
Total monthly income.................... 3,810
Expenses (including HP & secured debts). 3,491.24
Available for debt repayments........... 318.76
Monthly UNsecured debt repayments....... 318
Amount left after debt repayments....... 0.76 :T

Personal Balance Sheet Summary
Total assets (things you own)........... 228,100
Total HP & Secured debt................. -191,971
Total Unsecured debt.................... -33,294
Net Assets.............................. 2,835

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

Increasing my income to this amount dramatically reduces my business account buffer, as what used to theoretically stretch for 3.5 months now stretches to less than two months. So if I run with this budget, I currently have all of July's salary/expenses and August's expenses but only £200/£700 salary, so I've got only 1.5 month's buffer. BUT, the pressure to divide extra income between other pots has diminished as I am budgeting for them more honestly, so I'm going to focus any extra income on building those reserves for a while I guess.

worriedDan

Hey, didn't want to read and run. I think that you have done amazingly well with the amount that you have cleared - more than 20K in a year!!! Well done.

apple_muncher

Hope that the family member is ok. And that you are ok too. Hugs, TOPM, from the apple household x