Chip Chip Chipping away

DireEmblem

Well its been a while since I've posted on here, but I've made some progress(I think).


I now pay almost everything on my bank card, which allows me to monitor my spending. I can now see much better detail on moneydashboard, and have produced my own SOA as per below. Its probably not 100% accurate but close enough.


Statement of Affairs and Personal Balance Sheet
Monthly Income Details
Monthly income after tax................ 2423.93
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2423.93
Monthly Expense Details
Mortgage................................ 607
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 11
Council tax............................. 136.22
Electricity............................. 26
Gas..................................... 26
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 12
TV Licence.............................. 12.25
Satellite/Cable TV...................... 58
Internet Services....................... 0
Groceries etc. ......................... 80
Clothing................................ 100
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 150
Emergency fund.......................... 0
Total monthly expenses.................. 1318.47

Assets
Cash.................................... 4000
House value (Gross)..................... 256000
Shares and bonds........................ 6000
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 266000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 171018...(607)......1.61
Total secured & HP debts...... 171018....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 2,423.93
Expenses (including HP & secured debts). 1,318.47
Available for debt repayments........... 1,105.46
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 1,105.46
Personal Balance Sheet Summary
Total assets (things you own)........... 266,000
Total HP & Secured debt................. -171,018
Total Unsecured debt.................... -0
Net Assets.............................. 94,982
Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.


Electric/Gas - I switched over to Bulb in December with their £100 credit offer(they were cheapest at the time), and have signed up to the MSE notification if another provider were to become cheaper. It estimated to save me £18 a month, and the Bulb figures are above in the SOA, so happy with that, don't think I can reduce it much further(well without using less Gas/Electric of course). £216 annual saving here, although with Gas/Electric prices due to go up, not sure how things will end up.


Mobile - I'm on a monthly rolling PAYG sim from GiffGaff, I was on the £12 a month, I was happy enough paying this, but when I logged in, it actually shows you your usage, so I've changed to a cheaper tariff that is £7pcm for 12 months. Further £84 saving annually there.


Work wise, I now bring in my own food at least 3 times a week, much cheaper than eating out. The only downside to this is that I need to diversify a bit more - I constantly make Fajitas, Stew or some form of Sausage Casserole so not much variety there! It is significantly cheaper as I have noticed, half the cost if not more. £300 annually saved there.


Savings wise, I now have two regular savers - £100PCM goes into Zopa, £100 into a 5% regular saver with my bank, and I've also signed up to this Chip thing as well.


To be honest producing the SOA above is a bit of an eye opener, I am surprised about how little I am saving compared to my earnings. My Student loan is also due to be paid off later this year. Once that's done, I'm going to increase my pension contribution. The way I see it, its not money I've ever seen, so wont exactly miss it!


Goals for the rest of this month - work out my estimate minimum spend on goals for 2018(London Marathon trip for example), and how much I need to save for birthdays/Christmas etc. I don't think I can reduce any more of my bills further, so will then look to increase savings, and then take a look at how that reduces my mortgage term.


Another goal is to read threads for people in similar situations, to get some ideas I might not have thought about. All the best!

michelle09

Looks like you're doing well! The student loan should make a good change in the savings.

How did you find the switch to Bulb? Very keen to move when our fixed rate is up but was a little worried that they were new.

DireEmblem

I've not been with bulb for long so difficult to say, but given you're not tied in with them, then if they're cheaper then go for it?


The only thing I would say with them is that they only have one variable tariff, so probably best to keep an eye on it!

DireEmblem

So long time since posting, but time for a quick update of sorts!

Chip - one of the best things I did in 2018, turns out I don't really miss whats not in my account, and it actually helps me save more!

Bulb - so at the end of December 2018, my account is just over £200 in credit. This includes the £100 bonus MSE offer when I joined up. I plan to now wind down the payments to bring this down closer to £50. Apparently Bulb are still the cheapest, so will stay for the now. £200 will be dripped into a savings account over the next 6 months.

Work lunches - I only have lunch out once a month now to catch up with colleagues in other companies, so huge savings made here, probably in the region of 500-600 a year I think, and its much more enjoyable cooking for yourself! Its not as difficult or time consuming cooking for one as I thought. On a Sunday, I make enough for 6 portions, have one on the day, keep another for Monday, and freeze the other 4 to last the rest of the month. The thought being you only work 5 days a week, so I only need to replace 5 portions a week. Cooking more at the same time is allowing me to reduce costs even more.

I don't reheat frozen food every day - sometimes I switch my slow cooker on in the morning, and then I'll have whatever's in that next day as well!

So whats on the cards for 2019?

The first thing I really need to keep an eye on is my mortgage, as the 2 year fixed term ends August.

I'm also going to complete another review of my bills, what I actually use, as I think that I can make further savings still, without really having much of an impact on lifestyle. I don't watch a lot of TV that isn't on free view for example, so why am I paying £58 a month to Virgin, and £6 a month to Netflix?

Finally back to chipping away at my mortgage - I've not overpaid a single penny(yet). There's a 2% charge in year 1, and a 1% charge in year 2 before the fixed term is up. There doesn't seem much point overpaying given that I am earning 3% plus by keeping cash elsewhere. I should in theory(as long as I don't touch it), be able to pay off my mortgage quicker by not overpaying too early. What I might do is shorten the term of the mortgage, to adjust the payments up a small amount that's not too noticeable.

28 and a bit years still to go(Yikes!)

DireEmblem

Noooooooooooooo!

So this year, I was planning on continuing to use Chip, but just realised they have dropped my interest rate to 0% - thats no good!

I now need to re evaluate. I'm fairly certain this year will be another flat year stocks wise, so I'm probably better holding cash, but anything else I look at the moment looks abysmal!!!

sofarbehind

Well done on being so organised. I have a similar income and mortgage payment but my SOA isn't as good as yours. I think I need to re-evaluate my spending...

DireEmblem

sofarbehind wrote: »

Well done on being so organised. I have a similar income and mortgage payment but my SOA isn't as good as yours. I think I need to re-evaluate my spending...

Feel free to share and we can compare. The one thing I'm thinking of changing is my broadband/tv package. £59 a month for both adds up over the year! I'm tempted to get the £45 Now TV entertainment package, so I can watch Game of Thrones when it comes out, and switch to cheaper broadband, but not sure how long that will take as my flat doesn't even have a BT line! I suppose I could stick with Virgin, their broadband starts from £35 a month. £35 x 12 + £45 gives £465 instead of 59x 12 = £708!!!

sofarbehind

DireEmblem wrote: »

Feel free to share and we can compare. The one thing I'm thinking of changing is my broadband/tv package. £59 a month for both adds up over the year! I'm tempted to get the £45 Now TV entertainment package, so I can watch Game of Thrones when it comes out, and switch to cheaper broadband, but not sure how long that will take as my flat doesn't even have a BT line! I suppose I could stick with Virgin, their broadband starts from £35 a month. £35 x 12 + £45 gives £465 instead of 59x 12 = £708!!!

This is the one thing I thought had any wriggle room in your SOA but it's not much. You have a great SOA. Do you find you watch less over the summer? I definitely watch more TV when it's cold. I just have Netflix and watch catch up, haven't even bothered replacing the TV. I do pay my TV licence, shame they closed that loophole!

Did you get a lodger in the end? If so how is it working out? I have been toying with the idea. You have inspired me to go through all my outgoings again and have mini new year money make over. Thanks.

DireEmblem

So a while since I've last posted, but I'm glad to say that I've managed to cut my bills even further!


I was paying Virgin Media £58 a month, along with £8 for Netflix, and £12 for 4gb of mobile broadband. I barely watch tv nowadays, so have cancelled Virgin Media, and upgraded my mobile contract to unlimited data for £24, and have taken NowTv for £45 for the year, to watch Game of Thrones! To top that off, have split my Netflix with my sisters, so its now 3.33 a month!


So I have gone from £78 a month to £31.08PCM - woop!


Not the MSE overpayment calculator seems to suggest this will lop off 26 months of my mortgage, however I intend to put this into a higher rate savings account, so hopefully it works a bit better.


I have 5 months left on my current mortgage term, and I really need to decide what to do, in terms of renewing it. I started looking last night, but it was starting to hurt my head a bit. Do I throw all my savings to reduce my monthly payments, or just renew at the same level, and continue to build savings?


To give a view - most of my savings are in a regular 5% saver, or Zopa, so all in all earning around 5%. Given the renewal interest rate is likely to be under 2%, I'm stuck trying to work out at this stage if I would be better reducing my monthly payments or term at this rate.


Oh, and I have also cancelled my reward account with Halifax - another £15pcm saved! No idea why I kept this, I've never had to use the mobile insurance, and through work I have travel insurance so total waste of money!


Total Mortgage outstanding 165,670GBP - 28 years and 4 months to go with no over payments - Yikes what a lot of debt still!

try_harder

Some great savings there ,,I need to change providers ..My phone and BB seem to be quite high compared to virgin i think i will call them today , i am with BT at the minute