Time to cut back and overpay!

Kalama

Right, We moved last year, and went from being mortgage free (bought first house outright) to having a mortgage, having a reduced income due to both being part-time (for childcare reasons) and recovering from two years of single income (I took a career break until DD was 2).

Despite the fact that we have a good income between us, we are yet to manage to overpay our mortgage at all. the lofty plans of overpaying every month from the get go seem to have evaporated in a haze of buying furniture (we needed a lot, and still do), decorating and just...spending money.

So this thread is my attempt to work out where the money is going, reign it in, budget and get it all under control. I want ideally to overpay by £200 per month (which should cut 7.5 years and £10k interest off the mortgage). I also want to get back to saving each month for DD's "future fund", plus increasing our savings. Then I can stick anything extra on the mortgage as well.

I've done the debt free SOA in the hope it will help me see where the cash is going. I haven't done groceries yet - I am going to be brave and sit down tonight and tot up how much we spend each month in supermarkets. It is a lot - far too much. Embarrassingly so.

I haven't put in anything for entertainment or presents etc either, so will have a look at how much we spend there as well. So SOA is below. If anyone who is already on the mortgage free journey has any tips etc, I'd love to hear them.

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 1600
Partners monthly income after tax....... 1600
Benefits................................ 80
Other income............................ 0
Total monthly income.................... 3280

Monthly Expense Details
Mortgage................................ 630
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 170
Electricity............................. 68
Gas..................................... 0
Oil..................................... 0
Water rates............................. 45
Telephone (land line)................... 15.49
Mobile phone............................ 20
TV Licence.............................. 12.25
Satellite/Cable TV...................... 0
Internet Services....................... 7.5
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 40
Road tax................................ 2.5
Car Insurance........................... 29
Car maintenance (including MOT)......... 30
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..................... 12.5
Contents insurance...................... 12.5
Life assurance ......................... 17
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 65
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1176.74


Assets
Cash.................................... 93000
House value (Gross)..................... 535000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 633000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 146000...(630)......1.69
Total secured & HP debts...... 146000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-


Monthly Budget Summary
Total monthly income.................... 3,280
Expenses (including HP & secured debts). 1,176.74
Available for debt repayments........... 2,103.26
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 2,103.26

Personal Balance Sheet Summary
Total assets (things you own)........... 633,000
Total HP & Secured debt................. -146,000
Total Unsecured debt.................... -0
Net Assets.............................. 487,000

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

shangaijimmy

Welcome onboard. A diary and a spreadsheet really do make a big difference to keeping up with OP dreams. You'll quickly put some monthly goals into action as well no doubt!