SOA, for savings rather than debt shifting

justcheckin

Hi,

I was advised to post a SOA here but it's not so much debt shifting I need help with, it's more to see if my savings goals are realistic, and for future planning. But I know this part of the forum is where a lot of people good at looking over SOAs hang out.

After some ill health, we are trying to build up our savings.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 150
Partners monthly income after tax....... 3589
Benefits................................ 377
Other income............................ 0
Total monthly income.................... 4116

Monthly Expense Details
Mortgage................................ 5
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 55
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 69
Telephone (land line)................... 10
Mobile phone............................ 34
TV Licence.............................. 0
Satellite/Cable TV...................... 15
Internet Services....................... 15
Groceries etc. ......................... 90
Clothing................................ 50
Petrol/diesel........................... 75
Road tax................................ 0
Car Insurance........................... 45
Car maintenance (including MOT)......... 40
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 243
Other child related expenses............ 177
Medical (prescriptions, dentist etc).... 120
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 10
Life assurance ......................... 39
Other insurance......................... 0
Presents (birthday, christmas etc)...... 45
Haircuts................................ 10
Entertainment........................... 75
Holiday................................. 150
Emergency fund.......................... 0
cleaner................................. 140
professional costs...................... 190
Total monthly expenses.................. 1802


Assets
Cash.................................... 19527.3
House value (Gross)..................... 300000
Shares and bonds........................ 15000
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 344527.3


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 590......(5)........2.29
Total secured & HP debts...... 590.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
all 0% cards...................24135.....455.......0
Total unsecured debts..........24135.....455.......-


Monthly Budget Summary
Total monthly income.................... 4,116
Expenses (including HP & secured debts). 1,802
Available for debt repayments........... 2,214
Monthly UNsecured debt repayments....... 455
Amount left after debt repayments....... 1,859

Personal Balance Sheet Summary
Total assets (things you own)........... 344,527.3
Total HP & Secured debt................. -590
Total Unsecured debt.................... -24,135
Net Assets.............................. 319,802.3

Created using the SOA calculator at stoozing. com (not allowed to post URL
Reproduced on Moneysavingexpert with permission, using other browser.

enthusiasticsaver

It is a bit different commenting on soas for someone not in debt so you will need to take advice with a pinch of salt.

Do you live in the south west as your water rates are really high although if on a meter there are 6 of you so I am guessing it may just be high usage?

Are you sure your groceries figure should not be £90 per week rather than per month? Sounds extremely low for 6 people.

Is there a reason why you are keeping that amount on 0% credit cards and not reducing it by more than £455 per month? Do you find it easy still to get deals when the deals expire?

All your insurances are high but if you have health issues that might explain the high life assurance.

If you have ill health I would focus on continuing to increase your emergency savings and maybe pension contributions depending on your situation. Is that £15000 in individual shares or funds? Individual shares are quite risky so in your situation I would be reviewing that if that is the case. If it is bonds or funds that is a different story.

How old are you and are you and your partner planning to retire early? You seem to be in a fairly good position but as I am cautious I never got into stoozing which presumably is what you have done. How would you service the £455 if your partner lost their job or had to leave through ill health?

justcheckin

enthusiasticsaver wrote: »

It is a bit different commenting on soas for someone not in debt so you will need to take advice with a pinch of salt.

Noted, thank you

Do you live in the south west as your water rates are really high although if on a meter there are 6 of you so I am guessing it may just be high usage?

no, Wales. We aren't metered, so I don't think I can reduce it unfortunately.

Are you sure your groceries figure should not be £90 per week rather than per month? Sounds extremely low for 6 people.

Yes it's monthly. I know it sounds bonkers but in my voluntary work I get to take home random leftovers which I stash the freezer with, and I try to grow most of our family's fruit and veg.

Is there a reason why you are keeping that amount on 0% credit cards and not reducing it by more than £455 per month? Do you find it easy still to get deals when the deals expire?

We've got 6k of headroom at 0% on these cards, and by that point of spending a lot of our regular savers will mature, so I'll likely punt it over to clear the balances.

All your insurances are high but if you have health issues that might explain the high life assurance.

Funnily no, I got ill after we set our premiums. So that's overly high for 2x life+crit cover?

If you have ill health I would focus on continuing to increase your emergency savings and maybe pension contributions depending on your situation. Is that £15000 in individual shares or funds? Individual shares are quite risky so in your situation I would be reviewing that if that is the case. If it is bonds or funds that is a different story.

OEICs. Thanks, I will review this.(funds of funds, high in equities)

How old are you and are you and your partner planning to retire early?

Early 40s and I hope for DH to retire early as I think it would be dangerous for him to work much beyond 60.

You seem to be in a fairly good position but as I am cautious I never got into stoozing which presumably is what you have done.

yep

How would you service the £455 if your partner lost their job or had to leave through ill health?

good points, I think the cash savings would service them for quite a while. DH gets 6m full pay, 6m half pay in case of sickness. (for half of his income stream) and job loss without replacement is very unlikely in his field, but yes, we do need more of a buffer. We are due an inheritance of 15k soon, so this will assist.

Thank you, I appreciate the time to comment. My responses are in purple.

copperclock

justcheckin wrote: »

Hi,

I was advised to post a SOA here but it's not so much debt shifting I need help with, it's more to see if my savings goals are realistic, and for future planning. But I know this part of the forum is where a lot of people good at looking over SOAs hang out.

After some ill health, we are trying to build up our savings.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 150
Partners monthly income after tax....... 3589
Benefits................................ 377 What benefits are these? If CB are you sure you don't have to repay it via high income charge?
Other income............................ 0
Total monthly income.................... 4116

Monthly Expense Details
Mortgage................................ 5 £5??
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 55 This also seems low?
Electricity............................. 40
Gas..................................... 40
Oil..................................... 0
Water rates............................. 69
Telephone (land line)................... 10
Mobile phone............................ 34
TV Licence.............................. 0 No TV?
Satellite/Cable TV...................... 15
Internet Services....................... 15
Groceries etc. ......................... 90 Is this correct?
Clothing................................ 50
Petrol/diesel........................... 75
Road tax................................ 0
Car Insurance........................... 45
Car maintenance (including MOT)......... 40
Car parking............................. 0 You never park anywhere?
Other travel............................ 0
Childcare/nursery....................... 243
Other child related expenses............ 177
Medical (prescriptions, dentist etc).... 120 Are you making use of NHS prepayment certificates at around £10 per month per adult?
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 10
Life assurance ......................... 39
Other insurance......................... 0
Presents (birthday, christmas etc)...... 45
Haircuts................................ 10 Seems low for 6 people
Entertainment........................... 75
Holiday................................. 150
Emergency fund.......................... 0
cleaner................................. 140
professional costs...................... 190
Total monthly expenses.................. 1802


Assets
Cash.................................... 19527.3
House value (Gross)..................... 300000
Shares and bonds........................ 15000
Car(s).................................. 10000
Other assets............................ 0
Total Assets............................ 344527.3


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 590......(5)........2.29
Total secured & HP debts...... 590.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
all 0% cards...................24135.....455.......0
Total unsecured debts..........24135.....455.......-


Monthly Budget Summary
Total monthly income.................... 4,116
Expenses (including HP & secured debts). 1,802
Available for debt repayments........... 2,214
Monthly UNsecured debt repayments....... 455
Amount left after debt repayments....... 1,859

Personal Balance Sheet Summary
Total assets (things you own)........... 344,527.3
Total HP & Secured debt................. -590
Total Unsecured debt.................... -24,135
Net Assets.............................. 319,802.3

Created using the SOA calculator at stoozing. com (not allowed to post URL
Reproduced on Moneysavingexpert with permission, using other browser.

My comments are in green

justcheckin

@copperclock, thanks for your thoughts, sorry I can't quote you properly but I'm in purple after your pasted words.

Benefits................................ 377 What benefits are these? If CB are you sure you don't have to repay it via high income charge?

yes, my partner makes pension contributions which reduce our ANI to below the threshold for his self-employed earnings. We also give £100 a month to charity- I realise I should have included this but the calculator didn't prompt me so I forgot

Mortgage................................ 5 £5?? yes, we paid off all bar a token amount in case we wanted to take a further advance later.


Council tax............................. 55 This also seems low? Gah, well spotted, it's £155, will tweak numbers accordingly, thanks.


TV Licence.............................. 0 No TV? Whoops. We do have a licence

Groceries etc. ......................... 90 Is this correct? see previous



Medical (prescriptions, dentist etc).... 120 Are you making use of NHS prepayment certificates at around £10 per month per adult?

Unfortunately it's chiropractic/physio/nit lotion/calpol/specs... all that stuff, we get free scripts in Wales.



Haircuts................................ 10 Seems low for 6 people True. I cut DH and the children's hair and my own, but this is a bottle of hair colour and the bits I need, like new blades and kit.

copperclock

justcheckin wrote: »

@copperclock, thanks for your thoughts, sorry I can't quote you properly but I'm in purple after your pasted words.

Benefits................................ 377 What benefits are these? If CB are you sure you don't have to repay it via high income charge?

yes, my partner makes pension contributions which reduce our ANI to below the threshold for his self-employed earnings. We also give £100 a month to charity- I realise I should have included this but the calculator didn't prompt me so I forgot

Are you sure? You indicate that your partner brings home £3589 net. CB starts becoming repayable from £50k ANI which is about £3065 net.

A take home pay of £3589 suggests ANI of more than £60k at which all the CB will need to be repaid.

Unless I am not understanding correctly.

Fireflyaway

Would it be helpful to have a miscellaneous category? I found that although I budgeted for bills etc there were always small unexpected things that would pop up such as school trips, something small that breaks in the house or a present if the kids are invited to a birthday party.

Mimi_Arc_en_ciel

Just something to add. You mention about buying nit stuff and calmly. Do you have a pharmacy first scheme? These are free on that service

justcheckin

copperclock wrote: »

Are you sure? You indicate that your partner brings home £3589 net. CB starts becoming repayable from £50k ANI which is about £3065 net.

A take home pay of £3589 suggests ANI of more than £60k at which all the CB will need to be repaid.

Unless I am not understanding correctly.

Hi, I ran it through the .gov calculator again just to check, and I may not have written the OP correctly, but yes, the calculator is showing as nil tax charge due.

Is it maybe the Childcare vouchers which are confusing things? They are also removed from the ANI.

copperclock

justcheckin wrote: »

Hi, I ran it through the .gov calculator again just to check, and I may not have written the OP correctly, but yes, the calculator is showing as nil tax charge due.

Is it maybe the Childcare vouchers which are confusing things? They are also removed from the ANI.

Ok. Sorry if I worried you!

justcheckin

no worries

I've just completed a water meter assessment calculator, which gave me an approximately similar bill to our non-metered bill. Perhaps it seems high to some people because I haven't explained how we run both the dishwaher and the washing machine 1/2 times daily. (all 4 children are messy eaters!)