Newly Separated

Breo

Hi - I've very recently separated, and suddenly incurring a lot of new expenses including childcare. I've tried to make a budget - but I'm coming up short. Not sure where to start in looking to cut back - and some things like food/gas/electric are guesses as I will obviously use/eat less now there is just me and baby.

Please be kind - the separation is raw/not what I wanted/horrific. Because of the reason for the separation there is no possibility for any maintenance support, so its just the income I have to work with. Also I will take on all the debts etc. (Not for discussion please but I've explored every option).

I know there are essential costs missing (such as clothes for baby!) but first I need to make pressing stuff balance. I also need eventually to find some money for a solicitor as everything is in my name and I need to keep it.

Here goes:

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 2817
Partners monthly income after tax....... 0
Benefits................................ 82.8
Other income............................ 0
Total monthly income.................... 2899.8

Monthly Expense Details
Mortgage................................ 756
Secured/HP loan repayments.............. 48
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 121.5
Electricity............................. 62
Gas..................................... 62
Oil..................................... 0
Water rates............................. 63
Telephone (land line)................... 0
Mobile phone............................ 14 (TODAYS VICTORY DOWN FROM 40)
TV Licence.............................. 12.54
Satellite/Cable TV...................... 90 (Includes phone, TV, broadband, some in contract)
Internet Services....................... 0
Groceries etc. ......................... 150
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 12.68
Car Insurance........................... 34.38
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 940 (estimate, not sure how much tax free I will get yet)
Other child related expenses............ 0 (Obviously will need something here)
Medical (prescriptions, dentist etc).... 26
Pet insurance/vet bills................. 0
Buildings insurance..................... 40
Contents insurance...................... 0
Life assurance ......................... 50.37
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0 (would like something here)
Professional Union...................... 26.05
Total monthly expenses.................. 2608.52


Assets
Cash.................................... 800
House value (Gross)..................... 220000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 225800


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 160000...(756)......0
Hire Purchase (HP) debt ...... 2000.....(48).......0
Total secured & HP debts...... 162000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Car Loan.......................3458......216.1.....4.9
Credit Card Debt...............13000.....132.......0
Total unsecured debts..........16458.....348.1.....-


Monthly Budget Summary
Total monthly income.................... 2,899.8
Expenses (including HP & secured debts). 2,608.52
Available for debt repayments........... 291.28
Monthly UNsecured debt repayments....... 348.1
Amount short for making debt repayments. -56.82

Personal Balance Sheet Summary
Total assets (things you own)........... 225,800
Total HP & Secured debt................. -162,000
Total Unsecured debt.................... -16,458
Net Assets.............................. 47,342

Thank you in advance for help and pointer
B

paddyandstumpy

Council tax single occupant 25% discount already applied?

Breo

Yes - yesterdays victory! LOL

Mnd

Your building insurance is massive, also your gas/electric /water all seem high.shop around and see if you can get these reduced.also no car service/mot figure.

Haylescom

Is your water bill on a meter? I know you probably have more washing to do with a little one but we sre a two adult household and ours is £27pm on a meter.

117pauline

Hi Breo

Well done on attempting an SOA. Your first couple of attempts at one are going to be sort of educated guesstimate until you have found how your budget really works.

As you say, at the moment your budget doesn't balance but you do have a little wriggle room. Here are a few of my thoughts:

• Council tax. is this split over 10 or 12 months
• Water. Are you on a meter?
• Electric and Gas. Seems a little high. Can you change to a cheaper supplier?
• Childcare. Will you be able to get childcare vouchers?
• Could you take in a lodger for a while to help balance the books?
• The change in your situation sounds as though you have been through a traumatic time. I can understand the debt is worrying but the most important thing is to ensure you and your baby are safe, warm and sheltered
• Do you have family with whom you can discuss your worries? I appreciate that this is not always an easy situation

Others will know more about benefits as well as contacting Step Change for more detailed financial advice.

I always recommend a spending diary to help you see patterns in your spending as well as the areas where you could cut down.

And finally, don't try to alter everything at once. Your well-being is vital and too many changes can make the situation worse.

The very best of luck, keep posting and you will get encouragement
Take care
Pauline

MerryGoRoundAvoider

I'll weigh in on the childcare. Assuming you're employer doesn't offer CCVs (I think they might be dead to new entrants anyway) the government offer basic tax relief on childcare payments.

Say your childcare provider charges £1000. You pay £800 into your online childcare 'wallet' ran by the government, they top up by 20% and you transfer £1000 to the nursery from the wallet.

In general I'd say the childcare cost is going to hurt you a lot. Do you have family you could lean on a little to help you out? I know that's not ideal but neither is credit card debt.

MerryGoRoundAvoider

Your energy bills seem expensive, car insurance does seem a little steep but I guess that depends on a whole bunch of factors.

Obviously you should look to ditching unnecessary tv subscriptions asap if you can.

What's the deal with the union fee? Do you actually get anything for that aren't unions some sort of archaic thing? (Seriously I've never worked for an employer with a union - I've worked for 5 businesses over a 20 year period). If it's not giving you £26 of value each month I'd consider ditching that?

Lastly you are going to need help day to day do you have friends or family that can look after baby and give you a little respite occasionally?

es5595

I know a lodger has been mentioned, but if you’ve got a spare room, it might be worth looking at an au-pair (or au-pair plus).

They would be a singnificant saving on your current childcare bill, and they would still be able to look after your lo if they are ill, in the evenings etc

Breo

Mnd wrote: »

Your building insurance is massive, also your gas/electric /water all seem high.shop around and see if you can get these reduced.also no car service/mot figure.

Thanks - the insurance is building and contents, is it still huge? It seemed the cheapest when I got it, but perhaps I've overestimated the amount of coverage I needed.

Gas/Electric wise I'm hoping this reduces naturally as ex used a lot of computers/machinery and I'm going to try and actively save energy. But will need to shop around too. What is a reasonable amount to aim for?

Car expenses - entirely agree. It was serviced last month so I left it out until I get on an even keel but painfully aware Im storing up a big bill for next time.

Thanks again

Breo

Haylescom wrote: »

Is your water bill on a meter? I know you probably have more washing to do with a little one but we sre a two adult household and ours is £27pm on a meter.

Hi - and thanks for your suggestion. I don't have a water meter. To be honest Im nervous of it - which probably sounds stupid!! I like certainty over my bills and I, worried it would get out of control. But given the size of the difference you pay to me perhaps Im being silly.