Budget advice

ganderson1804

Hi Guys

I don’t think I’ve posted this in the right place so can someone please tell me the best place for me to list out our budget and get advice on it?

Thank you

Gillian

katie4

link to soa http://www.stoozing.com/calculator/soa.php

fatrab

I'd say you're in the right place, just post an SOA and add any relevant information.


We're a friendly bunch and someone will have a suggestion or two once we know what your current situation is.


Welcome to the forum

ganderson1804

Hi

Thank you or your replies. I have entered the numbers the best I can into an SOA.

To be clear we aren’t in a dire financial situation – we haven’t got lots of unmanageable debt but things are very tight and I wanted to see if I was missing any magic tricks.

Our fixed rate on our mortgage is up at the end of the month so I am looking at new deals but our house value has gone done so I think our payments will stay the same or raise a little.

This is based on our rock bottom income – my husband gets on call bonuses and overtime but none are guaranteed and vary month to month. We also have a much larger childcare bill than just £200 but we both take £243 in childcare vouchers.

ganderson1804

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................ 1679.33
Partners monthly income after tax....... 2205.23
Benefits................................ 192.4
Other income............................ 0
Total monthly income.................... 4076.96
Monthly Expense Details
Mortgage................................ 1253
Secured/HP loan repayments.............. 507
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 206
Electricity............................. 131
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 37.2
TV Licence.............................. 12.37
Satellite/Cable TV...................... 59.5
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 100
Petrol/diesel........................... 300
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 75
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 226.24
Other child related expenses............ 65
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 75.9
Other insurance......................... 0
Presents (birthday, christmas etc)...... 145
Haircuts................................ 34
Entertainment........................... 250
Holiday................................. 100
Emergency fund.......................... 0
Bank Acc charge......................... 12
Kids Trust Funds........................ 100
Total monthly expenses.................. 3989.21

Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 250000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 231000...(1253).....2.76
Hire Purchase (HP) debt ...... 0........(507)......0
Total secured & HP debts...... 231000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 4,076.96
Expenses (including HP & secured debts). 3,989.21
Available for debt repayments........... 87.75
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 87.75
Personal Balance Sheet Summary
Total assets (things you own)........... 250,000
Total HP & Secured debt................. -231,000
Total Unsecured debt.................... -0
Net Assets.............................. 19,000

fatrab

Couple of things jumping out at me.

You have car costs of £75 per month? But nothing in for tax or insurance. Even if you pay them annually you need to divide them by 12 and enter them to the SOA. £900/year for car maintenance seems a little high.

You have a balance of 0 for HP but monthly payment of £507?

Are you on the best deal for your electricity?

£75.90 life insurance seems high.

If you are looking for ways to save quickly in the short term, £250/month for entertainment when you have no safety fund seems like a good place to start. And £1740/year on presents seems high too but with 3 children I'm sure it quickly mounts up.

Ebe_Scrooge

ganderson1804 wrote: »

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................ 1679.33
Partners monthly income after tax....... 2205.23
Benefits................................ 192.4
Other income............................ 0
Total monthly income.................... 4076.96
Monthly Expense Details
Mortgage................................ 1253
Secured/HP loan repayments.............. 507
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 206
Electricity............................. 131
Gas..................................... 0 I assume you're all-electric since you have nothing for gas or oil - are you on the best tariff ?
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 37.2
TV Licence.............................. 12.37
Satellite/Cable TV...................... 59.5 This is a luxury and could be cut.
Internet Services....................... 0 Nothing ? Do you not pay for internet access ?
Groceries etc. ......................... 300
Clothing................................ 100 Seems quite high - even with 3 kids.
Petrol/diesel........................... 300
Road tax................................ 0 Is your car really zero tax ?
Car Insurance........................... 0 You must be paying insurance
Car maintenance (including MOT)......... 75
Car parking............................. 0 Really ? Not even popping into town on a Saturday ?
Other travel............................ 0
Childcare/nursery....................... 226.24
Other child related expenses............ 65 What is this for ?
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0 You really should have something for this.
Contents insurance...................... 0 Ditto
Life assurance ......................... 75.9
Other insurance......................... 0
Presents (birthday, christmas etc)...... 145 This is very high, even with 3 kids.
Haircuts................................ 34
Entertainment........................... 250 This could be cut if required
Holiday................................. 100
Emergency fund.......................... 0 It's a good idea to have something here.
Bank Acc charge......................... 12 Why are you paying a fee ?
Kids Trust Funds........................ 100
Total monthly expenses.................. 3989.21

Assets
Cash.................................... 0
House value (Gross)..................... 250000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 250000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 231000...(1253).....2.76
Hire Purchase (HP) debt ...... 0........(507)......0
Total secured & HP debts...... 231000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Total unsecured debts..........0.........0.........-

Monthly Budget Summary
Total monthly income.................... 4,076.96
Expenses (including HP & secured debts). 3,989.21
Available for debt repayments........... 87.75
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 87.75
Personal Balance Sheet Summary
Total assets (things you own)........... 250,000
Total HP & Secured debt................. -231,000
Total Unsecured debt.................... -0
Net Assets.............................. 19,000

My thoughts in bold above. I realise you say you're not in dire straits, so some of the cuts you may feel you don't need to make. But it depends how much you're wanting to save, and what sacrifices you're willing to make. Anyhow, hope this helps.

ganderson1804

Thanks for your reply! I've noted some direct replies here

fatrab wrote: »

Couple of things jumping out at me.

You have car costs of £75 per month? But nothing in for tax or insurance. Even if you pay them annually you need to divide them by 12 and enter them to the SOA. £900/year for car maintenance seems a little high.

Sorry I meant to give a little more breakdown. This £75 is for all car costs excluding fuel so it covers insurance, tyres, MOT, road tax, services.

You have a balance of 0 for HP but monthly payment of £507?
I don't know the balance at the mo - paperwork is at home. We started it in Mach 2016 and it was a 4 year plan.

Are you on the best deal for your electricity?

That is a combined gas and electric price and I'm on a MSE switch deal at the mo. There is a slightly cheaper one but with the early exit fees its not worth the change until my deal is up.

£75.90 life insurance seems high.
This is life insurance and critical illness for myself and my husband - mine is £31.82 and his is £44.08

If you are looking for ways to save quickly in the short term, £250/month for entertainment when you have no safety fund seems like a good place to start. And £1740/year on presents seems high too but with 3 children I'm sure it quickly mounts up.
The gift budget is £65 a month for birthday presents for the kids, each other, nieces/nephews and parents for the year. Christmas is £80.


The entertainment fund prob is the best place to make a change. The additional childcare costs of £65 is for their activities and classes.

Thanks so much for your quick response - love all your points as they are really making me think about our cashflow.

fatrab

I'd definitely reconsider your presents and entertainment spending. Cut by £100/month and transfer this money into an emergency fund.

I'd look into the life insurances, you might find a better deal.

Can you cut the cost of your satellite TV package and mobile phone perhaps?

fatrab

One of the hardest things to accept is the difference between wants and needs when you're trying to cut back.

Food is a need. The roof over your head is a need.

Mobile phone and cable tv are wants, it doesn't mean you can't have them if you can afford them but just be sure you're on the best possible deal. £10 sim only deal and basic channels at most.

ganderson1804

Ebe_Scrooge wrote: »

My thoughts in bold above. I realise you say you're not in dire straits, so some of the cuts you may feel you don't need to make. But it depends how much you're wanting to save, and what sacrifices you're willing to make. Anyhow, hope this helps.

Hi thank you for your reply

In response:

We are gas & electric but I couldn’t find the split as we have a combined direct debit so just put it all in here.

Yes sky is def a luxury – but we are tied into a contract until October. This cost includes sky tv, broadband and phone line.

Clothing is prob a little high but of my kids 1 is at school – so is in uniform. My others are 2 – needs new £30-£40 shoes every 6 weeks and the little one is only in 12-18m clothes with a November birthday so needs a size update in summer. This also includes stuff for me and my husband.

The £75 a month is all in for the car excluding fuel. It covers insurance, tax, MOT, tyres, service etc.

Haven’t got anything in for car parking – this comes out of our entertainment budget if we ever pop into town.

Child expenses is their weekly classes – swimming, hip hop, running club and toddlers.

Buildings/contents insurance was an oversight on my part. I pay it annually and have the money sat aside for it from the month of of council tax.

Presents budget isn’t just for the kids, it includes all nieces & nephews, parents, mothers/fathers day token gift, cards, wrapping paper, class party gifts, Christmas.

Entertainment is where we need to make a change I think.

Emergency fund – this is where I panic – def need to build this back in.

Bank acc – this includes mobile phone insurance which we have used in the past. Also travel insurance, car breakdown. Plus we get a good £10-15 a month in cashback from this.

Thank you so much for you reply – really appreciate your time.