help with monthly budgeting

sane

Hi. I've recently remortgaged and added new debt to my mortgage for renovations... so budgeting is very important going forward. I've never really paid much attention to spending, just used an excel sheet to total bills every month and tried to stay in green. (not always succesful, savings kept going down...).

Also, I would like to start increasing my pension contributions, overpay on the mortgage, and build an emergency fund. I've always used savings for holidaying and furniture purchases and that's not the way to go... However, I don't want to feel like I don't have a life anymore... so trying to find the right balance between enjoying life (by that I mean holidays, concerts, theatre etc.), while being a bit more sensible about the future.

I also plan to start using an app for budgeting and tracking spending - something not tremendously complex and preferably free or very low cost. YNAB seems too complicating for me, so perhaps Spending Tracker or something similar - any ideas welcome.

Here's my budget draft. I've just remortgaged and locked in a 5-year rate @ 1.79% so the budget is planned starting 1 May.

Any comments or suggestions welcome, especially on non-bills and savings targets.

ta.

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.................... 0

Monthly Income Details
Monthly income after tax................ 2982
Partners monthly income after tax....... 0
Benefits................................ 89
Other income............................ 508
Total monthly income.................... 3579

Monthly Expense Details
Mortgage................................ 1200 (= 902 regular repayment + 298 overpayment)
Mortgage insurance......................... 36 (accident, sickness, unemployment insurance)
Management charge (leasehold property).. 70 (mgmt charge, ground rent, bldg insurance)
Council tax............................. 107 (12-month direct debit)
Electricity............................. 27
Gas..................................... 38
Water rates............................. 17
Mobile phone............................ 44 (contract until Jan 2019))
TV Licence.............................. 13
Satellite/Cable TV...................... 16 (Netflix & Amazon Prime)
Internet Services....................... 19 (line rental, Internet is free on a promo period)
Groceries etc. ......................... 260
Clothes & shoes................................ 100
Other travel............................ 100 (Oyster load)
Childcare/nursery....................... 270 (tax free childcare)
Other child related expenses............ 120 (clubs & school lunches)
Medical (prescriptions, dentist etc).... 10 (dentist checkups and over the counter medicine)
Presents (birthday, christmas etc)...... 50
Haircuts................................ 50 (cosmetics and pampering)
Entertainment........................... 100
Gym..................................... 45 (gym & tennis club membership)
Other fees & insurances................. 17 (ww travel, mobile phone insurance, contents insurance)
Holiday fund................................. 300
Child uni savings ..................... 100
Emergency fund.......................... 200
Pension contributions................... 225
Miscellaneous........................... 45 (any other one-offs)

Total monthly expenses.................. 3579


Assets
Cash.................................... 1000 (small savings)
House value (Gross)..................... 380000
Other assets............................ 40000 (existing pension fund)

Total Assets............................ 421000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 218000...(1200).....1.79
Total secured & HP debts...... 218000....-.........-

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


Monthly Budget Summary
Total monthly income.................... 3,579
Expenses (including HP & secured debts). 3,579
Available for debt repayments........... 0
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 0

Personal Balance Sheet Summary
Total assets (things you own)........... 421,000
Total HP & Secured debt................. -218,000
Total Unsecured debt.................... -0
Net Assets.............................. 203,000

KxMx

You might get better replies if you post on the Debt Free Wannabee board

DCFC79

Could you move to a cheaper property ?

The usual stuff really, your mobile phone bill is too much, internet could be reduced surely, do you need both Netflix and Amazon Prime, £600 a year for cosmetics and pampering is too much but I'll let others advise on that.

sane

Thanks, I put it here because I 'only' have the mortgage.

I don't want us to move. I'm relatively close to work and outstanding state schools and we have good friends locally.

I know the mobile bill is too much but I'm stuck in a contract until January. However, even if I go SIM only in January, the bill won't decrease by much as my child starts secondary school next year and I will need to buy a 2nd phone plan early next year.

Could get rid of Netflix for a while, the issue is me and my child like to watch different things.

I'm not sure how I can cut Internet more, as it's £0 at the moment until September, on a discounted period?! The £19 is the cost of line rental with Sky.

Cosmetics and pampering yes I know... going down 1 or 2 brands probably would cut a bit.. but a haircut in my area is £40-50. So that's £25 a month already, not counting anything else.

Saver-upper

Welcome to MSE sane.
I am in a bit of a rush this morning,but just wanted to say,I know the only debt you have is the mortgage,but if you post on the debt-free wannabe boards,there are many,many regulars there who are able to look through your SOA and give lots of brilliant advise.
It doesn't matter that you are not a "debt-free wannabe"-just wanting to budget,build up an emergency fund etc,is enough.
Well done putting together a plan-I wish you all the best.:)

ValiantSon

sane wrote: »

I know the mobile bill is too much but I'm stuck in a contract until January. However, even if I go SIM only in January, the bill won't decrease by much as my child starts secondary school next year and I will need to buy a 2nd phone plan early next year.

Why does your child starting secondary school mean that you need a second phone? If you are insistent that they must have a phone then you can get them a dirt cheap PAYG and load it with minimal credit. The phone should only be needed in an emergency on the way home/to school (schools will always allow a child to contact their parents if they need to, using the school phones). You can get a PAYG handset for around £5. Combine this with a £10 top up on O2 (3p/min; 2p/text) and just make sure one text is sent every six months to keep the credit. For £15 they will have a working phone that should last a long time.

Not having an expensive phone will also make them less likely to be targeted by muggers, and if they lose it the cost is not enormous.

sane wrote: »

Could get rid of Netflix for a while, the issue is me and my child like to watch different things.

Lots of free TV available. When I was a child there were three channels (increasing to four) and they didn't broadcast all day. Somehow we managed to entertain ourselves.

If it saves some money then it is surely a (very small) sacrifice worth making.

sane wrote: »

I'm not sure how I can cut Internet more, as it's £0 at the moment until September, on a discounted period?! The £19 is the cost of line rental with Sky.

Best current deals are under £17 p/m (Now Broadband equivalent to £15.84; Post Office equivalent to £16.23). As you approach the end of your contract check the best available then:

https://broadband.moneysavingexpert.com/

sane wrote: »

Cosmetics and pampering yes I know... going down 1 or 2 brands probably would cut a bit.. but a haircut in my area is £40-50. So that's £25 a month already, not counting anything else.

So change down the brands.

Other thoughts:

Do you really need to be spending £45 p/m on gym membership?
Do you really need to spend £100 p/m on clothes?
Your utilities bills seem quite low, but when did you last do a comparison?

alan_d

I second the mobile phone info.
I have a GiffGaff PAYG sim in each of my kid's iPhone 5's (bought cheap used) at £7.50/month which includes unlimited texts, 250 minutes talk-time and 1GB data.
Phones are configured to use wifi when at home so 1GB is plenty.

sane

ValiantSon wrote: »

Why does your child starting secondary school mean that you need a second phone? If you are insistent that they must have a phone then you can get them a dirt cheap PAYG and load it with minimal credit.

Lots of free TV available. When I was a child there were three channels (increasing to four) and they didn't broadcast all day. Somehow we managed to entertain ourselves.

Yes, that's what I meant. I've already looked into giffgaff for my child, and I won't buy an expensive phone as it'll probably get lost or smashed anyway...

The TV comment is a bit odd though, yes 30 years ago we had 3 channels and no mobile phones, do we need to go back now?

I don't think I'm paying that much for TV - as compared to everyone else I know we're paying a fraction, as we don't even have a TV subscription, only paying for TV licence and film subs. Having said that I'm ready to drop Netflix and keep Amazon prime only...

Do you really need to be spending £45 p/m on gym membership?
Do you really need to spend £100 p/m on clothes?
Your utilities bills seem quite low, but when did you last do a comparison?

Yes, I do need the sports, they keep me sane. The £45 is actually not just gym, it's a cheap no frills gym, plus an annual tennis club membership.

On clothes: TBH I believe we spend more than that, which is why I'm here to try and set a realistic budget...

Utilities are fine, I use the MSE cheap energy club and review every year. My account is actually in credit.

stoozie1

sane wrote: »

Also, I would like to start increasing my pension contributions, overpay on the mortgage, and build an emergency fund.

I would increase your pension contributions to bring you out of 40% tax and then you will have double the personal savings allowance to maximise. (plus take advantage of the extra tax relief on the pension).

stoozie1

Have you already spent the renovation monies?

Where are your child's Uni savings and your holiday savings etc currently invested?

Not interrogating, just trying to understand

sane

stoozie1 wrote: »

I would increase your pension contributions to bring you out of 40% tax and then you will have double the personal savings allowance to maximise. (plus take advantage of the extra tax relief on the pension).

Thanks a lot, I know I need to read about this. I've just jumped into the higher tax rate bracket this year actually... Is there a calculator that would tell me how much do I need to contribute?