*sigh* this may take a while

ohdearhowdidthathappen

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 5

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 2302 (new salary)

Partners monthly income after tax....... 4542 (doesn't include bonus as variable)

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 6844[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 1788

Secured/HP loan repayments.............. 210 (car 1)

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 254

Electricity............................. 150

Gas..................................... 150

Oil..................................... 0

Water rates............................. 70

Telephone (land line)................... 95 (also includes broadband and 6 SIMS)

Mobile phone............................ 0 (see above)

TV Licence.............................. 13.33

Satellite/Cable TV...................... 27 (Netflix/Prime/Now/Disney)

Internet Services....................... 0 (see above)

Groceries etc. ......................... 800

Clothing................................ 200

Petrol/diesel........................... 150

Road tax................................ 0

Car Insurance........................... 35 (both)

Car maintenance (including MOT)......... 0

Car parking............................. 0

Other travel............................ 240 (lease for car 2)

Childcare/nursery....................... 100

Other child related expenses............ 155 (swimming lessons, pocket money)

Medical (prescriptions, dentist etc).... 22 (contacts)

Pet insurance/vet bills................. 51 (insurance and jabs)

Buildings insurance..................... 33 (inc contents)

Contents insurance...................... 0

Life assurance ......................... 32.5 (for us both)

Other insurance......................... 32.5 (professional fees and insurance)

Presents (birthday, christmas etc)...... 100 (birthdays, Chrismas is saved out of DH bonus)

Haircuts................................ 60 

Entertainment........................... 250 

Holiday................................. 100 (spending money, holiday fund is out of DH bonus)

Emergency fund.......................... 100

Lottery................................. 12.5

National Trust.......................... 10.5[b]

Total monthly expenses.................. 5241.33[/b]

[b]

Assets[/b]

Cash.................................... 2500

House value (Gross)..................... 800000

Shares and bonds........................ 0

Car(s).................................. 6000 (how much of the car we own)

Other assets............................ 0[b]

Total Assets............................ 808500[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 339000...(1788).....1.8

Hire Purchase (HP) debt ...... 20000....(210)......0[b]

Total secured & HP debts...... 359000....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR[b]

Total unsecured debts..........0.........0.........-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 6,844

Expenses (including HP & secured debts). 5,241.33

Available for debt repayments........... 1,602.67

Monthly UNsecured debt repayments....... 0[b]

Amount left after debt repayments....... 1,602.67[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 808,500

Total HP & Secured debt................. -359,000

Total Unsecured debt.................... -0[b]

Net Assets.............................. 449,500[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

ohdearhowdidthathappen

There we go.... this is what we 'should' be spending, I'm aware an SOA shouldn't be aspirational and will be using the above as a starting point and trying to see where we're going over and above this.  Which we obviously are or we'd have £1600 spare each month, which we don't!
We've set ourselves up in an expensive lifestyle and our fixed expenditure makes me twitch a lot.  But mainly it's our inability to save that annoys me. However, I do this every few months and then nothing really changes, hopefully this time it'll stick... we're both mid 40s and won't earn this kind of money forever.

savingholmes

For me - I have to trick myself and move the money out of the account as soon as I get paid so I look at it and feel like I have no money. Putting your money straight into regular savers would help and look at your pension provision too.

I found a really compelling vision of the future helpful. So - first it was getting debt free - and then as that became a possibility it was FIRE - so creating enough future income that I would either not to have to work or could work less - or could spend more time doing my hobbies and earning £ from them. 

My latest plan is to see how much £ I can get together by the time I'm 60 (8 years time) in the hope that I can then go part time. I note you're already part time which is lovely - but would probably be even more enjoyable later in life when you are not having to use your days off to juggle childcare (unless that's something you enjoy). 

You considered moving to Wales. Perhaps if you came up with a financial plan to achieve that - it would help. You don't have to act on it if you don't want to / if your priorities change later on - but you won't regret having a decent nest egg behind you. The other thing is - does your DH have redundancy and sickness insurance? If the answer is no - then it's even more important to prioritise getting your emergency fund sorted as it would be hard to sustain your mortgage on your income alone...

Your SOA looks reasonable - but the reality from your diary seems to be - that you spend a lot ad-hoc on kids requests, takeaways and the like. Plus the reality as you've said is that having more kids does increase your costs... I know you said that you fund holidays from the bonus - but wonder whether if you saved up for holidays and used the bonus as a huge wodge of cash for your EF whether that would make it easier to achieve. I think you'd be more motivated to save towards something tangible like holidays rather than EF - so perhaps swapping them - might trick your mind into saving more...

ohdearhowdidthathappen

Really useful insights SH, thank you.

I like the idea of having a plan to aim for which could motivate us to stick to our budget.  

DH has a 6 month notice period and a very good sick policy at his work, but I agree we'd be screwed if he lost his job and we do need to have some savings.

I do wonder if I'm being a bit spoiled still only working part time.  Our youngest is 7 and will be going into year 3 in September (or the juniors as I still call it ).  All of my friends/peers with school age children work full time, but we've always preferred the balance of me being part time.  I do all the life admin,shopping and cleaning and it makes school holidays easier.

We've unfortunately decided that moving out of the area is going to have to be more of a 10-12 year plan.  Work opportunities and kids' schools being the main factors, because of the age range of our children, we'll have 1 or more of them doing GCSEs/A-levels for the next 11 years.  They're at good schools and are happy.  Work/study opportunities are amazing around here for them too.
In 12 years time, they'll all be adults.  If we move at that point, they can come with us or make alternative arrangements.  
DH will be nearly 60 by then and I'll be 56.
I like the FIRE idea, we were discussing trying to get to the point where we could retire if we wanted to in the 12 years when we hope to relocate.  That could be our compelling vision that you mentioned above

On paper our SOA  is ok (apart from the cars - still an achilles heel), but we definitely fritter.  I like the idea of saving monthly for Christmas and holidays rather than using the bonus.  We should definitely save at the start of the month rather than 'lets save what's left' which is inevitably nothing.

One of my friends is really sensible with money, I was chatting to her the other day and she was saying she avoids 'lifestyle creep' by automatically saving any payrises or savings so they never get used to the extra.  They live on a similar budget to what they did 5 years ago despite their salaries almost doubling in that time (she upped from part time to full time, her DH got promoted) and they've saved nearly £70k in that time.  

mark55man

That's a grown up plan and a half.  Will be rereading later when I have taken my work head off

Drawingaline

ohdearhowdidthathappen said:

Thanks HD and SH
Quiet day yesterday and today, went for a long walk both days to get my 10K steps in before it got hot.
Mr A subbed or didn't deliver quite a few things on my shop yesterday, have ordered a top up for tomorrow to cover these things and buy in more fruit and ice creams as kids have been hoovering them up.
Our schools are doing half days the next few days, understandable because of the heat, but a nightmare logistically as finishing different times and the times are rubbish for work!  Also means no after school cover for the youngest two.  I'm tempted just to keep them off completely, DH is working from home so they're covered if they're here.  They're not going to learn a thing if they go in anyway, kids and teachers alike will be melting  

I have had the same issue with half days at school. Luckily I had a client cancel so could get him, otherwise I was going to just keep him home. He is yr8 and 13, but we live a 40min walk away, and he has never done it on his own, and due to his autism I am a but nervous about letting him. Plan is to let him do it over the summer so he is able to in the future. Honestly it just seem pointless for the next few days, but the dfe won't let them close properly 🙄

savingholmes

A 12 year plan sounds like something positive to aim for. I look forward to reading more.

crunchy_time

ohdearhowdidthathappen said:

Really useful insights SH, thank you.

I like the idea of having a plan to aim for which could motivate us to stick to our budget.  

DH has a 6 month notice period and a very good sick policy at his work, but I agree we'd be screwed if he lost his job and we do need to have some savings.

I do wonder if I'm being a bit spoiled still only working part time.  Our youngest is 7 and will be going into year 3 in September (or the juniors as I still call it ).  All of my friends/peers with school age children work full time, but we've always preferred the balance of me being part time.  I do all the life admin,shopping and cleaning and it makes school holidays easier.

We've unfortunately decided that moving out of the area is going to have to be more of a 10-12 year plan.  Work opportunities and kids' schools being the main factors, because of the age range of our children, we'll have 1 or more of them doing GCSEs/A-levels for the next 11 years.  They're at good schools and are happy.  Work/study opportunities are amazing around here for them too.
In 12 years time, they'll all be adults.  If we move at that point, they can come with us or make alternative arrangements.  
DH will be nearly 60 by then and I'll be 56.
I like the FIRE idea, we were discussing trying to get to the point where we could retire if we wanted to in the 12 years when we hope to relocate.  That could be our compelling vision that you mentioned above

On paper our SOA  is ok (apart from the cars - still an achilles heel), but we definitely fritter.  I like the idea of saving monthly for Christmas and holidays rather than using the bonus.  We should definitely save at the start of the month rather than 'lets save what's left' which is inevitably nothing.

One of my friends is really sensible with money, I was chatting to her the other day and she was saying she avoids 'lifestyle creep' by automatically saving any payrises or savings so they never get used to the extra.  They live on a similar budget to what they did 5 years ago despite their salaries almost doubling in that time (she upped from part time to full time, her DH got promoted) and they've saved nearly £70k in that time.  

Thank for this. I really do relish your honesty. We are similar to you. Husband has just had a huge £20k pay rise due to a long overdue promotion so together we earn three figures now. The impact of this increase hasn’t even had an affect yet as it was 1st July the rise started. Our take home is now about £6500 a month but our mortgage is £1136 a month and our loan to value is high. I def feel like we could do better and feel like lifestyle creep is a thing that needs to be discussed more. We need to rebuild our savings. As always thank you for being honest and sharing perspectives. I feel this is the point of this site as a lot of this can’t be discussed in the ‘real world’
xx

ohdearhowdidthathappen

savingholmes said:

A 12 year plan sounds like something positive to aim for. I look forward to reading more.

Thanks SH, always appreciate your support and honest opinions

ohdearhowdidthathappen

crunchy_time said:

Thank for this. I really do relish your honesty. We are similar to you. Husband has just had a huge £20k pay rise due to a long overdue promotion so together we earn three figures now. The impact of this increase hasn’t even had an affect yet as it was 1st July the rise started. Our take home is now about £6500 a month but our mortgage is £1136 a month and our loan to value is high. I def feel like we could do better and feel like lifestyle creep is a thing that needs to be discussed more. We need to rebuild our savings. As always thank you for being honest and sharing perspectives. I feel this is the point of this site as a lot of this can’t be discussed in the ‘real world’
xx

Thanks Crunchy... I find this diary quite cathartic as I can let out all my inner ramblings, like a confessional and someone always comes along with wise words and a different perspective to make you think.
Wow, congrats to your husband, that's a nice juicy pay rise!  
We definitely seem to have similar household spending habits
I find in the real world, friends/family either earn less and then you can't really discuss money.  Or they earn more (or are more sensible) and then you feel silly for not having your !!!!!! together