SOA help please

Novice_investor101

If you struggle with preparing meals daily, have a day once a week where you do a mass cookathon & freeze for later in the week.
I tend to do this on a Sunday & use the slow cooker to cook up some curry/chilli/brisket joint etc, make 6 lasagna portions in those tin foil trays, a big pasta bake which I portion up into small Tupperware boxes or anything else I fancy cooking up. Thus means I've not wasted any food, I've got some homemade healthy ready meals to choose from & if I run out of fresh lunch packup stuff I can take a frozen pasta bake to work & leave it on my desk - it's defrosted by lunchtime.

Mnd

I suggest that now you have been given a lot of advice to take in, you redo your SOA from scratch, taking into account the things that have been pointed out.

It may be worth doing this in the diary section, a lot of people will join you on your journey to financial freedom.

If you do, check your indicated insurance, that's what we pay annually.

Good luck

slashlover

greenpanda wrote: »

TV Licence.............................. 0 - no live TV / iPlayer watched? We've already paid for the year.
Medical (prescriptions, dentist etc).... 0 - never go to the dentist/ Dr/ eye test?? Both went to the dentist last year and child is free

These still need to be included. If you pay your TV in advance for example, divide the amount by 12 and save that every month in your budget so you have the money waiting to be used rather than it being an additional expense.
Same with the dentist. Save some every month so you have a pot to take it from rather than having to pay it all in one month.
Think of it like the saving schemes for Christmas, if you spend £240 on presents then budget £20 every month instead of trying to find £240 from somewhere in November/December.

greenpanda

Ok, so here is the full picture based on the past year. Thanks everyone for your feedback, help and prodding. It's been really useful to get a picture that a lot of our 'one-offs' (£180 fee from insurance company to change our policy to our new car, £300 Isla Bike for our son) really add a lot to our monthly spend. . Even this weekend we've made some serious changes which feel really good and it is all now feeling doable. Seeing what the £50 lunches and all the entertainment costs adds up to has really opened my eyes.

This weekend we've spent £23 at the supermarket, I've checked what we spent the equivalent weekend a year ago and it was £142!

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 3600
Total monthly income.................... 3600[/b]

Monthly Expense Details
Mortgage................................ 900
Secured/HP loan repayments.............. 67
Council tax............................. 125
Electricity............................. 58
Gas..................................... 50
Water rates............................. 33.3
Mobile phone............................ 88
TV Licence.............................. 12.89
Satellite/Cable TV...................... 38
Internet Services....................... 20
Groceries etc. ......................... 600
Clothing................................ 60
Petrol/diesel........................... 120
Road tax................................ 25
Car Insurance........................... 88
Car maintenance (including MOT)......... 40
Car parking............................. 40
Other travel............................ 135
Buildings insurance..................... 67
Presents (birthday, christmas etc)...... 137
Haircuts................................ 11.67
Entertainment........................... 400
Holiday................................. 140
Household repairs.......................... 10.42
Socialising............................. 251.51
Dining out.............................. 195
Subscriptions (netflix etc)........................... 38.53
Work Lunches............................ 93.01
Swimming Lessons........................ 33.88
Total monthly expenses.................. 3878.21


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(900)......0<
Overdraft......................0........(67).......0

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................9000......200.......0
Overdraft......................4588......67........0
Total unsecured debts..........13588.....267.......-


Monthly Budget Summary
Total monthly income.................... 3,600
Expenses (including HP & secured debts). 3,878.21
Available for debt repayments........... -278.21
Monthly UNsecured debt repayments....... 267
Amount short for making debt repayments. -545.21

Personal Balance Sheet Summary
Total Unsecured debt.................... -13,588

I've started a debt free diary here where I'll update what we are doing and how much we've paid off. I can't post the link but it's called From £14k to in the clear over on the debt free diaries board. Thanks again everyone!

Mnd

On my way over!

enthusiasticsaver

OK so it is pretty clear now why you are in debt as your discretionary spending is way above what you can afford.

What interest rates are being charged on the debt?

Notes on your soa

Your buildings (and presumably contents?) insurance is huge if that really is £67 a month. Have you tried comparison sites and taking off all the bells and whistles extras the insurance companies try to flog us all?

The groceries figure is way too high for 2 adults and 1 child. Similarly entertainment, dining out, socialising and work lunches could be massively reduced. Getting into the savings and budgeting habit will help you get out of this mentality of using credit to live.