Diary to stop despondency

stinabean

I've made a few diaries and not really stuck to them. A bit due to lack of time, a bit due to honestly not wanting to tackle it because I don't want to spend my spare money on debt. BUT this is why I'm in this position so at 32 it's time to be a damn grown up and make sure me, my partner, and our son, have a happy life.

I've included an SOA in the next post, however this may have glaring mistakes. Please just holler and let me know, there's so much I don't understand.

Our wages are low, no we are not able to change jobs. Our phone bills are high, we are in a contract.
From Dec 2019 I will have an extra £100 a month as currently I'm paying back a loan to work (maternity) and our boiler payments also end in Dec 2019.
My partner also earns fairly good commission. I've not included it here as it fluctuates.

Yes I've ignored things like clothing, presents, entertainment as these are only bought with OH's commission as and when it's available. I feel like I can't budget for them at the moment as I just do not have the financial space.

Also trying to sell a few things just to have a bit of money put by for emergencies (ie our utility room roof is now leaking!) Also nothing against MOT etc as I want to try and sort what I can to see how much money I can put away for this.

Any advice is welcome, but please be kind.

:beer:

stinabean

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................ 1263
Partners monthly income after tax....... 1339
Benefits................................82
Other income............................ 0
Total monthly income....................2,684

Monthly Expense Details
Mortgage................................574.82
Secured/HP loan repayments..............0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax.............................97
Electricity.............................42
Gas.....................................21
Oil..................................... 0
Water rates............................. 29
Telephone (land line)................... 0
Mobile phone............................ 38x2 = 76
TV License.............................. 13.20
Satellite/Cable TV...................... 65
Internet Services.......................0
Groceries etc. ......................... 170
Clothing................................ 0
Petrol/diesel........................... 40
Road tax................................ 17.06
Car Insurance........................... 35.41
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... variable 800-900
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 9
Pet insurance/vet bills................. 52.15
Buildings insurance..................... 24.10
Contents insurance...................... as above
Life assurance ......................... 27.95
Other insurance......................... 0
Presents (birthday, Christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Professional subscriptions.............. 0
Total monthly expenses.................. 2,093.69


Assets
Cash.................................... 0
House value (Gross)..................... 165000
Shares and bonds........................ 0
Car(s).................................. 12000
Other assets............................ 0
Total Assets............................ 0


Secured & HP Debts
Description Mortgage
Debt 143.380k
Monthly 574.82
APR not a clue, in a “good” deal for another 3 years.
Total secured & HP debts...... 140k

Unsecured Debts
Description Debt…..Monthly…..APR

Hitachi Loan £8000…..164.35…..8.9%
Windows 1,642 24.10 …0%
Boiler 166 83.33 …0%
Car 9,603 219.87….no idea%


Total unsecured debts................. 19,411


Monthly Budget Summary
Total monthly income....................2,684
Expenses (including HP & secured debts). 2,585.34
Available for debt repayments...........0
Monthly Unsecured debt repayments.......491.65
Amount short for making debt repayments. 0

Personal Balance Sheet Summary
Total assets (things you own)...........0
Total HP & Secured debt.................0
Total Unsecured debt....................0
Net Assets..............................0

EssexHebridean

OK - the maths aren't in place on the SOA as far as I can see but it appears that you're currently quite a bit short of where you need to be for covering your outgoings? is that the case do you know?

A few things do stand out - the satellite TV figure is pretty high allowing that you also have debt - I'd strip that back to a very basic phone/Internet contract at the moment I think and revert to free options for the TV side of things. In fact allowing for the price of those phone contracts do you have enough data across the two phones to let that cover your internet needs and just go for line rental for the phone?

That grocery figure looks quite low for a family of three who - forgive me for saying it - don't truly have their moneysaving/MSE heads screwed on yet. Are you certain that you're not underestimating there? Remember to take into acounts any little top-up shops done during the week, those an add up, and also things like takeaways etc.

I'm guessing that at the moment your partner's commission might be meaning that you're breaking even perhaps, but that's a dangerous game to be playing as there's no certainty that will continue at the level it is. Also, if you're assuming that will cover things like car maintenance, presents etc, then you're potentially double-counting it if it is also being used for day-to-day expenses as well.

For the mileage it looks like you do I'd say that car was not a good purchase either - what sort of deal is that on? Will you actually own the car at the end of the deal or will there be a balloon payment to find? It's taking a huge amount of your monthly income, all things considered, and allowing for the running costs too I'm not convinced it is really god value for you.

beanielou

Also agree that food seems very low.
That is only 30 per week which seems very low.
Good news that the boiler loan is nearly done though

NeverendingDMP

Hiya have you definately checked about any benefits/tax credits/tax free childcare options. Apologies if you have. I know its really hard handing over all your wage to childcare. Im assuming from your foodbill the little one is still quite little. Childminders are usual cheaper than nurseries although i appreciate why you wouldnt change if little one is already settled.
If you are feeling disheartened dont look too many years ahead. At this point you need to survive until the 30 hrs childcare kicks in. Focus on a budget till dec then look at if you can do it from dec till next dec with the extra from the boiler money etc. If you find you have just enough to survive on your wages be really strict and move 90% of any commision to a seperate account to save for the stuff yiu arent budgeting. The other 10% use as a treat.
Have a look at nct sales. I can only vouch for my local area but near me they are very good -they are only held twice yearly but ive had some major bargains that ive passed off as christmas and birthday pressies. Arrive early though as people queue up to half hour before the doors open. Search nct nearly new sale and you should hopefully find a link.
Dont worry though we will keep you company along the way

Iwantanewlife

Hi and well done on your new diary! Im the same age as you, also have a son. I started my diary 2 months ago and its been the best thing i did. My advice to you is be completely honest (your SOA looks as though you are trying to make the numbers work) its better to put it how it is, however ugly, because i promise you these amazing forum people will help you and give you untold support.

You have a mortgage, which is a massive achievement, this is just a bump in the road.

record everything on here, use it as your personal think bank, and you will be amazed at how much motivation it will give you.

Good Luck on your journey, I will subscribe to cheer you on!

stinabean

EssexHebridean wrote: »

OK - the maths aren't in place on the SOA as far as I can see but it appears that you're currently quite a bit short of where you need to be for covering your outgoings? is that the case do you know?

A few things do stand out - the satellite TV figure is pretty high allowing that you also have debt - I'd strip that back to a very basic phone/Internet contract at the moment I think and revert to free options for the TV side of things. In fact allowing for the price of those phone contracts do you have enough data across the two phones to let that cover your internet needs and just go for line rental for the phone?

That grocery figure looks quite low for a family of three who - forgive me for saying it - don't truly have their moneysaving/MSE heads screwed on yet. Are you certain that you're not underestimating there? Remember to take into acounts any little top-up shops done during the week, those an add up, and also things like takeaways etc.

I'm guessing that at the moment your partner's commission might be meaning that you're breaking even perhaps, but that's a dangerous game to be playing as there's no certainty that will continue at the level it is. Also, if you're assuming that will cover things like car maintenance, presents etc, then you're potentially double-counting it if it is also being used for day-to-day expenses as well.

For the mileage it looks like you do I'd say that car was not a good purchase either - what sort of deal is that on? Will you actually own the car at the end of the deal or will there be a balloon payment to find? It's taking a huge amount of your monthly income, all things considered, and allowing for the running costs too I'm not convinced it is really god value for you.

I think, because my brain is really struggling to get round it all, that we are earning more than our outgoings. If my SOA doesn't show that, it's likely wrong somewhere.
I need "good" broadband as I work from home and need to connect to the offices systems etc. We are also in a contract and afaik can't change it.
The food money is 100% accurate. We transfer that amount into a separate account and use that card only for food. My little boy is at nursery 4 days out of 7 so it's not too much for him as we generally just give him what we eat anyway on those 3 days he's here.

We will own the car at the end of the finance, we bought a big family car because we also have two dogs (which I've just realised I've not factored in on the SOA) and all our family are south east while we're in Midlands, so a large car is required for visits which we do fairly often (work pays for that petrol as my office is also south east and I tie it in with them).

stinabean

beanielou wrote: »

Also agree that food seems very low.
That is only 30 per week which seems very low.
Good news that the boiler loan is nearly done though

I'm so excited for that boiler loan to be over! From Jan 2020 we really will be a bit better off and be able to make more sense of our finances I think!

stinabean

NeverendingDMP wrote: »

Hiya have you definately checked about any benefits/tax credits/tax free childcare options. Apologies if you have. I know its really hard handing over all your wage to childcare. Im assuming from your foodbill the little one is still quite little. Childminders are usual cheaper than nurseries although i appreciate why you wouldnt change if little one is already settled.
If you are feeling disheartened dont look too many years ahead. At this point you need to survive until the 30 hrs childcare kicks in. Focus on a budget till dec then look at if you can do it from dec till next dec with the extra from the boiler money etc. If you find you have just enough to survive on your wages be really strict and move 90% of any commision to a seperate account to save for the stuff yiu arent budgeting. The other 10% use as a treat.
Have a look at nct sales. I can only vouch for my local area but near me they are very good -they are only held twice yearly but ive had some major bargains that ive passed off as christmas and birthday pressies. Arrive early though as people queue up to half hour before the doors open. Search nct nearly new sale and you should hopefully find a link.
Dont worry though we will keep you company along the way

I've tried everything. We've moved to Universal Benefits or whatever it's called where I am and I'm entitled to zero. The only thing we can have is the £82 child benefit a month which we get, which in my naivety I wanted to save for our childs future, but is being lumped in with the bills at least for now.
Never heard of NCT before, will look that up thank you! I luckily rarely need to buy bits for LB as family are very generous and my mum loves a charity shop rummage, but will take a look!

As dire as the SOA may look, and I really think I've done it wrong, I promise I'm not in denial :rotfl: I know it's not forever. It was a very surprising pregnant on the first go situation 2 months after we bought our first house so financially unprepared! 2 more years till he gets some free hours a week, then a year after that he's at school etc so I know it'll get easier and easier, I just need to write down my no spend days here and reassure myself every now and again!

stinabean

Iwantanewlife wrote: »

Hi and well done on your new diary! Im the same age as you, also have a son. I started my diary 2 months ago and its been the best thing i did. My advice to you is be completely honest (your SOA looks as though you are trying to make the numbers work) its better to put it how it is, however ugly, because i promise you these amazing forum people will help you and give you untold support.

You have a mortgage, which is a massive achievement, this is just a bump in the road.

record everything on here, use it as your personal think bank, and you will be amazed at how much motivation it will give you.

Good Luck on your journey, I will subscribe to cheer you on!

Ah thank you! I will check out your diary for some motivation too

I think I've royally screwed up somewhere on the SOA haha, I know we don't put by for things that are yearly ie christmas, MOT etc, because that's a goal I'm working towards. But ignoring that, I know we're not getting into more and more debt (I crunch the numbers daily) so I think I've done it wrong.

Thanks for your support!

enthusiasticsaver

How old is your son? The killer is the childcare costs. Are you doing the tax free childcare scheme?

Satellite TV, mobiles should all be reduced when the contracts expire. I am a little surprised you spend only £120 on food and can you get the pet costs lower? I think you have overstretched yourself with the car but good that the boiler loan is almost finished. You need to start putting some savings away whether it is from your DPs commission or some sort of side income or overtime if you cannot increase your incomes. You need to find the interest rates. Do you not have any credit cards or overdraft? Good if you don't but unusual.

The maths on the soa is incorrect. I think you have £580 left after essential expenditure and your loan repayments are £492 so you should have £88 surplus even without the commission. You should start up some savings pots for presents, clothing even just for your son, pets which are normally a massive drain on budgets and the car and house. Put your food, fuel and entertainment money aside each month and try and find something to go towards an emergency fund. It will get easier when your son gets his 30 free hours so long as you don't have another child before you have sorted your finances out.