Keeping a diary to remain on track!

D3Dad

Spending time in lockdown has allowed me time to reflect on our finances and current priorities. So, I have decided to start a diary!

I have started with a SOA on what would be a typical month, providing we weren't in lockdown. Whilst I am not concerned about our level of debt, it has always been a personal desire to have very little debt. As a child I witnessed the devastating impact of debt, including repossession of our family home - I aim to not make that mistake. I have deliberated over whether the short term pain of having less each month is worth it (I will welcome any comment on this), and have fell towards it being so. Hopefully keeping this diary will keep me honest and provide motivation to continue paying extra!

My main effort is the repayment of the personal loan, this is what I will focus on. 

I have added comment on specific areas of spend for clarity, please feel free to provide any advice and feedback, and I hope to continue to update this monthly in a view to using it as a reflection tool! 

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.................... 2

Monthly Income Details

Monthly income after tax................ 2140

Partners monthly income after tax....... 640 - Maternity pay.

Benefits................................ 80

Other income............................ 0

Total monthly income.................... 2860

Monthly Expense Details

Mortgage................................ 450

Secured/HP loan repayments.............. 124

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

Management charge (leasehold property).. 0

Council tax............................. 150

Electricity............................. 50

Gas..................................... 20

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

Water rates............................. 20

Telephone (land line)................... 0

Mobile phone............................ 45 - 1 x phone to pay ending Dec 20. A really good sim only deal with Sky. 

TV Licence.............................. 12

Satellite/Cable TV...................... 22

Internet Services....................... 30

Groceries etc. ......................... 320

Clothing................................ 0

Petrol/diesel........................... 210 - excessive however, it is paid back via salary. 

Road tax................................ 30 

Car Insurance........................... 138

Car maintenance (including MOT)......... 30 - 1 x car is on a 3 year free MOT and servicing plan. 

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

Other travel............................ 100 - This is food costs for my work.

Childcare/nursery....................... 0

Other child related expenses............ 186 - We commit to spending child benefit money on exactly that, the child. This includes, swimming lessons, milk, clothing, toys and any other need.

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 59 - Including £45 monthly food. 

Buildings insurance..................... 0

Contents insurance...................... 33

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 50

Haircuts................................ 0 - Handily know a hairdresser. 

Entertainment........................... 140 - We have £70 each to spend guilt free - Days out, a Coffee etc. 

Holiday................................. 0 - All cancelled due to current sit - will reassess in Jan 21. 

Emergency fund.......................... 25 - currently at £883.

Total monthly expenses.................. 2244

Assets

Cash.................................... 883

House value (Gross)..................... 180000

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

Car(s).................................. 5500

Other assets............................ 4000

Total Assets............................ 190383

Secured & HP Debts

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

Mortgage...................... 144000...(450)......2

Secured Debt.................. 7000.....(124)......6

Total secured & HP debts...... 151000....-.........-   

Unsecured Debts

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

Personal Loan..................14795.....265.......6

0%CC...........................2235......50........0

Furniture .....................1176......62........0

Flooring ......................2667......72........0

Total unsecured debts..........20873.....449.......-  

Monthly Budget Summary

Total monthly income.................... 2,860

Expenses (including HP & secured debts). 2,244

Available for debt repayments........... 616

Monthly UNsecured debt repayments....... 449

Amount left after debt repayments....... 167

Personal Balance Sheet Summary

Total assets (things you own)........... 190,384

Total HP & Secured debt................. -151,000

Total Unsecured debt.................... -20,873

Net Assets.............................. 18,510

Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.

savingholmes

I think the areas in your budget I would question / target

• Satellite TV - could you get Netflix or Amazon prime instead and halve your bill?
• Why do you have an internet bill on top of Sky or have I misunderstood? Vodafone recently was doing very good BB for around £23 pcm - it all adds up
• You haven't said how many children are in your family. I would use the child benefit money towards household expenses. For me it would be a higher priority to free up money for debt clearance. I am pro swimming lessons but other things I would cut back on. KIds cost a fortune naturally without an artificial divide inn your budget
• Any way of reducing your pet food costs? Cheaper brands maybe? Less treats?
• I would look at any ways of upping your income - see the 'Make £10 a day challenge' and similar for ideas

Whatever you decide good luck on your journey. If you are not already on a cashback site - join one. I did in 2008 and since then we've had about £2K in cashback.

D3Dad

Savingholmes, 

Thanks for your feedback! 

We already piggy back off my father-in-laws Netflix, admittedly we barely ever use it! Sky is used mainly for the ease of recording, it also saves £20 Per month on the sim only deals. So in my mind, it cancels its self out that way. It may be worth me going back through this, to confirm.  

My internet is provided by BT, as a new home I have had to use BT for the first 18 months due to them having rights over the fibre cables. Seems pretty corrupt to me? The sales team didn't really go into much detail, I should probably clarify it. Anyone know of this I would be keen to hear!

Just the one baby, hmm that is a good point. Maybe a conversation I need to have with the OH.

Pet food - again it sits with the OH, I've never really cared to consider the cost of cat food! One more to look into. 

Thanks again for all your advice. 

Mumoffourkids

Well done on starting a diary. I know in these times that certain costs are going to be higher than usual and certain costs lower than usual, but I would also say your groceries cost is on the high side especially when you take into account your food at work costs, pet food is separate and the baby milk etc is separate. I have six kids and one is still in nappies at night as well as a dog and my budget for food is £120 a week at the moment. That includes everything so all toiletries, cleaning stuff etc. 

Good luck with debt busting by the way.

D3Dad

Mumoffourkids, 

Yeah I certainly take the point of groceries being on the high side, its certainly something we are trying to work on. Once lockdown is over, and I return to work, it will be interesting to see if we can get it even lower. Re-going through SOA and agreed to cut down to £70 per week. Upcoming shopping week is at £65 inc some toiletries, so feeling positive about it already. What does your meal planning look like? 

D3Dad

In other news, in an attempt to track spending - the first week upcoming of May current spend is £182. 

Due to not setting up SOA until gone pay day, we've had to buy a 50th birthday present for this month. Me going to the shop to do the weekly shop has been disastrous. Part of what caused me to start this diary is the fact I spent a little too much in the stores last month... 

£95 shopping - this included milk, and a fair amount of nappies on 1/2 price deal! Hopefully tracking this we keep us on budget this month! 

1 x toy for little man costing £13. Does anyone have a way of controlling their Amazon spending? considering how un-predicable it can be. Can't see why we need to spend anymore money, until the shopping is delivered next Friday. 

Mumoffourkids

That’s good that you have decided to try and reduce the shopping bill. Our meal plan tends to have a lot of chicken on it as the kids all like chicken. I also buy a large pack of mince and make a huge bolognaise one evening which I then freeze the leftovers into portion sizes. Yesterday was spaghetti bolognaise and I already had the sauce in the freezer so no need to buy the mince this week. I have a daughter who likes to bake so she makes sweet treats such as cookies and brownies and millionaires shortbread, so that cuts down on the requirement for sweet things in the shopping basket. We have a pizza night one night a week, and do tend to eat a lot of pasta which I buy in big bags.

outoftheviciouscircle

Hello, happy new diary. I started a brand new one yesterday and I feel it’s going to hold me accountable which is just what I need. 

Good luck 

D3Dad

Mumoffourkids said:

That’s good that you have decided to try and reduce the shopping bill. Our meal plan tends to have a lot of chicken on it as the kids all like chicken. I also buy a large pack of mince and make a huge bolognaise one evening which I then freeze the leftovers into portion sizes. Yesterday was spaghetti bolognaise and I already had the sauce in the freezer so no need to buy the mince this week. I have a daughter who likes to bake so she makes sweet treats such as cookies and brownies and millionaires shortbread, so that cuts down on the requirement for sweet things in the shopping basket. We have a pizza night one night a week, and do tend to eat a lot of pasta which I buy in big bags.

Sounds V similar to what we are planning, glad to hear it's viable.

outoftheviciouscircle said:

Hello, happy new diary. I started a brand new one yesterday and I feel it’s going to hold me accountable which is just what I need. 

Good luck 

Thanks, all the best! 

Current May spend is sitting at £105 on groceries - this is 1 week and a half worth. We already have next weeks shop set up online @ £70, including some cleaning stuff, and a bottle of wine! So impressed with that! Will try to keep it below £280 for the month. 

Still waiting on a refund from a certain Hungarian airline... the law is 14days, but so far we are on day 30something... as soon as this comes in it will go straight on the loan. 

After some consideration I underestimated my weekly food costs at work, so have decided when I return ill be cooking for myself saving a good £50 a month, that just on food. 

OH is really starting to get on board with this way, and is becoming just as invested as I am. Its always so tempting at the thought of extra cash, to immediately think of a way to spend it. Garden needs some more plants, stuff to put on the walls. Knowing there is easily an extra £400 at the end of this month is tempting to use it to get these things done. Would be interested to hear how people avoid such temptations?

Overall, everything is going well!

D3Dad

Had a real win today! 

just managed to save £65 per month on car insurance!! 

Although It was a long time on the chat with Admiral, its come down from £138 to £66. 

Very happy.