First Steps to Solvency

mamamu

alt80 said:

A@enthusiasticsaver  With the ftype gone I have a surplus not a deficit if I can stick with the budget.  

As much as you want to believe it - you do not have surplus until your debts are paid. You have deficit. 

alt80

@mamamu not really if you’re talking about net worth I’m in a surplus.

I’m talking about month to month if I can stick to the budget I have more coming in than going out.

clairebeth

But surely you would add the extra to your debts and pay them off faster? Doesn't your budget only account for minimum payments?

alt80

@clairebeth yes but all the cards are 0% so they are coming down by £1k/m. Add the extra from what? If you’re talking about my ftype moving that on just made my books balance - I can’t pay more because with the ftype more was going out than coming in. It’s a mess.

clairebeth

So what is the surplus you're talking about?

alt80

If I can stick to the budget there’s about £500/m over but this is if I can stick to £650 groceries (including coffees out / alcohol Etc) And £250 entertainment Month in month out- don’t think that’s likely tbh. No holidays etc. No birthday/ Christmas presents accounted for (this year n/a as my wife is the Christmas fairy and has already gone mad for Christmas), no clothing budget (I’ve used entertainment for that but not going to get much for £250/m including actual entertainment).

Yes if there ends up being £500 over it should go on the cards to pay them down but I’m not sure I can face living like this to pay cards and do nothing else with my life for 3 years. This would be having no 3rd car either just the RR and the BMW.

enthusiasticsaver

Naomim said:

alt80 said:

[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......... 1

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

Monthly Income Details[/b]

Monthly income after tax................ 7750

Partners monthly income after tax....... 0

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

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

Total monthly income.................... 7750[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 1330

Secured/HP loan repayments.............. 0

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

Management charge (leasehold property).. 0

Council tax............................. 230

Electricity............................. 80

Gas..................................... 70

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

Water rates............................. 55

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

Mobile phone............................ 45 (Just wife’s phone mine covered through business)

TV Licence.............................. 13

Satellite/Cable TV...................... 0

Internet Services....................... 0 (+ landline covered through business)

Groceries etc. ......................... 650 (Inc. £30 drinks / week and £25 coffee in cafes / week which can’t be expensed)

Clothing................................ 65 (Son only)

Petrol/diesel........................... 300 

Road tax................................ 85

Car Insurance........................... 85

Car maintenance (including MOT)......... 85 (2x services)

Car parking............................. 10

Other travel............................ 0

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

Other child related expenses............ 1200 (School, school trips and £10/w pocket money)

Medical (prescriptions, dentist etc).... 15 (PMI going to be covered through business this is just incidentals)

Pet insurance/vet bills................. 30

Buildings insurance..................... 30

Contents insurance...................... 20

Life assurance ......................... 70

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

Presents (birthday, christmas etc)...... 85 (£1k/y for son only wife and I will have to go without)

Haircuts................................ 65 (Wife will have to forget eyebrows etc.)

Entertainment........................... 250 (Put this in for general bits / days out etc.)

Holiday................................. 0

Emergency fund.......................... 0[b]

Total monthly expenses.................. 4868[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 600000

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

Car(s).................................. 125000

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

Total Assets............................ 725000[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 295000...(1330).....2[b]

Total secured & HP debts...... 295000....-.........-   [/b]

[b]Unsecured Debts[/b]

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

Range Rover....................94000.....1220......3.9

BMW............................29000.....440.......4.9

Credit Cards...................40000.....985.......0[b]

Total unsecured debts..........163000....2645......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 7,750

Expenses (including HP & secured debts). 4,868

Available for debt repayments........... 2,882

Monthly UNsecured debt repayments....... 2,645[b]

Amount left after debt repayments....... 237[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 725,000

Total HP & Secured debt................. -295,000

Total Unsecured debt.................... -163,000[b]

Net Assets.............................. 267,000[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

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

Not sure what I’ve done differently here but these are the essentials. Not £1k/m over at all, I basically have £250/m for a holiday after paying the credit cards etc. 

I cannot see a surplus as you have said you will be using the £237 towards a holiday? Nothing saved for emergencies so if you have an unexpected bill it will need to go on credit as you have no savings.  That is also a tough budget for someone who seems to spend a lot of time in JL.  

Your previous post did show you as being very entitled.  I think you have a blind spot though where it comes to cars and all reason goes out of the window.  Same with the spending addiction.  I hope for your sake you can sort it out because your business going through a downturn or tenants in your properties being unable to pay their rent will see your finances collapse if you carry on as before. 

alt80

@enthusiasticsaver About £500 left as a surplus if I cut out everything that isn’t necessary and holidays also cut some of the driving. 

I can’t save anything for emergencies - that much is clear. Not really helpful telling me. When the cards are gone I will. I know more than most I should have a sinking fund for my home and have admitted previously I’m in a position where a boiler service needs to go on credit. Do you seriously think I’m pleased about this when all my tenanted houses I could do just about every big job there is to do? I 100% know how much I need to keep my credit record clean or they’ll be living better than I am and the mortgages for those will be stuck on !!!!!! SVRs.

All reason going out of the window for cars my wife tells me that lol. I probably won’t go to JL for a month haha.

enthusiasticsaver

alt80 said:

@enthusiasticsaver About £500 left as a surplus if I cut out everything that isn’t necessary and holidays also cut some of the driving. 

I can’t save anything for emergencies - that much is clear. Not really helpful telling me. When the cards are gone I will. I know more than most I should have a sinking fund for my home and have admitted previously I’m in a position where a boiler service needs to go on credit. Do you seriously think I’m pleased about this when all my tenanted houses I could do just about every big job there is to do? I 100% know how much I need to keep my credit record clean or they’ll be living better than I am and the mortgages for those will be stuck on !!!!!! SVRs.

All reason going out of the window for cars my wife tells me that lol. I probably won’t go to JL for a month haha.

Then why on earth are you prattling on about some pie in the sky scheme to buy an AM on a PCP deal? No one would be pleased to be in your position but only you can change it. 

clairebeth

So, budget for a holiday, budget for clothes, and then you don't have to 'live like this'. Use the £500 surplus for that. Every pound should have a job.

You must realise that £900 a month on food and entertainment is excessive? You're not exactly living on the breadline.

I've said before that your wife will be your greatest asset here, and that is proving to be true.  She will certainly be able to challenge herself to trim the grocery budget. We are a family of 4 and budget £250 a month for groceries and £50 a month for clothing. (And as I've said before, we earn well but we're know that Lidl is better than Waitrose!)

I refuse to believe that someone the same age as me shops at Barbour and John Lewis. Not only are they excessively expensive, aren't they are little 'old before your time?' What's wrong with Primark or H&M? You're 39, not 59. The problem is not that you don't have the money to set aside, it's that you think it's realistic to spend £350 on shoes and therefore think you can't budget for clothing and holidays with the large 'surplus' you have. 

My top tip for a fab family holiday (when restrictions ease) - Landal Parks in the Netherlands. They are like Center Parcs, but about a quarter of the price. We take the car on the ferry and the kids LOVE it, they think they're on a cruise. Could you book something like that and save towards it for next summer? You can pay in installments.  Make sure you go on the .com page in euros, not the .co.uk page, otherwise you'll be booking for Piperdam and paying through the nose...

One more thing, how do your wife and son feel about the fact that they may have to go without holidays because you would prefer another car instead?