It's a Whopper - need to pay it off!

Grass_Roots_2

Busydoingnothing said:

Our major spending area is also supermarket good shops. Something I'm hoping to tackle next year 

Ha!  Let me know how you get on with this.  We are in a frankly ridiculous situation of youngest son 'not fancying that' and demanding something else for dinner most nights, my daughter asking me to pick up smoked salmon and sushi making equipment for lunch to recreate something she's seen on Tik Tok (!), and a whole host of other embarrassing shopping habits. The budgeting app states we spend on average £1250 per month in supermarkets for 5 adults (that doesn't include Takeaways and Eating Out which are separate categories)  Although makes me think we should be able to sort this element out quite quickly.  Fingers crossed.

Grass_Roots_2

Happy New Year! 

Inspired by lots of people on here setting some goals for 2022, here are mine:

Health

This is a simple one - I want to keep investing in sorting out my back.  I have some disc bulges that have caused havoc this year and made me quite immobile at times.  I’m under NHS care but it’s a long and slow journey and I’ve found swimming/walking both really help along with keeping active! Sitting at my desk does not but I can work long hours and get stuck there and exacerbate the problem. So I will keep on moving (which will hopefully have knock on impact of getting some weight off which would also help pressure on my back), get an Occ Health referral and see if they can recommend me a standing desk or ergonomic chair. I’m also waiting to get results of MRI scan before Christmas to understand what else can be done. 

Wealth

- I will get a grip of our grocery bill. It’s astonishing at the moment and I feel I’m not teaching responsible habits to my kids with everyone just having whatever they fancy all the time.  I want to reduce this to £1000 per month (including Pet food and Odd box subscription) 

- I want to invest £250 per month into my Vanguard S&S ISA (upped from £100 currently) Direct debit already increased so this is on track.

- Mortgage overpayment - still want to run more analysis on this before committing to a regular monthly overpayment figure. Watch this space!  

- eBay - I love a bit of selling.  Particularly vintage homewares I pick up from Charity shops or jumble sales.  I’d like to make £1000 (HMRC limit) doing this this year (gutted that indoor jumble sales are few and far between due to Covid) 

Projects

- Finish shower room upstairs (it was dismantled during extension last year and is not useable causing general stress - anyone else got a teenage daughter who doesn’t want to share a bathroom!?)  We have the waterproof plasterboard and tiles so no cost just time and work which DH will do himself.

- Garden - our patio area in the garden is just ballast at the moment, again following upheaval of extension so would like to sort this out - probably with a black composite deck.  Need to get a quote - DH won’t do this work himself (after a gruelling year with him doing lots of work on extension himself we’ve recognised limits).  

- Kids (this is really the most important one of them all, saving the best to last) - need to focus in and support my 2 youngest kids who are doing GCSE/A Levels this year.  DD is planning medicine at Uni, DS is unknown college/apprenticeship/6th form and we want to ensure he gets off on the right track - he finds school tough and learning difficult. 

Phew that’s it for now - Happy New Year all however you are celebrating. We are binge watching Succession with some Prosecco whilst kids go to parties. 

Busydoingnothing

Ahhhh see, we're not too fussed with our home, this is our first home actually. We only bought 5 years ago. we're 35 and our major vice is holidays. 

Your spending an awful lot there on the food shop but I'm sure the kids won't notice too much if you need to cut down on the smoked salmon & sushi. Are they old enough to buy their own extras? Or could you maybe give them a set limit. It's difficult when you have older children, I know I would like to make their last year's at home memorable. 

Happily, we're up north so can definitely make do with the house we currently own. As much as I would love to move, I'll keep reminding myself of the £800 per month I'm saving by staying put. 

greenbee

Welcome to MFW. While your mortgage may seem overwhelming, it’s not dissimilar to mine - which is less, but I’m servicing it on a single income. After 7 years of all spare money going on doing the house up it has doubled in value so I’m now at around 25% LTV and I’m finally OPing seriously. It’s a huge relief, but I’m not throwing everything at it - savings and pensions are also getting some attention.

As far as your back goes, I’ve been in the same situation. A previous employer bought me a chair recommended by my physio, and as I’m home based, didn’t want it back when I left. Since then I have bought myself and electric rise & fall desk (I’ve used these at work, as one place I worked had them for everyone), sorted out adjustable monitor mounts and also have an under desk treadmill for long meetings/conferences. They all help - as does forcing myself to take breaks. Obviously if you’re in an office, you can’t just do these things yourself.

For the groceries, maybe get the kids involved in cooking and budgeting. With three of them, if they each cook one evening a week (with a set budget per head for the meal), then it’ll take pressure of you as well. If they want to make sushi or have smoked salmon, then there needs to be a reason for it as a special/celebration meal. Or paid for themselves. Don’t head straight for oats and lentils, you may need to cut down slowly.  Up you can use things like dry January, veganuary and other things like that to get the family trying something different. One vegan meal a week, one baked potato/beans/cheese night, one soup night etc - and maybe one ‘something random from the freezer’ are all things that might work. 

Best of luck with your plans.

Grass_Roots_2

@Busydoingnothing my daughter had a few friends round last night, and I agreed she could do it if she funded it herself.  It was great watching her in supermarket poking around in reduced section for bargains and picking up non branded crackers for her cheese board she put together!  She got her friends to bring alcohol, and I think was proud she did it from her own pocket.

@greenbee thanks for welcome and advice on desk set up - Covid and working from home have really caused the issues here I think, I used to work in central London and miss the 1hrs walking I used to do as part of commute 4 days per week. That forced walking kept everything mobile.  So I need to recreate that level of exercise at home and keep moving about rather than go straight downstairs and get stuck sitting down for hours on zoom calls with no breaks. 

Great ideas too there on the food front - used to have jacket potatoes all the time, and everyone likes them! 

I have a quiet day planned here - will take my dog for a walk and go for swim this evening (free as paid for annual membership last August).  Will also ‘de Christmas’ the house which I’m very excited to do! 

Roast Beef for dinner (picked up a joint half price couple of days ago so need to get it out of freezer!) 

Grass_Roots_2

Financial/other goals Progress so far in this shiny brand new year....

The budget tracking app iI've signed up to is interesting - all the Jan direct debits have gone out today showing me what's really left to spend.  Grocery budget is going okay so far £178 spent and this should last us at least until the weekend.  I've decided to end my Oddbox subscription after getting a delivery of lots of brussel sprouts this week - I mean who wants to be having brussels again in January!  I've enjoyed having a full fruit bowl though since using them so will make sure I am diverting the £20 a week I was spending on that to fresh fruit and veg from the market/supermarket.

I have sold 4 things on ebay since 1st Jan - a brass figurine, a hoodie belonging to a teen (I'm going to bank the cash though seeing as I'm going to the effort of listing it and paid for it first place!), a book and a LP.  These 4 items together come to £55 - not bad for stuff that's just been hanging around and I could honestly have chucked out.   

Still not finalised the amount going into mortgage overpayments - will have a clear idea by the end of Jan I think.  

Been swimming every day this year, but was a bit over zealous at last night's aquarobics session (a move that saw us trying to jump out of the pool!) and feel very stiff today so giving myself a day off.

First day back at work today, and like many others I'm sure feel like I've forgotten how to do my job!  Sure by lunchtime tomorrow I'll remember.... 

Grass_Roots_2

End of first week back at work and had a nice surprise of a pay increase backdated to 1st November. I’m not the sort of person who would be confident enough to ask for myself (happy to negotiate for my team but not me!) so feel really grateful I’ve been recognised.

….So there really is no need to further delay working out the mortgage overpayment!  I’m going to start with a regular £630 overpayment a month which I’ll set up later and will take 5 years off the balance reducing it from 22 years to 17….  which still feels ages but it’s a step in the right direction.  Then I’ll make ad hoc payments on top when I can and also make sure I’m doing some serious saving alongside. 

Grocery spends have been reduced this week already and kids are beginning to get the message that I’m not cooking 5 different things.  My daughter made a lovely banana bread today - all from stuff we had in already. Also tried a TooGoodToGo bag yesterday from a bakers but realised great value but very unhealthy so shouldn’t make it a regular habit. 

Have sold more stuff on eBay - a game, some dust protectors and a record.  

I over did it swimming earlier this week - back very sore until today but will go back tomorrow and Sunday evening.  Little and often is the key I think.

Grass_Roots_2

Weekly update from me - nice surprise refund from EDF of £792!  This will help the seemingly endless month of January.  

First mortgage overpayment of £630 is scheduled for 1st Feb.  

Grocery budget on track but am finding it a challenge I’ll be honest!  Meal planned but one of my recipes was inedible - Jamie Oliver how could you let me down?! (Although forgot key ingredient!) 

My back is bad - last week was first full week back at work and lots of time spent at my desk.  I MUST build in quick walks round the block. 

So plodding through January and trying to keep on track and enthused.  SOA will be shared soon x

Grass_Roots_2

Hi all

Here's my SOA - please feel free to pull apart - particularly the grocery spends which are shameful.  On those I  want to get to £1000 per month but am reducing slowly so starting Jan at £1200.  For context we are 2 parents both working FT with 3 kids living at home with us, 1 working (he pays the £100 rent), 2 at school - 1 doing A Levels and 1 doing GCSEs.

I haven't included our pension funds here which between us are circa £300K (age 44 and 47)

I also haven't added in any asset value for the cars - they are on HP.  

Feeling very exposed but ready to hear and act upon your wisdom!

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 4 (2 x parents, 2 over 18 children)

Number of children in household......... 1 (youngest child)

Number of cars owned.................... 2 (On HP)

Monthly Income Details

Monthly income after tax................ 4750

Partners monthly income after tax....... 4000

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

Other income............................ 100 (Rent from Eldest Son)

Total monthly income.................... 8850

Monthly Expense Details

Mortgage................................ 3247 (includes £630 overpayment)

Secured/HP loan repayments.............. 672 (2 x Car payments)

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

Management charge (leasehold property).. 0

Council tax............................. 306

Electricity............................. 200

Gas..................................... 195

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

Water rates............................. 65

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

Mobile phone............................ 81 (3 phone contracts - I pay for 2 youngest kids)

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

Satellite/Cable TV...................... 70

Internet Services....................... 0

Groceries etc. ......................... 1200 ( Ridiculous - but trying to bring this down from current spend of circa £1500)

Clothing................................ 40

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

Road tax................................ 15

Car Insurance........................... 71 (both cars)

Car maintenance (including MOT)......... 25 (guesstimate)

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

Other travel............................ 120 (when I return to office this will cover train ticket cost for 6 visits per month - currently I'm at home)

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

Other child related expenses............ 80 (tutor for son Maths GCSE essential - he's on track not to pass currently)

Medical (prescriptions, dentist etc).... 30

Pet insurance/vet bills................. 0

Buildings insurance.....................20

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

Life assurance ......................... 150 

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

Presents (birthday, christmas etc)...... 100

Haircuts................................ 30

Entertainment........................... 100

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

Emergency fund.......................... 0

Savings................................. 250

Total monthly expenses.................. 7250

Assets

Cash.................................... 6000

House value (Gross)..................... 1200000

Shares and bonds........................ 1400

Car(s).................................. 0

Other assets............................ 0

Total Assets............................ 1207400

Secured & HP Debts

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

Mortgage...................... 575500...(3247).....1.34

Hire Purchase (HP) debt ...... 0........(485)......0

2nd Car........................0........(187)......0

Total secured & HP debts...... 575500....-.........-  

Unsecured Debts

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

MBNA...........................11750.....100.......0 (this is additional borrowing for recent house extension - don't usually carry a credit card balance and priority is to pay this off entirely within 24 month 0% interest free period)

Total unsecured debts..........11750.....100.......-  

Monthly Budget Summary

Total monthly income.................... 8,850

Expenses (including HP & secured debts). 7,250

Available for debt repayments........... 1,600

Monthly UNsecured debt repayments....... 100

Amount left after debt repayments....... 1,500

Personal Balance Sheet Summary

Total assets (things you own)........... 1,207,400

Total HP & Secured debt................. -575,500

Total Unsecured debt.................... -11,750

Net Assets.............................. 620,150

SuperHung

Grass_Roots_2 said:

Weekly update from me - nice surprise refund from EDF of £792!  This will help the seemingly endless month of January.  

Happy new year, great news about the refund. Did you let the credit build before switching supplier or something? I do notice your gas and electricity bill from SOA is more than double my own! 3 Beds semi detached.

Grocery is a bit high, mine is max £400 per month, 2 adults and 2 children. You eat steaks and bottle of Champaign for every meal or something haha. I read an interesting article about lifestyle creep, it might be worth reviewing some non-essentials.