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13

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  • CliveOfIndia
    CliveOfIndia Posts: 2,661 Forumite
    1,000 Posts Second Anniversary Name Dropper
    marieanntinastock said:
    Somethings like entertainment, clothes etc we haven’t been doing obviously.
    It may be helpful - both to forum contributors and to yourself - if you're able to fill in accurate (as far as is feasible) figures for each section of the SOA.  The clothing category is one I was about to comment on - it's more difficult with kids, but adults can get by with less "clothes buying", and buying second-hand when they are needed.
    That aside, there are some things that stand out to me:

    marieanntinastock said:

    Number of cars owned.................... 2[b] Do you actually need 2 cars?  Any chance you could get by with just 1?


    Mobile phone............................ 105 Ouch!!  Is this really what you're paying each month?

    Satellite/Cable TV...................... 20 It's a small amount in the grand scheme of things, but this could go.
    Internet Services....................... 42.99 Seems very high indeed

    Car Insurance........................... 156.99 This is surely not each month??!!
    Car maintenance (including MOT)......... 200  Very sensible (nay, essential) to budget for this, but sounds quite high.


    Presents (birthday, christmas etc)...... 200 This is way too high
    Haircuts................................ 40 Unnecessary maybe?

    Holiday................................. 500 This is either an error or needs to be urgently reviewed.  You cannot afford £6000 a year on holidays.
    Emergency fund.......................... 0[b] You really ought to have something in here


    These are just things that stick out immediately to me.  As has been mentioned by a previous poster, you do appear to have a very large deficit, and it may take more than simply cutting back on expenses.  But hopefully my comments will at least provide some food for thought.

  • EssexHebridean
    EssexHebridean Posts: 24,770 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    marieanntinastock said:
    [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 3
    Number of children in household......... 
    Number of cars owned.................... 2[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 900
    Partners monthly income after tax....... 1500
    there should be a third income here for the third adult, no?
    Benefits................................ 0 have you double checked whether you might be entitled to anything?
    Other income............................ 0[b]
    Total monthly income.................... 2400[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 0
    Secured/HP loan repayments.............. 646.2
    Rent.................................... 497.32
    Management charge (leasehold property).. 0
    Council tax............................. 153
    Electricity............................. 140 You must factor in a 20% increase here from April
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 38.84
    Telephone (land line)................... 0
    Mobile phone............................ 105 diarise NOW for contract end dates and switch to SIM only deals
    TV Licence.............................. 13.37
    Satellite/Cable TV...................... 20
    Internet Services....................... 42.99 High - shop around on contract end for a better deal
    Groceries etc. ......................... 200 Not for three adults, I suspect! You need to work out what you actually spend here! 
    Clothing................................ 50 again - high when you are in debt. You need to go to “essentials only” for a while. 
    Petrol/diesel........................... 200
    Road tax................................ 28.82
    Car Insurance........................... 156.99 This can’t be right surely? That would mean nearly £2k a year on car insurance! 
    Car maintenance (including MOT)......... 200  This seems very high - for context, thst is more than I set aside for our 2 cars per month, and ours covers the insurance cost too! Also, where is this being saved as you are showing no cash assets? 
    Car parking............................. 10
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 21.62 Can this be reduced using prepayment certificates for prescriptions, or is this the budgeted savings for your medical treatment? (And again- where is it being saved?)
    Pet insurance/vet bills................. 11
    Buildings insurance..................... 0
    Contents insurance...................... 15.65
    Life assurance ......................... 16.17
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 200 Far too high - I’m afraid it’s not sustainable to keep spending this sort of amount on Christmas and birthdays. 
    Haircuts................................ 40
    Entertainment........................... 50
    Holiday................................. 500 Hopefully this is not something you have committed to, because again, I’m afraid it’s not sustainable. 
    Emergency fund.......................... 0 As already said, you must start saving something here. [b]
    Total monthly expenses.................. 3356.97[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 12000
    Other assets............................ 0[b]
    Total Assets............................ 12000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 12099....(281.3)....14.9<
    Hire purchase..................35041....(364.9)....9.4[b]
    Total secured & HP debts...... 47140.....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Barclaycard....................6000......286.......29.18
    Aqua...........................8000......300.......37.98
    Next...........................3194......159.......23.9
    Paypal.........................2500......145.......0[b]
    Total unsecured debts..........19694.....890.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 2,400
    Expenses (including HP & secured debts). 3,356.97
    Available for debt repayments........... -956.97
    Monthly UNsecured debt repayments....... 890[b]
    Amount short for making debt repayments. -1,846.97[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 12,000
    Total HP & Secured debt................. -47,140
    Total Unsecured debt.................... -19,694[b]
    Net Assets.............................. -54,834[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
    I’m not convinced this is accurate I’m afraid, but comments in bold anyway.

    I’m guessing the two HP debts are cars? That really is killing your budget at the moment - and if the SOA is correct it also means that approaching 50% of your income is going on car related costs. How far through the HP deals are you? Are you at a point where the cars can be handed back without penalty?

    If the HP can’t be terminated, then assuming you can lose the holiday and presents sums, halve the car maintenance, and that the car insurance figure is in fact a typo, then you can potentially by making other tweaks as well at least get things to a break even. Once you reach contract end on a few services you’ll be better fixed, though.
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
    Balance as at 31/08/25 = £ 95,450.00
    £100k barrier broken 1/4/25
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • marieanntinastock
    marieanntinastock Posts: 12 Forumite
    10 Posts
    Hi, 
    third adult is our 23 year old daughter. She has just started as a lash technician. She suffers with anxiety so we’ve been on a long journey to get here. 
    I need to redo the SOA. I thought you had to fill in the blank spaces with something, we have no holiday for £500 or entertainment .
    Also Our assets are Ian’s car which we pay HP for 281.34 a month. Started August 2022. 5 year agreement. £56.17 insurance. £20 a year road tax
    Three years ago we bought a Motorhome, £364.91 a month. Breakdown, £16.25.Insurance £45.95. Road tax £28.81. This is an asset as well but we owe £35000 on finance and it’s probably worth £30000.
    I have a Kia picanto, finance all paid and insurance £38.62, exempt from Road tax. 
    I’m going to redo the SOA, because I’ve obviously made a mess of it and how can you help us, if you don’t have the correct information. 




  • Sea_Shell
    Sea_Shell Posts: 10,090 Forumite
    Tenth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 18 February 2023 at 8:18AM
    How much use to you get out of the Motorhome.   Day trips or overnight?

    Does it represent value for money for you?     As that does almost come to your £500 for "holidays" if you look at it that way. 

    Have you looked into giving it back and settling the finance.   Is that a break-even possibility?
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.60% of current retirement "pot" (as at end May 2025)
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,713 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Thanks for coming back and explaining.

    Like I said yesterday don't try and rush the SOA but it needs to be as accurate as possible, 

    Check back through a few bank statements to give yourself an idea of what the figures should be.
    If you go down to the woods today you better not go alone.
  • marieanntinastock
    marieanntinastock Posts: 12 Forumite
    10 Posts
    [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 3
    Number of children in household......... 
    Number of cars owned.................... 3[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 900
    Partners monthly income after tax....... 1500
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income.................... 2400[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 0
    Secured/HP loan repayments.............. 646.2
    Rent.................................... 497.32
    Management charge (leasehold property).. 0
    Council tax............................. 153
    Electricity............................. 140
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 38.84
    Telephone (land line)................... 0
    Mobile phone............................ 105
    TV Licence.............................. 13.37
    Satellite/Cable TV...................... 20
    Internet Services....................... 42.99
    Groceries etc. ......................... 0
    Clothing................................ 0
    Petrol/diesel........................... 200
    Road tax................................ 28.81
    Car Insurance........................... 140.74
    Car maintenance (including MOT)......... 120
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 21.62
    Pet insurance/vet bills................. 11
    Buildings insurance..................... 0
    Contents insurance...................... 15.65
    Life assurance ......................... 16.17
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 2210.71[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 13500
    Other assets............................ 30000[b]
    Total Assets............................ 43500[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 15192....(281.3)....14.9<
    Motorhome......................35041....(364.9)....9.4[b]
    Total secured & HP debts...... 50233.....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Barclaycard ...................5999......286.......28.68
    Aqua...........................8000......280.......39.73
    Next...........................3160......159.......23.9[b]
    Total unsecured debts..........17159.....725.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 2,400
    Expenses (including HP & secured debts). 2,210.71
    Available for debt repayments........... 189.29
    Monthly UNsecured debt repayments....... 725[b]
    Amount short for making debt repayments. -535.71[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 43,500
    Total HP & Secured debt................. -50,233
    Total Unsecured debt.................... -17,159[b]
    Net Assets.............................. -23,892[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
    Ive redone it, 
    Two cars needed for work. Motorhome we got three years ago, we have used it a lot. We put some pension money into it and paid my Kia off. I haven’t included clothes, haircuts , emergency funds because we haven’t done it due to finances and have used the credit cards to pay for stuff. The internet, BT, I will be ringing to bring down. The mobiles, I’m already looking at those. Ian uses £30 per week petrol and I use £20 a week. The MOT are yearly for the three vehicles. 
    When we did all of these things my income was great. 
    But illness has changed everything. Plus stupidity!
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,713 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I think it is the motorhome that is the biggest problem, much as it is a way of having holidays unfortunately you can't afford it. So I think you need to check where you are at with getting rid of it.
    If you go down to the woods today you better not go alone.
  • kimwp
    kimwp Posts: 3,246 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    marieanntinastock said:
    [font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 3
    Number of children in household......... 
    Number of cars owned.................... 3[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 900
    Partners monthly income after tax....... 1500
    Benefits................................ 0
    Other income............................ 0[b]
    Total monthly income.................... 2400[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 0
    Secured/HP loan repayments.............. 646.2
    Rent.................................... 497.32
    Management charge (leasehold property).. 0
    Council tax............................. 153
    Electricity............................. 140
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 38.84
    Telephone (land line)................... 0
    Mobile phone............................ 105
    TV Licence.............................. 13.37
    Satellite/Cable TV...................... 20
    Internet Services....................... 42.99
    Groceries etc. ......................... 0
    Clothing................................ 0
    Petrol/diesel........................... 200
    Road tax................................ 28.81
    Car Insurance........................... 140.74
    Car maintenance (including MOT)......... 120
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 21.62
    Pet insurance/vet bills................. 11
    Buildings insurance..................... 0
    Contents insurance...................... 15.65
    Life assurance ......................... 16.17
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 2210.71[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 13500
    Other assets............................ 30000[b]
    Total Assets............................ 43500[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 0........(0)........0
    Hire Purchase (HP) debt ...... 15192....(281.3)....14.9<
    Motorhome......................35041....(364.9)....9.4[b]
    Total secured & HP debts...... 50233.....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Barclaycard ...................5999......286.......28.68
    Aqua...........................8000......280.......39.73
    Next...........................3160......159.......23.9[b]
    Total unsecured debts..........17159.....725.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 2,400
    Expenses (including HP & secured debts). 2,210.71
    Available for debt repayments........... 189.29
    Monthly UNsecured debt repayments....... 725[b]
    Amount short for making debt repayments. -535.71[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 43,500
    Total HP & Secured debt................. -50,233
    Total Unsecured debt.................... -17,159[b]
    Net Assets.............................. -23,892[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
    Ive redone it, 
    Two cars needed for work. Motorhome we got three years ago, we have used it a lot. We put some pension money into it and paid my Kia off. I haven’t included clothes, haircuts , emergency funds because we haven’t done it due to finances and have used the credit cards to pay for stuff. The internet, BT, I will be ringing to bring down. The mobiles, I’m already looking at those. Ian uses £30 per week petrol and I use £20 a week. The MOT are yearly for the three vehicles. 
    When we did all of these things my income was great. 
    But illness has changed everything. Plus stupidity!
    Hiya! 
    This SOA doesn't have anything for groceries, can you look at your accounts for the last 3 months and put an average from those?

    You've noted that you've not been buying clothes or getting haircuts, I think you need to put in a number that's reasonable for essentials and note that they are a target budget as you've not been spending on them recently. You can estimate it by saying you'll get a low cost haircut once every six months or something that is sensible for your situation (Maybe £20 for clothes and £20 for haircuts if you've really got no idea?- hopefully others will comment)

    Sorry if it seems to conflicting advice on your SOA, it's due to needing to get accurate spend information to start with for accurate advice, then taking action to reduce high spends and adding a budget for categories where you've not allocated enough for the situation to be sustainable (you're going to need to buy clothes at some point- unless you have enough to last a lifetime of wear and tear)

    Car insurance seems very high, do you shop around for this?
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
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