I shouldn't feel skint ...

enthusiasticsaver

chemteacher78 said:

enthusiasticsaver said:

chemteacher78 said:

SOA - I found it incredibly hard to put this all down:

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Monthly Income Details[/b]

Monthly income after tax................ 4327.66

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

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

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

Total monthly income.................... 4327.66[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 1272

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

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

Management charge (leasehold property).. 0

Council tax............................. 164

Electricity............................. 145

Gas..................................... 0

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

Water rates............................. 7

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

Mobile phone............................ 20

TV Licence.............................. 13.25

Satellite/Cable TV...................... 19.98

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

Groceries etc. ......................... 200

Clothing................................ 100

Petrol/diesel........................... 180

Road tax................................ 15.75

Car Insurance........................... 89

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

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

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

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

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 22

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

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

Contents insurance...................... 20.7

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

Other insurance......................... 26

Presents (birthday, christmas etc)...... 20

Haircuts................................ 15

Entertainment........................... 200

Holiday................................. 60

Emergency fund.......................... 250[b]

Total monthly expenses.................. 2914.68[/b]

[b]

Assets[/b]

Cash.................................... 1694.74

House value (Gross)..................... 300000

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

Car(s).................................. 15000

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

Total Assets............................ 316694.74[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 238000...(1272).....3.43[b]

Total secured & HP debts...... 238000....-.........-   [/b]

[b]Unsecured Debts[/b]

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

Virgin.........................2763.07...25........0

Barclaycard....................5299.37...198.7.....0

First direct loan..............13703.....144.8.....8.7

Furniture village..............0.........45........0

Ikano..........................1060......60........0

First direct loan..............8445.6....175.9.....8.7[b]

Total unsecured debts..........31271.04..649.4.....-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 4,327.66

Expenses (including HP & secured debts). 2,914.68

Available for debt repayments........... 1,412.98

Monthly UNsecured debt repayments....... 649.4[b]

Amount left after debt repayments....... 763.58[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 316,694.74

Total HP & Secured debt................. -238,000

Total Unsecured debt.................... -31,271.04[b]

Net Assets.............................. 47,423.7[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

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

I won't comment too much on the individual budget lines as  you have already had some good suggestions.  

Were the loans debt consolidation loans.  If they were that indicates a pattern of behaviour it would be good to break.  Debt consolidation never works in reducing debt.  It just kicks the can down the road so instead of dealing with £10k of debt a few years later you have £30k+  I assume maybe your car was bought using the loan too which is no bad way to buy a car but I strongly suggest you sort the credit card debt out before the 0% deals finish.  

I would suggest you set the credit card repayments so that the debts are repaid by November 25 in the case of Virgin and January 2026 for Barclaycard. That would mean upping the Virgin card repayment to £115 and the Barclaycard repayment to £204. Any extra money you can throw at the debt I would pay off one of the FD loans maybe the smallest one to start with. Your soa suggests you could easily afford an extra £500 towards the debt even without saving on clothing and insurance, the two areas I would target. I would also reduce the money to your emergency fund to £100 a month as undoubtedly you are paying higher interest on the loan than you get on savings. I would definitely suggest you get that debt down as far as possible before your mortgage renews as unless rates drop again(unlikely) you will be paying more than 3.43%.

You have a high income so that is good but learning to live without credit may be difficult if this is something you have always done.  Starting a diary is a good suggestion and I can request this thread be moved to the diaries section if you wish. 

Thak you for this really useful advice!

The loans weren't consolidation loans, no. One (the larger one) was for work on my house. The other is a car loan. Thakfully I love my car, and it's super reliable. I have no intention of 'upgrading' it etc. The plan is to look after it well, and keep it running for as long as it is economic to do do. 

I agree re. the credit card debt. at the moment the plan is to throw as much as I can at it to clear it in 2024. Then I'll tackle the small FD loan, so that my car is paid off. I'm currently paying off the Barclaycard at £325 a month, so will increase that next month. I'll also reduce the saving into my emergency fund to £100.

I am aware of mortage rates, and also am aware that I've probably almost reached the ceiling for my income. I'm pretty much at the top of my profession, so am unlikely to increase that much further. The plan, eventually, is to start to put more money into it each month to bring the captial down before I need to remortage. 

Please do transfer this to the diaries section - I'd really like to track how I am doing and have found people to be really supportive on here. 

Right - off to look at a Monzo or Starling account so I can really carefully manage budgets from next month. I like the sound of pots! (And will also spend a bit of time setting up a spreadsheet). 

I have asked the forum team to move this thread to the diaries section.  

It sounds like you have a plan of sorts and tackling the credit cards first is a good idea.  I have a Starling account and it is great for budgeting.  You can set up separate savings spaces for things like car costs and insurances etc etc.  It is also really good at telling you how much you are spending on each category to help you stay within budget. Starling have also recently raised interest rates too so you earn interest on your current account. Mortgage overpayments when you are in a position to is also a good plan. 

Whilst you have a fair bit of debt I am pleased to see you have not consolidated before and the loans were taken out for sensible reasons.  Good idea to start tackling it and reducing your liabilities though.  

chemteacher78

Right - have applied for a Starling account. From next month I'm going to transfer money from my main account, which has all direct debits etc. on, to cover food, clothers, petrol etc., and ONLY spend from that. Anything left in my First Direct account I will lob at credit cards. Does that sound like a plan?

Also - does anyone have a REALLY simple budget tracking excel sheet they would be happy to share with me? I've had a look on line but they all seem a bit complex. Ideally I'd like one that can also track my debt paydown... Any and all suggestions gratefully received.

Feel vastly better already. At least I know where I am, and I can feel a plan starting to come together.

Floss

That sounds like a similar way of account management that I have albeit my spending account is Monzo.

Re a budget sheet, if you are au-fait with excel & using formulae, you can set one up in a couple of hours with all your bills, debt repayments, emergency fund savings etc all linking into each other. If you are struggling, PM me and I will share a stripped out version of mine.

EssexHebridean

I'd use the MSE budget tool to start off with to be honest - it's quite as good as any and does have a degree of customisation available without even needing to do too much tweaking. You can find it here to take a look at it: https://www.moneysavingexpert.com/banking/budget-planning/

I'm using that myself at the moment as we have recently moved house and taken on a mortgage again, and so having an actual written budget has been something I've returned to for the moment, and for us it's working well. I re-save mine under a new date each time I make adjustments, meaning I can then go back on it if I find a glitch anywhere. 

I'm also someone who  needs all my various budgeting/savings pots in separate accounts otherwise I'd confuse myself with what I really had in the pot for various things. Others find it works well for them having everything in a single pot and then just keeping a tally of what belongs where. 

theoretica

A couple of thoughts to ask yourself before spending - will I remember this and still think it was a good idea in a month's time?  If your money has been dribbling out and you can't remember where it went, it implies you have been spending on stuff you didn't appreciate.  If you can't definitely afford it at the end of the month then you couldn't really afford it at the start of the month either - so think early in the month, is this something I might decide against at the end of the month? 

Grumpelstiltskin

You have come a long way since you first posted.

I can't help you with spreadsheets, they are double Dutch to me, but you will work out which is the best for you.

Keep posting you can't solve everything in a couple of weeks but you will get there.

chemteacher78

Morning all:

Busy week here, so I've not updated for a little while. Since last posting I've opened a Starling Account and will transfer a lump sum to cover food, petrol, entertainment and a couple of pots for car costs, holiday/presents. The rest will sit in my main First Direct Account, and I'll see hwere I get to. The priority is paying off the credit cards, and I am aiming for doing that at a rate of no less than (and hopefully more than) £500 per month. If I can do that, the main one will be gone my October of 2024. 

Next month is going to be busy however, as it's Christmas, and I have my brother and niece over from New Zealand. It's the first time we've seen them for five years, so we have lots of things planned as a family so it is likely to be a higher-spending month. 

I've also explored Prolific Academy and have already managed to rack up over £40 on there, which is astounding. I've told myself I can have that money as free spending for now... let's see.

Mostly just wanted to note the progress I've made, and keep myself accountable on here. I feel vastly more on top of things, and a bit daft. Why I didn't think to set something like this up sooner I don't know. I mamange huge budgets at work..., 

joedenise

Managing other peoples money is never the same as managing your own.  I was in a similar position when I was working but my own money was never as closely monitored!

You can do this.  You have plans and if you stick to them you will be able to get yourself into a position of being debt free and then learning to be a saver.

I've been retired now for over 10 years and have more in savings than I ever did when I was working!

kimwp

chemteacher78 said:

Morning all:

Busy week here, so I've not updated for a little while. Since last posting I've opened a Starling Account and will transfer a lump sum to cover food, petrol, entertainment and a couple of pots for car costs, holiday/presents. The rest will sit in my main First Direct Account, and I'll see hwere I get to. The priority is paying off the credit cards, and I am aiming for doing that at a rate of no less than (and hopefully more than) £500 per month. If I can do that, the main one will be gone my October of 2024. 

Next month is going to be busy however, as it's Christmas, and I have my brother and niece over from New Zealand. It's the first time we've seen them for five years, so we have lots of things planned as a family so it is likely to be a higher-spending month. 

I've also explored Prolific Academy and have already managed to rack up over £40 on there, which is astounding. I've told myself I can have that money as free spending for now... let's see.

Mostly just wanted to note the progress I've made, and keep myself accountable on here. I feel vastly more on top of things, and a bit daft. Why I didn't think to set something like this up sooner I don't know. I mamange huge budgets at work..., 

Sounds great! NB you can earn up to £1000 tax free from self employment - the prolific academy earnings will come under this.

chemteacher78

Quick update from me... it was a super-busy Christmas and new year. I had family over from New Zealand, first time in 5 years, so it was marvellous. I managed to keep costs reasonably under control, though I have added a bit to the balance on one of my 0% credit cards. BUT - I now have a pot of savings set up for Christmas for next year - so it will not happen again.

Right - progress here:

- Starling account set up with pots for Christmas, Holidays, Car costs (insurance and servicing) and house repairs
- Standing order set up from my main account to Starling to cover those pots plus food, petrol and other incidental expenses. I've linked the Starling account to my phone. I am ONLY spending from that account
- No new clothes for the time being - I have plenty
- Money left in my main account at the end of the month going straight to paying off one of the credit cards. I am aiming for a minimum of £600 per month across the two. More if I can do it. I've gotten an extra c. £50 this month due to the shift in NI for example
- I'm also regularly unsubscribing from companies that send me marketing emails (clothes and plants appear to be my kryptonite... Farmer Gracey - I am looking at you!)
- I am using Plum to shift money weekly from the main account (this will go to credit card repayments at the end of each month. I'm keeping my emergecy pot at £1,500 for the time being) and Emma app to track my spending
- I'm keeing up with Prolific which is turning into quite a nice little earner for me. Any money I get that way I have decided I can spend on what I want... just to give me a bit of wiggle room and frivolity

So this month I mananged to shift £618 of credit card debt, which is very pleasing.

Onwards...,