Spinning a New Story

Catscoffeecake

Now that you have several months of budgeting under your belt it might be worth doing another SOA to see if any gaps in budget or places you could cut back again.

Until you have a good emergency fund and sinking fund I would be tempted to save half the child benefit for child and put other towards home improvements as that will benefit them too.

Afdaff

https://forums.moneysavingexpert.com/discussion/comment/82037366#Comment_82037366

Thanks for that. It’s a good idea and I’ll get onto it.

Blackcats

hi Afdaff - yes this is indeed a bit of a boring time of the month but i try to remind myself that boring is definitely better then eek I've run out of money which used to happen to me 🤦‍♀️.

I move a minimum of £1 a day into a mini savings pot to keep myself motivated. I know I could save £30 at the start of the month but a payment each day keeps me focussed.

Afdaff

https://forums.moneysavingexpert.com/discussion/comment/82037436#Comment_82037436

You’re so right, it is a lot better!

Afdaff

New SOA…

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

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1[b]

Monthly Income Details[/b]
Monthly income after tax................ 1611 This is a little variable, as though most of it is regular employed earnings, there are a few hours a week of self-employment and this can fluctuate. I’ve taken an average here.
Partners monthly income after tax....... 0
Benefits................................ 360
Other income............................ 0[b]
Total monthly income.................... 1971[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 41
Gas..................................... 41
Oil..................................... 0
Water rates............................. 35 (on a water meter)
Telephone (land line)................... 0 (included in internet services)
Mobile phone............................ 28.33 (two contracts, me and teen)
TV Licence.............................. 15.03
Satellite/Cable TV...................... 0
Internet Services....................... 39.51 (will shop around when this comes up for renewal)
Groceries etc. ......................... 400 (I break the month into four and allow myself £100 per quarter so this is accurate)
Clothing................................ 50 (into sinking fund)
Petrol/diesel........................... 55
Road tax................................ 14.43
Car Insurance........................... 37.23 (paid annually and saving into sinking fund. Am going to switch recovery service provider for better deal)
Car maintenance (including MOT)......... 50 (into sinking fund)
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 16
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 6 (building and contents combined, paid annually)
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 50
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 70 (into sinking fund)
Emergency fund.......................... 50
Charity donations....................... 18 (will keep these for now)
National Trust membership .............. 14.05 (will keep this)
Gym .................................... 28[b] (reduced fee on a health referral scheme)
Total monthly expenses.................. 1228.58[/b]
[b]

Assets[/b]
Cash.................................... 3325.01 (emergency fund of £1000, sinking funds plus savings towards house repairs)
House value (Gross)..................... 100000 (the part I own compared to current market value)
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0[b]
Total Assets............................ 106325.01[/b]
[b]
No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Family loan ...................1200......200.......0[b]
Total unsecured debts..........1200......200.......- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 1,971
Expenses (including HP & secured debts). 1,228.58
Available for debt repayments........... 742.42
Monthly UNsecured debt repayments....... 200[b]
Amount left after debt repayments....... 542.42[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 106,325.01
Total HP & Secured debt................. -0
Total Unsecured debt.................... -1,200[b]
Net Assets.............................. 105,125.01[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Afdaff

My own comments- for the first time in ages, my situation feels healthy for now, and is a good opportunity to put things in place for my future and my child’s future. Though income isn’t high, I am so fortunate not to have mortgage or rent costs at the moment (this could change in a few years time). Now I have cleared the overdraft, built a small emergency fund and have sinking pots for irregular and annual expenses it’s so much easier to see what I am working with each month and make decisions that benefit us now and in the future.

There are a couple of places I’ll look at reducing costs, when roadside assistance and internet services come up for renewal. There are a few other things there that aren’t strictly necessary but bring me joy and other benefits and I choose to keep.

I am managing to save some each month, but not £500, so I need to find out where this SOA isn’t quite accurate and adjust it accordingly.

ellenvan

Well done on your progress so far.

The easiest way to see what you spend is record absolutely everything for a month.

Even the odd £1. Write everything down.

Catscoffeecake

well done, seems a more comprehensive budget. I would suggest writing down every expenditure for next 3 -6 months to help find the gaps. I would also be tempted to budget based on fixed salary if thats possible, and then pay any extra into a separate savings account so it doesn't get eaten in other places. That can then be for either overpayment of loan or longer term savings. Will you be looking in future to buy out your relative who owns other half of property? is that possibility in future with a deposit and mortgage for example? how do you work out expenses when comes to repairs etc for property? do you pay them or do you split it?

Afdaff

https://forums.moneysavingexpert.com/discussion/comment/82038782#Comment_82038782

Thanks for the comments. Re the house, there are so many possible scenarios and I’ve been tying myself in knots trying to work through each of them. So much depends on timings and the order in which certain things might (or might not!) happen.

In the trickiest version of these scenarios, the family members involved need their portion back within the next 2-3 years, if illness, care needs or similar occur. This isn’t currently very likely, but it could occur. I wouldn’t be able to get enough of a mortgage so I’d be begging or borrowing from wherever possible just to see out the next three years of teen’s schooling. I couldn’t afford to stay in this area alone. Once child has fledged or semi-fledged I could move somewhere cheaper if needed.

At some point I’d like to live with my partner but we’re trying not to do that until kids are on their own ways into the world.

In the meantime, general repairs and maintenance are mine to fund. But anything significant in scale will be credited to me in proportionate ownership. So the roof replacement and kitchen renovation I’m saving for will contribute to increasing my share of the house. So it makes sense in many ways to do these soon.

Afdaff

Received £175 bank switch bonus today and have immediately put it into savings. Obviously with house repairs I don’t have an accurate idea yet of the likely cost, but I’m going to set myself a target of £4000 savings and plan on a loan for the rest. So currently at £1836/£4000.