Mizmir's determined to get there diary

mizmir

OK - have done it and it is scary reading for me! Am not surprised the debt is going up as - on top of these outgoings - we have had (until this month) a further family commitment amounting to around £1K a month!! It finishes this month so I have not included it here - this is how things will look from 1st June at current rates.

The figures below are as close to actual as I can get - I decided not to adjust them to what I plan to budget because I need to see in black and white how we have let things slip! It is very embarrassing as I know we have really good income and have no excuse to be in the position we are in. But I guess the good news is we can get these numbers down quite a lot! Next job to do a budget on this.

A note of explanation on the mortgage which I know is very high. We moved two years ago to our house - it needed a lot of work which we then added to the mortgage and fixed for 10 years at 5.75% which now is looking like a good move! So the mortgage cost in fact includes some home improvement but it was done as a remortgage not as a separate loan - and the equity in the house is still worth more than the total mortgage so I am treating it as mortgage. Once we have sorted the unsecured we will start overpaying on the mortgage. It has about 19 years remaining.

This is all for two adults and 3 large dogs - no kids. The dogs are expensive I know but they are staying!

So now for the full awfulness of it ....

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 2739.57
Partners monthly income after tax....... 2829.87
Benefits................................ 0
Other income............................ 0 (we do actually have some but it is variable so am not including it - might work out at a couple of hundred a month)

Total monthly income.................... 5569.44

Monthly Expense Details
Mortgage................................ 2211.56 (includes home renovation costs)
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold flat)...... 0
Council tax............................. 171
Electricity............................. 138 (includes gas and electric - single payment - and some additional payments to make up shortfall on previous monthly payments)
Gas..................................... 0
Oil..................................... 0
Water rates............................. 16
Telephone (land line)................... 45 (this is BT and includes broadband - needs to come down)
Mobile phone............................ 60 (2 contract phones - still in contract and used to this level to be honest - would rather reduce land line down which we use very little)
TV Licence.............................. 11.62
Satellite/Cable TV...................... 0
Internet Services....................... 27.5 (server space, domain names, etc for quite a few sites I run for business etc)
Groceries etc. ......................... 390 (ouch! I thought it was about £200 - but the bank statements do not lie!)
Clothing................................ 30 (But can go to 0 for a while as have recently replenished clothes for both.)
Petrol/diesel........................... 130 (2 cars for all these)
Road tax................................ 30.8
Car Insurance........................... 70
Car maintenance (including MOT)......... 100
Car parking............................. 160 (work parking - we share at present as much as possible - public transport would be more).
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40 (dentist, contact lenses, regular long term prescription)
Pet insurance/vet bills................. 63 (for 3 dogs including one who is 12)
Buildings insurance..................... 56.7 (includes contents as well)
Contents insurance...................... 0
Life assurance ......................... 101 (covers illness, redundancy as well as life cover)
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 15
Entertainment........................... 50
Holiday................................. 170 (this is based on previous year spending - will need to go or be cut)
Emergency fund.......................... 50
Union membership........................ 15.56
Personal spends (2 people).............. 200 (can cut this I know)
Charities............................... 7
Subscriptions/memberships............... 31.7 (includes professional stuff not covered by work, memberships for my new business and NT! Already paid for this year but that can go for next!)
Dogs (3) - food, walker, vet, kennels... 250
Total monthly expenses.................. 4681.44

Assets
Cash.................................... 0
House value (Gross)..................... 370000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 372000

Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 308000...(2211.56)..5.75
Total secured debts........... 308000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
MBNA...........................6360.59...190.8.....5.9
Capital One....................4360......130.8.....6.7
Mint...........................2644.41...79........16
Sainsburys.....................2000......60........15.94
Overdraft......................5500......0.........1.09
Sofa...........................780.......78.59.....0
Total unsecured debts..........21645.....539.19....-

Monthly Budget Summary
Total monthly income.................... 5,569.44
Expenses (including secured debts)....... 4,681.44
Available for debt repayments........... 888
Monthly UNsecured debt repayments....... 539.19
Surplus(deficit if negative)............ 348.81

Personal Balance Sheet Summary
Total assets (things you own)........... 372,000
Total Secured debt...................... -308,000
Total Unsecured debt.................... -21,645
Personal net worth...................... 42,355

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

hypno06

just nipped on to say "hi".....will post properly later tonight x

mizmir

Ok - have triple checked the debt figures and found I miscalculated one a little so my overall total debt is actually 21751.96. Have just put the figures in the snowball and on the basis of paying back £1400 a month I could be debt free by September 2009. :T

A little later than I had hoped for the career plan but this doesn't include any additional earning so hopefully can speed it up a bit. Next post will be the budget I am setting to achieve this. Might be able to trim it down a little too after the comparison sites.

mizmir

Hi hypno :hello:

thanks for dropping by!

mizmir

Ok - my new budget. I have cut back to realistic but reasonable figures all the variable costs. Still have to check costs for insurances etc. with the comparison sites.

But this is a start and gives us £1400 a month for debt repayment. Wll make that my minimum target then add to that any extra income I can pull together.
Budget

Mortgage................................ 2211.56
Secured loan repayments................. 0
Rent.................................... 0
Management charge (leasehold flat)...... 0
Council tax............................. 171
Electricity............................. 138
Gas..................................... 0
Oil..................................... 0
Water rates............................. 16
Telephone (land line)................... 25
Mobile phone............................ 60
TV Licence.............................. 11.62
Satellite/Cable TV...................... 0
Internet Services....................... 27.5
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 130
Road tax................................ 30.8
Car Insurance........................... 70
Car maintenance (including MOT)......... 100
Car parking............................. 160
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 40
Pet insurance/vet bills................. 63
Buildings insurance..................... 56.7
Contents insurance...................... 0
Life assurance ......................... 101
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 15
Entertainment........................... 40
Holiday................................. 50
Emergency fund.......................... 0
Union membership........................ 15.56
Personal spends (2 people).............. 100
Charities............................... 7
Subscriptions/memberships............... 31.7
Dogs (3) - food, walker, vet, kennels... 250
Total monthly expenses.................. 4146.44

Gemmzie

Nice to see you have a diary Mizmir

I think September 09 is a great aim, and £1400 is a health repayment.

You know the areas you could further cut from your SOA, you're a long standing expert But I think you current figures are comfortable and realistic for next year to 18 months

The_Dragon

hmmm - hate to be a kill joy but nothing for emergencies? oh and can you renegotiate the mobiles? Oh and no contents insurance?

mizmir

The_Dragon wrote: »

hmmm - hate to be a kill joy but nothing for emergencies? oh and can you renegotiate the mobiles? Oh and no contents insurance?

Contents included in buildings figure.

Mobiles - might be able to trim a little on OH's but mine is on contract for another 12 months and I use this a lot. To be honest though I think it is a good deal - 10 hours talk, 600 texts and unlimited internet access for £35. And I will be able to set some of it against tax as part of the use is for the new part time business.

Emergencies. Mmmn. Thought about it then dropped it but you could be right. I was working on the basis of not saving but that said there is almost certain to be stuff needed on the house in a year. Will put £30 back in there. Thanks. Am planning to shift all the spread stuff into our offset account so it is taking interest off the mortgage when it is there. And 5.75% tax free is better than I will get in any instant access account.

The_Dragon

mizmir wrote: »

Contents included in buildings figure.

Mobiles - might be able to trim a little on OH's but mine is on contract for another 12 months and I use this a lot. To be honest though I think it is a good deal - 10 hours talk, 600 texts and unlimited internet access for £35. And I will be able to set some of it against tax as part of the use is for the new part time business.

Emergencies. Mmmn. Thought about it then dropped it but you could be right. I was working on the basis of not saving but that said there is almost certain to be stuff needed on the house in a year. Will put £30 back in there. Thanks. Am planning to shift all the spread stuff into our offset account so it is taking interest off the mortgage when it is there. And 5.75% tax free is better than I will get in any instant access account.

That's great, I don't want to be a nag but neither do I want you to be part the way to DF ness and suddenly get hit in the gut by a big unexpected bill!

mizmir

Revised budget to add the house repairs fund and to clarify other points. £1400 repayment still looks doable.

Mortgage................................ 2211.56
Council tax............................. 171
Electricity/Gas......................... 138
Water rates............................. 16
Telephone (land line)................... 25
Mobile phone............................ 60
TV Licence.............................. 11.62
Internet Services....................... 27.5
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 130
Road tax................................ 30.8
Car Insurance........................... 70
Car maintenance (including MOT)......... 100
Car parking............................. 160
Medical (prescriptions, dentist etc).... 40
Pet insurance........................... 63
Buildings and contents insurance........ 56.7
Life/critical illness/redundancy cover.. 101
Presents (birthday, christmas etc)...... 25
Haircuts................................ 15
Entertainment........................... 40
Holidays................................ 50
House repairs .......................... 30
Union membership........................ 15.56
Personal spends (2 people).............. 100
Charities............................... 7
Subscriptions/memberships............... 31.7
Dogs (3) - food, walker, vet, kennels... 250
Total monthly expenses.................. 4176.44