SOA help please
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greenpanda
Posts: 50 Forumite
Evening Everyone,
I'm fairly new to the forum, but have been reading through for the past week after deciding to finally get clear about our financial situation. We are in our 30s, owners of a flat with a young child. My partner has recently had a promotion, a lot of the debt is from before - a mixture of overspending, car repairs and never quite paying off the final £1k on purchases such as sofa, engagement ring, holidays (basically financial mismanagement). I've been a SAHP for a few years, which we couldn't really afford but additional needs meant there wasn't much other option. It now looks like we are finally in a position to get on top of things. Neither of us has very much financial literacy but we are keen to learn and change. Basically we just aren't moving out of debt.
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 3600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3600
Monthly Expense Details
Mortgage................................ 900
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 60
Gas..................................... 38
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 0
Mobile phone............................ 66
TV Licence.............................. 0
Satellite/Cable TV...................... 33
Internet Services....................... 25
Groceries etc. ......................... 600
Clothing................................ 60
Petrol/diesel........................... 130
Road tax................................ 0
Car Insurance........................... 80
Car maintenance (including MOT)......... 0
Car parking............................. 50
Other travel............................ 135
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday and other expenses ................................. 700 (edited this, was previously just 'holiday' but this is generally the amount we spend on 'non essential'. Have added another note below)
Emergency fund.......................... 0
Drinks/ social.......................... 150
Work Lunches............................ 72
Total monthly expenses.................. 3277
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................9000......200.......21
Overdraft......................4000......70........0
Total unsecured debts..........13000.....270.......-
Monthly Budget Summary
Total monthly income.................... 3,600
Expenses (including HP & secured debts). 3,277
Available for debt repayments........... 323
Monthly UNsecured debt repayments....... 270
Amount left after debt repayments....... 53
Personal Balance Sheet Summary
Total Unsecured debt.................... -13,000
Just a note - the month I took this spending from we had been on holiday so we aren't spending £700 per month on holidays but each month we also aren't moving out of the overdraft. Do we start saying no to things like weddings? Each month it feels like there is something - car repairs, holiday deposit, child's birthday party. A lot of our socialising in done out, so frequently spend £80 on the weekend doing this.
HOLIDAY - expenses listen on this line are our general lifestyle non-essential expenses. This would be expenses such as childs swimming lessons (£180) plus meals out (sometimes £300) takeout (£80), car repairs, buying additional items of future or decorating. Asides expenses for our child these are largely non-essential.
I'm fairly new to the forum, but have been reading through for the past week after deciding to finally get clear about our financial situation. We are in our 30s, owners of a flat with a young child. My partner has recently had a promotion, a lot of the debt is from before - a mixture of overspending, car repairs and never quite paying off the final £1k on purchases such as sofa, engagement ring, holidays (basically financial mismanagement). I've been a SAHP for a few years, which we couldn't really afford but additional needs meant there wasn't much other option. It now looks like we are finally in a position to get on top of things. Neither of us has very much financial literacy but we are keen to learn and change. Basically we just aren't moving out of debt.
Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 3600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 3600
Monthly Expense Details
Mortgage................................ 900
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 60
Gas..................................... 38
Oil..................................... 0
Water rates............................. 33
Telephone (land line)................... 0
Mobile phone............................ 66
TV Licence.............................. 0
Satellite/Cable TV...................... 33
Internet Services....................... 25
Groceries etc. ......................... 600
Clothing................................ 60
Petrol/diesel........................... 130
Road tax................................ 0
Car Insurance........................... 80
Car maintenance (including MOT)......... 0
Car parking............................. 50
Other travel............................ 135
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 20
Entertainment........................... 0
Holiday and other expenses ................................. 700 (edited this, was previously just 'holiday' but this is generally the amount we spend on 'non essential'. Have added another note below)
Emergency fund.......................... 0
Drinks/ social.......................... 150
Work Lunches............................ 72
Total monthly expenses.................. 3277
Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................9000......200.......21
Overdraft......................4000......70........0
Total unsecured debts..........13000.....270.......-
Monthly Budget Summary
Total monthly income.................... 3,600
Expenses (including HP & secured debts). 3,277
Available for debt repayments........... 323
Monthly UNsecured debt repayments....... 270
Amount left after debt repayments....... 53
Personal Balance Sheet Summary
Total Unsecured debt.................... -13,000
Just a note - the month I took this spending from we had been on holiday so we aren't spending £700 per month on holidays but each month we also aren't moving out of the overdraft. Do we start saying no to things like weddings? Each month it feels like there is something - car repairs, holiday deposit, child's birthday party. A lot of our socialising in done out, so frequently spend £80 on the weekend doing this.
HOLIDAY - expenses listen on this line are our general lifestyle non-essential expenses. This would be expenses such as childs swimming lessons (£180) plus meals out (sometimes £300) takeout (£80), car repairs, buying additional items of future or decorating. Asides expenses for our child these are largely non-essential.
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Comments
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Welcome to the Forum
Just an initial thought. £600 on groceries seems like an awful lot. What are you including in this?Have adventures. laugh a lot and always be kind.0 -
Holidays! £8400 a year is huge
I also agree that the groceries bill could be cut (possibly in half) especially when you add work lunches.
You could cut down on mobiles, and drinks/social
You should have buildings/content insuranceNo.79 save £12k in 2020. Total end May £11610
Annual target £240000 -
Toni'sfriend - so typically I would say I spend £20 at M&S every day. Also included is probably £25 for tea/ cake out each week and if we pop into Sainsburys normally spend £30 on 'extras' such as Lego on sale or garden toys. Not great, clearly, but just trying to gauge what is 'realistic' for us to be spending with this debt and income level.0
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greenpanda wrote: »Do we start saying no to things like weddings? Each month it feels like there is something - car repairs, holiday deposit, child's birthday party. A lot of our socialising in done out, so frequently spend £80 on the weekend doing this.
You don't need to say no to all weddings, but you do need to sometimes say no to some things because of the cost. As you say, there is always something - it won't be the same every month, but over the year you can budget for a number of 'somethings' and then decide how to split this money between parties, weddings, holidays, new computers...
Can you get disability benefit for your child's additional needs?But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
MND - this is just a snapshot month. This year I think we've spent about £3k on holidays. The rest is on things like attending weddings (spent about £1k so far this year), child's birthday, car repairs. Misc expenses which are clearly getting away with us. I hate to think where this money has gone as honestly it's gone pretty much nowhere.
theoretica - I'm was hoping to be vague as details could be revealing about who I am. We can't get any additional benefits and have sadly been let down by our local school which means our child can't be in school full time.0 -
greenpanda wrote: »Toni'sfriend - so typically I would say I spend £20 at M&S every day. Also included is probably £25 for tea/ cake out each week and if we pop into Sainsburys normally spend £30 on 'extras' such as Lego on sale or garden toys. Not great, clearly, but just trying to gauge what is 'realistic' for us to be spending with this debt and income level.
Start shopping at Aldi / Lidl. Also Home Bargains, B & M, Heron Foods, Iceland and stay out of M & S and Sainsburys.
Go over o the Old Style board for ideas on how you can live on £200 or less for groceries.If you go down to the woods today you better not go alone.0 -
The soa should really reflect an average month so the £700 holiday is skewing it. Bakk through the past three months statements and do an average. Then you can really cut down.
Your groceries should come down easily, we spend around £450 a month on a family of six, and that incudes a milk/bread delivery service. We could cut it down further, but I have accepted that this figure is easiest. We don't shop at the cheapest supermarket, but I do pop to Lldl for some basics such as breakfast Cereal, Crisps and Lunchbox things.
Maybe look at saying no to a holiday next year and really work on maybe halving the debt, if you manage this then maybe a weekend away somewhere can be booked.
Can't comment on the rest, but some very experienced posters will come along soon and help.
And I feel for you with the school situation. We also have two special needs children, one has always been OK with school, the smallest has had some serious issues, leading to part time schooling and time in a specialist behaviour unit. I know you said you don't qualify or benefits, have you attempted to get Dla? I didn't think we would get anything but we do (although it is a horrible form to fill out).
Also I hope you are getting help with the school situation, I know there are groups of volunteers who can help, unfortunately I only know the ones near me so can't help specifically.
You can do this, you are taking the first step, things can only get better.Debt free Feb 2021 🎉0 -
Sorry to be blunt!
You haven't said what your property is but guessing 3 bed house?
Electricity............................. 60 - use less, switch and unplug things when not in use (obviously not fridge / freezer)
Gas..................................... 38 - be selective with heating, don't have radiators on/high in all rooms.
Water rates............................. 33
Mobile phone............................ 66 - look at SIM only when your contract ends
TV Licence.............................. 0 - no live TV / iPlayer watched?
Satellite/Cable TV...................... 33 - what's this cover?
Internet Services....................... 25
Groceries etc. ......................... 600 - this is too indulgent, write a shopping list, meal plan and bring this right down.
Clothing................................ 60 - I assume this is purely for your kid? If it's for you/OH as well use what you have and only replace items as necessary.
Petrol/diesel........................... 130- how many miles a month and what car?
Road tax................................ 0 - nothing here?
Car Insurance........................... 80 - possibly overpriced, unless new drivers? Use comparison sites on renewal.
Car maintenance (including MOT)......... 0 - you need a budget.
Car parking............................. 50 - where is this? Work? If so petrol / parking costs may be cheaper to use public transport.
Other travel............................ 135 - what's this for??
Other child related expenses............ 0 - you have no expenses her??
Medical (prescriptions, dentist etc).... 0 - never go to the dentist/ Dr/ eye test??
Buildings insurance..................... 0
Contents insurance...................... 0 these two are a concern! You must get insured else if anything happens you are paying for a mortgage and no property! Use a comparison site.
Life assurance ......................... 0 - big mortgage, one income and a kid?
Presents (birthday, christmas etc)...... 0 - you don't plan on buying you kid anything?
Haircuts................................ 20 - go less frequently.
Holiday and other expenses ................................. 700 (edited this, was previously just 'holiday' but this is generally the amount we spend on 'non essential'. Have added another note below) - re-evaluate what you are spending
Emergency fund.......................... 0 - again one income and no savings?
Drinks/ social.......................... 150 - urm, start going to cheaper places
Work Lunches............................ 72 - take sandwich/salad/fruit
Can you do different shifts to your OH? If he works days and is home by 6pm and doesn't work weekends, you could do an evening / weekend role. Not great with a family but gets you straightened quicker.Mortgage started 2020, aiming to clear it in 2026.0 -
Is the best strategy to throw yourself into the debt repayments full-throttle? With better planning I'd like to get supermarkets and lunches down to £400 and the expenses on the 'holiday' line down to £300.
Drawingaline - thanks for your reply and sharing. I've googled and it looks like we could get some benefit so thank you for bringing this up.0 -
MovingForwards - thank you for all your notes, and not too blunt at all! We are in a 2 bedroom flat, living in London if that makes any difference.
I've just left the lines where there were queries and thank you GREATLY for drawing my attention to the fact that I need to budget for the 'one offs'. I think this is where we got stuck as they seemed to pop up all the time.
TV Licence.............................. 0 - no live TV / iPlayer watched? We've already paid for the year.
Satellite/Cable TV...................... 33 - what's this cover? Sky TV
Clothing................................ 60 - I assume this is purely for your kid? If it's for you/OH as well use what you have and only replace items as necessary. Purely for our kid. We were both given vouches over Christmas so are just using those.
Petrol/diesel........................... 130- how many miles a month and what car? We have a Qashqai
Car parking............................. 50 - where is this? Work? If so petrol / parking costs may be cheaper to use public transport. This is congestion charge which we might use once a month or parking when we have a day out
Other travel............................ 135 - what's this for?? Zone 1 to 2 travel
Other child related expenses............ 0 - you have no expenses her?? I included these in the £700 holiday line. The main outgoing is swimming £180. But we also do things like Legoland (£120), trips to the zoo (£70), cinema (£50 and £22 for lunch). In addition to these I've probably spent an additional £300 on classes, and entry to things such as Wildlife Parks and London attractions
Medical (prescriptions, dentist etc).... 0 - never go to the dentist/ Dr/ eye test?? Both went to the dentist last year and child is free
Buildings insurance..................... 0
Contents insurance...................... 0 Missed these! £87 a month.
Life assurance ......................... 0 - big mortgage, one income and a kid? This is covered by DH work. I think the package is 3 times his salary
Presents (birthday, christmas etc)...... 0 - you don't plan on buying you kid anything? This is probably a huge expense for us, Typically we spend £200 - £300 about 4 or 5 times a year on this for our child and family members.
Emergency fund.......................... 0 - again one income and no savings?
Need to budget for more 'one offs':
- Water Bill (approx £400 once a year)
- Road Tax (not sure)
- TV license (£125)
- MOT £35 (car repairs currently covered by AA with purchase of car)
- School Uniform
- Weddings and Baby Showers0
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