The light is well and truly on!'

RhiBi · 5 April 2018 at 1:52PM

I realise I'm talking to myself a lot of the time here, but its helping me at least:rotfl:

All 3 direct debits have now been moved to the 'bills account'. I've also updated the direct debit amount paid to that account to reflect the increased amount.

I know I haven't actually changed anything in relation to our level of debt, but I feel now everything will be much more transparent. I've checked our balance, something I've got into the habit of doing every day, and its looking healthy considering I get paid on 13th April, and its only the food shopping this weekend that will need to be spent, plus diesel in the car for DH to get to work.

My youngest daughter is going to a birthday sleepover tomorrow so I will have to buy something for that, but am going to try and keep costs as low as possible! It'll be noted on the budget too!

First load of washing is in from the skiing trip and the sun is shining, so on the line it'll go.

I feel really enthused at the moment to get this sorted, and feel I'm doing well in putting the groundwork in to start making more repayments.

I've also managed to do my PADding to Next today, the statement is due tomorrow, but I'm confident that even with interest added, it'll still be well below the £1400 level. Depending on how my bank balance looks when my pay goes in next friday, I will pay a sizeable chunk off this account then.

As you know, we are going to USA in July, so I really need to save for that. I do have a Revolut card which currently has a balance of £110, so I'm also hoping to put £100 on that too!

stinabean · 5 April 2018 at 2:14PM

Loving the organisation! Makes everything feel much more manageable

enthusiasticsaver · 5 April 2018 at 2:22PM

Re the Swiss francs. The best place to exchange them is where you got them to start with as they usually waive commission. I would exchange them too if you have no plans to return soon.

enthusiasticsaver · 5 April 2018 at 2:34PM

RhiBi wrote: »

Right, I've done another SOA and again, there is absolutely no reason why we are struggling, so a spending diary is definitely the way to go. I've tried to be as accurate as possible, although haven't accounted for clothes/haircuts etc as they are random purchases and for now I want to see what we have left after we pay the things we need to. That, has given me a right kick up the bum to sort this.

Currently, DH gets paid on 28th, and on that day, £1600 gets transferred to another account (Lloyds) where our bills come out, groceries are paid out of our living account as are credit card payments. However, we have a few DD's that have crept into our 'daily living' account. I want to move those 3 DD's over to the Lloyds account so that we can see even clearer where our money is going.

We located the insurance policy we were unsure about - it is the caravan insurance which has jumped up considerably. Policy renewal is in October, so we will be looking around, and using Quidco, in September.
Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 4
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2900
Partners monthly income after tax....... 901
Benefits................................ 192.4
Other income............................ 0
Total monthly income.................... 3993.4

Monthly Expense Details
Mortgage................................ 290.6
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 125
Electricity............................. 60
Gas..................................... 60
Oil..................................... 0
Water rates............................. 36.5
Telephone (land line)................... 32.99
Mobile phone............................ 73.98
TV Licence.............................. 12.67
Satellite/Cable TV...................... 50
Internet Services....................... 0
Groceries etc. ......................... 400
Clothing................................ 0
Petrol/diesel........................... 150
Road tax................................ 21
Car Insurance........................... 28.56
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 35
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 34.47
Buildings insurance..................... 19.37
Contents insurance...................... 0
Life assurance ......................... 91.25
Other insurance......................... 38.97
Presents (birthday, christmas etc)...... 100
Haircuts................................ 0
Entertainment........................... 16
Holiday................................. 130
Emergency fund.......................... 0
Birchbox................................ 12.95
Council Sports Centre Fees.............. 28.5
Professional Body Fees.................. 21.6
Unite Union............................. 14.06
Caravan Storage......................... 41
Total monthly expenses.................. 1924.47

Assets
Cash.................................... 882
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 7000
Other assets............................ 10000
Total Assets............................ 137882

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 27000....(290.6)....0
Total secured & HP debts...... 27000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Next...........................1370......79........22.9
Littlewoods....................400.......36.12.....0
Sainsburys Loan................5260......219.2.....4.2
MBNA 2.........................2700......65........0
MBNA 1.........................10800.....169.......6.9
Barclaycard....................8500......191.......0
MotoNovo (car).................6628......165.7.....4.7
Tesco Loan.....................3900.5....134.5.....3.9
Total unsecured debts..........39558.5...1059.52...-

Monthly Budget Summary
Total monthly income.................... 3,993.4
Expenses (including HP & secured debts). 1,924.47
Available for debt repayments........... 2,068.93
Monthly UNsecured debt repayments....... 1,059.52
Amount left after debt repayments....... 1,009.41

Personal Balance Sheet Summary
Total assets (things you own)........... 137,882
Total HP & Secured debt................. -27,000
Total Unsecured debt.................... -39,558.5
Net Assets.............................. 71,323.5

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

That looks a bit better but personally I think you should put a budget in there for personal spends for things like trips to pub, haircuts etc and a figure for car maintenance based on what you spent last year divided by 12 maybe with £50 to emergency savings too. You pay over £1000 to the debt each month and focusing on that next account is definitely the way to go.

As your pay is spread over the month and you have a bills account for the direct debits it is worth sorting out discretionary spends. I think you will probably be surprised what you get through especially with four kids all pestering for money for this and that. Do they get pocket money for example?

Mumoffourkids · 5 April 2018 at 2:40PM

I have just read Enthusiastic's reply and I have a general spending budget for each week. I am luck yin that my budget can handle this but I have £70 a week which is for general spending, things like school trips, donations towards non school uniform days etc etc. I have six kids so I know how expensive they can get.

I also budget each week for clothes at £25 per week, presents at £37.50 per week, pocket money at £20 per week. I literally have a budget for everything, so if I ever need anything it comes out of that budget. So for example, I am currently sorting out my garage and I wanted some new shelving to organise it a bit better. Well the money for that has come out of my house maintenance savings account which I put money into each week. This will also pay my house insurance and my TV licence annually. It is also there for any issues with my appliances like washing machine, fridge, freezer etc.

RhiBi · 5 April 2018 at 2:43PM

The eldest daughter at uni we usually buy food for - that way we know she'll eat

The 2nd daughter has £25 direct debit into her account - listed under child expenses in the SOA. The younger 2 we give money to if they need it - and if we agree!

Currently, the only hobby is guides which is £2 a week, the others do a few after school clubs which are free

We will look back at accounts for car maintenance too, I know it passed the MOT with no issues, but I also know it recently had the handbrake sorted - thats the limit of my car knowledge I'm afraid!!!

stinabean · 5 April 2018 at 2:44PM

Mumoffourkids wrote: »

I have just read Enthusiastic's reply and I have a general spending budget for each week. I am luck yin that my budget can handle this but I have £70 a week which is for general spending, things like school trips, donations towards non school uniform days etc etc. I have six kids so I know how expensive they can get.

I also budget each week for clothes at £25 per week, presents at £37.50 per week, pocket money at £20 per week. I literally have a budget for everything, so if I ever need anything it comes out of that budget. So for example, I am currently sorting out my garage and I wanted some new shelving to organise it a bit better. Well the money for that has come out of my house maintenance savings account which I put money into each week. This will also pay my house insurance and my TV licence annually. It is also there for any issues with my appliances like washing machine, fridge, freezer etc.

Just to briefly hijack this diary - do you have separate bank accounts for all your different categories? I know I'd benefit by putting bits away once I'm more organised with everything and wondered if it'd mean having 10+ bank accounts.

enthusiasticsaver · 5 April 2018 at 2:45PM

Mumoffourkids wrote: »

I have just read Enthusiastic's reply and I have a general spending budget for each week. I am luck yin that my budget can handle this but I have £70 a week which is for general spending, things like school trips, donations towards non school uniform days etc etc. I have six kids so I know how expensive they can get.

I also budget each week for clothes at £25 per week, presents at £37.50 per week, pocket money at £20 per week. I literally have a budget for everything, so if I ever need anything it comes out of that budget. So for example, I am currently sorting out my garage and I wanted some new shelving to organise it a bit better. Well the money for that has come out of my house maintenance savings account which I put money into each week. This will also pay my house insurance and my TV licence annually. It is also there for any issues with my appliances like washing machine, fridge, freezer etc.

That is the best way to budget. Give every pound a purpose and you know where all your money is going and can spot relatively quickly when you are overspending on a certain category. Takes the panic off trying to find money for things as they crop up too.

RhiBi · 5 April 2018 at 2:47PM

stinabean wrote: »

Just to briefly hijack this diary - do you have separate bank accounts for all your different categories? I know I'd benefit by putting bits away once I'm more organised with everything and wondered if it'd mean having 10+ bank accounts.

Not hijacking at all, as I was wondering the same thing!

enthusiasticsaver · 5 April 2018 at 2:54PM

stinabean wrote: »

Just to briefly hijack this diary - do you have separate bank accounts for all your different categories? I know I'd benefit by putting bits away once I'm more organised with everything and wondered if it'd mean having 10+ bank accounts.

I don't think it is necessary to have lots of bank accounts but five or six is ok. Some can serve more than one purpose and maybe just two current accounts and the rest internet savers.

It is a good idea to have an emergency savings account (maybe a cash isa?) which does not get touched except for emergencies not budgeted for.

Having a bills account is also a good idea where all the direct debits come from and a certain amount goes into that each month after you are paid. Keeping an extra amount in there for annual bills like insurances is also worth doing.

Fuel, groceries and general living expenses can go in a separate account for everyday discretionary spending.

I have a holiday savings account and a car and house savings account. Both internet savers so easy to move in and out. Last one is a gifts and Xmas fund but I keep that in our bills and annual expenses account.

The light is well and truly on!'

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